JupiterResearch Forecasts MP3 Player User Base to Top 100 Million by 2011; iPod Dominance Unthreatened Over Next 18 Months

Business Wire, Oct 25, 2006

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that growth rates for US sales of dedicated MP3 players will slow dramatically. However, according to a new JupiterResearch report, "US Portable Music Device Forecast, 2006 to 2011," as the market moves beyond early adopters who purchase multiple devices and upgrade regularly, the user base will steadily increase from 37 million in 2006 to over 100 million in 2011.

"Apple shows no signs of losing momentum, having conditioned customers to expect and adopt regular upgrades, as well as defined targeted use cases with optimized functionality," said Michael Gartenberg, Vice President & Research Director at JupiterResearch. "Despite the coming of Zune, the return of closed-loop digital music service-device combinations, and music phones on the horizon, the iPod should not lose significant market share in the next 12 to 18 months."

JupiterResearch also finds that the installed base of mobile phones capable of playing MP3 quality songs will surpass the number of music devise users beginning in 2009, but actual usage of music phones is nascent in the US.

"Impulse over-the-air music purchases will be a tough challenge for both wireless devices and phones due to infrastructure limits, incompatibility, pricing tensions, and user interfaces," said David Card, Vice President & Senior Analyst at JupiterResearch. "US mobile phone carriers are underemphasizing or ignoring altogether the necessity of enabling users to 'sideload' existing music collections onto a phone because they can't charge for it."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology visit www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterkagan.com to request a detailed methodology statement. For additional information on this report or JupiterResearch's Music Research Service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterkagan.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit www.jupiterkagan.com.