In-Car DMB/DAB Will Feel Heat from Internet Radio

A report from Strategy Analytics predicts that the European Digital car radio market will hit 9 Million units by 2015, but they suggest that in-car DMB/DAB will come up against stiff competition from Internet Radio and Podcasting in the eyes of the consumer.

Recent DMB and DAB digital radio announcements in the UK, France and Germany finally signal the start of some kind of semi-consistent digital radio standards being introduced across Europe, according to the latest report from the Strategy Analytics Global Automotive Practice, under the title of "European Automotive Radio: DAB/DMB Faces Competitive Challenges from AM/FM and Internet Radio".

“Commercial interest in DMB/DAB will need to rebuild in what is a very difficult automotive planning climate”, says Joanne Blight, automotive director and the report's author. “Even with such digital radio progress made in Europe’s Big 3, and a full scale commitment from France from 2010 onward, there is still uncertainty over the automotive opportunity.”

“Positioning and pricing of digital radio and understanding consumers’ full multimedia requirements, inside and outside the vehicle, will be critical,” commented Peter King, consumer devices director. “DMB and DAB has a lot of work to do. Existing FM stations, and Internet access to radio and podcasts, offer huge, low cost choice benefits for consumers.”

This report also concludes that automotive Internet radio faces significant business model challenges but is likely to be found in vehicle-device interfacing solutions starting in 2011.

To obtain a copy of the report contact Strategy Analytics, Inc. Their European contact is Joanne Blight (+44(0) 1908 423 647) or in the USA, John Canali (+1 617-614-0714).