Research Shows MP3 Player Sales Increase
JupiterResearch, a division of Jupitermedia Corporation, reported that U.S. shipments of MP3 players will grow 35 percent to 18.2 million in 2005 and maintain a compound annual growth rate of more than 10 percent through 2010, reaching an installed base of 56.1 million, up from 16.2 million in 2004. MP3 players will reach critical mass this year, fueling demand for digital music services and stores, says Jupiter.
"Apple shows no signs of losing momentum," explains Michael Gartenberg, vice president and research director at JupiterResearch. "The iPod is a consumer phenomenon. Apple dominates this sector and will dominate portable MP3 player growth over the medium term." Mostly due to the iPod's success, JupiterResearch has raised its near-term forecast, but projects that flash-based player shipments will surpass those of hard-drive models in 2007.
"Historically, any new device or medium that reaches a U.S. household penetration of 15 to 20 percent creates a critical mass of customers for other products and services," says David Card, JupiterResearch vice president and senior analyst. "MP3 players will hit that mark this year. This is good news for both digital download stores and subscription music services. Subscription services and devices will fuel each other's growth."