New digital audio research from Parks Associates predicts the number of music streaming subscribers worldwide will reach 15 million by 2017, and the number of connected audio products will nearly double between 2013 and 2017.
Dallas, Texas, July 31, 2013 - New digital audio research from Parks Associates predicts the number of music streaming subscribers worldwide will reach 15 million by 2017, and the number of connected audio products will nearly double between 2013 and 2017. Analysts report a strong correlation between the growing penetration of networked audio products, including wireless speakers, speaker docks, multiroom digital music systems, and A/V receivers, and music service subscriptions to Rhapsody, Pandora, Rdio, Spotify, and others.
"Over the past few years, business models and the prospects for profitability in Internet-based music services have changed substantially. The market for connected audio devices is changing as well. Parks Associates first reported on the linkages between music services and connected audio products in 2011," said Brett Sappington, director, research, Parks Associates. "Since then, the number of users of major streaming music services has increased over 200%, while growth in paying users has exceeded 80%."
The report Evolution of Digital Music on Connected Devices finds worldwide unit sales of audio products with networking capability have increased more than 170% to exceed 24 million in 2012. U.S. owners of music systems and devices that connect to the Internet are more than twice as likely as average broadband households to subscribe to music services. In a May 2013 U.S. survey, fourteen percent of households with connected music systems paid for music services, compared to six percent of households without connected music systems.
"Industry attention has focused on conflicts between music services such as Spotify and artists like Thom Yorke from Radiohead, yet the partnerships between streaming music companies and connected CE manufacturers or content providers are fundamental to driving consumer usage," Sappington said. "Partnerships such as Pandora with Google's Chromecast or the Rdio deal with Live Nation will put their services in front of more people, and that accessibility is translating to more users."
Parks Associates analysts say streaming music companies are aggressively tying their services to connected CE products by making available their application programming interfaces (APIs) for a wide number of companies to integrate with their products. For example, Pandora is available on more than 900 CE devices, including a TV-based feature available on the Xbox 360 gaming console.
The firm also notes device companies are taking advantage of lower-cost technologies and connectivity solutions such as AirPlay from Apple to support new use cases such as multiroom streaming, multipoint surround sound for home theaters, and point-to-point connections between mobile devices such as smartphones and tablets and audio equipment.
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About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.
Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, CONNECTIONS™ Europe, and Smart Energy Summit.
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