CBS MARKETWATCH: AFTERMARKET CAR STEREO DEMAND PROJECTED TO DROP

[Savage]

CBS Marketwatch just sent a feature citing a national study which is portentous for HD Radio, since it's far from - ahem - uBiquitous as a standard feature in new cars these days.

The study projects a 28% drop in near-term installs for aftermarket car stereos. Factors cited included, as previously noted here, increased integration of audio equipment with other factory car electronics (making installs more difficult and expensive,) better features, selection and prices in factory-provided equipment, and the universality of satellite reception in cars these days. Increasingly consumers don't see the need to "upgrade" their car stereos.

HD misses yet another in a continuing series of departing trains.

 

[pocket-radio]

I sold radio advertising for many years. A store owner who sells this stuff told me point blank her customers have no interest in radio. Mostly it’s men 18-34 who buy and install after market car audio. She felt the trends are towards USB enabled devices. Meaning you’ll carry an 8 gig USB memory stick loaded with your music that’s been downloaded from the internet. That and hard drives with be the must have upgrade consumers wants. And FYI Wally World sells this stuff cheap. Kids who invest in amps/speakers and high end audio devices have no interest in radio. Go figure. I asked her if there's any interest in HD radio and she said no. She also said she can't really tell the difference between HD and good old Fm. I can't either.

I was also reading manufactures are buying up Wimax enabled chips. Everything including your refrigerator iron will be connected to the web. Cheap wireless internet access will be everyplace.

 

[landtuna]

Always interesting to me the dichotomy......cruiser guy rips out stock audio and installs big bux audio which takes up the whole rear seat. Then plays mp3 tracks. Only thing left is voice-quality rap and big thumps which, I suppose, passes for the loud pipes of yesteryear. A couple years of this and his high-freq hearing is shot and the only thing left is bass.

 

[Carmine5]

I sold radio advertising for many years. A store owner who sells this stuff told me point blank her customers have no interest in radio. Mostly it’s men 18-34 who buy and install after market car audio.

How can you say that when Radiosophy has an HD Radio at the fire sale price of 49.95? Of course, people of all ages and both genders will be standing in line to buy one at that price. It will be a media event to rival the day the iPhone 3G went on sale.

Not only that, but consumers will happily allow themselves to be spammed with text messages every week until they do buy one.

What could you be thinking?

http://www.rbr.com/radio/radiosophy_hd_radio.html

C5

 

[Savage]

Yeah, tuna, but there's an agenda here you're not considering:

The prolonged 125+db audio exposure compromises the cruiser's hearing in the precise bandwidth representing the voice range of the sorta-hot XYLs he picked up several years back while THUMPing away at traffic lights. Now she's either living with him or married him - and he has a convenient excuse for not hearing her. Jeez, babe, didn't catch you asking me to paint the garage. My hearing loss, you know.

Consider it a form of adaptive evolution.

 

[TheBigA]

Cheap wireless internet access will be everyplace.

Not if the ISPs have anything to say about it.

I've been haggling with Verizon for months now, and I can tell you that they will find a way to tack on another $50 a month any way they can. They didn't invest billions in infrastructure to give away cheap service.

 

[TheBigA]

One thing to consider here is that the dashboard is real estate. Who owns the dashboard? The car companies. The satellite radio model showed them they can charge money for real estate. XM pays GM (just GM, not including other car companies they deal with) a half a BILLION dollars a year to be on their dash board. Stop and consider that number for a second. First of all, now you understand why XM is in such trouble. Second, if you're GM, what is the motivation to install anything else on your dashboard for free?

 

[Savage]

We all know the answer to that. Which is why, given the typical useage patterns for terrestrial radio, HD is toast. Spotty coverage, not much programming choice over analog (3 channels versus 100 or so??) and audio quality differential indiscernible to the typical listener in the typical environment - a noisy car interior at 60 mph or better - and There's No Reason To "Upgrade." XM and Sirius have poisoned the well both in terms of programming and financial realities when dealing with car companies.

Plus, HD just plain doesn't work well. That's why the returns on HD Radios are huge. And why we MUST suddenly have an increase to 10db on FM.

 

[TheBigA]

HD is toast. Spotty coverage, not much programming choice Plus, HD just plain doesn't work well.

What's your point? If everything is as you say, things should take care of themselves.

 

[Savage]

What's my point?? Well, let's see now.

What's the subject of this thread? And why isn't HD in more car radios which would obviate the necessity to install an aftermarket radio to get HD? Hmmm.

