IDC Audio Survey Finds U.S. Consumers Getting Into the Swing of Digital Audio Technologies

Business Wire, July 5, 2005

FRAMINGHAM, Mass. -- U.S. consumers are experimenting with new audio technologies, from online music services to terrestrial and satellite digital radio and multichannel audio formats, but they still rely on CDs and FM radio as primary sources of music. A growing percentage report already owning new audio technologies, or are planning to make a purchase in the next year. According to a new survey from IDC, nearly 70% of the U.S. households surveyed report spending money on recorded music each month with 23% spending between $10 and $24.99 per month on average.

In addition, ownership and purchase intention for specific types of audio devices and services varies widely depending on consumer demographic and technology ownership variables, with younger people and broadband subscribers more likely than respondents overall to own, or intend to purchase, audio devices and services. IDC believes that vendors offering new audio technologies will face ongoing competition from reliable incumbent technologies and newer entertainment and productivity technologies for consumer mindshare and dollars.

"U.S. consumers can now choose from among an unprecedented number of music formats and devices," explains Susan Kevorkian, senior analyst, Consumer Markets. "Our survey shows that incumbent technologies, such as CD and FM radio, are still favored, while ownership of, awareness of, and intention to purchase MP3 players, satellite radio, music via legitimate online music services, among other devices and technologies, is on the rise."

Key survey findings include:

--53% reported owning portable CD players, compared to 6% who own portable jukebox MP3 players like the Apple iPod Mini

--Nearly 6% reported owning a satellite radio receiver, and 12% indicated a high likelihood of purchasing one in the coming year

--4% of respondents reported using a pay-per-download online music service

IDC conducted its 2004 Consumer Markets: Audio Survey as part of a an ongoing initiative to maintain and enhance its view of demand-side opinions and expectations regarding consumer technologies in U.S. households. It provides a look at consumers' perceptions and purchases related to audio technologies, devices, and services.

The IDC study, The 2004 Consumer Markets: Audio Survey: U.S. Consumers Get Into The Swing of Digital Audio Technologies (IDC #33394), presents and analyzes the results of IDC's 2004 Consumer Markets: Audio Survey. It examines consumer ownership, awareness and intention to purchase music and audio devices. It also analyzes consumer spending on and use of digital music, services, and devices.

To purchase this document, call IDC's Sales hotline at (508) 988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. More than 775 IDC analysts in 50 countries provide local expertise and insights on technology markets, and our management team is comprised of experienced and respected industry luminaries. Business executives and IT managers have relied for more than 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

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