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Digital Audio and MP3 Players Turning up the Volume in the Worldwide Market

SCOTTSDALE, Ariz., April 16 /PRNewswire/ -- According to a recent report from In-Stat/MDR (http://www.instat.com), the digital audio space is poised to do well, with online subscription services gaining momentum, portable device manufacturers offering an increasing variety of features and devices, and an increase in interest in home jukeboxes and receivers.

The high-tech market research cites that consumers have access to an increasing variety of devices and methods to appreciate digital music, including the ability to enjoy music online, from a portable player, or via their living room stereo.

Additionally, a growing number of consumer electronics devices, such as DVD players, PVRs, and PDAs, are incorporating digital audio technology.

Worldwide portable digital music player unit shipments (including solid state, HDD, CD/MP3 and NetMD products) will grow from about 6.8 million in 2002 to over 36 million in 2007, with hard disk drive-based players experiencing the highest growth rate. CD/MP3 players will have the highest volumes, however, with about 22% of all portable CD players incorporating MP3 technology in 2003.

While online services have introduced their next generation of services, several hurdles remain before this market reaches its potential.

According to Cindy Wolf, an Analyst with InStat/MDR, "Although subscription services are offering some of what consumers are asking for (streaming, downloading, burning), issues related to service bundling, pricing and regulations remain. These services will need to attract more subscribers in the coming year in order to continue to be a viable option for consumers."

The home jukebox and receiver markets are still in their infancy, and are growing at a slow rate in terms of volume. "However, the increased penetration of broadband and home networking technologies, and the ability to share content around the house will have a positive affect on this market," says Wolf. Both home jukeboxes and receivers will experience their highest growth in 2004, but jukeboxes will continue to out-ship receivers.


In-Stat/MDR has also found that:

In In-Stat/MDR's annual Residential Technology Survey, the percentage of respondents owning digital audio players has increased from 15.5% in 2001 to 20.3% in 2002.

For the fourth consecutive year, SONICblue lead the way in worldwide unit shipments of solid state and HDD portable players in 2002.

North America will remain the dominant market for portable digital audio players through 2007.

The report, "Turning Up the Volume for Online Services, MP3 Players, and Digital Audio for the Home" (#IN030576ME), analyzes and forecasts the worldwide market for compressed audio (MP3) players. It includes both portable and home-based products, such as jukeboxes and receivers, as well as the market for online music. The report also evaluates the global music industry, with regard to sales figures, legal issues, and the issues affecting the production and consumption of digital audio subscription services. Market shares and regional break-outs are given for the solid state and HDD market for 2002.

In addition, the worldwide market for portable and home-based players, in terms of unit shipments and revenue, are forecasted for the period of 2002-2007. The portable player forecast includes Flash, Hard Disk Drive (HDD), and revolving media players. An overview of available devices and manufactures is also included. Furthermore, the report discusses overall industry trends and portable device components, including memory and ICs. Results from In-Stat/MDR's consumer survey regarding the digital audio market and related factors are also included.

To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-me.htm or contact Erin McKeighan; [e-mail] or 480.609.4551. The report is priced at $3,295 USD.

About In-Stat/MDR
In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.