Consumers increasingly use mobile devices to access digital content while driving, according to market research firm The NPD Group. Sales of products that integrate portable devices (e.g., smart phones, tablets and MP3 players) and vehicles accounted for more than $170 million in 2011, according to NPD’s Retail Tracking Service.
Still, “Traditional radio and CD audio remain firmly entrenched in the vehicle from both a device and entertainment standpoint,” said Ben Arnold, NPD’s director of industry analysis. “But as ownership of mobile devices, digital content, and apps expands, consumers will be looking for ways to customize the in-vehicle environment with content and services."
Certainly, this is a challenge for radio stations which are losing their hegemony on drive-time listeners. Radio and TV thinktank RBR-TVBR observes that “Content is content and if your radio station is compelling enough, they’ll be listening to it nationwide," though increasingly via mobile devices, bypassing the in-dash radio. Pandora and iHeartRadio cannot own drive time listenership simply by being mobile, as popular stations stream over mobile media as well.
NPD’s just-released study “Mobile CE: A Look Inside the Vehicle” reveals that 84% of vehicle owners have a portable media device and more than three quarters (79%) are using them in the car. These devices are also used regularly with half of smart phone owners, and nearly two-in-five (37%) iPod owners said they use their devices “always” or “most of the time” while driving.
In-vehicle connectivity is also starting to emerge as a purchase factor with a third (32%) of consumers saying the feature is highly important in their decision to buy future car audio products. Consumers are also connecting their digital media devices through a variety of ways. While 18% of vehicle owners have an auxiliary input installed into their vehicle stereo system, 11% are connecting through a USB port. Despite being present in just 13% of vehicles, wireless connectivity is gaining favor as a way to more easily control these devices and tap into connected services. More than half (56%) of vehicle owners with a built-in Bluetooth or wireless phone connection installed said they always use it or use it most of the time.
This is hardly the death of radio or the CD players, which are still in high demand. Fully 73% of vehicle owners with an FM radio said they use it during most car trips and 57% of consumers said the presence of a compact disc player will be vital in their decision to purchase their next car stereo system. Still, there are signs of erosion. Ford announced in July 2011 that it planned to cease fitting European models with in-car CD players, in favor of MP3, USB and Bluetooth audio connectivity.