Satellite Radio Set to Become Fastest Growing Consumer Electronics Product
BOSTON, MA – February 16, 2001
Yankee Group Report Says Satellite Radio Will Surpass 21 Million Mark in Five Years
Satellite radio will break the rules of traditional radio broadcasting with the introduction of
hundreds of new radio channels to be broadcasted nationally via satellite, according to
the Yankee Group's Report, "Satellite Radio: A New Star on Broadcasting's Horizon." The
Report projects growth of 1 million installed receivers one year after product launches,
eclipsing 21 million receivers after five years.
According to Yankee Group analyst Ryan Jones, "Satellite radio's fee-based
programming is a revolutionary concept in the radio world's all-digital service, featuring
more variety and fewer ads than traditional radio – similar to cable TV going against free
broadcast TV 30 years ago." Product launches are anticipated later this year.
The Yankee Group believes consumers will adopt the product, bypassing stigmas
associated with monthly fees because satellite radio offers distinct advantages of
national coverage, digital sound quality, and content variety.
The Report draws upon the Yankee Group's recent Home Entertainment Survey, which
measured consumer opinions on a variety of technology applications. Key findings and
forward-looking analysis include:
· Demand for Change. Over 25% of "public listeners" and 50% of "heavy listeners"
expressed interest in radio with fewer commercials and more variety. Two emerging
satellite radio providers will offer approximately 100 channels of content and plan to
significantly reduce advertising time.
· Easily Recognizable Benefits. The value of satellite radio is easily identifiable.
Consumers are offered more programming choice with clearer sound and nationwide
coverage—all while operating like a standard car radio.
· Enormous Distribution Potential. Satellite radio companies are focused on the U.S.
automotive industry—and for good reason. Over 17 million new cars are sold each year,
and the aftermarket mobile audio industry sells 11 million receivers each year, providing
tremendous distribution potential to a market of over 180 million drivers.
The Yankee Group (www.yankeegroup.com)
As a global leader in technology research and strategic consulting, the Yankee Group
provides impartial and practical analysis, custom consulting, and personalized
one-to-one client inquiry encompassing all areas essential to e-business success: the
Internet, electronic commerce, communications, wireless/mobile, computing, and
enterprise applications. Established in 1970 and headquartered in Boston, the company
maintains offices throughout North America, Europe, Latin America, and the Pacific Rim. |
