(24 January 2008 6:00 pm)

MUMBAI: The radio space globally is experiencing a major shift in how audio content is consumed, sold and transmitted to consumers, creating significant growth in the adoption of satellite and HD radio over the next five years, according research company Parks Associates’ Music to Consumers’ Ears: Next Generation Radio.

Parks Associates finds that satellite radio subscribers will increase from 20.5 million in 2008 to 39 million by 2012. HD radio adoption will also increase, growing from 4.2 million in 2008 to 30 million by 2012.

Parks Associates research analyst Chris Roden says, “The XM and Sirius merger, the emergence of HD radio, and the availability of online offerings will create new listening experiences for consumers. To ensure future success, providers must align their products and services with the expectations and demands of the consumer.”

Parks Associates’ consumer studies identify distinct listening habits and demographic trends for the current users of satellite and HD radio.

“A majority of satellite radio owners like the portability of the service. Therefore, most satellite radio subscribers use the service in their vehicle. Conversely, HD radio owners view the product as similar to other CE devices such as DVD players and home networks. These consumers are more likely to listen to the service at home,” adds Roden.