The arrival of new stations and data services will ensure significant growth in the digital radio market over the next few years, according to a new report from In-Stat/MDR.
There have already been major developments in digital satellite radio in the United States while digital terrestrial platforms have led the way in the UK. Only this week, Ralph Bernard, head of GWR and chairman of the Digital Radio Development Bureau (DRDB), called on the British Government to announce a definitive switch-off date for the analogue signal (see
Radio Industry Calls For Analogue Switch-Off Date).
Development has been slower in other countries but In-Stat/MDR believes that unit shipments will rise to more than 19 million worldwide in 2007.
“The conversion from analogue radio to digital has been a long, slow process that will take many more years,” said 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.
Previously seen as a prohibitively expensive device, digital radios are now more readily accessible, especially in parts of the world where Digital Audio Broadcasting (DAB) is well established. The DRDB reports that in the first three weeks of 2004, five new DAB products have hit the UK market and many are now available for under £100 (see Sony To Drive Growth In Digital Radio Market).
The success of satellite radio in the US has prompted other countries to consider introducing services. In Japan and South Korea, providers are keen to deliver video, as well as audio streams.
Despite the growing presence of digital radios, analogue technology is at the heart of most devices familiar to consumers. These include stereo receivers, CD boom boxes, portable stereos, alarm clocks and car stereo systems. This will not change overnight but reductions in the cost of digital tuners will lead to the conversion of the more expensive of the analogue radios to digital by the end of 2007.
