3DsoundSurge Press Release: MP3 Everywhere: Digital Audio Products Proliferate Says In-Stat

MP3 Everywhere: Digital Audio Products Proliferate Says In-Stat

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 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,'' said 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'' (No. 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 visit http://www.instat.com/catalog/cat-mm.htm or 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 (www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

Contact:

     Cahners In-Stat Group, Scottsdale
     Mike Paxton, 480/483-4462
     mpaxton@instat.com
     Kirsten Skedd, 480/609-4534
     kskedd@instat.com