The "Audience of One": Long-Form Mobile and Portable Content Slowly Emerges

SUMMARY

Summary

The "Audience of One" describes the way that the modern electronic entertainment industry is shaping up. Each individual represents an "Audience of One," and will soon be in position to request that they have access to their electronic entertainment content in any location, on any device, at any time. The concept of the "Audience of One" describes the many new addressable market segments that are emerging. There will still be a mass market for DVDs and music, but there will be many new segments and sub-segments that provide incremental revenue opportunities based on new packaging, new delivery methods, and new devices that make it possible to "consume" electronic entertainment during more hours of a consumer's day. Convenience is becoming as important as the Content, and the more delivery systems that enter into the mix, the more options for convenient Content usage appears.

This report starts at the macro level and discusses the Internet as the de facto storefront for this new audience and its associated emerging markets. The next topics scale down to the user and cover the devices, the channels used to disseminate the Content, and the UMD market. The following section covers luggable media. Finally, the report concludes with a discussion of the importance of managed copies and future expectations.

TABLE OF CONTENTS

Executive Summary

Introduction: The "Audience of One" Begins to Emerge

Methodology

• Previously Issued In-Stat Publications Pertinent to this Report

How Does The "Audience of One" Get Their Hands on Their "Content?"

Mobile Devices Still Have Many Questions to be Answered

• VoWLAN for Mobile Devices

Portable Devices are Likely to be Driven by Music Downloads, Then TV Shows, Then Movies

• Players in the PMP Market
• Content and PMP Forecasts
• PSP and UMD
• Forecasts- Perspective of the Bigger Picture

Luggable Media Uses Solid State Storage and Hard Disk Drives to Replace CDs and DVDs

The Concept of "Managed Copies" Will Become Important

2006 and 2007 Are the Years of Experimentation, 2008 Will Be When the Market Actually Begins to Ramp Up

Snacking on Long-Form Content

List of Tables

• Table 1. Portable Media Player Units in Use by Region, (Units in Thousands)
• Table 2. Revenue per Portable Media Player by Region
• Table 3. Total Portable Media Player Revenue by Region (US$ in Millions)
• Table 4. PSP Units in Use by Region (Units in Thousands)
• Table 5. Revenue per PSP Player for Movie and TV Content by Region
• Table 6. Total PSP Revenue for Movie and TV Content by Region (US$ in Millions)

List of Figures

• Figure 1. Image of the Archos AV 700
• Figure 2. Image of the Apple iPod
• Figure 3. Image of the Samsung Q1 Ultra Mobile PC
• Figure 4. Image of a Sony UMD
• Figure 5. Revenue from PSP UMD Disc Sales, DVD Disc Sales, and Next-Generation DVD Disc Sales (US$ in Billions)
• Figure 6. Revenue Comparison for Video Content Purchased to be Viewed by Player Type: PMP, PSP, Next-Gen DVD Players, and Standard DVD Players (US$ in Billions)
• Figure 7. North American Households with DVD Players, Portable Media Players, PSPs, and Mobile Video Subscribers (Households in Millions)
• Figure 8. Revenue for Media by Consumed by Portable and Mobile Devices (US$ in Billions)
• Figure 9. Examples of Luggable Media- Microdrive, microSD, SD, Memory Stick Duo