Digital radio has just begun to see consumer adoption in the US and Western Europe. By the end of 2010, about four million digital radios using iBiquity's proprietary HD Radio technology will have shipped in the US. In Europe (led by Britain) governments have chosen the DAB standard and consumers have purchased nearly 13.5 million radio receivers. By 2015, the worldwide installed base of digital radio receivers, excluding handsets, is expected to reach nearly 200 million units. Smartphones are expected to include digital radio receivers starting in mid-2011, driven by carriers' desire to offer users premium audio content while limiting the use of scarce radio spectrum.
Listeners will have access to niche programming targeted to narrower demographic segments and will respond to a more interactive user experience enabled by program guides and other enhancements. Broadcasters, in turn, will have a larger reach and the ability to provide better targeted and more interactive ads.
To learn more about the digital radio market, please visit ABI Research's "Digital Radio" study, which covers digital radio receivers and subscriptions within the home and on the go (portable media players and automotive), and digital radio receiver shipments into cellphones.