CEA STUDY UNCOVERS EXPANDING AUDIO UNIVERSE

Audiophile of the 21st Century is Younger, Tech-Savvy and Connected

Arlington, Va., May 11, 2005 - Findings of an "Audio Consumption Study" released by the Consumer Electronics Association (CEA) point to increasing enjoyment of audio content -including music and movies -and highlight the use of audio equipment in various areas including in the home, in the vehicle and on the computer. The study also examines consumer purchasing behavior and usage patterns, as well as overall satisfaction with the home entertainment experience.


The leading source of audio consumption is music, with more than 90 percent of online adults reporting that they have listened to music in the past year. Movies, television, news and weather also proved to be important content sources. Almost half of the online adults surveyed revealed that they most frequently listen to audio content in the home.

"Consumers receive an unthinkable amount of information every day in a variety of formats and sources," said Sean Wargo, director of market research at CEA. "The findings of this study are encouraging as they demonstrate that consumers have not lost their appetite for audio as part of their daily content diet. If anything, audio consumption is on the rise, and that means increased opportunity for the industry and for consumers."

Usage of home audio components in the primary listening room of the home, where the total value of devices averages more than $1,500, revolves around a key set of devices including televisions, DVD players, CD players and stereo receiver/mini systems. Eighty -seven percent of online adults reported being satisfied by the quality of the audio listening experience in the home. Notably, those who are dissatisfied with the audio experience in their home spent approximately half on the audio components they own, totaling $801. Satisfaction drivers include sound quality and volume range, as well as integration into home décor. Dissatisfied respondents cited primarily wiring issues and PC -based listening as their key reasons.

The "Audio Consumption Survey" was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research, international research, and historical trends for the consumer electronics industry. The complete study is available free to CEA member companies. Non -members may purchase the study for $499 at www.ebrain.org.

About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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