According to Gartner, IT spending is set to hit $3.8 trillion in 2014 – up 3.6 per cent on the last year – with uplift driven by the growing adoption of connected devices, ranging from jewellery to refrigerators.
The stage is set for a series of shifts that will affect how we use technology in everyday life. We will be wearing more technology, enjoying higher quality audio/video and streaming more content than ever before.
2. Smartphone ownership is driving wireless speaker demand and consumption of music streaming services
Smartphone adoption continues to grow with an anticipated 1.8 billion owners globally by the end of 2013 while developed markets such as the UK and USA are reaching saturation with penetration at 93 per cent and 84 per cent respectively. This growth in smartphones gives consumers wireless streaming at their fingertips, thereby creating greater demand for wireless audio devices such as the Jongo multiroom speaker system on which to listen to this music.*
Over half – 57 per cent - of consumers are already listening to music on their smartphones although just 1 in 5 are sharing music from their smartphone with another device indicating that there is a large pool of potential customers for wireless audio devices. In fact, by 2017, the global market for wireless speakers is expected to reach 55m units and will eclipse the speaker dock market by this time.*
According to IFPI, (International Federation of the Phonographic Industry), digital music services are fuelling the global recorded music industry’s path to recovery. Consumption of audio via digital formats is now more popular than via physical formats such as CDs and vinyl (44 percent to 41 percent respectively).**
We are also seeing the emergence of frictionless music services and momentum is building for micro subscriptions. O2 Tracks (a music service offered by a UK cell phone operator) is a good example of this as it delivers the top 40 singles to the user’s phone for just £1 a week.
Says Nick Hucker, Pure’s marketing director: “Today, music services are nascent and don’t cater for everyone and all genres. Access to music services is becoming commoditised and people, especially younger users, no longer have a deep knowledge of the artists they listen to. Music service providers need to make their services relevant to each audience or there is the risk of losing some people along the way.”
“Our long term vision for our music service, Pure Connect, is to enable our customers to personalise their music experience. We’ll be innovating around our customers and providing tailored services for genres such as jazz or classical where despite huge popularity – for example, Classic FM radio station in the UK has over 6 million listeners per week – there are relatively few people embracing this genre in the streaming world.”
Visit www.pureconnect.com and get a free month trial*** of Pure's 'Violet' music service which gives you access to millions of streamable tracks and the ability to listen offline.
Read part 1 of Pure's 2014 trends around fashion and personalisation merging with tech here. Part 3 and 4 to follow.
**Global study carried out for Pure by Audiencenet
***The Pure Connect subscription service is available in the UK, France and North America with more territories to follow