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Analysis of Portable Multimedia Player Market

Compelling video content and good video viewing experience trump cost of video content as the top two factors that will drive consumers' usage of next-generation, video-focused portable entertainment devices, according to Parks Associates.

The data is pulled from the latest Parks Associates survey, and is based on analysis that groups portable multimedia player (PMP) owners' perceptions on 12 individual video consumption factors into five major usage driver categories.

The results indicate that 44 percent of owners choose appealing video content and optimized video viewing experience as their top motivations to watch more videos on the portable platform -- compared with 33 percent who are motivated by cost of content, 19 percent by personalization and connectivity features, and 16 percent by ease of use.

"The PMP market has not reached one tenth of its potential yet, and this data explains why," commented Harry Wang, Senior Analyst and author of the report. "None of the PMP vendors have a perfect score on these five mega factors, although Apple clearly leads the pack in fulfilling the high-ranking needs of the PMP early adopters."

With the latest refreshment of its iPod franchise, Wang explained, Apple is close to having a dream device for portable video. But recent tension with NBC Universal revealed increasing uneasiness toward Apple's market prowess from the content industry, especially on the video side.

"If they act quickly enough, Apple's competitors can take advantage of this rare showing of vulnerability in otherwise a seamless execution of the iPod+iTunes model," Wang said.

"Portable Multimedia Players: Analysis and Forecasts, Second Edition" features Parks Associates' latest research on the portable multimedia entertainment market. This report re-examines the portable multimedia player market since the first report was published in 2005.

Besides highlighting and updating the technology and feature trends, the report analyzes consumers' usage of PMPs and evaluates the impact of the latest digital media consumption trends on the adoption and positioning of PMPs relative to other portable entertainment platforms.

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