Features

iPod Boosts Portable Media Player Growth

By Sophia Mayengbam

Growing consumer awareness, growth in broadband assesses penetration and more authorised video download sites have given a push to the Portable Media Player (PMP) market. In-stat projects that worldwide market for true, video-centric PMPs will grow to 5 million units by the end of 2006, up from a mere 390,000 just two years ago.

Apple’s video-capable iPod, which technically does not fit the definition of a ‘true’ PMP, has played a major role in creating consumer awareness, thus giving a boost to the market.

The video-enabled iPod has spurred a slew of video-capable portable MP3 players from competitors such as SanDisk, Creative, and Samsung. According to In-Stat these products are not classified as ‘true’ PMPs, but they have helped establish the market for portable video.

In-stat latest study, "Portable Media Players: Shipment Growth to Gain Traction in 2006," finds that today, consumers are more aware of portable video, additional PMP brands, and ways in which they can download video to handheld devices.

The PMP market got a sudden push in 2003, however, it failed to hit the market as expected due to low consumer awareness, high price points, and most importantly, lack of easy access to compelling and copyrighted video content.

After its initial sluggish growth, several steps have been taken to bring up this market. There has been an increase activity among manufacturers and content providers to promote the availability for video content for PMPs. Another important factor that has kick started the market is the availability of new products with features such as wireless capability and larger screens.

In a U.S. survey of consumers, In-Stat found that 75 percent of all respondents have some familiarity with PMPs.

The market has overcome most of the challenges it faced, but it still has a long way to go before it is widely accepted. Stephanie Ethier, In-Stat analyst says that despite the fact that PMP shipments are finally gaining traction, suppliers and manufacturers continue to face challenges.

"PMPs will continue to compete with other portable devices offering similar functionality, such as notebook computers, portable DVD players, handheld gaming products, and other mobile devices," said Ethier.

Over the next year, In-Stat expects that improvements in video compression technology, download video content sites, and wireless communications will help drive the PMP market.

The key to further growth of this market will be determined by increased capabilities, innovation and availability of more video content.


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