As far as HD Radio goes, "things" are indeed "taking care of themselves." Not that I expect you to take my word for it. Read the trades, the blogs. Randomly select any twenty broadcasters you know and do your own informal survey about HD, avoiding loading the results with undue Alliance member input.

 

[pocket-radio]

"Radiosophy has an HD Radio at the fire sale price of $49.95"

Dude it's not the price point or even the technology.

It’s the lack of content. I’m sorry another jukebox format won’t drive after market receiver sales or for that matter interest from the general public. Fans don’t buy Ipods or Iphones because they’re cheap. Or spend $12.00 a month on satellite radio for that matter.

I already own 5 radio’s. Do I really need another radio (HD) to hear basically the same thing found on AM/FM? And for what, to hear something that may sound a little better Even at $49.99 what’s the point. My old boom box sounds pretty dam good now..

When broadcasters step up to the plate with something more than another jukebox format then maybe you’ll see HD radio sales increase.

Read the trades. Operators are cutting expenses and creative talented people their most important assets in my opinion.

Cheap wireless internet will be everyplace over time. It’s nothing more than a commodity and competition will drive prices down. Remember when DSL was $100.00 a month..Now it’s $20.00 to $30.00. Open your eyes. It’s a digital future and so far HD radio doesn’t measure up.

I can hear the music “I want to hear” everyplace now. And better news and info and entertainment. So what does radio offer that’s different other than another lame voice tracked jukebox radio station?

If you spew something about niche formats.. read the above again. Because of the technology and the internet I have more power and control in my fingertips and in the palm of my hands to have total control over content.

Welcome to the "digital world" where listeners control content. And top down mass market programming is becoming a thing of the past.

 

[Carmine5]

"Radiosophy has an HD Radio at the fire sale price of $49.95"

Dude it's not the price point or even the technology.

It’s the lack of content. I’m sorry another jukebox format won’t drive after market receiver sales or for that matter interest from the general public. Fans don’t buy Ipods or Iphones because they’re cheap. Or spend $12.00 a month on satellite radio for that matter.

I already own 5 radio’s. Do I really need another radio (HD) to hear basically the same thing found on AM/FM? And for what, to hear something that may sound a little better Even at $49.99 what’s the point. My old boom box sounds pretty dam good now..

When broadcasters step up to the plate with something more than another jukebox format then maybe you’ll see HD radio sales increase.

Read the trades. Operators are cutting expenses and creative talented people their most important assets in my opinion.

Cheap wireless internet will be everyplace over time. It’s nothing more than a commodity and competition will drive prices down. Remember when DSL was $100.00 a month..Now it’s $20.00 to $30.00. Open your eyes. It’s a digital future and so far HD radio doesn’t measure up.

I can hear the music “I want to hear” everyplace now. And better news and info and entertainment. So what does radio offer that’s different other than another lame voice tracked jukebox radio station?

If you spew something about niche formats.. read the above again. Because of the technology and the internet I have more power and control in my fingertips and in the palm of my hands to have total control over content.

Welcome to the "digital world" where listeners control content. And top down mass market programming is becoming a thing of the past.

Dude, I hope you know I was kidding.

I don't think that, even at a 50 dollar price point, many people are going to buy this radio. Unless the HD Alliance spends some real money on TV and magazine ads, HD Radio will remain a little-noticed technology. And even with that, it's hard to say if the public will really care.

But I got a belly laugh out of the HD Alliance strategy to spam, by way of a weekly text message, any who have foolishly typed in that special number. Imagine getting a weekly "nag" to buy an HD Radio until you do so.

I get enough nagging as it is.

C5

 

[JohnnyElectron]

It costs me 15 cents for every spam email from The ALLIANCE; I'll send them a bill pretty soon...

 

[Carmine5]

It costs me 15 cents for every spam email from The ALLIANCE; I'll send them a bill pretty soon...

Hopefully, there's some way to opt-out...other than being forced to buy a radio.

C5

 

[Savage]

I heard they'll forgive your text messaging units if you agree to write a letter to the editor of RW saying that you think HD Radio sounds great and will be the saviour of mankind. That's how they've gotten the letters published so far.

 

[rbrucecarter5]

The study projects a 28% drop in near-term installs for aftermarket car stereos. Factors cited included, as previously noted here, increased integration of audio equipment with other factory car electronics (making installs more difficult and expensive,) better features, selection and prices in factory-provided equipment, and the universality of satellite reception in cars these days. Increasingly consumers don't see the need to "upgrade" their car stereos.

