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Digital Radio Gaining Ground in US and Europe
2005-01-18 admin
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."
Among the findings
* 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.
www.in-stat.com
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