The development of the UK’s digital audio broadcasting (DAB) sector is gathering pace, according to radio station and programme production company, UBC Media. The group today predicted that sales of DAB digital radios will have more than doubled over 2002’s 175,000 by the end of this year.
Whilst the sale of 350,000 or so sets isn’t exactly mass adoption, the prospects for digital radio are much brighter now than they were a year or two ago. As UBC itself says:
“Until last year, many questioned the likely uptake of this new medium. The absence of affordable receivers held back demand amongst consumers, while no major electrical retailer was likely to show interest in digital radio until there were affordable products in the market and it could see real consumer demand for the technology. The last 12 months, however, has witnessed a major change in market sentiment.”
In the three years since its flotation, UBC has been committed to building a business that will benefit across all its divisions from the radio industry’s expected transition to digital.
A year ago the industry saw the launch of the first sub-£100 digital radios, which met with a fairly enthusiastic response of customers. Since then, the momentum has gathered pace, says UBC. There are currently more than 40 different DAB digital radio products on the market in the UK, with nearly 70 products expected in shops by the end of 2003. Choice now extends across an entire range of radios – from kitchen radios to hand-held portables and clock radios to personal stereos.
In 2002 sales of DAB digital radios grew by 170% to 175,000 units and this rate of growth has continued through 2003. With a steady stream of new manufacturers and products coming to the market, industry observers are forecasting sales of 1 million units by the end of 2004 (see Digital Radio Sales Could Hit 1 Million By 2004, Says DRDB).
In addition, consumer awareness of digital radio continues to grow, with the most recent Digital Radio Development Board (DRDB) survey reporting an awareness of the new technology amongst 30% of consumers (equivalent to 17.2 million of the population), with 6% reportedly planning to purchase a DAB digital radio in the next six months.
Another indication of growing consumer demand is that the number of retailers stocking digital radios has grown in twelve months from 600 to over 3,000. Sainsbury’s and Tesco are amongst the retailers to most recently stock DAB receiver products (see UK Supermarkets To Stock Digital Radio Receivers).
“The past 12 months have transformed perceptions of digital radio amongst consumers, electronics manufacturers and retailers. We believe the next year will see further substantial growth,” UBC Media said today.
