Digital Radio Gaining Ground In US & 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 US alone through 2008, according to In-Stat. A recent survey of the high-tech market research firm’s Technology Adoption Panel of US consumers indicates a growing awareness of digital satellite radio services. Half of 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,” says 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 UK market to new heights in 2004. Other countries in Europe have taken note.