There has been keen interest in portable media devices since Apple Computer Inc. introduced its iPod in 2001.
Yet while most of the devices available are only for music, several companies are introducing gadgets that also play movies or show digital photos. On some, a user could store and play the entire Beatles’ catalog or a season’s worth of “American Idol” episodes–all on a hard drive-based device smaller than a paperback.
The drawback to these multifunctional devices, however, is that few people use computers as their primary entertainment vehicles. Hence, there is considerable disagreement about how big a market audio and video players will become.
“Music is a bigger market because interacting with audio is essentially a passive behavior. You can practically do anything while you listen to music,” said Michael Goodman, senior research analyst at the Yankee Group.
“But there are very few people who can be crossing against a traffic light while watching video, and they probably won’t be doing that too often.”
Microsoft Corp., on the other hand, believes the growing use of digital cameras and broadband delivery of content through the Internet has prepared consumers for a more robust portable media player.
“We wanted to offer a product that allows people to take it all with them,” said James Bernard, product manager for Microsoft’s soon-to-be released Portable Media Center.
“If they miss an episode of `The West Wing,’ they can tape it and take it along with them on the commute or on vacation. The on-the-go aspect is one of the device’s most compelling features.”
Sales of the iPod and newer iPod Mini continue to explode: In Apple’s second fiscal quarter, it shipped 807,000 iPods, a 909 percent increase over the year-ago quarter. Apple’s share of the hard drive-based digital media player market is roughly 70 percent of the 11 million such players sold last year, according to the Yankee Group.
Dell Inc. and Rio Audio are among the many companies following Apple’s lead and offer similar music devices.
“Other companies are very much trying to compete, and I emphasize `trying,’ because there’s a big difference between competing and trying to compete,” Goodman said.
Heavyweights Sony Corp. and Microsoft are looking to make their moves in the coming months. Sony, which pioneered portable music technology with the Walkman in 1979, is committing much of its resources to the Hi-MD Walkman, the latest in its line of hardware employing the mini-disc.
The Hi-MD allows users to record directly onto the discs, and comes with an upload function so users can record on the device and transfer the content back to their PC. At a news conference this month, Sony said it would introduce four new players in June. Prices are expected to range from $200 to $400.
Sony remains convinced that in a market being driven by hard drive-based players, a device with removable discs (each holding about 45 hours of music, at a cost of $7 per disc) offers attractive features.
The recordable mini-disc format already has found favor with professional musicians and some high-end audiophiles, said Joe Novelli, director of marketing for portable audio products at Sony Electronics.
But some observers say the entire mini-disc line–introduced in 1992–remains a non-starter.
“Mini-disc has never garnered the success that Sony believed it would,” said Michael Gartenberg, vice president and research director at Jupiter Research. “MP3, the Internet, iPod, CD-R have all worked against it. It’s hard to see where MD is the answer. I would be astonished if Sony doesn’t have some kind of hard drive player on the market by year’s end. That’s where the future is.”
Microsoft, too, expects to establish a new product category with the Portable Media Center, said Bernard.
The device, which will come in 20 gigabyte and 40 gb models from several manufacturers, uses Windows Media Audio and Video 9 Series compression technology. With the larger unit, consumers can transfer up to 175 hours of video, 10,000 songs and as many as 100,000 pictures to the device from a Windows XP-based PC.
Five companies have committed to make devices, including Samsung Electronics Co., Creative Labs Inc., iRiver International, Sanyo and ViewSonic Corp.
“They have the expertise to make these devices as easy to use as a remote control or even a toaster,” Bernard said.
Release dates remain up in the air, but Microsoft said devices will be available during the second half of the year. Samsung has said its player, the Yepp YH-999, will be out in July.
Jonathan Sasse, president of iRiver America, expects his company to release its own audio/video player, the PMP-120, in late May. A player compatible with Microsoft’s Portable Media Center likely will follow in August or September, he said.
“These video players do everything audio players do today,” he said. “Consumers who are very happy with the hard drive-based music player will find a better music experience with these. There’s more power, and [users can] add features like music videos and additional artist information to the interface.”
Some multifunctional players already are available.
Thomson Electronics released its Lyra RD2780 Audio/Video Jukebox last year.
“People have more opportunities to listen to music than ever before,” said Rich Phipps, director of business development. “But we believe there’s a younger generation of people who grew up with Game Boys and other video gadgets who are looking for more of a visual experience.”
The Thomson player allows users to transfer content not only from PCs but also directly from an analog source, such as a VCR.
“We want to create as many ways to use the product as possible,” Phipps said.
Sales of the RD2780 have been encouraging, Phipps said, though he did not disclose sales figures.
“The majority of consumers still don’t use the PC for their primary entertainment needs,” he said.
Will Apple partake in these video wars?
