J.D. Power Press Release about Satellite vs. HD radio

[JV]

Got this one yesterday, it's pretty interesting. We're pretty hyped at work that BMW is committed to HD radio. A deal is already in the works to get us an X3 or maybe even an X5 or X7 as a station vehicle, to showcase the HD.

J.D. Power and Associates Reports:
Premium Surround Sound Systems and HD Radio Garner High Consumer
Interest Based on Their Market Price, While Consumers Prefer One-Time
Fee Over the Monthly Fee Associated with Satellite Radio

Safety-Related Technologies Continue to Draw Strong Consumer Interest

WESTLAKE VILLAGE, Calif.: 18 August 2005 - Premium surround sound
systems and high-definition (HD) radio are highly attractive features
consumers would like to see in their new vehicles based on their
estimated market prices, and consumers prefer to pay a one-time fee over
a monthly subscription for satellite radio, according to the J.D. Power
and Associates 2005 U.S. Automotive Emerging Technologies StudySM
released today.

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."

Safety related technologies are still a top priority for consumers. The
study finds consumers' four most desired features relate to enhancing
the safety and/or security of vehicle occupants. Run-flat tires were the
most desired item among technologies included in the study before
consumers were shown the fair market value. Night vision, stability
control and blind spot warning follow run-flat tires in consumer
interest before prices are introduced.

Stability control jumps to first place after consumers are made aware of
its $300 price tag, while run-flat tires drop to fourth after its $600
price is revealed. Consumer interest in night vision decreases
significantly once consumers are presented with the realistic market
price of $1,500.

The 2005 U.S. Automotive Emerging Technologies Study is based on
responses from more than 17,000 U.S. consumers. The study is designed to
measure consumer familiarity, interest and purchase intent for emerging
automotive technologies.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm
operating in key business sectors including market research,
forecasting, consulting, training and customer satisfaction. The firm's
quality and satisfaction measurements are based on responses from
millions of consumers annually. J.D. Power and Associates is a business
unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading
brands such as Standard & Poor's, McGraw-Hill Education and
BusinessWeek. The Corporation has more than 300 offices in 40 countries.
Sales in 2004 were $5.3 billion. Additional information is available at
http://www.mcgraw-hill.com <http://www.mcgraw-hill.com/>; .

[Kewl X5]

Heard through the grapevine that they will offer HD Radio on the 2007 7-series as a standard feature....but who knows....one thing for sure is that BMW is adopting another new piece of technology (for better or worse).

[JV]

http://www.usatoday.com/tech/product...al-radio_x.htm