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Global Digital Radio Growth Forecast

Worldwide, the combined market of both digital satellite and terrestrial radio will grow from approximately 5 million unit shipments in 2004 to 22 million unit shipments in 2009, reports In-Stat. The primary drivers for this growth will be new and compelling content, data services, price erosion for digital radio receivers, and digital radio provider partnerships with new car manufacturers.

"In the US, satellite radio is driving the digital radio market," says Stephanie Guza, In-Stat analyst. "In other markets, most notably in the UK, terrestrial digital audio broadcasting is driving it. The launch of Digital Multimedia Broadcast (DMB) services in Japan and Korea, along with increased promotional activity in Singapore, Australia and Taiwan over the next year, will drive digital radio shipments in Asia."

In-Stat found the following:

- Roughly 600 US AM and FM stations will broadcast in HD Radio technology by the end of 2005.
- The two US satellite radio providers have reported significant subscriber numbers; XM is on track to report over 6 million subscribers by the end of 2005, while Sirius will reach over 3 million subscribers.
- Commercial-free radio ranks as the top reason for purchasing a satellite radio, with 54 percent of surveyed satellite radio owners citing it.

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