Satellite radio is predicted to reach more than 20.1 million US households by 2010, up from 4.5 million subscribers at the end of 2004, according to a new report from Forrester Research.
Satellite subscriptions were shown to enjoy a 150% increase between 2003 an 2004, with Forrester’s report,
The Future of Digital Audio forecasting nearly half of all US households with broadband, and 30% of all US households, will be tuned into online radio by the end of the decade.
Commenting on the findings Ted Schadler, research vice president at Forrester and author of the report said: “If radio and music executives can successfully shift their thinking to embrace new audio delivery methods, both industries will benefit from new revenue streams and increased customer loyalty over the next several years.”
Schadler thinks that in order for companies to adapt to the new technology they should open as many content channels as possible, investing in devices such as podcasting and high-definition radio. Forrester predict podcasting to reach 12.3 million US households by 2010.
Forrester estimates that high-definition radio will reach 9.7 million US households by 2010 as high-definition receivers drop in price.
In the report, Shadler states that companies will need to offer more economical multi-tier subscriptions in order to reach the majority of US households, particularly beyond 2010.
This research confirms findings from market research firm In-Stat, who predict satellite radio in the US to enjoy massive growth over the next several years, with an estimated 9 million new subscribers set to join by 2008 (see Digital Radio Forging Ahead).
In the UK the declining sales of DAB radio prices, unique digital radio stations, and a wide range of DAB radio products combined to propel the market to new heights during 2004. The Digital Radio Development Bureau (DRDB) has predicted that nearly a third (29%) of UK homes will have a digital radio within the next four years (see Digital Radio In The UK Set For Boom Time By 2008).
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