I am seeing this as well. My wife won't let me install an aftermarket radio, because there are controls for the factory unit in the steering column. You know what? I sneaked it out of the dash and installed narrow ceramic filters in it, and it is a really decent DX car radio now! But there is no aftermarket radio that will accept the steering column stuff, especially not HD models. Add to that anti-theft deterrent circuitry, wierd radio form factors, integration with the car's microcontroller, and a few other factors and it is almost impossible to install an aftermarket radio in some cars.

Has anybody tried an aftermarket radio in a hybrid? I would think the interference from the big electric motor would render AM, especially HD-AM, unusable.

 

[TheBigA]

It’s the lack of content.

Oh come on. I've read your posts on just about every message board on the internet. It's not the lack of content.

They could spend billions on content, and you'd still attack it.

In fact, NPR is offering its affiliates multiple channels of original content specifically for use on HD radio. You've obviously never heard them. But it doesn't matter, because you won't like it.

 

[Savage]

Has anybody actually used the Radiosophy? I don't care if the price point is $98, $49, or $19. It's a POS, as consumer radios go.

It has the cheesy black-plastic generic cabinet found in any COBY or GPX $19 drugstore boombox, marginal quality from its integrated speakers, flimsy-feeling interface and 1980s styling. Apart from a vague curiosity appeal to those specifically interested in HD Radio, as in, "I wonder if I could actually get HD to work for me," it promises typical disappointment to the typical radio listener with a high likelihood of return to point of purchase for refund.

I do agree with pocket-radio about the lack of compelling content for the average potential HD target end-user. There may be a few more format options but I see not much to get excited enough about, to buy a new radio. Add to that the smorgasbord of HD technical shortcomings and the whole issue is a non-starter.

 

[pocket-radio]

BigA I guess by the lack of receivers sold other people feel the same way I do.
If Americans want something badly enough we charge it. So the admission price isn't the problem. And Clear Channel has been promoting Hd for 2 years. So enough people are aware of HD. And there isn’t any subscription fees for the end users to worry about. So can you think of any reasons why HD radio sales aren’t selling off the shelves at Best Buy?

HD radio maybe the worst thing to ever happen to broadcasters. Think about this, more new people are not listening to radio. That's a fact. And radio listenership is declining, that's another fact. So that means HD listenership will have to grow from current analog AM/FM radio, causing shares to decrease further and fracturing listenership. Radio is struggling, in part because of the Bush economy but also because traditional media dollars are being moved to new media like the internet, video and search. Plus mobile advertising. Radio is about two things ratings and money. If enough HD radios aren't sold, then ratings and money wont follow.

I'm happy NPR is programming new content. They do a great job and I can listen on the internet. Maybe some day I'll break down and buy a new HD radio. But today I have no interest. I suppose in 10 years that darn thing will come with a new car. That or 10 years from now they'll be sold on ebay like a record player for $1.00

But for now I'll spend my HD dollars on a new Iphone with G3.

 

[TheBigA]

BigA I guess by the lack of receivers sold other people feel the same way I do.

Wow. I don't think I can make that generalization. In fact, having read your posts on many other message boards, I'd say there aren't very many people who "feel the same way you do."

So can you think of any reasons why HD radio sales aren’t selling off the shelves at Best Buy?

I've been at my local Best Buy, and there are lots of things that aren't selling off the shelves there. For various reasons.

But let's get back to your main point that it's because of the content.

You claim that's the reason people aren't buying the radios. Let's say, for the sake of discussion, that the programming was award-winning. How would people know?

Let's say, for the sake of discussion, that I wanted to buy an HD Radio, but I wanted a portable. Not a table model. Can you help me with that?

So there are a couple reasons besides the content that they're not selling.

Meanwhile, you say you don't actually own one, so I guess that makes you an expert on their content, right?

HD radio maybe the worst thing to ever happen to broadcasters.

Really? Can I quote you on that? You think it's worse than the TCA of 1996? Can I poll the rest of the industry on that?

Think about this, more new people are not listening to radio. That's a fact.

What do you mean by "more new people?" Do you mean immigrants? Because radio listenership is exploding among non-English speakers, who are the largest growing segment of the population. I'd call them new people, since they're new to this country. Maybe you should drop that line from your regular posts.

I'm happy NPR is programming new content. They do a great job and I can listen on the internet.

Actually, this is very specific content for HD Radio, and can't be heard on the internet. A group of commercial radio companies have also developed some exclusive content for HD radio. It can't be heard on the internet.

I'm sure it really helps your cause when folks like you make crap up all day long.