Consumer Confidential: High gas prices a boon for transit, Zune getting heave-ho?
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Here’s your try-it-you’ll-like-it Tuesday roundup of consumer news from around the Web:
-- A silver lining to higher pump prices? A new study concludes that as the cost of gas heads north, more people will leave their cars at home and give public transportation a try. The study by the American Public Transportation Assn. predicts that if regular gas prices reach $4 a gallon across the nation, an additional 670 million passenger trips on public transit could be expected, resulting in more than 10.8 billion trips per year. If pump prices jump to $5 a gallon, an additional 1.5 billion passenger trips can be expected, resulting in more than 11.6 billion trips per year. If prices were to soar to $6 a gallon, expectations go as high as an additional 2.7 billion passenger trips, resulting in more than 12.9 billion trips per year. We saw an inkling of this in SoCal a few years ago when pump prices of about $4.50 sparked a surge in public transit ridership. Hopefully, transit service providers will be ready when the crush hits again.
-- Adios, Zune? Microsoft is reportedly set to abandon its Zune MP3 player due to poor demand as consumers opt instead for Apple’s iPod and smart phones that can play music as well as perform numerous other functions. The Zune never found its footing in the fast-changing market for digital media consumption. Microsoft will reportedly continue to support existing Zunes but will not release any future models once current inventories are exhausted. Apple dominated about 77% of the portable music player market last year, according to market researcher NPD Group. The Zune never even cracked the top five despite the big bucks Microsoft spent promoting the device. I’m not saying the Zune is a bad gadget. All I know is that I never once saw someone bopping their head in public while listening to a Zune.
-- David Lazarus
