Multimedia Handsets: Exciting Capabilities Meet Dull Customer Demand

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Executive Summary
Methodology
Introduction
Multimedia Devices and Phones
*Multimedia Device Industry
*Challenges of Multimedia Capabilities in Wireless Phones
*Multimedia Phone Market Scenarios
Traction for Walled Garden Approach
Simplified Exchange of Files
Acceptance of Unsubsidized Multimedia Phones
Multimedia Phones as a Market Footnote
*Impact of Multimedia Phones on the Multimedia Market
*Summary
Survey Goal and Demographics
Multimedia Phone Users
Interest in Multimedia Formats
*Multimedia Options
User Interest in Digital Music Playback Capability
Interest in Broadcast Audio Capability
Interest in Broadcast Video Capability
Wireless Multimedia Business Issues
*Willingness to Pay for a Multimedia Phone
*Willingness to Pay for a Multimedia Services
*Awareness of Their Carrier’s Multimedia Offering
Volume Forecast
Conclusion

List of Tables
Table 1. Global Sales of Dedicated MP3 Players (Units in Millions)
Table 2. Global Sales of MP3 Players (Units in Millions)
Table 3. Global Unit Sales of Portable CD Players, MP3 Players, and Wireless Phones (Units in Millions)
Table 4. Global Unit Sales of MP3 Players Compared to Unit Sales of MP3 Phones (Units in Millions)
Table 5. Global Unit Sales of Wireless Multimedia Phones (Units in Thousands)
Table 6. Global Revenue from Wireless Multimedia Phones (US$ in Millions)

List of Figures
Figure 1. Change in Interest About MP3 Phone Combination 2005 to 2006
Figure 2. Interest in Multimedia Options by Wireless Users
Figure 3. Unit Sales of MP3 Phones and MP3 Players (Units in Millions)
Figure 4. Awareness of Portable Media Players
Figure 5. Global Unit Sales of MP3 Players Compared to Unit Sales of MP3 Phones (Units in millions)
Figure 6. Age of Respondents
Figure 7. Income of Respondents
Figure 8. Brand of Wireless Phone Used by Respondents
Figure 9. Carriers Used by Respondents
Figure 10. Expected Amount that Respondent Will Pay for Next Wireless Phone
Figure 11. Multimedia Capabilities in Wireless Phones of Respondents
Figure 12. Carriers Used by MP3 Phone Users
Figure 13. Amount MP3 Phone Users and Non-MP3 Users Paid for Their Current Phone
Figure 14. Amount MP3 Phone Users and Non-Users Would Pay for New Phone
Figure 15. Importance of Storage Among MP3 Phone Users and Non-Users
Figure 16. Interest in All Multimedia Formats
Figure 17. Cross Interest in FM and MP3
Figure 18. Interest in MP3 Capability within Wireless Phone 2005 to 2006
Figure 19. Age Ranges of Those Interested and Not Interested In an MP3 Phone
Figure 20. Interest in FM Radio from Year to Year
Figure 21. Interest in AM Radio from Year to Year
Figure 22. Interest in Broadcast TV from 2005 to 2006
Figure 23. Preferred Broadcast Types Among Respondents at Least Somewhat Interested in Receiving Broadcast Television
Figure 24. Interest in Wireless VOD Among Respondents That Are At Least Somewhat Interested in Broadcast TV
Figure 25. Willingness to Pay for New Wireless Phone
Figure 26. Amount Respondents at Least Somewhat Interested In an MP3 Phone Would Be Willing to Pay Extra for this Capability Compared Year to Year
Figure 27. Perceived Importance of Removable Storage Methods by Interest in MP3 Phone
Figure 28. Prospective Customer Memory Expectation for MP3 Phones Year-to- Year Comparison
Figure 29. Desired Methods for Download with Year-to-Year Comparison
Figure 30. Interest in Brand for Next Phone by Multimedia Preference
Figure 31. Preferred Method of Payment for Multimedia Files
Figure 32. Perception of Per Month Pricing for Video on Demand Among Respondents at Least Somewhat Interested in Receiving TV Broadcast
Figure 33. Awareness by the Respondent of their Carrier’s Multimedia Offering
Report's synopsisAbstract
While the growth of dedicated MP3 players has been receiving a lot of press, the number of wireless phones that are capable of playing digital music files is also gaining a significant amount of press. Likewise, wireless phones that can play real-time or recorded video are also on a steep rise. Together, wireless multimedia phones will grow from B globally today to over B in 2007. This growth is in spite of little or no growth in customer demand.
In-Stat surveyed users in North America and found that, in spite of substantial marketing efforts by the major carriers, customers' interest was universally flat from early 2005 to 2006.

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