Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Portable media player market value forecast, 2006-16
- Figure 2: Responses to ‘Who chose the MP3/MP4 player?’, from those who had purchased a portable media player in the past 12 months, 2011
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- Figure 3: Amount spent on PMPs, 2010 and 2011
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- Figure 4: Locations MP3/MP4 players were purchased from in the last 12 months, 2010 and 2011
- Market factors
- Convergence of functionality in smartphones threatens future PMP sales
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- Figure 5: Smartphone and PMP ownership, October 2010-July 2011
- Digital music and video use rising
- Sports usage a potential opportunity in saturated market
- The consumer
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- Figure 6: Brand ownership, November 2011
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- Figure 7: Usage frequency, November 2011
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- Figure 8: Purchase locations, November 2011
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- Figure 9: Desired features, November 2011
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- Figure 10: Attitudes towards PMPs, November 2011
- What we think
Issues in the Market
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- What opportunities remain in this mature market?
- Can bricks-and-mortar retailers regain the custom of heavy spenders?
- How will the drop in purchasing of middle-priced devices affect the market?
- How much of an effect will the increasing usage of digital video have on the market?
Future Opportunities
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- Inspire Insights
- Trend: Why Buy
- Trend: Make it Mine
Internal Market Environment
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- Key points
- Digital music sales continue to rise
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- Figure 11: Value of music sales in the UK, 2006-10
- Figure 12: Downloads as a percentage of all music purchases, by volume, 2007-16
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- Figure 13: Market value and forecast of downloaded music sales, UK, 2006-16
- Digital music sales channels diversify
- Streaming music services gain traction
- Consumer data use suggests greater digital video consumption
- Broadcasters take greater steps towards mobile access
- Feature convergence a persistent threat
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- Figure 14: Multimedia consumption on smartphones and portable media players, August 2011
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- Figure 15: Smartphone and PMP ownership, October 2010-July 2011
- Microsoft quits in favour of convergence
- Use of Android OS increases
- More advanced models defecting to other category types?
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- Figure 16: Portable device current and future ownership, July 2011
- Sports usage a potential PMP niche
Broader Market Environment
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- Key points
- Consumer confidence continues to fall
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- Figure 17: GFK NOP Consumer Confidence Index, January 1988-October 2011
- Broadband penetration slowly increases
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- Figure 18: Broadband penetration, by socio-economic group, 2006-11
- Those with the highest engagement set to grow in number
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- Figure 19: Trends in the age structure of the UK population, 2006-16
- Older consumers may be attracted by different form factors
Who’s Innovating?
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- Beat music player allows gesture control for exercising music fans
- Apps allow customising of playback beyond hardware defaults
- MP3 playback functionality included in novel devices
- Future innovations
Market Size, Segmentation and Forecast
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- Key points
- Market decline continues
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- Figure 20: Value of the portable media player market, 2006-11
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- Figure 21: Purchase of MP3/MP4 players in the last 12 months, 2010 and 2011
- Major manufacturer sales figures begin to trend downwards
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- Figure 22: Worldwide Apple iPod and iPhone sales figures for all models, Q1 2004-Q4 2011
- Market splitting into two groups?
