Report: More Cars Equipped To Carry HD Signal

With so many listening choices in modern cars, from satellite radio to streaming services such as Pandora and Spotify, one might imagine that the era of AM/FM radio is coming to an end.

But, according to Automotive News, it isn't. Radio has proved incredibly resilient, as a study released this month by media tracking company Nielsen shows. And the auto industry has taken notice, investing in a transition to digital radio, even as CD players disappear from the dash.

Robert Struble

This year in the U.S., about half of new cars sold will be outfitted with a service called HD Radio, which offers a crisper signal and thousands of extra stations. The service was developed by iBiquity Digital Corp. of Columbia, Md., which won an endorsement from the Federal Communications Commission in 2002 to start a switch from analog to digital broadcasting.

"If anything, I think radio is becoming more entrenched -- not less," said Robert Struble, CEO of iBiquity, which licenses the HD Radio software to infotainment suppliers such as Fujitsu Ten, Clarion and Harman.

More than 90 percent of Americans listen to radio at least once a week, according to the report by Nielsen, which advises broadcasters and media buyers on advertising rates. That is down just a few percentage points from before the rise of digital music, said Jon Miller, vice president of audience insights at Nielsen.

Nielsen cannot easily compare its AM/FM radio numbers to the dozens of Internet streaming services, let alone downloaded music that's being played over a Bluetooth connection. So it's possible AM/FM radio is losing market share, Miller said, but the pie is growing: People seem to be listening to more content than ever.

"Radio's great strength has always been in the car," he said. "That's still true, even with more and more options."

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