June 30, 2005 | Comments
Portable media players will only reach 17 percent of online households by 2010.
Shipments of portable multimedia players (PMP) are expected to reach 13 million units by 2010, according to "Portable Multimedia Players: Analysis and Forecasts," published by Parks Associates.
The units include both portable media players and Microsoft-licensed Portable Media Center players. The market share in 2010 will account for only 17 percent of U.S. online households, for which the report blames high prices and limited video content slow adoption. Competition from other devices such as portable DVD players and mobile phones with multimedia functions also steal momentum from portable media players with only one dedicated function: playing video.
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Manufacturers should raise interest in the platform by bundling unique video content, plus raise product awareness among consumers receptive to portable multimedia content. "Companies can find innovative ways to bundle content, it is up to the service provider," Harry Wang, research analyst at Parks Associates, told ClickZ News. "It gives consumers a sense of value-add, and it guarantees content and device compatibility issues."
A company already offering bundled packages is iRiver. Its Portable Media Center includes a one-year Napster subscription. Wang said packages such as this one will make the platform more attractive to consumers.
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