# Auto Radio Sales Increase for Sat Radio



## Chris Blount (Jun 22, 2001)

The latest Strategy Analytics report detailed the recent success of XM and Sirius in the satellite automotive digital radio market.

Currently XM and Sirius dominate the sector. However, next year's surfacing of HD Radio/iBiquity may soon give satellite digital radio a run for its money. The existing European market for automotive digital radio is not entirely successful due to a lack of consensus on standards and content development, thus bringing down the overall European digital radio market, Strategy Analytics said.

While consumer adoption rates depend heavily on the availability of digital content, an increase in the availability in North America is expected to significantly increase overall adoption rates within the next five years.

Stated the Strategy Analytics report, by 2010, more than 15 million in-vehicle digital radio systems will be shipped annually across North America, Europe and Japan. At that time, XM and Sirius together will have about 24 million users if retention rates are at 80 percent, the firm said.

"Radio has been the principal and most clear-cut automotive entertainment feature. However, the increasing availability of digital radio will result in major competitive and complementary positioning issues for automotive product planners," said Clare Hughes, Strategy Analytics Automotive Practice Analyst. The next two years are going to be crucial in enhancing automotive adoption, she said.

http://www.skyreport.com (Used with permission)


----------



## BobMurdoch (Apr 24, 2002)

Uh uh. As long as terrestrial FM radio insists on putting 20+ minutes of ads on an hour, they are still doomed to AM status (ie. relegated to 2nd class status).


----------

