By Robyn Greenspan | July 12, 2002
Despite its infancy, 47 percent of Americans aged 12 and over are aware of satellite radio services translating into over 100 million people within the current U.S. population (2000 U.S. Census figures). TEMPO, Ipsos-Reid's digital music research study, found that this awareness can yield the prediction that as many as 25 million Americans will be paying for this service by the end of the decade.
These figures could mean good news for XM and Sirius Satellite Radio, big players in this new industry who have spent a combined estimated $1.5 billion on a complex satellite broadcast network. Requiring the purchase of satellite-enabled audio hardware and a monthly subscription fee for operation, the services offer both original and pre-packaged digital music, news, sports and talk programming that can be heard anywhere in the U.S. in cars and home radios. The services promise superior sound and transmission quality, and fewer or no commercials.
"Whether the currently strong awareness levels will translate into subscriptions for both XM and Sirius remains to be seen, but certainly the pump has been primed", said Matt Kleinschmit, senior research manager for TEMPO. "Clearly, many in the general population music enthusiasts in particular are aware that this new radio service exists, and as new automobiles with satellite-enabled audio systems move from the showrooms to the streets, many may become de-facto subscribers through bundled leasing agreements and financing plans."
The data, collected during the last week of April 2002 from 1,113 U.S. respondents, revealed:
60 percent of 18 to 24-year-olds, and 57 percent in the 25 to 34 age group report they have heard of these new radio services.
47 percent of both 12 to 17 and 35 to 54-year-olds, and 33 percent of Americans aged 55+ indicate they are aware of this recently launched technology.
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