Digital radio take-up to break 1m mark by end of 2004

by Sam Matthews,, Brand Republic 29-Sep-04, 11:00

LONDON - Digital radio take-up is expected to reach 1m households by the end of 2004, according to the Digital Radio Development Bureau and research from Gfk.

According to market research group Gfk, total digital radio penetration to the end of July 2004 reached 682,000.

Ian Dickens, chief executive of the Digital Radio Development Bureau, said: "DAB radio ownership is set to rise to 1m by the end of 2004, with the run-up to Christmas proving the most crucial time of year."

In December 2003, when radios sold for over £100, Gfk recorded sales figures jumping from 48,700 in November to 176,000 in December.

As the price of digital radio sets has dropped, the number of users has been increasing. In December 2002, when the technology was introduced only 22,600 radio were sold.

With DAB radios such as the popular Pure Digital Evoke-1 now selling for around £70, and other models available even cheaper, sales are expected to soar in this year.

Big players including Sony, Sharp, Mitsubishi and Bush are all making versions of the technology, making the market more competitively priced.

"Consumers can expect to pick a digital radio up from £49 at retailers from next week," Dickens added.

Research by marketing information resources company, Claritas, concluded that advertising is not teaching people about the new technology. Although £1m is spent each month on digital radio ads, 24% of respondents said they found out about digital radios in-store.

Almost 80% of consumers surveyed said they thought digital radios were value for money.

The GfK ConsumerSCOPE quarterly DAB digital radio survey uses a panel of 18,000 homes across the UK.

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