MP3 Market Approaching Critical Mass

An anonymous reader writes "Led by the Apple iPod, Jupiter Research says that sales of DAPs are reaching a point where it will ignite an industry of support products and services. According to Jupiter analyst David Card 'Historically, any new device or medium that reaches a U.S. household penetration of 15 percent to 20 percent creates a critical mass of customers for other products and services.' The iPod already has a slew of peripherals out there and this is particularly good news for the paid download services like iTunes, especially with Apple announcing Wednesday they sold another 5.3 million iPods last quarter."

Comments

And, more interestingly...

[daveschroeder]

...another News.com article on this topic:

Music moguls trumped by Steve Jobs?

When Apple Computer CEO Steve Jobs walked into the suites of top record label executives in 2002, iTunes software in hand, he was welcomed as a trailblazer to a digital music future.

Now, nearly two years after Apple's iTunes launch, record executives have become worried that they have inadvertently ceded too much power over their industry to this charismatic computer executive.

Frustrated at what they see as Jobs' intransigence on song pricing and other issues, some record executives are now turning their hopes toward other partners, particularly mobile phone carriers eager to get into the business of selling music. They see this new focus as a way to broaden the digital music business, and lessen Apple's dominance over their market in the process.

[...]

For example, Apple wants to sell all its songs for 99 cents each, a single price point that's easy for consumers to understand. But the record labels have pressed for the ability to vary prices to maximize their own sales. They want to sell older titles at a discount--like the $9.99 CDs available in most record stores--and charge more for popular songs to take advantage of market demand.

Full story

Well

[elid]

I understand that the iPod craze has been great for Apple, but I wonder how many people actually buy those accessories that are available (such as the voice recorder and FM transmitter). It's one thing to pay a premium for a high-quality Apple iPod; it's another thing to pay $30 for a an add-on - for features that come standard with other MP3 devices!

Re:Well

[Kimos]

Trust me, people buy them. If they just spent $400 on an iPod they're going to want to protect it, sell them a case. They want to listen to their iPod in their CD players at home/in the car, sell them a transmitter. It's an expensive toy, so $50 more to make it work better and stay in better shape is not much...

Re:Well

[elid]

But it's not even Apple that's making those accessories. So you're paying $30 for that non-Apple add-on. Why isn't Apple making these things?

Re:Well

[justforaday]

The one benefit with radio: You have a much better chance hearing a song you've never heard before.

Where do live that you have this bizarro-radio?

5.3 Million?

[Capt'n Hector]

Cripes. These iPods are like Rabbits in Australia!

Re:5.3 Million?

[Ford Prefect]

Cripes. These iPods are like Rabbits in Australia!

Anyone tried breeding the little bastards? You could make a fortune selling the offspring on Ebay!

Critical Mass

[Pinefresh]

I love that term, it makes it sound like there'll be an explosion. Everyone stop buying i-pods! it's our only hope!

Re:Critical Mass

[superpulpsicle]

I give credit to iPods/Apple for succeeding in the most harsh econmical climate. High unemployment rate, .com market crash, real estate prices are ludicrous.... yet it managed to succeed while being totally overpriced.

Those who fail to learn from history...

[ackthpt]

When Apple Computer CEO Steve Jobs walked into the suites of top record label executives in 2002, iTunes software in hand, he was welcomed as a trailblazer to a digital music future.

Now, nearly two years after Apple's iTunes launch, record executives have become worried that they have inadvertently ceded too much power over their industry to this charismatic computer executive.

Frustrated at what they see as Jobs' intransigence on song pricing and other issues, some record executives are now turning their hopes toward other partners...

Cripes, this is so damn typical of the entertainment industry. They're so interested in screwing everyone they can for a buck that the minute someone is successful using their property, they feel they need to bite back. It's rather like watching a bunch of cavemen around the first fire. One gets burned so they all put the fire out with their clubs, then thump their chests and hoot in victory before sitting around in the dark and cold again.

I think RIAA deserves the Duh! Prize (if there was one.) Next year or so it'll be the MPAA doing the same thing.

critical mass eh?

[vurg]

When will the quality of music reach tolerable mass?

Foresight?

[zbuffered]

If MP3 players are rapidly approaching critical mass, how long will it take before car stereos will feature minijack inputs as standard?

Considering the cost of including one versus the cost of replacing the deck so that you can plug your MP3 player in, why wouldn't more manufacturers be doing this? I know a few are, but I'm in the market for a new car and the deck that comes with it figures into the real cost. Replacing the stock stereo with one that will take input from my MP3 player should be unneccessary if these things are really at critical mass.

"Critical Mass" not good for apple

[0kComputer]

They were talking about this on NPR yesterday, but instead of "critical mass" they called it market saturation.
Thats why Apple's stock took a dump yesterday

Problem for apple is that everyone already has an ipod and it will be tough to find new people to sell to.