Consumerscope - Who Wants Digital Radio?
Consumers who listen primarily to CDs while driving do so because they desire a certain type of content. Satellite radio appeals to this segment due its ability to deliver better content than traditional radio stations. Forty-four percent of CD listeners were interested in satellite radio compared to 29 percent of music radio listeners and 19 percent of talk/news radio listeners.
The interest levels cited above assume the cost of subscribing to satellite radio is rolled into a monthly car payment. When asked about their price sensitivity if the subscription fee were a separate payment, 15 percent said they'd be willing to pay between $11 and $20 per month, while 16 percent said between $6 and $10. Another 21 percent were willing to spend up to $5 per month. Rates were nearly identical for males and females. Younger age segments showed a greater willingness to spend higher amounts than older.
Digital radio has a long way to go to gain mass consumer acceptance, particularly as an aftermarket product. It also has plenty of technology competition to face already embedded in the market or on the drawing boards (MP3, CD). But it will also likely find a solid niche with the correct mix of features and the right targeted messages.