'Slowing Growth for HD Radio' - Radio World

'Slowing Growth for HD Radio'

Bridge Ratings foresees a slower growth curve for HD Radio "unless the industry can overcome significant consumer resistance due to issues related to the benefits of HD Radio."
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Bridge Ratings foresees a slower growth curve for HD Radio "unless the industry can overcome significant consumer resistance due to issues related to the benefits of HD Radio."

That's part of the research company's latest findings; it monitors audience trends in traditional radio as well alternative digital media.

Bridge lowered its previous estimate of the number of HD units that will be sold through the end of 2007 to 1.5 million, and to 12 million by 2010. "While awareness of HD Radio is up year over year (62%-72% of Adults 12+), interest in owning an HD Radio is down," it found.

In satellite, Bridge projects an increase this year of 3.9 million subscribers total, with XM finishing the year with 9.12 million and Sirius with 8.34 million total subscribers. Last year satellite grew by 4.5 million overall. Those figures assume no merger.

"It is our belief that a single satellite radio entity will produce fewer total subscriptions than two competitive businesses," Bridge Ratings President Dave Van Dyke stated.

"Internet radio, increasing use of cell phones for audio and video entertainment, and slowing consumer interest are all contributing to a slowing growth curve for satellite radio in 2007 … We anticipate that the release of Apple's iPhone in June will accelerate ownership of … music-enabled devices."

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