Click Here

for a special message from
Dave Van Dyke, President.
 
HD Radio Perceptual Study - Awareness & Interest
2007 Units Sold Estimates Reduced
 

Bridge Ratings' lastest study of American radio consumers included questions concerning HD, or High-definition radio. This is an update from a similar study conducted in the Summer of 2006.

In June of 2006, awareness of HD radio looked like this when 62% of those interviewed * indicated they heard of HD Radio.

1. Have you ever heard of HD Radio?

Have you heard of HD Radio?
Jan-07
Jun-06
Jan-07
Jun-06
Yes
Yes
No
No
12+
72%
62%
28%
38%
12-24
69%
65%
31%
35%
25-54
75%
62%
25%
38%
55+
71%
55%
29%
45%

Awareness of this new medium increased significantly in all quadrants. The overall number is higher when the month of December only is taken into consideration when 80% of those questioned had heard of HD Radio. A positive sign that the industry's marketing efforts to raise awareness have worked.

Q2. Of those who responded that they were aware of HD radio, we asked:

Do You know what HD or High Definition Radio is or what it does?
Jan-07
Jun-06
Jan-07
Jun-06
Yes
Yes
No
No
12+
15%
19%
85%
81%
12-24
24%
25%
76%
75%
25-54
13%
15%
87%
85%
55+
7%
10%
93%
90%

Despite the increase in awareness, knowledge of what the medium is has actually fallen from our original 2006 study. 15% of the total sample were able to tell us at least that HD Radio was a radio technology that "improves sound quality, offers additional digital interactivity and required a special radio." This number is down from 19% in June of 2006.

Q3. How Interested are you in owning an HD Radio?

Very Interested or
Not Interested
Somewhat Interested
Jan-07
Jun-06
Jan-07
Jun-06
12+
8
11
92
89
12-24
28
31
72
69
25-54
14
17
86
83
55+
3
8
97
92

Based on the results of this study and analysis performed by Bridge Ratings, we have reduced our original projections for full year 2007 HD radio sales from 2.1 million total HD radio units sold to 1.5 million. Our models anticipate HD Radio market penetration to grow slowly through 2010 when we optimistically project 12 million sold (U.S.).

Variables associated growth prospects of HD Radio include price point and availability of product, improved consumer product reviews and marketing and advertising.

Our analysis of the market at this time indicates that even with some of the Christmas holiday price discounts (such as Radio Shack's) $99 was too high of a price point for our panel of consumers. Availability in the marketplace also plays a considerable role in the growth prospect of this medium. Over 90% of our consumer panel could not remember seeing in the last thirty days an in-store display promoting HD Radio.

Improved product reviews of HD radio will also aid positive brand awareness and interest. Finally, the marketing of HD Radio by the Radio industry must greatly improved. While overall awareness of the term "HD Radio" has increased in the last year, there is considerable confusion, misinformation or total lack of understanding as to what HD Radio is or what its benefits are to the consumer. This, we feel, is one of the greatest challenges to the growth of HD Radio.

Description of HD Radio as defined by iBiquity:

HD Radio is a new technology that enables AM and FM radio stations to broadcast their programs digitally, a tremendous technological leap from today's familiar analog broadcasts. These digital broadcasts provide listeners with radically improved audio quality and reception and new data services. Signal fading, static, hisses and pops are a thing of the past. Data services such as displayed song and artist information, weather and traffic alerts and much more will revolutionize the way you experience AM and FM radio. And it's all FREE for consumers, just like today's analog AM and FM radio.

What are the benefits of HD Radio?

  • FM broadcasts have CD-quality sound.
  • AM broadcasts will sound as good as today's analog FM stereo.
  • Static-free without pops, hiss and fades.
  • New data services, such as scrolling text displayed on a radio screen with song titles, artist names, traffic updates, weather forecasts, sports scores and more.
  • Opportunity for more advanced data and audio services, such as surround sound, more radio stations at the same dial position, on-demand audio services, store-and-replay (so you can store a radio program that airs when you are at work and replay it on your commute home), overlaying real-time traffic information on a navigational map to help you find the shortest route, a 'buy' button for music, sports and concert tickets etc., along with a host of other services.
  • No subscription fees. Its FREE for consumers, just like today's analog AM and FM radio.
  • Easy transition for consumers. This means you can continue listening to your local AM/FM stations on your existing analog radios as well as on your new HD Radio receivers, with all the added services and benefits that HD Radio offers.

Sample: 2448 persons 12+
Study conducted 12/01/06 - 01/08/07


Back to Press Releases