Why isn’t HD Radio catching on?

“The number one response from those who have ‘little or no interest at this time’ continues to be ‘Don’t see a need’ followed by ‘Not aware of its benefits,’” Bridge found in its study (see story above). Consumer awareness of HD Radio continues to “grow impressively,” it said, “but consumer interest in owning or listening to HD Radio continues to decline as a function of the general population; 75 percent of the sample now has heard of HD Radio at some time in the past. Only 7 percent expressed that they are very interested in owning HD Radio, down from 9 percent in January of 2007.”

The company concluded that “a solid case of product differentiation or product benefit has not been made by the broadcast community and therefore, those early adopters and innovators who potentially were interested in HD six months ago have, for the time being, moved on to something else.”

Bridge did find that “the combined effect of HD Radio’s roll-up and increasing growth of Internet radio together with a general market malaise are slowing original growth projections for satellite radio.”