DIGITAL: Hardware uptake reaching saturation point, says ERA.

Research reveals sales of broadband and MP3 players slowing, but 3G set to surge

By Eamonn Forde

NEW FIGURES FROM THE ENTERTAINMENT RETAILERS ASSOCIATION suggest that although digital music sales are thriving, broadband penetration is slowing.

Penetration is starting to level out, but the average number of tracks downloaded by broadband-served households is still increasing - from 4.1 per house in 2006 to 6.3 last year.

What is more, MP3 player shipments are actually down, with some commentators suggesting that a significant percentage of player sales are being driven by consumers upgrading their devices rather than new consumers buying MP3 players for the first time.

ERA director general Kim Bayley says, "Inevitably, with hardware there comes a point where it is in the majority of homes. It is clearly positive that there are almost 20m MP3 players in the UK; now is the time to try and get those owners to buy more software for their hardware."

Yet as the uptake of MP3 players and broadband slows, 3G adoption and smartphones could step in to drive the digital market further ahead. The Mobile ...