Digital Radio Gaining Ground in United States and Europe

Digital satellite radio will have impressive growth in its subscriber base over the next several years in the United States, with 3 million net new subscribers annually in the United States alone through 2008. A recent survey conducted by research firm In-Stat indicates a growing awareness of digital satellite radio services. Half the survey's respondents had heard of satellite radio, and felt they had a good idea as to what it offers. iBiquity's HD radio is less well known.





"However, price is still a barrier for many consumers, particularly with new HD radios," said Michelle Abraham, In-Stat analyst. "Most consumers want to spend less than $200, and although satellite radio receivers are readily available for less than $100, HD radio receiver prices must decline before they are of interest to many consumers."

In-Stat has also found that:

The features offered by digital radio that were most appealing to survey respondents were the ability to receive news, weather and traffic information on demand, along with more programming choices.

Survey respondents who were familiar with satellite radio but did not own one, said the monthly subscription fee was the primary deterrent for purchasing a satellite radio.

Declining DAB radio prices, unique digital radio stations and a wide range of DAB radio products combined to propel the U.K. market to new heights in 2004. Other countries in Europe have taken note.

The report, "Digital Radio: Who Is Tuning In?", provides five-year unit shipment, ASP, and revenue forecasts for digital terrestrial and digital satellite radios (including DMB receivers that are not integrated into mobile phones).

The forecasts are provided for the Americas, Europe and Asia. A U.S. satellite radio subscriber forecast and digital radio Bill of Materials are also included. The report price is $2,995.

Source: press release

See also:

National Car Rental and Alamo Rent a Car Launch XM Satellite Radio in Rental Vehicles Nationwide

Analog Radio, Move Over, Says ABI Research

Sirius Radio Available In Mercedes SLK 350 Roadster

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