IPod worldwide product manager Danika Cleary said Apple is “really focused on continuing to provide the best music experience we can for our customers.”
Others think it is unlikely Apple will build upon the success of the iPod to introduce a video player.
“Steve Jobs thinks watching TV is a waste of time, so [an Apple video player] will never happen,” said one analyst who requested anonymity. “I don’t think Bill Gates spends a lot of time watching TV either, but he’s smart enough to recognize that a lot of people do.”
Goodman said U.S. household penetration for portable media players is only around 5 percent.
“It’s a very young market, and we’re predicting strong growth for at least the next two years or so,” he said.
Gartenberg said there are concerns “about trying to invent an uber device that does everything”
“People don’t want a device that has 10 separate functions,” he said. “People may be interested in renting movies and watching them in a limited, one-time way on a device, but only a laptop really works at this point. The [media center] is slated to solve that, but if Microsoft doesn’t execute on it well, it won’t happen.”
Gartenberg said the iPod–which transfers music from a CD to a PC to the device itself–remains the standard, “and any video player will need to meet that same standard.”
“Video will remain an enthusiast’s market for this year, since it still takes about seven hours to convert two hours of video, but only five minutes to convert a CD. The only people who will [spend the time to convert video] will do it because they can, not because there’s any great reason to do it.”
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Apple gets competition in widening market for portable media devices
Apple Ipod And Ipod Mini
The market-leading iPod comes in 15 gb, 20 gb and 40 gb models. The iPod can import converted MP3 and WAV files and automatically syncs with Apple’s iTunes online music service. The 4 gb iPod Mini (below) comes in five colors–blue, green, gold, silver and pink–and holds 1,000 songs.
Dimensions: 3.6 by 2.0 by 0.5 inches (Mini), 4.1 by 2.4 by 0.62 inches (iPod 15 gb, 20 gb) and 4.1 by 2.4 by 0.73 inches (iPod 40 gb)
Launch: 2001
Price: $249-$499
Microsoft Portable Media Center
Offered by five manufacturers and using Microsoft software, the media center will come in 20 gb and 40 gb models. The bigger unit will hold up to 175 hours of video, 10,000 songs or 100,000 pictures.
The device supports video playback via Windows Media Video (WMV) and audio playback through Windows Media Audio (WMA) and MP3 audio files. Picture-viewing formats include JPEG and TIFF. The interface can show music information, such as when the artist recorded the song and even album art. For TV shows it can include a description and the actors’ names.
Dimensions: Will vary among manufacturers, but units will be about the size of a paperback.
Launch: Second half of 2004
Price: TBA
iRiver PMP-120
This audio and video portable features an integrated 20 gb hard drive and a 3.5-inch color display. Videos can be sent to a TV set or computer. The device offers video-playing time of up to five hours and music-playing time of up to 16 hours. Also comes with remote control.
Dimensions: 5.4 by 3.3 by 1.2 inches
Weight: 9.8 ounces
Launch: Late May
RCA Lyra RD2780
The latest in Thomson Electronics’ RCA line of Lyra products, the 20 gb RD2780 Audio/Video Jukebox offers up to 80 hours of prerecorded video playback and holds more than 9,000 songs. Users also can store the contents of a compact flash card from a digital camera. It features separate audio and video recording modes and can be connected to a TV via an analog video output.
Dimensions: 3.13 by 5.37 by .95 inches
Weight: 10.5 ounces
Launch: 2003
Price: $449
Price: TBA
Rio Karma
The 20 gb Karma can hold over 5,000 MP3 songs and has a 15-hour rechargeable battery. It comes with a docking station that serves as an onboard battery charger and provides a direct connection to an Ethernet port. It also features an enhanced version of the Rio DJ program, which helps aid navigation of music files.
Dimensions: 2.7 by 3.0 by 1.1 inches
Weight: 5.5 ounces
Launch: 2003
Price: $349
Sony Hi-MD Walkman
Employing Sony’s mini-disc technology, the Hi-MD Walkman line promises that users can record up to 45 hours of music on a single 1 gb disc (priced at about $7). The discs are removable and easier to archive than MP3 files.
Dimensions: From 3 1/4 by 3 by 19/32 inches to 33/8 by 11/16 by 31/8 inches
Weight: 3 to 3.9 ounces
Launch: June
Price: $200-$400
Dell DJ
Available in 15 gb (over 7,000 songs) and 20 gb (over 9,000 songs) models, it promises 20 hours of battery life via a rechargeable battery. The 20 gb model includes a carrying case. Plays files in several formats, including MP3, WMA and WAV. The DJ syncs with PCs via Dell’s Music Match library management program.
Dimensions: 4.1 by 2.7 by .86 inches
Weight: 7.61 ounces
Launch: 2003
Price: $199-$279
