CDs Beat MP3s for Music On the Go

Parks Associates releases data showing even digital-music buffs prefer to use CDs

Dallas, Texas September 9, 2003 - Despite the popularity of portable digital music formats, compact disks will persist, according to Parks Associates' Digital Music: Market, Consumers, and Services, which found that only 20% of digital -music users own an MP3 player. Furthermore, only 8% are planning on purchasing such a device within the next 12 months, indicating that consumers still have affinity for the CD format.

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"The CD is being replaced as a distribution method, not a format," said John Barrett a research analyst at Parks Associates. "Digital music users are taking their tracks, burning them onto CDs, and then playing the CDs on their stereos."

Barrett noted that while nearly one -half of all digital -music users store less than 50 tracks on their PC, 80% own a CD burner. CDs, he predicted, would be around for quite some time. "We're going to see a gradual transition to an all -digital format. Digital media adapters (devices that connect PCs to stereos) are too expensive and legacy stereos too numerous for everyone to just suddenly switch within a few years. Plus, how many cars have a hard -drive?"

The survey, conducted for the upcoming report Digital Music: Market, Consumers, and Services, sampled 1,005 households on their digital music habits. For additional information about Parks Associates' Digital Music: Market, Consumers, and Services or digital music, please contact sales@parksassociates.com or call 972 -490 -1113.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co -hosts CONNECTIONS(TM) (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com.

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