Dunstable, Beds., UK (November 10, 2009)–Internet radio will drive home audio networking, according to a new report from Futuresource Consulting.
The rise of connected devices and internet radio are laying the foundations for multi-room networked audio, according to a new strategic report from Futuresource Consulting, The Business Potential for Networked Audio.
The digital music market in the US now accounts for 35 percent of the country’s music revenues, with a subscription market worth nearly $3 billion (85 percent derived from satellite radio). In the UK, consumers spend almost twice as much on music per capita as the US and European average. Combine this with a rapid uptake of consumer laptops, notebooks and wi-fi-enabled broadband, and the market is shaping up for a networked audio revolution, Futuresource believes.
Standalone internet radio manufacturers is currently include Grace, Roberts, Revo and Magic Box, with the market primarily focused within the US and UK. Hardware is bundled with navigation portals, such as Reciva. Futuresource forecasts that the market for internet radios will grow from a small niche in 2008 (less than 500,000 units worldwide) to close to five million units by 2013.
“Server-to-audio networking, combined with wireless multi-room audio systems, is just the beginning,” says Watkins. “Several vendors are already developing networked solutions which allow remote control of your iPod and other handheld devices across a home network, effectively turning handheld devices into servers. Throw in the iPhone’s capability to act as both a music source and a wireless remote controller, and the outlook starts to look very enticing.
“However, there are challenges to overcome. The majority of consumers are currently unwilling to pay for streamed internet radio services, so the search is on for sustainable business models… [B]y 2013, networked features on medium range audio devices will be standard fare, and consumers will increasingly become dependent on the internet for their music. With the continued rise of home networks, it is evident that internet radio is here to stay–and it’s just a short leap to networked audio.”
Futuresource Consulting, Ltd.