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MP3 Everywhere:
Digital Audio Products Proliferate
SCOTTSDALE, Ariz., November 14,
2001 - As the ability to transmit, store, and create music
files through the use of digital audio compression technologies
continues to revolutionize the music industry, interest in new digital
audio "playback" applications and products is increasing, according
to Cahners In-Stat (http://www.instat.com).
The research firm finds that even though most digital audio playback
products have only been available for a couple of years, they have
already succeeded in selling millions of units. While portable digital
music players have been the best-selling digital audio application,
other products like digital audio receivers, digital jukeboxes,
automobile stereos, cellular phones, and even personal digital assistants
(PDAs) will drive future product sales.
"The increased use of the Internet
has spurred the development of new digital audio business models
and products. From portable players to digital audio jukeboxes,
today's audiophiles and digital music consumers have more choices
than ever before," says Mike
Paxton, a Senior Analyst
with In-Stat.
In-Stat has also found that:
- Worldwide portable digital music
player unit shipments will grow from 2.4 million in 2000 to over
9 million in 2005.
- SONICblue, with its popular Rio
line of portable players, remains the leader in worldwide portable
digital music player unit shipments, followed by Creative Labs
and D-Link.
- Margins for most digital audio products
are slim and manufacturing scale is important. Intel's mid-October
announcement that it was exiting the portable music player market
highlights this issue, even though the company had committed significant
resources to product development and had garnered a credible share
of the portable player market.
- At the same time, many manufacturers
believe the digital audio market segment has great potential.
One week after Intel's announcement, Apple Computer introduced
its iPod portable digital music player.
- Demand for new console-type digital
music products, like digital audio receivers and digital audio
jukeboxes, have been low. However, this market is forecasted to
grow significantly through 2005.
The report, "Digital
Audio Update: MP3 Applications Proliferate" (#MM0117DA),
examines the status of digital audio products, focusing primarily
on portable music players, console-type music players, and other
applications that play compressed digital audio files. It also examines
the online music industry, including the status of digital music
distribution and the process of downloading digital music files.
To purchase the report or for additional information, please contact
Matthew Woods at 617.630.2139;
mwoods@instat.com. The report
price is $2,995 USD.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
In-Stat is a unit of Cahners Business
Information (http://www.cahners.com),
a leading provider of critical information and marketing solutions
to business professionals and a member of the Reed Elsevier plc
group.
For more information,
contact:
Mike
Paxton, Senior Analyst - Multimedia
Phone: 480.483.4462
Email: mpaxton@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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