Consumers Will Demand More Interoperability - Report

Early Adopters, or "Tech Enthusiasts" as they are called, outspent the general public significantly this year on portable entertainment devices, spending an average of US$704 versus just US$421 for the average American adult, according to research released from the Consumer Electronics Association (CEA) and CNET. The joint study, CEA | CNET Tech First Panel: The Early Adopter and Portable Entertainment Devices, looked specifically at the Online Enthusiast/Early Adopter as an indicator of tomorrow's mainstream consumer.

"We can learn a great deal about market potential among the general public by understanding the current desires and buying patterns of Tech Enthusiasts, who lead the curve in terms of adoption of high tech products," says Steve Koenig, CEA's senior manager of industry analysis. "The results of this study tell us to expect a great deal of growth among the general public in the area of portable entertainment devices, specifically the MP3 player and laptop markets."

Over half of the Tech Enthusiasts studied own a portable MP3 player, versus just 20% of adults. Further, 91% own a wireless phone, 72% own a laptop and 46% own a PDA. This group owns an average of 2.3 separate portable devices that can access entertainment content.

While those studied primarily use their devices to listen to music, they are significantly more likely than members of the general public to find other uses for their devices such as listening to audio books, viewing digital photos and downloading podcasts. Fully three-quarters of Tech Enthusiasts expect to purchase content specifically for their portable digital media devices in the next year. These results likely foreshadow increased adoption of these activities among the general public.

"It is evident that there is a growing demand for portable entertainment devices," said Claudia Haase, senior manager of research for CNET. "Digital media devices have been one of our most popular categories on CNET for years, and we continue to see significant interest in this space from our users. Our user panel provides us with the inside track that helps us forecast trends and the next "big thing" for consumers interested in tech."

The most common complaints from the Tech First panelists were battery life and the type of files that can be used. Like most consumers, they'd also like to see lower prices for digital media files in the future. In addition, they expressed concerns about the selection of digital media available in the marketplace, with more than half saying they would like to see a broader variety of digital music content available for purchase in the future. The issue of interoperability was also among the items that tech enthusiasts said they would like to see addressed.

"Interoperability, both in the home and in vehicles, represents the best opportunity for makers of the digital audio and video players and accessories to expand their market share by fulfilling a current gap," says Koenig."

Posted to the site on 16th October 2006

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