HD Radio: Debate Over U.S. Audience Awareness

HD Radio Tune into conflicting views and take your pick. Americans are either more aware of HD Radio than a year ago, or less, depending on which of three recent studies you choose to read.

The encouraging results come from a study conducted by Critical Mass Media for the HD Digital Radio Alliance, an industry consortium formed in December 2005 to raise awareness and encourage consumer adoption of the new HD technology. According to the Alliance survey released April 1, awareness of HD now stands at 77% among radio listeners. While the Alliance didn't cite the earlier study, that suggests a substantial increase from just 38% in May 2006, per a survey by Mark Kassof and Co., a strategic research firm.

Casting this increase as an initial success, the HD Digital Radio Alliance said it is preparing to host new initiatives to increase adoption of HD digital radio in 2008, with the tagline "HD: It's Time to Upgrade!" The focus on this year's campaign will shift from raising awareness -- still a priority -- to persuading consumers to actually buy new sets.

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But the Alliance may be declaring victory too soon, according to sharply contrasting reports by Arbitron and Edison Media Research, as well as American Media Services.

The Arbitron/Edison results, publicized in Arbitron's annual "Infinite Dial" overview of the radio industry, found that consumer awareness of HD radio actually declined slightly during 2006-2007 -- from 26% to 24%. The American Media Services report, based on a nationwide telephone survey conducted by the companies, found that just 35% of American adults have any familiarity with HD radio, with the rest claiming ignorance.

The rollout of HD digital radio to the public has been slower than expected, and the new technology still isn't producing substantial revenues or increases in listening. In a note to investors published two weeks ago, Wachovia analyst Marci Ryvicker said broadcasters are making a mistake by using HD digital side channels to "multicast" new radio formats. Instead, she advises they begin data-casting or offering on-demand services. She also predicted rates of adoption will remain low until HD radio sets are offered as standard, "non-pay" features in more cars.

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