Audio Equipment and Content Enhance Consumers’ Lives, CEA Study Finds

ARLINGTON, Va.--(BUSINESS WIRE)--A majority of consumers view music and other audio content as a vital component of their daily lives, according to a new study by the Consumer Electronics Association (CEA)^®. The study, The Evolution of Audio: Is Anyone Listening?, found that 67 percent of consumers believe audio is an important part of their life and almost half (48 percent) report they are always listening to some form of audio content.

“Gone are the days when consumers purchased a single type of content, to play on a single type of device, exclusively for dedicated audio listening”

Overall audio consumption – whether music (73 percent), television shows, news or information sources (68 percent) – is a large part of consumers’ day-to-day lifestyle. But, the study found that consumers appear to be listening less than they were three years ago. The percentage of consumers reporting daily consumption of music has fallen to 73 percent from 91 percent while TV show audio listening has dropped to 68 percent from 81 percent since 2005. Only audio from playing games has remained stable at 34 percent.

“Gone are the days when consumers purchased a single type of content, to play on a single type of device, exclusively for dedicated audio listening,” stated Steve Koenig, CEA’s director of industry analysis. “Successful manufacturers are using formats that allow them to stay in front of customers who are navigating across an array of content choices.”

Headphones/earbuds, portable MP3/digital audio players and home-theater-in-a-box systems top the list of planned purchases for the next 12 months. On average consumers plan to spend $242 on audio devices in the coming year, representing $27.6 billion in potential household demand.

On average, consumers spend 12.5 hours each week listening to some form of audio content in the home and 14.7 hours each week listening at work. Music, TV shows, news and information sources were the most common types of audio listened to at home, with the television as the most common audio source (77 percent) and the desktop PC coming in a distant second (55 percent). More consumers are using laptop computers, portable MP3/digital audio players, cell phones, or satellite radio in their homes than in the past. In fact, usage of portable MP3/digital audio players has risen from nine percent to 27 percent over the past three years and satellite radio usage increased from four percent to nine percent.

Consumers demonstrate a preference for the multi-media experience in the home. Only a quarter of respondents said most or all of their listening time is audio-only. The majority responded they watch some video content along with their audio equipment and only 25 percent stated they would rather spend money improving their video experience than their audio experience.

A quarter of respondents reported purchasing a TV within the past 12 months. Although only 28 percent of purchasing dollars were earmarked for new audio equipment, respondents noted they will be using existing audio equipment such as home-theater-in-a-box systems to enhance their experience.

The Evolution of Audio: Is Anyone Listening? (December 2008) was fielded in September 2008 and is CEA’s study providing in-depth insight into audio consumption habits. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA)^®. The complete study is available free to CEA member companies. Non-members may purchase the study for $999 at http://CE.org. CEA will host a webcast on this study on Thursday, December 11, 2-3 p.m. (ET).To register for the webcast, please contact Steve Kidera at skidera@ce.org by Wednesday, December 10.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $173 billion U.S. consumer electronics industry. More than 2,200 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES – Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA’s industry services. Find CEA online at www.CE.org.

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