• by Erik Sass  @eriksass1, April 5, 2010

The automobile is the newest arena for competition between digital audio content providers. Satellite radio and online services are facing off with HD radio channels from traditional broadcasters to control drive-time listening.

The key, of course, is getting the device installed in the car before its even sold, and by this measure, it's anyone's game. All three players have made big gains over the last year.

Lincoln is now offering HD radio as a factory-installed option in the 2011 MKS, MKT and Navigator models, in addition to its previous commitment to the MKX. Kia is offering HD radio in some of its 2011 sedans, while Hyundai will be including it in the new Equus, Genesis and Sonata.

Similarly, Ford has already sent the 2011 Mustang and Super Duty models with HD radio to dealerships nationwide. It is also offering HD in a number of other models, including the Taurus, Flex, Fusion, Escape and F-Series.

Still, HD radio faces competition from several other digital audio delivery systems. In January, Pandora announced a deal with electronics manufacturer Pioneer Corp. that will allow consumers to bring Pandora's personalized audio content to their automobiles.

Priced at $1,200, the device will allow customers with iPhones to stream the online music service to their car stereos, after they download a new app that lets the devices link up.

Not long after, Pandora Senior Vice President Jessica Steel made the company's ambitions in the auto arena clear: "Delivering Pandora's personalized Internet radio to our 48 million listeners in their vehicles is a key focus of our company this year."

HD and Pandora both also have to contend with Sirius-XM Satellite Radio, which has made OEM dealerships with carmakers the cornerstone of its subscription growth strategy.

Meanwhile, the forthcoming annual report on digital media from Arbitron and Edison Research, "Infinite Dial 2010: Digital Platforms and the Future of Radio," found that 23.8% of all Americans 12 and up, or roughly 66 million people, have listened to MP3 players or iPods in their cars. The survey of 1,753 people ages 12 and up found that 44% of Americans in this age group own an iPod, iPhone or comparable MP3 player, and 54% of these have used the device in conjunction with their car stereo.