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Mar 4
Wal-Mart Now Offering Digital Radio

With a lot of their hopes for growth resting on digital radio, the industry may well get a big surge now as Wal-Mart (WMT) will now start stocking the devices.

Starting on March 5, Wal-Mart will begin stocking the JVC in-dash car stereo that will be able to receive HD Radio broadcasts. The terrestrial digital radio standard has already been approved by the FCC since 2002. 

It will be available in almost 2,000 of Wal-Mart's U.S. stores, wherever HD broadcasts are available. The radio will retail for around $190.

While Wal-Mart isn't the first to offer these radios, as RadioShack (RSH) and Circuit City (CC) already offer them, along with online consumer-electronics business Crutchfield, they will obviously be the biggest and offer a reach that the industry has to be thrilled with. If they don't sell these now, they could be in for a Digital%20Radio%20now%20available%20at%20Wal-Mart.jpglong, painful experience.

At this time in the U.S. there are 1,214 radio stations that transmit HD radio signals. Last year there were only 740. Still, that's only a small amount in comparison to the almost 14,000 radio stations that are in the U.S.

One reason people may jump at this is that you aren't required to get a subscription like you have to with satellite radio operators XM Satellite (XMSR) and Sirius Satellite Radio (SIRI).

What will be interesting to see is if this changes any of the conversation and decisions that will be soon made concerning the merger of Sirius and XM. With the ability to offer up to three broadcast feeds on one HD Radio signal, it may be comsidered more of a competitor with the satellite stations then they are now.

The question will quickly become whether the sound improvement in the HD broadcasts will be worth the cost and effort of installed in a customers car.

I think the other problem has been there hasn't much marketing done concerning the service as well. That should definitely be ramped up now that the opportunity through Wal-Mart is now available.


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