Despite what some nay-sayers might believe, digital radio is set for major growth, with satellite radio leading the pack in the U.S. According to a study conducted by market research firm In-Stat, sales in the digital radio market are expected to rise three-fold from 2006 to 2011, reaching almost 32 million units four years from now.It's interesting that satellite radio technology is still numero-uno south of the border, especially given the growing consumer awareness of HD Radio, which permits participating stations to simulcast in digital format. Further, HD Radio is actually free, whereas satellite radio requires that you pay for a subscription to access it!
The In-Stat study reports that 'increased choice of programming" is the primary driver of digital radio. In my opinion, the absence of commercials is just as significant a driver. Sure, it's important to be able to hear the local news, commentary, and traffic updates; but on the other hand, if I have a 20-minute commute to the office, I don't want to spend half that time listening to commercials in between tunes and the DJ's witty repertoire. Heck, on some days, I don't even want to hear the DJ, which is where a station with constant song after song after song is a welcome option.
Of course, there are customers with whom the music offerings on satellite radio simply don't appeal (major classical music aficionados, come to mind as an example). But for others, a few weeks with satellite radio will have you hooked; and the nominal, yearly fee likely won't phase you.
The results of the In-Stat report are even more topical, given the possible merger that's surrounding the two satellite radio providers, Sirius and XM. Personally, I think competition is a good thing, and with one, powerhouse provider, we might see less appealing deals and offerings. Let's hope this isn't the case. And even if a merger happens, it will take plenty of time to smooth out details; and since the Canadian counterparts operate independently from the U.S., the changeover may take even longer to happen here.
The In-Stat study reports that 'increased choice of programming" is the primary driver of digital radio. In my opinion, the absence of commercials is just as significant a driver. Sure, it's important to be able to hear the local news, commentary, and traffic updates; but on the other hand, if I have a 20-minute commute to the office, I don't want to spend half that time listening to commercials in between tunes and the DJ's witty repertoire. Heck, on some days, I don't even want to hear the DJ, which is where a station with constant song after song after song is a welcome option.
Of course, there are customers with whom the music offerings on satellite radio simply don't appeal (major classical music aficionados, come to mind as an example). But for others, a few weeks with satellite radio will have you hooked; and the nominal, yearly fee likely won't phase you.
The results of the In-Stat report are even more topical, given the possible merger that's surrounding the two satellite radio providers, Sirius and XM. Personally, I think competition is a good thing, and with one, powerhouse provider, we might see less appealing deals and offerings. Let's hope this isn't the case. And even if a merger happens, it will take plenty of time to smooth out details; and since the Canadian counterparts operate independently from the U.S., the changeover may take even longer to happen here.
