[BC] Survey says....

[Bernie Courtney]

sounds like they all but pulled this number out of the sky, by their own
account the $150 is just an 'estimate'.

Satellite radio is still ranked above HD in consumer interest until its
reveled that HD would only cost $150, verses a higher cost for satellite
radio, if a more accurate number for HD were presented to the participants
and came in right about the same as a  ~$450 lifetime satellite radio
subscription I dont think HD would be nearly as highly ranked.

http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005118

The study measures consumer familiarity, interest and purchase intent for
emerging automotive technologies both before and after an estimated market
value is revealed. While consumer interest in new technologies typically
drops after a price point is revealed, relative interest in premium surround
sound and HD radio actually improves dramatically after the market price is
provided. Premium surround sound, which ranks sixth in consumer interest
before the price is revealed, moves to second after consumers learn its
market price ($400). With a realistic market price of just $150, the HD
radio-compatible receiver jumps from 16th in initial interest to third after
pricing is revealed.

"What is truly surprising is that among those interested in equipping their
next new vehicle with the premium surround sound feature at $400, nearly 80
percent of those are willing to pay $800 for a branded system," said
Lawrence Wu, senior director of automotive emerging technologies at J.D.
Power and Associates. "This suggests that automakers and audio suppliers
could add value to their products for consumers, while increasing their
returns. While we have seen the availability of branded sound systems
increase the past few years, it's evident from this research that there is
sufficient consumer demand to warrant equipping a much broader vehicle
segment base."

Consumers still express more interest in satellite radio than HD radio prior
to the introduction of price, but interest falls below HD radio at the
realistic market price of $12.95 per month for satellite radio. The study
shows that more consumers are willing to pay a one-time fee as opposed to
paying monthly for the service.

"Even though satellite radio is at an advantage over HD radio by offering
commercial-free content and coast-to-coast coverage, interest in HD radio is
higher than satellite radio after the introduction of price," said Wu. "In
general, consumers would rather pay once for a feature and have been
reluctant to embrace subscription fees. This is evident in the trade-off
exercise in this year's study in which almost twice as many consumers chose
lifetime (life of vehicle) satellite radio with a one-time $499 subscription
fee compared to a one-year option."


On 12/7/05, Rich Wood <richwood at pobox.com> wrote:
>
>
>
> I'm afraid Powers weighed a fashion model instead of an opera singer.
>
> Show me where I can get an IBUZ radio for $150. Two days ago I made
> the rounds of stores in the area. To start, no one has it. The
> figures I have are $399 for the tuner and about $200 for the headend
> and installation. I never studied new math, so I could be wrong but
> that comes to $599 in old math. Again, in old math, that equals 46
> months of satellite service with 100+ channels.
>
> We're on a "let's get data" kick. Let's find out how they phrased the
> questions, since there's no such thing as a $150 IBUZ receiver I can
> only imagine how flawed the rest of the survey is. The cheapest I've
> seen is the Radiosophy at about $269. It's been delayed yet again.
>
> The Boston Acoustics is $499 (39 months of satellite service). The
> Polk is $599 (46 months of satellite service). The Yamaha is $1899
> (146 months of satellite service).
>
> The $150 figure must have come from the soon-to-be-released HDPod and
> little red battery wagon.
>
> I can only imagine this is a projection of 20 years from now when FM
> IBUZ is in relatively full operation. With the expected litigation I
> wouldn't attempt to predict when AM IBUZ is ready for prime time.
>
> If you can find an IBUZ radio for $150 that hasn't fallen off the
> back of a truck. Buy it, whether you need it or not.
>
> Rich
>
>
> Rich Wood
> Rich Wood Multimedia
> Phone: 413-303-9084
> FAX: 413-480-0010
>
>
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