Investing In New Radio
Even more encouraging are the opportunities created in the aftermarket. Though more and more auto manufacturers are offering a satellite radio option in their higher-end vehicles, the margin of "retail purchase" to "purchase as a new car feature" is expected to be 2:1 among potential buyers. Approximately two-thirds of consumers would buy digital satellite radio at retail. Better yet, most of these consumers would seek the help of a professional for installation; 38 percent selecting a professional installer at a retail store and 39 percent preferring a car dealer install the product. This reinforces the opportunities for add-on sales and service presented to the car dealer by new technologies like satellite radio.
And the buck doesn't stop there. For a significant portion of consumers, trading up to a new radio technology can lead to upgrades of other car stereo components. More than a third of online consumers said they would be likely to upgrade their speakers upon owning an HD radio (37 percent) or satellite radio (35 percent).
Who wouldn't love to harness some of this burgeoning interest? With these new technologies filling the airwaves, suddenly the sound of music and the hope of the audio industry does not seem so dim.