It is predicted that the success of Freeview will have a significant level of impact on the digital radio sector. The service includes a number of digital radio stations that will allow people to get a taste of what's on offer.
Consumer demand for traditional radio stations is driving the tremendous growth of DAB radio in the UK. More than 175,000 radios have been shipped so far, and the industry body, the Digital Radio Development Bureau (DRDB) expects up to 500,000 radios to have shipped by the end of this year.
Leslie Burrage, chief executive at Roberts Radio, believes that digital radio is about to have its Waterloo: "2003 will definitely see audio entering the DAB era--the signal is now more widely available with more than 80% of the population expected to have coverage by the end of the year.
"In many areas, however, the signal is still 'flaky' so our dealers would be well advised to focus on dual standard (analogue/DAB) models for, at least, the next 12 months. This should prevent consumer dissatisfaction and they will also be future- proof."
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Consumers are tuning in to listen to the 284 stations on DAB, 50 of which are DAB only, including new national stations, such as BBC7, BBC Radio5 Live Extra Sports, Oneword, Core and Planet Rock. DAB has also given radio stations the opportunity to reach new markets, as existing formats such as Heart and Kiss are now available on DAB in other parts of the country than London.
Daniel Todd, buying director at Bush Radio, believes the initial excitement has subsided, and that from now on the requirement will be for a steady supply of digital radio products, as consumers look to replace their existing products.
"Digital Radio began taking off last year when the price reached the affordable limit of 99 [pounds sterling]. What we have found is that the excitement boom has now subsided and been replaced by a steady requirement for DAB products. However, 2003 will be the start of realistic DAB sales and as more models come on line we will begin to see the real potential of the product."
Recent digital radios have begun to incorporate an increasing number of features exclusive to digital radio, allowing it to mean something more to the consumer than simply an increase in channels. In this manner, it is possible to position radio, which may be perceived as an old-fashioned product firmly in the line up of 21st century consumer goods.