US Podcasting Users to Approach 60 Million by 2010

Podcasting Users to Approach 60 Million US Consumers by 2010
The Diffusion Group Predicts Marked Growth For Time-Shifted Digital Audio Programming

Dallas, TX June 15, 2005 - According to new forecasts from The Diffusion Group, a leading consumer technology research consultancy, demand for time-shifted digital audio files or "podcasts" is expected to grow from less than 15% of portable digital music player owners in 2004 to 75% by 2010. TDG's new report, Podcasting: Fact, Fiction and Opportunity, suggests that between 2004 and 2010, the use of podcasting among US consumers will enjoy a compound annual growth rate (CAGR) of 101%.

"Today the term 'podcast' refers to almost any online mobile content distribution service," said Marc Freedman, contributing analyst with The Diffusion Group. "It has taken on very general precepts, thus indicative of its status as a service category as opposed to a branded activity."

While the iPod explosion created demand for both portable digital music players and inexpensive, downloadable content, Freedman contends that it wasn't until consumers became aware of personal video recording and the virtues of time-shifting (that is, downloading or saving to consumer media content when most convenient to consumers) that podcasting became a distinct activity.

"Consumers were already accustomed to downloading music for playback on portable devices - this is a well-engrained activity that precedes online digital music," said Freedman. "However, the downloading of online 'audio blogs' for portable on-demand consumption is certainly new. Yes, the roots of podcasting lie in non-commercial amateur blogging, but podcasting's non-commercial status is changing as more businesses begin to find creative ways to use this new delivery medium to push audio content."

Freedman's claims have indeed been validated by a host of recent commercial podcasting activity. ABC and NBC (along with MSNBC and CNBC) are using podcasting to offer recorded newscasts via online downloads. National Public Radio, Infinity Broadcasting, and even Clear Channel Radio have teed up a number of popular radio programs for podcasting. Even Business Week created a special audio blog to accompany its recent analysis of the podcasting phenomenon.

TDG's latest report, Podcasting: Fact, Fiction and Opportunity, examines the emergence of podcasting, its non-commercial lineage, and its commercial prospects. Additionally, the report offers TDG's reflections and recommendation on how the podcasting will impact the production, promotion, and consumption of audio programming. For more information about this report or The Diffusion Group, visit TDG's website at www.tdgresearch.com.

About The Diffusion Group (TDG Research)

The Diffusion Group is a consumer technology research and strategic marketing firm built by a team of seasoned consumer technology analysts. Our mission is simple: to provide timely, actionable intelligence designed to best position new consumer technologies for rapid diffusion. TDG is committed to providing market research and strategic consulting services based on conservative, real-world analysis and market forecasts grounded in consumer research. For more information about The Diffusion Group, visit our website at www.tdgresearch.com.

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