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Booming Market For MP3 Players
By Mi2N
(more articles from this author)
2004-09-25
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Compressed audio players - also known as MP3 players - are available in portable, home and automotive form factors and from major and minor consumer electronics manufacturers and PC vendors. Broad consumer acceptance of MP3 players is being driven by a variety of factors, including falling price points, the availability of music from legitimate online music services, and the integration of compressed audio support in a wide variety of digital devices, including DVD players and gaming devices. The worldwide compressed audio player market is booming, and is expected to reach nearly $58 billion in revenues by 2008, representing a five-year compound annual growth rate (CAGR) of 20%.

"Compressed audio players - also known as MP3 players - are coming into the mainstream as portable flash player prices fall and capacities rise, the iPod mini and other small form factor portable jukeboxes come to market, and more and more devices, including DVD players and gaming devices, support compressed audio as a secondary feature," says Susan Kevorkian, senior analyst, Consumer Markets. "New opportunities abound for chip vendors, device manufacturers and paid music service providers to guide mainstream music consumers into this rapidly evolving market."

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