IBiqiuty: HD Radio Momentum Accelerates

• In-Car Digital Broadcast Radio Listening Exceeds 3 Billion Hours Annually
• Nielsen Audio Reports 200%+ HD2/HD3 Audience Growth
• Nearly 17.5 Million HD Radio Receivers in Market
• Advanced HD Radio Audio and Telematics Services Launching In More New Cars
• HD Radio Digital Technology is Progressing Towards a North American Standard

iBiquity Digital Corporation, the developer of digital HD Radio Technology for AM and FM audio and data broadcasting, has announced significant growth in audience, receiver sales and digital broadcast services.

In-Car Digital Broadcast Radio Listening Exceeds 3 Billion Hours

With an annual growth rate of over 150% in 2013, digital radio listening to stations broadcasting using HD Radio Technology in cars has exceeded 3 billion hours. This is a result of the explosive growth of the installed base of HD Radio receivers in cars, both factory installed and aftermarket. With 15 million of the almost 17.5 million digital radios installed in cars and trucks already on the road, and an estimated additional 7.5 million receivers to be added in 2014, the number of HD Radio receivers on America's highways is expected to exceed 22 million by the end of the year.  Currently, 2,200 stations offer digital broadcast services to their local audience.  These stations collectively account for 78% of all radio listening in the USA.

Nielsen Audio Reports Continued Growth in Multicast Channel Listening

As the installed base of HD Radio receivers rapidly increases, so is listening to HD2/HD3 programming. According to the latest Spring 2013 Nielsen Audio Nationwide audience estimates, over 4 million people listen to an HD2/HD3 channel in an average week. This represents a 238% increase in Average Quarter Hour audience from the Fall 2011 survey. During the same period, Cume audience (the number of unique listeners) grew at over 200%. Currently there are 1,475 HD2/HD3 programs offered by digital broadcasters.  These are new unique programs made possible through the use of HD Radio broadcast technology.

An example of this fresh new digital programming is the new Clear Channel Media and Entertainment's Nickelodeon channel, called Nick Radio, which can be heard on digital HD2/HD3 stations like New York's WHTZ-HD2.

HD Radio Receiver Sales Approach 17.5 Million Mark

HD Radio receiver sales growth has also accelerated, with a new radio sold every 6 seconds. Almost 17.5 million HD Radio receivers have been sold, with over 15 million factory-installed in new cars or auto aftermarket units. This rapidly expanding installed base is helping broadcast radio retain its dominance in the new digital dashboards.

• All major automakers will include factory-installed HD Radio receivers in 2014
• Over 200 vehicle brands will include HD Radio Technology in 2014, half will be sold as standard equipment
• 5.5 million HD Radio receivers were sold in 2013
• Over 30% of all new vehicles sold last year included HD Radio Technology

This past year also saw the largest SKU count increase in aftermarket HD Radio auto products ever – nearly double that of 2012. CE unit shipments through 2013, now total over 2.3 million. Additionally, 2013 saw a significant expansion of the traditional AV market as both Marantz and Yamaha introduced several new preamp / tuner products incorporating digital technology.

Advanced HD Radio Audio and Telematics Services Launching In More New Cars

Broadcasters and receiver manufacturers are taking full advantage of digital services enabled through HD Radio technology.  A prime example of that is the rollout of Artist Experience, a service that enables stations to provide synchronized images such as album cover art with their audio programming. Currently over 500 stations are now supporting Artist Experience on over 900 digital broadcasts nationwide. Artist Experience is now widely available in new HD Radio car receivers from BMW, Buick, Chevrolet, GMC, Lexus, Mazda, Toyota and Volkswagen as well as CE manufacturers Alpine, Clarion, JVC, Kenwood, Pioneer, Sony and Insignia.

HD Radio Digital Traffic Services enable stations to transmit up-to-the-minute traffic, weather and other information and plot it onto car navigation screens. Two national networks, built by Clear Channel Media and Entertainment and the Broadcaster Traffic Consortium utilize over 600 radio stations across the country to deliver their HD Digital Traffic services. While JVC and Garmin were the first to embrace these services, Honda, Lexus, Mitsubishi, Mazda and Toyota all now offer vehicles with these enhance digital broadcast telematics services subscription-free for the life of the vehicle.

HD Radio Digital Technology is Progressing Towards a North American Standard

HD Radio Technology has been adopted as the digital radio standard for the AM and FM bands in Mexico.  36 AM and FM stations have begun broadcasting digitally, including 13 stations in Mexico City alone. These digital broadcasts reach some 33 million people nationwide - 25% of the Mexican population. Many more stations throughout Mexico are in the process of converting to digital broadcasting. Digital radios are available at 7 major CE retail chains as well as factory-installed in vehicles from Ford, Dodge, Jeep, Lincoln, Mazda, Toyota and Mercedes.

HD Radio broadcasts have also reached Canada.  CMR 103.1FM is broadcasting in Toronto and data services have been tested with Corus Media, one of the largest commercial broadcasters in that country, with the support of the US based Broadcaster Traffic Consortium.  Digital radios are currently available in Canada in new cars from Audi, BMW, Ford, Hyundai, Jaguar, Land Rover, Mazda, Mercedes Benz, Volkswagen, and Volvo and from aftermarket manufacturers Alpine, Clarion, JVC, Kenwood, Pioneer and Sony.  Home AV products are also available from Denon, Onkyo and Yamaha.

With over 15 years of commercialization experience in the U.S. to draw upon, Mexico and Canada are positioned to benefit from the robust collection of know-how represented by the thousands of U.S. broadcasters and the millions of receivers that have been manufactured.