October 24, 2007
ABI: Subscription Music Services Key to Growth of Networked Home Audio Market
By Stefania Viscusi, Assignment Desk Editor
Following an announcement earlier this year predicting the Networked Home Audio Market will reach $7.2 Billion by 2012, market research firm ABI has said the Home Audio Market will grow in more ways over the next five years and will feature subscription music services as a key growth enabler.
According to their latest research, ABI notes that "the networked home audio market is set to grow from what largely is a hobbyist and audiophile market into a broader consumer market."
An important factor in this growth is consumers increasingly demanding easy and readily accessible music. For this reason, subscription music services, which allow consumers to select from the latest in digital music and access it throughout their homes, will drive growth.
Michael Wolf, research director for ABI Research (News
) commented, "More and more, consumers look to take advantage of the network to free themselves of single-location enjoyment of their entertainment; ABI Research sees these subscription services as a key offering in the wide array of entertainment offerings for consumers with these systems."
"Real/TiVo, Sirius/Sonos, and the recent acquisition of Sling Media by EchoStar (a distributor of Sirius satellite service) show the importance of how new partnerships will enable networked entertainment in the digital home" also commented Wolf.
Wolf also noted his belief that growth will be "further accelerated by the interest in Wi-Fi-enabled media players from the likes of Apple, Microsoft (News
), and Archos, as consumers look to seize advantage of the freedom provided by the network with regard to digital entertainment."
Other highlights of the research include a prediction that mainstream audio system vendors like Sony, Phillips and Yamaha (News
) will expand into the emerging market by including networking capabilities and that over the next five years, more full-feature home systems will be available in the 500 and below price range.