SOURCE: Telephia

April 03, 2007 13:00 ET

Mobile Audio Is a Significant Growth Opportunity Says Arbitron/Telephia Study

Current Mobile Audio Users Spend More Time Than the General Wireless Population on Nearly Every Media and Entertainment Activity

NEW YORK, NY and SAN FRANCISCO, CA -- (MARKET WIRE) -- April 3, 2007 -- Mobile audio is a promising opportunity that has not yet been fully exploited. That is the conclusion of a landmark study by Arbitron (NYSE: ARB) and Telephia that examines the evolving market for mobile audio services from the consumer point of view in terms of current usage patterns, attitudes and preferences.

Key findings from the study include:

--  One in 16 mobile phone subscribers (6 percent) report using one or
    more mobile audio features in the last 30 days.
--  Downloading music over-the-air has the highest awareness among the
    general mobile population. Listening to music transferred from another
    device is the most commonly used way of accessing mobile audio.
    
                                   Awareness (general    Used last 30 days
Mobile audio option                mobile population)  (mobile audio users)
Sideloaded/transferred audio              32%                   67%
Subscription-based streaming radio        56%                   39%
Downloading over-the-air                  65%                   35%
Free FM radio                             36%                   34%
--  Current mobile audio users spend more time than the general mobile
    population on nearly every media and entertainment activity. The exception:
    current mobile audio users report spending significantly less time per day
    watching TV (2 hours 33 minutes) than do typical wireless subscribers (3
    hours 17 minutes).
    
--  Mobile audio users represent a lucrative segment of the wireless
    marketplace. A larger percentage of mobile audio users (56 percent) spend
    more than sixty dollars a month on wireless subscriptions than the general
    mobile phone user population (49 percent).
    
--  Most current mobile audio users agree that commercials are a fair
    price to pay for free content. More than three quarters of those who
    download content over-the-air and those who listen to free FM radio agree
    that commercials are a fair price to pay for free content. Two out of three
    subscription radio users also agree that commercials are a fair price to
    pay for free programming.
    
--  Nearly two-thirds (63 percent) of current mobile audio users are male.
    People aged 25 to 44 represent 71 percent of all current mobile audio
    users. African-Americans, Asians and Hispanics make up a higher proportion
    of current mobile audio users than they do of the general mobile phone user
    population.
    
    
                                African-
User type            Hispanic   American     Asian      Other    Caucasian
                     ---------  ---------  ---------  ---------  ---------
Mobile audio user       19%        15%        14%        14%        57%
                     ---------  ---------  ---------  ---------  ---------
General mobile user     10%        11%         2%         9%        77%
                     ---------  ---------  ---------  ---------  ---------
--  Pop music is the leading music style for mobile audio users. The
    format preferences of current mobile audio users are broadly consistent
    with the group's demographic profile.
    
--  Attracting new consumers to the mobile audio marketplace will be
    challenging. Approximately two-thirds of "non-current" mobile audio users
    are "not interested at all" in any of the four major options for accessing
    mobile audio services.
    
"There is an opportunity for wireless providers, programmers and marketers to develop an advertising model for mobile audio," said Wayman Leung, senior product manager, Telephia. "Most current mobile audio users prefer the ad-supported model over paying a subscription fee. And this group is a very attractive demographic for advertisers to target as it's comprised mainly of affluent, tech-savvy early adopters."

"For broadcasters looking to expand their platforms beyond terrestrial radio, mobile audio represents an untapped marketplace that they can exploit in partnership with mobile phone networks," said Neal Bonner, product development manager, Arbitron Inc. "Radio broadcasters are uniquely positioned to deliver programming for these promising new audio services."

This mobile audio study brings together two industry-leading market research companies in their respective fields. Telephia is the world's largest provider of syndicated consumer research to the telecom and mobile media markets. Arbitron Inc. is an international media and marketing research firm best known for measuring network and local market radio audiences in the United States. Both companies have brought their unique capabilities together to provide a comprehensive assessment of mobile audio usage and attitudes.

The complete Mobile Audio Media Study may be downloaded free of charge via the Arbitron and Telephia Web sites at www.arbitron.com and www.telephia.com.

How the Study Was Conducted

A 15-minute online survey of over 2,000 wireless subscribers was conducted in February 2007 to investigate Americans' use, preference and perception of different types of mobile audio. The respondents included a group of approximately 1,100 Current Mobile Audio users, 300 Former Mobile Audio users and 600 Non-Mobile Audio users. These target groups were pre-identified in the Q3 2006 to Q1 2007 Telephia Attitude & Behavior Study. The Telephia Attitude & Behavior Study, conducted monthly, is an online survey of over 300,000 adults annually. It provides a nationally representative view of the U.S. mobile subscriber and of the U.S. mobile market.

About Telephia

Telephia is the world's largest provider of syndicated consumer research to the telecom and mobile media markets. Telephia is your connection to the digital consumer. Since 1998, executives at service providers, device manufacturers, content providers, and retailers have relied on Telephia data to make confident competitive strategy, marketing and resource allocation decisions. Telephia uses its unique measurement tools and large-scale consumer panels to completely understand the digital consumer's behavior, attitudes and experience.

To learn how Telephia data can help you understand the digital consumer and track your competitive performance, please contact us at (415) 395-0500 or www.telephia.com.

About Arbitron

Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving the media -- radio, television, cable, online radio and out-of-home -- as well as advertisers and advertising agencies in the United States and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. The company has developed the Portable People Meter™, a new technology for media and marketing research.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland. Arbitron has approximately 1,900 employees; its executive offices are located in New York City.

Through its Scarborough Research joint venture with The Nielsen Company, Arbitron provides additional media and marketing research services to the broadcast television, newspaper and online industries.

Portable People Meter™ and PPM™ are marks of Arbitron Inc.

Contact Information

  • Press Contact Telephia:
    Maria Bumatay
    email: Email Contact
    phone: +1 415.637.4904

    Press Contact Arbitron:
    Thom Mocarsky
    email : Email Contact
    phone: +1 410.312.8239