MaxxoMedia Digital Media and Entertainment Trends

30% consumers age 12 and over own an iPod or other portable media player, this is more than a one-thrid increase from last year (compared to 22% ownership in Jan 06), according to a study by Arbitron. 54% between the age of 12-17 and nearly four in ten adults age 18-34 currently own an iPod or other portable MP3 player.

The number of online digital audio downloaders has grown nearly 25% in the last year. 16% have purchased MP3′s or digital audio over the internet, up from 13% in Jan. 06. More than one-third of weekly online radio listeners have purchased audio from an online download store (iTunes, Amazon). Those who listen to online radio platforms, such as online radio or podcasting, are much more likely to have purchased downloadable music that the average user.

Cupertino, Calif. – Apple CEO Steve Jobs fired a direct shot at the record industry on Tuesday, in the form of an open letter posted to the company’s website that suggests that labels should abandon digital rights management (DRM) technology and release songs for sale in an unprotected format that can play on any device.

“Imagine a world where every online store sells DRM-free music encoded in open licensable formats,” Jobs wrote.

“In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.”

From the cool to the oddball, there are gadgets galore at CES

I always find it interesting in the projections of new media revenue (like the story below) that no one talks about the fact that this isn’t additive revenue – the discretionary entertainment expense pie isn’t growing – the consumer isn’t spending more dollars. As exciting as it is to consider such incredible growth in digital media spending, one has to take into consideration that this will mean a reduction in the purchasing of CDs, less in theatre movie viewing, less premium cable subscriptions – you could also extend this to less spending in other semi-related areas including apparel, dining out and other discretionary expense products and services.

DEARBORN, Mich. (AP) – CD players in automobiles could go the way of eight-track tapes with in-dash systems like one Ford Motor Co. (FPA) and Microsoft Corp. (MSFT) are jointly producing to link cars with cell phones and personal music players.The “Sync” system being unveiled Sunday at the North American International Auto Show connects popular iPods and all other digital music players – including Microsoft’s nascent Zune – to in-dash software through a USB port. Drivers will be able to pick songs, artists or genres using voice activation or controls on the steering wheel.

The system also links Bluetooth-capable smart phones and personal digital assistants to the car’s electronics, allowing the car system to pick up Internet broadcasts. An electronic voice even will read inbound text messages through the sound system, complete with a vocabulary of slang abbreviations such as “LOL” for “laughing for loud.”Sync ratchets up the car electronics war as the struggling Ford tries to compete with General Motors Corp. (XGM)’s OnStar system, DaimlerChrysler AG’ (DCX)s MyGIG in-dash hard drive storage system and similar devices offered by other manufacturers. MORE FROM MYWAY

Nothing really surprising in this article from Troy Wolverton from MercuryNews.com

In the five-week period from Nov. 19 to Dec. 23, iPods accounted for 57.3 percent of all players sold at a panel of electronics stores that notably didn’t include the Cupertino company’s own retail outlets. Apple’s share was up from 42 percent for a similar period last year. Milpitas memory-products maker SanDisk was No. 2 with 19.2 percent of units sold, down from 22.1 percent last year. Microsoft, which debuted its new Zune player in November, came in fourth behind Creative Technology with 2.8 percent of the market. Creative had 3.4 percent.

JANUARY 2, 2007

‘I want my iTunes!’
Several weeks ago, online analysts got into a brouhaha over whether iTunes was growing or not (see Loud Debate over iTunes), but Christmas Day may have made those arguments moot.

According to Hitwise, visits to the iTunes Web site were up 413% on Christmas Day 2006 vs. Christmas 2005 as new iPod owners could not download new digital music fast enough. EMARKETER.COM

MicroOptical Corp.’s Myvu makes watching videos on your iPod more TV-like. The futuristic-looking glasses with connected earpieces simulates watching a 27-inch TV from a six-foot distance, the company says. The Wall Street Journal reviewers said they liked the product’s features, but the design is a bit geeky for everyday, public use.