Many speculated that Apple might use its September event to roll out a fully cloud-based music service. Indeed, I’ve noted previously that the iTunes interface took on a decidedly more Web-like appearance with iTunes 9, and the acquisition of Lala by Apple hinted that Apple might move further in that direction.
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Tags: Apple, Apple TV, iPhone, iPod Touch, itunes, Lala, Ping, Zune
Consumer Technology, Entertainment | Ross Rubin, Executive Director, Industry Analysis | 
September 2, 2010 3:09 pm | 
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Last December, I blogged about my experiences running my own virtual cafe’ in Cafe’ World via Facebook. Since then, I spent a lot of time in Cafe’ Frazier, sending gifts of food and stove parts to friends, cooking up a storm to keep my level higher than those of my neighbors, and trying out new decor items. There are times when I am too busy to play online, so I go dark for a period of time, but something always seems to reignite my interest, and I get sucked in again.
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NPD’s 2010 Security Software Topical uncovered some interesting trends this year, some of which we released in a press release today, but some of the other tidbits require a little more nuanced reading into the last 3 years of data.
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This week NPD reported on Q2’s smartphone OS market share. It was a big quarter for Android, which is now installed on one of every three smartphones sold in the U.S. Android’s gains clearly came at the expense of RIM, which dropped nine percentage points quarter over quarter, and has seen an even more precipitous drop from a year ago. And yet, even with smartphones now growing to account for 42 percent of the U.S. market, Samsung and LG continued to lead the overall U.S. handset market without a significant smartphone presence, certainly in relation to their feature phones.
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Microsoft released the consumer version of Office 2010 to retail a few weeks ago, and according to NPD’s Weekly Tracking Service the results are mixed. Units and dollars are down from Office 2007’s initial two weeks of sales but are in line, and in fact slightly ahead of, sales trends of Office 2007 so far this year. This fact highlights the challenges for Microsoft going forward for Office. A strong product launched into a saturated market faces considerable headwinds. Even so, sales of Office 2010 in general have to be characterized as a bit disappointing during the first two weeks.
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Those of us in retail and consumer marketing are often confronted with this truism. And while consumers are the ones plunking down their hard earned money on the latest (or cheapest) tech gadget, we in the business often think we know what the consumer wants better than the consumer does. Sometimes we are right, and then sometimes we are wrong. And the best companies move to take advantage of that customer feedback and can accept that sometimes their initial marketing or sales tactics missed the mark.
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A couple of months ago we talked about some distribution and reseller sales statistics which indicated that, at least as we exited 2009 sales growth had begun to pickup in the SMB focused channels that NPD tracks besides retail. As we are now through the first few months of 2010 we have seen this trend continue, in both our Distributor Track and our Commercial Reseller Tracking services. In both, revenue is tracking towards 2008 levels and showing substantial revenue growth over the depressed levels of 2009.
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That sentiment is not mine, but it is one that comes through loud and clear from NPD’s latest Online Software Purchasing Report. And while it may be a stretch, these findings may also offer us some insight into consumers’ acceptance of owning virtual content going forward. Consumers are clearly used to buying (and renting) things digitally, iTunes is the largest music store in the U.S. according to NPD, and Netflix streaming is undeniably rocketing in popularity as it is incorporated into more and more devices. But strangely it always feels that computer software remains behind the adoption curve. Sometimes it’s bandwidth, sometimes it’s security, sometimes it’s awareness (or just plain interest), and sometimes it’s just comfort; but consumers desire to download real productivity software is clearly behind where they are in getting their other virtual content.
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In our private lives we all despise traffic. It slows us down and deprives us of making full use of our time. Too much (fill in the blank) in too little space. In our professional lives as a retail tracker we have the opposite view … traffic is good. Retailers love traffic. Sellers love traffic. Crowds are great. We all want more and more shoppers, because we all know more shoppers lead to more buyers.
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As I’ve noted when discussing the e-reader market, Amazon and Barnes & Noble have an inherent advantage in garnering overall revenue given that they can call upon databases of millions of active book-buyers. When I wrote about the in-store Nook angle that Barnes & Noble was taking, I mentioned how electronics retailers could benefit from this level of integration. Last week, prior to the Google TV announcement, Best Buy announced it will offer its version of Sonic Solutions’ RoxioNow video program under its original CinemaNow brand, which Best Buy has acquired.
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