Digital Radio Fuels Growth

credit: Flickr alexkerhead

HD Radio units sold, currently at 3 million, will reach 4 million units by the end of this year, according to ABI Research. That number pales in comparison to the 13.5 million DAB radio receivers sold in Great Britain and Europe, but it’s a healthy increase of more than 25% this year. Digital radio technologies, including satellite radio and Internet radio, are expected to reverse trends of decreasing listenership to radio.

You got that right.

TWICE, a consumer electronics magazine recently produced a special print issue focusing on the changing nature of radio listening as well, citing satellite radio, digital radio and Internet radio as the fuel for future radio listening growth. Summarized in Radio World – an online industry publication, the article notes that the meaning of the word radio has changed to encompass all these various listening platforms.

“Like it or not, our industry consists of more (than) AM and FM over-the-air signals. If we don’t change our own thinking about that along with the market, we unnecessarily limit ourselves; we exclude radio’s businesses and our own careers from potentially exciting growth.”

The broadcast radio industry is at a crossroads. The choice…view themselves as audio content businesses and proceed to foster, develop and expand as many new listening technologies as they can, or remain focused on AM/FM over the air signals, sacrificing other channels.

The demands that FM receiver chips be mandatory in cellphones as part of a deal broadcasters are striking with record labels is a wrong turn for broadcasters. Heavyweight industry associations are lining up against it – Consumer Electronics Association president Gary Shapiro is incandescent with rage. “Rather than adapt to the digital marketplace, NAB and RIAA act like buggy-whip industries that refuse to innovate and seek to impose penalties on those that do.”

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