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- Figure 23: Amount spent on PMPs, 2010 and 2011
- Market forecast
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- Figure 24: Portable media player market forecast, 2006-16
Channels to Market
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- Key points
- Specialist shop and internet popularity grows in 2011
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- Figure 25: Locations MP3/MP4 players were purchased from in the last 12 months, 2010 and 2011
- Respondents choose majority of PMPs themselves
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- Figure 26: Responses to the question ‘Who chose the MP3/MP4 player?’ from those who had purchased a portable media player in the past 12 months, 2011
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- Figure 27: Purchasers of MP3/MP4 players, by gender and age, 2011
Brand Communication and Promotion
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- Key points
- Topline adspend falls from 2007
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- Figure 28: Topline UK manufacturer adspend on PMPs, 2007-10
- Apple carries the bulk of manufacturer advertising
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- Figure 29: Adspend on PMPs, by manufacturer, 2007-10
- Adspend by retailer
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- Figure 30: Adspend on PMPs, by retailer, 2007-10
- TV garners overwhelming majority of adspend
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- Figure 31: Manufacturer adspend, by media, 2007-10
Companies and Products
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- Apple
- Creative
- Philips
- Samsung
- Sony
Brand Ownership
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- Key points
- Apple remains dominant brand
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- Figure 32: Brand ownership, November 2011
- Only three companies gain consumers year on year
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- Figure 33: Brand ownership, 2010 and 2011
- Apple ownership higher amongst younger consumers
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- Figure 34: Brand ownership, by age, November 2011
- Sony PMP second most likely to be secondary device
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- Figure 35: Brand ownership, by brand ownership, November 2011
Usage Frequency
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- Key points
- Two thirds of PMP owners use their devices regularly
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- Figure 36: Usage frequency, 2010 and 2011
- Apple owners most likely to be regular users
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- Figure 37: Usage frequency, by brand ownership, November 2011
Purchase Locations
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- Key points
- Online purchases popular overall, but stores still retain popularity
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- Figure 38: Purchase locations, November 2011
- Youngest demographic evenly split
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- Figure 39: Purchase locations, by age, November 2011
- Low ownership brands show highest online purchase bias
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- Figure 40: Brand ownership, by purchase location, November 2011
- Majority of purchases made from Amazon
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- Figure 41: Purchase locations (combined online and in-store), November 2011
- In-store buyers more likely to be rare users
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- Figure 42: Purchase locations, by usage frequency, November 2011
Desired Features
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- Key points
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- Figure 43: Desired features, November 2011
- Existing owners prefer high capacity
- Advanced features more of a draw to higher earners
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- Figure 44: Interest in touchscreen controls and app capability, by gross annual household income, November 2011
- Sony, Samsung and Philips owners have higher focus on audio quality
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- Figure 45: Top five desired features in future PMP purchases, by brand ownership, November 2011
- Stores gain extra custom from those looking for included extras
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- Figure 46: Interest in included extras, by purchase location, November 2011
Attitudes towards PMPs
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- Key points
- At least a quarter of consumers defect to other technologies
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- Figure 47: Attitudes towards PMPs, November 2011
- Apple users the least likely to upgrade their PMP
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- Figure 48: Attitudes towards PMPs, by brand ownership, November 2011
- Exercise-focused PMP owners desire streamlined experience
- Desire to replace smartphones not an urgent motivator
- Consumers engaged with the market tend to shop online
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- Figure 49: Consumers who are happy to purchase new content for their devices or would upgrade their portable media players if a new version was released, by purchase location, November 2011
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- Figure 50: Regular usage of PMPs, by agreement with the statements ‘I am happy to purchase new content specifically for my portable media player’ and ‘I would upgrade my portable media player, if a new version was released’, November 2011
Target Groups
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- Key points
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- Figure 51: Target groups, November 2011
- Defectors
- Key characteristics
- Who are they?
- Marketing message
- Own and Disown
- Key characteristics
- Who are they?
- Marketing message
- Possible Purchasers
- Key characteristics
- Who are they?
- Marketing message
Appendix – Internal Market Environment
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- Figure 52: Forecast of downloads as a share of pre-recorded music market, 2006-16
- Figure 53: Best- and worst-case scenarios for downloaded music forecasts, 2011-16
- Figure 54: Device penetration, October 10-July 11
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Appendix – Market Size and Forecast
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- Figure 55: Best- and worst-case forecasts for the PMP market, 2011-16
- Figure 56: Apple iPod and iPhone sales in ‘000s, Q1 2002-Q4 2004
- Figure 57: Apple iPod and iPhone sales in ’000s, Q1 2005-Q4 2007
- Figure 58: Apple iPod and iPhone sales in ‘000s, Q1 2008-Q4 2011
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Appendix – Brand Communication and Promotion
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- Figure 59: Adspend on PMPs, by retailer, 2007-10
- Figure 60: Adspend, by media, 2007-10
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Appendix – Brand Ownership
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- Figure 61: Brand ownership, November 2011
- Figure 62: Brand ownership, by brand ownership, November 2011
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- Figure 63: Brand ownership, by demographics, November 2011
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Appendix – Usage Frequency
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- Figure 64: Usage frequency, November 2011
