HD Digital Radio Alliance Shifts Emphasis to Consumer Conversion

The HD Digital Radio Alliance, a joint initiative of leading radio broadcasters to accelerate consumer adoption of HD Digital Radio, announced the next stage of its comprehensive marketing and broadcaster-support efforts. New messaging, logos and radio ads have started. Also on tap: a dramatically expanded marketing resource suite for broadcasters on HDRadioAlliance.com. In addition, an industry wide collaboration took place at the HD Radio Idea Summit that was held earlier this month in Orlando for broadcasters and industry executives now preparing the second generation of HD2 programming.

"We closed 2007 with consumer awareness at unprecedented levels," said Peter Ferrara, president and CEO of the HD Digital Radio Alliance. "This year will see unparalleled numbers of receivers in cars and at retail, totally new data applications, and new investments in HD2 and HD3 programming from broadcasters. Now is the time to convert consumer awareness into purchasing action."

Consumer awareness of HD Radio currently stands at 77 percent, according to a survey of radio listeners from Critical Mass Media. In a separate study of current or likely auto buyers by J.D. Powers, a full 31 percent said they want HD Radio in their next vehicle.

HD Radio summit fuels shift

The timing of the shift to the new theme was, in part, the result of an Alliance-led summit held here earlier this month that brought together technology, broadcaster and marketing executives intimately involved in accelerating the adoption of HD Radio technology. One of the priorities of the summit was the topic of HD2 programming and laying the groundwork that will be executed by the broadcasters to deliver exciting new formats.

"We explored fresh thinking and innovative strategies for growing and converting consumer awareness into sales," added Ferrara. "To have so many companies and smart, diverse people working side-by-side for the good of this industry really says something about the commitment to HD Radio. Our unified voices will be a clear signal to auto makers, retailers and consumers that it's time to upgrade to HD Radio."

Already, a number of automakers -- including Mercedes, Ford, Volvo, BMW, MINI USA, Jaguar, and Hyundai -- have disclosed plans to include HD Radio receivers in current or future models. Aftermarket products are available from top manufacturers including Dual, Jensen, JVC, Kenwood, Peripheral and Sony. There are more than 243 million registered passenger vehicles in the U.S. today, and more than six million aftermarket receivers are sold annually. Upgrades to HD Radio receivers are currently available from dealers and specialty installers -- US consumers spend some $900 million annually on aftermarket systems.

In all, US consumers buy more than 70 million radios each year, and there are currently one billion radios in the country. More than 230 million US adults listen to the radio each week. Today, there are more than 1,600 HD Radio stations in the US, broadcasting with more than 600 also broadcasting HD2 and HD3 multicasts.