Digital Radio Taking Off, Says Study

The worldwide digital radio market, both satellite and terrestrial, will grow to over 19 million unit shipments in 2007, according to a report by market research firm In- Stat/MDR. The firm believes that new content and data services will drive consumer demand for radios. These factors are already at work in the digital satellite radio arena in the United States and the digital terrestrial market in the United Kingdom.

In its report “Digital Radio: Do You Hear What I Hear?” In-Stat/MDR found that:

• In the countries that are the farthest along with digital audio broadcasting (DAB), new less expensive radios are generating greater interest;
• Satellite radio has been successful in the United States, 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.