- Figure 65: Brand ownership, by usage frequency, November 2011
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- Figure 66: Usage frequency, by brand ownership, November 2011
- Figure 67: Usage frequency, by demographics, November 2011
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Appendix – Purchase Locations
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- Figure 68: Purchase locations, November 2011
- Figure 69: Brand ownership, by online purchase locations, November 2011
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- Figure 70: Brand ownership, by in-store purchase locations, November 2011
- Figure 71: Usage frequency, by online purchase locations, November 2011
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- Figure 72: Usage frequency, by in-store purchase locations, November 2011
- Figure 73: Purchase locations, by brand ownership, November 2011
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- Figure 74: Purchase locations, by usage frequency, November 2011
- Figure 75: Online purchase locations, by demographics, November 2011
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- Figure 76: In-store purchase locations, by demographics, November 2011
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Appendix – Desired Features
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- Figure 77: Desired features, November 2011
- Figure 78: Brand ownership, by most popular desired features, November 2011
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- Figure 79: Brand ownership, by next most popular desired features, November 2011
- Figure 80: Usage frequency, by most popular desired features, November 2011
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- Figure 81: Usage frequency, by next most popular desired features, November 2011
- Figure 82: Purchase locations, by most popular desired features, November 2011
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- Figure 83: Purchase locations, by next most popular desired features, November 2011
- Figure 84: Desired features, by brand ownership, November 2011
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- Figure 85: Desired features, by usage frequency, November 2011
- Figure 86: Desired features, by online purchase locations, November 2011
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- Figure 87: Desired features, by in-store purchase locations, November 2011
- Figure 88: Desired features, by most popular desired features, November 2011
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- Figure 89: Desired features, by next most popular desired features, November 2011
- Figure 90: Most popular desired features, by demographics, November 2011
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- Figure 91: Next most popular desired features, by demographics, November 2011
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Appendix – Attitudes towards PMPs
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- Figure 92: Attitudes towards portable media players, November 2011
- Figure 93: Brand ownership, by most popular attitudes towards portable media players, November 2011
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- Figure 94: Brand ownership, by next most popular attitudes towards portable media players, November 2011
- Figure 95: Brand ownership, by least popular attitudes towards portable media players, November 2011
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- Figure 96: Usage frequency, by most popular attitudes towards portable media players, November 2011
- Figure 97: Usage frequency, by next most popular attitudes towards portable media players, November 2011
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- Figure 98: Usage frequency, by least popular attitudes towards portable media players, November 2011
- Figure 99: Purchase locations, by most popular attitudes towards portable media players, November 2011
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- Figure 100: Purchase locations, by next most popular attitudes towards portable media players, November 2011
- Figure 101: Purchase locations, by least popular attitudes towards portable media players, November 2011
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- Figure 102: Desired features, by most popular attitudes towards portable media players, November 2011
- Figure 103: Desired features, by next most popular attitudes towards portable media players, November 2011
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- Figure 104: Desired features, by least popular attitudes towards portable media players, November 2011
- Figure 105: Attitudes towards portable media players, by brand ownership, November 2011
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- Figure 106: Attitudes towards portable media players, by usage frequency, November 2011
- Figure 107: Attitudes towards portable media players, by online purchase locations, November 2011
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- Figure 108: Attitudes towards portable media players, by in-store purchase locations, November 2011
- Figure 109: Attitudes towards portable media players, by most popular desired features, November 2011
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- Figure 110: Attitudes towards portable media players, by next most popular desired features, November 2011
- Figure 111: Attitudes towards portable media players, by most popular attitudes towards portable media players, November 2011
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- Figure 112: Attitudes towards portable media players, by next most popular attitudes towards portable media players, November 2011
- Figure 113: Attitudes towards portable media players, by least popular attitudes towards portable media players, November 2011
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- Figure 114: Most popular attitudes towards portable media players, by demographics, November 2011
- Figure 115: Next most popular attitudes towards portable media players, by demographics, November 2011
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- Figure 116: Other attitudes towards portable media players, by demographics, November 2011
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Appendix – Target Groups
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- Figure 117: Usage frequency, by target groups, November 2011
- Figure 118: Purchase locations, by target groups, November 2011
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- Figure 119: Desired features, by target groups, November 2011
- Figure 120: Attitudes towards portable media players, by target groups, November 2011
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- Figure 121: Target groups, by usage frequency, November 2011
- Figure 122: Target groups, by online purchase locations, November 2011
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- Figure 123: Target groups, by in-store purchase locations, November 2011
- Figure 124: Target groups, by most popular desired features, November 2011
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- Figure 125: Target groups, by next most popular desired features, November 2011
- Figure 126: Target groups, by most popular attitudes towards portable media players, November 2011
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- Figure 127: Target groups, by next most popular attitudes towards portable media players, November 2011
- Figure 128: Target groups, by demographics, November 2011
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