Latest Industry Stats in Audio, Video and Homebuilding
Paid music downloads account for just over a third of total music revenues in the U.S. New construction fueling tech adoption.
With the economy growing, consumers are doing what consumers do—-consume. With all of this increased activity in the consumer electronics industry, it’s time to take a look at some of the possible trends that are developing as a result of the public’s lust for electronics.
Focusing on the audio category first, a recently published story from Home Media Magazine states that despite the rise in popularity of streaming audio, Americans are still purchasing downloads. Using numbers from a MusicWatch study, the research states that one third of U.S. consumers purchased music downloads in 2014, and seven out of 10 buyers shopped at iTunes.
MusicWatch does point out that Amazon MP3 and Google Play did pick up market share from Apple’s hugely popular service, and over the past couple of years these services have been growing at the expense of iTunes.
“As the market leader, Apple bore the brunt of the drop in downloads sales, but iTunes still has tens of millions of loyal, paying music customers,” notes Russ Crupnick, founder and managing partner, MusicWatch. “Armed with a strong iOS product lineup and the potential of Apple Pay, the company is well positioned for its anticipated music streaming service relaunch.”
Apple’s iTunes music revenues are strongest with iOS device owners at 71 percent. 34 percent of Android device owners use the service, which is higher than Google Play’s 20 percent. Overall, MusicWatch adds that Android users still use their computers to buy digital tracks from iTunes.
Over in the streaming market, the research company estimates there are now approximately 130 million music streamers. Crupnick points out that given the current rate of streaming adoption, this format may pass downloaded music consumption.
“If the trends continue through 2015, streaming could surpass paid downloads as the largest revenue source for the U.S. music industry,” he states.
Here are the top five streaming services:
- iHeart Radio
- iTunes Radio
One random factoid from MusicWatch: Although half the vinyl purchased in today’s market is through sales to Americans 26 and younger, 27 percent of vinyl is consumed by Gen X and Baby Boomers.
Just as streaming media is affecting the consumption of music, media such as over-the-top (OTT) video are gaining popularity in American homes, according to statistics announced by Parks Associates.
Parks’ latest data finds 55 percent of U.S. broadband homes subscribe to OTT video services. This percentage is up from 44 percent in 2013, and these numbers are higher with younger heads of households, Parks says.
“Consumers in key demographics have adopted OTT services in large numbers, and now both content companies and service providers need to develop the technologies and solutions to deliver high-quality video experiences to these subscribers,” states Glenn Hower, research analyst at Parks Associates.
In regard to OTT, Parks says subscriptions levels with ages 18-to-24 are 72 percent, and 25-to-34-year-olds almost match those numbers at 71 percent.
Building is Booming
A couple of weeks ago the Consumer Electronics Association (CEA) released its 13th Annual State of the Builder Technology Market Study. Summarizing the trade group’s findings, built-in home technology is growing in popularity as new homebuilders seek to differentiate their products.
A closer look at the study can be found here, but a couple of takeaways include:
- Structured wiring is the most commonly installed technology
- The second most popular tech install is security, and the third most popular is home theater prewire installations
- Automation, stand-alone surveillance systems and intercom systems like behind those other categories
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Bob is an audio enthusiast who has written about consumer electronics for various publications within Massachusetts before joining the staff of CE Pro in 2000. Bob is THX Level I certified, and he's also taken classes from the Imaging Science Foundation (ISF) and Home Acoustics Alliance (HAA). Bob also serves as the technology editor for CE Pro's sister publication Commercial Integrator. In addition, he's studied guitar and music theory at Sarrin Music Studios in Wakefield, Mass., and he also studies Kyokushin karate at 5 Dragons in Haverhill, Mass. Have a suggestion or a topic you want to read more about? Email Robert at email@example.com
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