By Jay Wrolstad

NewsFactor Network

February 16, 2005 12:19PM

``When any technology reaches the 10 percent saturation rate, it is no longer occupying a niche -- it is on the way to mainstream,`` says Pew Internet and American Life Project director Lee Rainie.

American music lovers are embracing portable digital music players in huge numbers, with one in ten adults owning an iPod or other portable device for storing and listening to tunes.

Survey results offered by the Pew Internet and American Life Project (PIP) show that some 22 million of those ages 18 and older own MP3 players, and suggest that the total is much higher when teens are factored into the equation.

Not Just Kids` Stuff

As for who is buying the mobile digital music hardware, PIP poll results indicate that nearly one in five (19 percent) of individuals under age 30 have iPods/MP3 players, while 14 percent of those ages 30 to 39 have them, as do 14 percent of younger Baby Boomers (ages 40 to 48).

Most purchases are made by those in the upscale income brackets; 24 percent of those in households earning more than US$75,000 have the players, falling to just 6 percent of those earning less than $30,000.

PIP notes that Internet access, particularly broadband connectivity, is a primary contributing factor to the uptake of MP3 players. Fifteen percent of Internet users have the devices, rising to 23 percent of homes with high-speed access.

Major Migration for Music Industry

``When any technology reaches the 10 percent saturation rate, it is no longer occupying a niche -- it is on the way to mainstream,`` PIP director Lee Rainie told NewsFactor. The introduction of less expensive players, such as Apple`s Shuffle, indicates that the market finds a way to reach more consumers, he said.

Survey findings indicate that contrary to popular belief, a significant number of those over age 30 own MP3 players. Rainey suggested that parents are adopting the habits of their kids when it comes to listening to music.

Yankee Group analyst Michael Goodman said the report supports research from his organization, and that the music industry is undergoing a significant migration to a new platform -- just as it did when Sony`s Walkman was introduced, and later with portable CD players.

The number of people with digital music players is expected to from 35 million today to 67 million by 2009, Yankee Group reports.

``Now we have Flash and hard drive digital audio players, with sales of these products growing rapidly,`` he told NewsFactor. Perhaps more interesting, said Goodman, is the bifurcation among users in how the tunes are obtained. Yankee Group estimates that 58 percent get their music through file-sharing and 32 percent used licensed outlets. As might be expected, peer-to-peer networks are favored by younger consumers.

Rainie agrees that there is a lot of swapping going on, and noted that PIP has yet to delve into the social uses of MP3 players.

Phone Makers Play Catch-up

There is no question that portable digital music is on a roll, with phone manufacturers getting on the bandwagon. Microsoft recently hooked up with Nokia to deliver music from PCs to handhelds in an effort to grab a piece of the market dominated by Apple`s iPod.

But phone makers still have to convince customers who feel that phones are primarily communications devices, Goodman said, not music players. ``There is an opportunity for them, but the window is closing.``