Consumers Catch On To Digital Radio As Sales Increase
Consumers are catching on to the benefits of digital radio and new research from Dixons suggests the revolution is rapidly gathering pace with digital radios now accounting for half the sales of all portable radio sets.
The electronics retailer, which made around 50% of its radio set revenues from digital devices, claims the increasing range and affordability of DAB receivers has led to to a significant increase in sales, with consumers snapping up a range of digital devices priced between £90 and £200.
Chris Langley, managing director of the Dixons Group, said: “DAB is a rapidly growing category and one for which the Dixons Group has seen strong and consistent demand. DAB is capturing the public interest by offering an improved form of a well loved medium.”
At least 12 models of digital radio are expected to be in the shops by Christmas and the forthcoming Roberts receiver will allow listeners to rewind live broadcasts and access a stored memory.
Patrick Yau, analyst at Bridgewell Securities, said: “Attractively priced consumer products are now gaining traction, with new features and functions set to reach the market by the end of the year, further stimulating consumer interest.”
Sales of digital radios look set to receive an extra boost over the coming months following Sainsbury’s decision to stock digital sets in 125 of its stores and Tesco’s plan to sell DAB equipment in 20 of its top outlets.
The BBC recently launched an extensive awareness-building campaign to promote the medium and the Digital Radio Development Bureau predicts that up to half a million DAB sets could be in use by the end of this year, following 170% growth in sales during 2002.
Research shows that revenue from digital radio sales topped £3 million last Christmas and is expected grow to £66 million by the start of 2004. The total market is tipped to be worth £5.3 billion over the next ten years.
The latest RAJAR audience figures show that digital radio listening is increasing, with Emap’s Smash Hits and Kerrang! stations seeing weekly reach increase by 12.4% and 0.3% period on period during the second quarter of 2003. Meanwhile, speech-based oneword radio experienced a significant 22% increase during the same period to 61,000.
DRDB: 020 7306 2630 www.drdb.org
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