Home  › Stats › Audience/Traffic

Digital Audio Player Adoption To Decline In 2006

  |  August 8, 2005   |  Comments

Installed base of digital audio players will continue to increase, but new unit growth will begin to decline next year.

By 2010 the U.S. install base for Digital Audio Players (DAP) will reach 65.6 million. That's according to a DecisionNote forecast from Yankee Group.

As the total installed based of digital audio players increases, Yankee forecasts the number of first-time owners will decrease. The trend will begin in 2006 and continue to gain speed. By the end of 2007, less than half of digital audio player sales will be to first timers. The precipitous decline in new user adoption will fall to below 5 percent by 2008. The installed base of DAPs grew dramatically in 2004, hitting 10.3 million installed units, up from only four million in 2003, according to Yankee Group.

In February of 2005, the Pew Internet and American Life Project reported iPod adoption had reached the tipping point. Pew estimated over 22 million American adults own MP3 players or iPods.

According to Yankee Group, Apple's iPod represented three-quarters of all DAPs shipped in 2004, a position Yankee Group expects Apple to retain, thanks to its marketing and iTunes initiatives.

Broadband has also been one of the drivers behind DAP adoption. The market gained traction in 2004 when the U.S. broadband audience reached 30 million. Some 43 percent of U.S. households will have broadband access by the end of 2006 according to Yankee Group forecasts.

Yankee Group's 2004 IP Entertainment Survey found that 45 percent of internet users listen to music on their PC. Of those, nearly half have downloaded music.

"With the expanded accessibility of high-speed Internet and availability of online music services, DAPs are poised to become a mass-market product category," the report stated.

Yankee Group recommends that DAP manufacturers take advantage of free content such as podcasting. "Leveraging the growth of legitimate free content will be critical in offering consumers a compelling value proposition," the report said.

In April, the Pew Internet and American Life project reported that podcasting was growing in popularity. Twenty-nine percent of iPod- and MP3 player-owning Americans over the age of 18 report that they have listened to podcasts.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...