News

Digital Radio Not Falling on Deaf Ears (20/1/2004)

The worldwide digital radio market, both satellite and terrestrial, will grow to over 19 million unit shipments in 2007, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm believes that new content (stations that only exist in digital) and data services will drive consumer demand for radios. These factors are already at work in the digital satellite radio arena in the US and the digital terrestrial market in the UK.

"The conversion from analog radio to digital has been a long, slow process that will take many more years," says Michelle Abraham, a Senior Analyst with In-Stat/MDR. "When the first digital broadcasts became available in Europe, receivers were too expensive for the mass market. Over five years later, receiver prices have come down, but many countries are still trialing digital broadcasts, waiting for the regulatory framework to be in place and digital coverage to expand."

In-Stat/MDR has also found that:

* In the countries that are the farthest along with Digital Audio Broadcasting (DAB), new, less expensive radios are bringing more interest in DAB.

* Satellite radio has been successful in the US, and other countries are hoping to duplicate that success. In South Korea and Japan, providers want to deliver not only audio streams but video streams as well.

* Several hundred million analog radios are sold worldwide each year, in the form of stereo receivers, CD boom boxes, portable devices, alarm clocks, and car stereo systems. Reductions in the cost of digital tuners will convert the more expensive of the analog radios to digital by the end of 2007.

The report, "Digital Radio: Do You Hear What I Hear?" (#IN030707ME),discusses trends in satellite and terrestrial digital radio worldwide, and includes five-year forecasts for digital radio unit shipments, ASPs, and revenues. Five-year forecasts are also provided for satellite radio subscribers and digital radio bill of materials.

www.instat.com