Digital Radio Gaining Ground in U.S.

According to research firm In-Stat, digital radio is gaining ground in both Europe and the U.S. with more than 3 million new users anually in the U.S. through 2008.

A recent survey of the high-tech market research firm’s Technology Adoption Panel of U.S. consumers indicates a growing awareness of digital satellite radio services. Half the survey’s respondentshad 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.