Fast Growth Seen In Satellite, Terrestrial Digital Radio Sales
By Joseph Palenchar -- TWICE, 5/27/2002
Scottsdale, Ariz. — Digital radio will develop rapidly in the next five years, with as many as half of all radios sold in 2006 offering reception of digital terrestrial or satellite broadcasts, according to an In-Stat/MDR study.
That figure comprises sales of car and home radios, including clock radios, that incorporate either satellite DARS (digital audio radio service) reception or terrestrial DAB (digital audio broadcasting) reception, or both.
Sales will hit that mark "if the quality and cost factors align properly," said Michelle Abraham, an analyst with In-Stat.
In the U.S., "inroads made by DARS services like XM and Sirius, and increased momentum behind DAB from major radio station groups, suggest that the next few years will witness the rapid development of digital radio," she said.
Abraham was most optimistic about DAB penetration. "Because of the low cost and speed with which analog radio stations can add DAB service," her report said, "it's very likely that DAB will gain critical mass in the U.S. within a fairly short span of time."
Despite what the satellite providers are saying, In-Stat sees some competition between satellite and terrestrial digital radio. "For many consumers, the new features available on the free DAB channels will be enough, and they'll opt against the pricier [subscription-based] DARS services," the report said.
In 2006, In-Stat expects the satellite radio subscriber base to hit about 15 million.
In-Stat is owned by TWICE's parent company, Reed Business Information.
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