5.4 Million HD Radio Receivers Will Be Sold In 2013 Blogs iBiquity CEO
August 22, 2013 at 3:59 AM (PT)
iBIQUITY DIGITAL Pres./CEO BOB STRUBLE sees 5.4 million HD RADIO receivers being sold in 2013, a growth rate of 50% since 2010. STRUBLE notes, "most of it driven by automotive uptake: almost 30% of new cars will ship with HD RADIO receivers in 2013 and by next year, there won’t be an auto dealer in AMERICA that does not have HD RADIO equipped vehicles on the lot."
While some still doubt the future of the technology, STRUBLE is upbeat, blogging "We forecast similar results for the next several years. It sure looks like that famous inflection point experienced by many successful technologies, where sales trundle along for several years and then break through and head straight north," adding "So unquestionably, with a lot of effort and patience, we are getting there. And, as we’ve discussed in the past, broadcasters are making money on their HD Radio investments in a variety of ways -- advertising, sponsorships and leasing of HD2/HD3/HD4 channels, and most recently, by broadcasting real time traffic services to navigation systems over HD RADIO signals. With receivers flooding the market, these opportunities increase dramatically over time."
STRUBLE also is positive about the recently launched NEXTRADIO/SPRINT effort to put FM radio into mobile devices. He writes, "We are tremendously enthusiastic about the deal bringing FM chips to SPRINT mobile phones. As I’ve discussed in past columns, getting FM into phones is essential to radio’s long term competitiveness, and this deal is an important first step. The NEXTRADIO app moves us toward the vision of a more compelling, fully featured, interactive broadcast radio experience, which takes advantage of IP connectivity in the phone. Congrats to JEFF SMULYAN and PAUL BRENNER for their commitment in pulling the industry together and getting the deal closed."