Vision - July/August 2008 - (Page 34)

mArket insider industry research ] • [ by steve koenig methodological punch of both quantitative and qualitative research techniques to flesh-out how consumers are storing digital files, measure their satisfaction with current storage solutions and fully comprehend the challenges associated with maintaining digital stockpiles. What Is in Storage? But before diving too deep, let’s examine what types and quantities of digital files consumers are storing. U.S. online adults own an average of nearly 1,800 digital files each, for a total of 310 billion nationwide. Photos, music and home office documents are the most common, but video files are surprisingly common with more than 100 files stored by the average online adult. A fair portion of the current installed base of audio and video files is high-definition, at one in four (25 percent). The study found the vast majority (96 percent) of online consumers access their files from home. For this reason most digital content is stored on a desktop PC, whether in terms of current storage (80 percent), long-term storage (62 percent), or for housing the bulk of a digital library (52 percent). Smaller numbers are more oriented toward portability and currently store their libraries on a laptop PC (38 percent), CD/ DVD (27 percent) or even their Steve Koenig cell phone (22 percent). Most users are satisfied (81 percent) with their current storage method. But this high level of satisfaction reveals an undercurrent of complacency that could potentially torpedo consumers’ digital libraries. More than half of those surveyed (52 percent) don’t have a second copy of their digital files. Why is back-up not a bigger blip on the sonar screen? The largest percentage simply say they don’t see the need (30 percent) and another 22 percent say it takes too much time. This is where the qualitative data is instructive, revealing a lack of clarity around the distinction between simply storing files and actually backing them up, with many respondents using the terms interchange- ably. For example, several individuals said they regularly move files from their internal hard drives and store them on external devices in order not to “eat up” too much memory on their computers. Worrisome is the fact they have not truly created a backup copy of the data, although they think of this action as “backing-up”. Interestingly enough, among those who do back-up their content and data, all files aren’t treated the same. Digital photos are the most frequently backed-up, due to their intrinsic value, while all other file types show mixed results. Backing-up Is Crucial These results are even more concerning given the amount of digital content consumers intend to create, capture or acquire in the next 12 months. How much? The survey points to roughly 1,060 more files per online adult, including digital photos, documents, MP3s, games and video content. There are two ways to convince consumers to chart a new course and start backing up their digital content. The first is to play up the value of the content to owners. At its worst this could be considered fear tactics, but on the positive side it helps ensure longterm usability of the files. Photos, in particular, appear the most valued and at risk, making them an ideal content focal point. The second approach is targeting. Those who already back-up files understand the risks involved and many have invested in solutions. These are the consumers who get it, and a closer look at their media acquisition and consumption patterns as well as storage practices may likely provide useful insights in reaching the uninitiated. Consumers are amassing a fortune in digital content, but many don’t comprehend the inherent risks. This dynamic creates tremendous opportunities for digital storage. But the industry must understand consumer behavior before it can hope to change it. To learn more about consumers’ digital fortunes, check-out the complete study available now on members.CE.org. • www.ce.org Digital Fortunes at Risk W e live in a digital ocean, ferried along by technology currents and swimming in a sea of content. But unlike the Atlantic or Pacific, the depth of this ocean quickly is becoming unfathomable. Witness the growth in household penetration of digital cameras, MP3 players, PCs and cell phones. Consumers have never had so many ways to acquire or create digital content, to the point where one might wonder whether we have the means to stay afloat. Are we at risk of drowning in the rising digital tide? The answer to this question has serious implications for the CE industry. With the plethora of business models built around buying or creating digital content, manufacturers, retailers and service providers need to know how consumers deal with their data files. CEA’s recent research report Amassing Digital Fortunes: A Digital Storage Study (March 2008), examines consumers’ various approaches to maintaining and preserving the escalating volume of acquired digital content. This study employs a rare one-two 34 July/August 2008 http://members.CE.org http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - July/August 2008

Vision - July/August 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Embracing Disrupting Technology Vaulting Ahead with Your Brand International Risk Stop Boomerang Products CEA Newsline Tech Speak Tech Policy Going Global Eye on Business Market Insider Just the Stats

Vision - July/August 2008

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