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NEW
YORK (Jupitermedia Corporation) JupiterResearch, a division of
Jupitermedia Corporation, reported that U.S. shipments of MP3 players
will grow 35% to 18.2 million in 2005 and maintain a compound annual
growth rate of over 10% through 2010, reaching an installed base of
56.1 million by then, up from 16.2 million in 2004. MP3 players will
reach critical mass this year, fueling demand for digital music
services and stores.
"Apple shows no signs of losing momentum,"
said Michael Gartenberg, VP 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," added
Gartenberg. 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% creates a critical mass of customers for other products and
services," said
David Card, VP and Senior Analyst at JupiterResearch.
"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," added Card.
The
forecast appears in the newly published report, "U.S. Portable Music
Device Forecast, 2005-2010". JupiterResearch analysts will discuss the
implications of the forecast and other key trends in digital music at a
JupiterResearch Executive Breakfast on
Digital Music and Devices in New
York City on April 19, 2005 from 8:00am to 10:45am at the Princeton
Club of New York, 15 West 43rd Street. Attendance is free to qualified
individuals.