The online content services market targeted at portable CE devices is poised for substantial growth over the next few years, particularly as more connected devices enter consumers’ hands. IMS Research forecasts that online content purchases made by users of iPods and other portable media players (PMPs) will generate $37.1 billion in service revenues in 2015. 

Based on a new study, World Market for Portable Media Players – Ecosystem, Services & Competing Products, IMS Research estimates that in 2009, ad-hoc transactions initiated by MP3 player and video PMP users worldwide generated $9.4 billion dollars, and another $250 million resulted from subscriptions. Anna Hunt, principal analyst at IMS and report author, states, “CE manufacturers are no longer solely focusing on distributing devices but are expanding their solutions in personal entertainment in order to remain competitive and to monetize on the growing installed base of portable CE devices.” In addition to Apple’s iTunes Store, several other leading PMP suppliers including Sony, Samsung, Aigo and Microsoft are already involved in online content distribution to portable CE devices including MP3 players and video PMPs. 

Hunt adds, “What we’ve learned from Apple, as well as many of the MNOs offering music downloads to handsets, is that direct-to-device downloads allowing for quick and spontaneous purchases are becoming very popular with portable CE users. As connected video PMPs, such as the iPod Touch, become the norm over the next couple of years, we’ll see even more online services targeted at users of these products.” IMS Research forecasts that half of the video PMPs shipping in 2015 will be connected, with Wi-Fi being the most popular connectivity technology. 

Some interesting findings from the study include the following:

• Music downloads are forecast to account for the majority of online paid transactions during the next five years, although decreasing from 82% of transactions in 2009 to 63% in 2015.
  
• Video content downloads will experience strong growth as the video PMP installed base grows to 71% of the entire global installed base of audio MP3 players and video PMPs.
  
• The average transaction cost is forecast to increase from $1.56 in 2009 to $2.23 in 2015. This is due to the increase in video downloads made by video PMP users, as well as a growing demand for premium content such as high-definition videos, audio books and e-books.
  

World Market for Portable Media Players – Ecosystem, Services & Competing Products provides in-depth analysis of the PMP market, including examination of online services targeted at PMP users. The study offers forecasts for audio MP3 player and video PMP installed base, types of transactions initiated by PMP users, and revenue projections by transaction type. Other report contents include: detailed forecasts for MP3 players and video PMPs, split by feature, connectivity technology, and storage type; forecasts for a variety of portable CE devices with multi-media playback capability; and supplier analysis including market share estimates by segment and region.