Internet radio will boom. Cell phone audio listening is gaining momentum. But HD Radio growth is disappointing.
These are among findings of Bridge Ratings, which published a report on “Digital Media Growth Projections” in August.
“The entire spectrum of digital audio alternatives, and especially Internet radio and its wireless distribution, continue to represent the biggest challenge to traditional radio,” Bridge concluded.
“Based on what we know now,” Bridge stated, “we do not see HD Radio as a significant contributor to boosting listening to terrestrial radio.”
“Projections for HD Radio’s growth is disappointing, as our just-released study on HD vs. Internet radio suggests at this point in time a slower growth curve for the new technology unless the industry can overcome significant consumer resistance due to issues related to the benefits of HD Radio,” it found.
“We have lowered our previous estimate of HD units sold through the end of 2007 to approximately 400,000 and only 2.4 million by 2010 unless marketing, pricing and distribution efforts improve.”