The combined market of both digital satellite and terrestrial radio is projected to reach 22 million in 2009, up from just 5 million in 2004, according to high-tech market research firm, In-Stat.
The company’s new report
Digital Radio: Turning Up the Volume on Satellite and Terrestrial Radio Adoption, claims that the primary drivers for this growth will be new and compelling data content, data services, price erosion for digital radio receivers and digital radio provider partnerships with new car manufactures.
Commenting on the findings, Stephanie Guza, In-Stat analyst added: “In the US, satellite radio is driving the digital radio market. In other markets, most notably in the UK, terrestrial digital audio broadcasting is driving it.”
Guza added: “The launch of Digital Multimedia Broadcast (DMB) services in Japan and Korea, along with increased promotional activity in Singapore, Australia and Taiwan over the next year, will drive digital radio shipments in Asia.”
A report released last year by Kagan Research forecasts satellite radio subscriptions to reach 46.8 million by 2014, generating revenues of $7.6 billion, with satellite radios bought by the automotive sector making up 75% of new subscriptions to the medium (see Satellite Subscriptions To Reach 50 Million By 2014).
This research confirms earlier findings from Forrester Research, who predicts satellite radio to enjoy massive growth in the US over the next few years, reaching more than 20.1 million households by 2010, up from 4.5 million subscribers at the end of 2004 (see Satellite Radio To Reach Over 20.1 Million US Households By 2010).
In the UK, new figures from RAJAR show that total listening hours for digital radio have increased by 165% year on year (see Digital Listening Up 165%).
According to the Digital Radio Development Bureau (DRDB), by the end of 2009 there will be around 20 million digital radios in UK homes, up from 1.2 million at the end of 2004, with an expected household penetration of 40% by the end of 2009 (see DRDB Predicts Massive Growth In Digital Radio).
The MediaTel INSIGHT Digital Radio Executive Report is available to subscribers from the Executive Reports section above, or for non-subscribers to purchase at http://www.mediatelinsight.co.uk/reports, priced £225. The report features the latest forecasts and current marketplace dynamics for the digital radio market, including the uptake and listening patterns emerging for this medium.
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