INDIANA— A new report finds that most consumers listen to some kind of audio when they’re in their vehicles, with AM/FM dominating the action.
Connected Car Entertainment Trends,” released by Xperi subsidiary DTS, finds that a clear majority of consumers — 70% — say they tune in to AM/FM radio to listen to music, well ahead of music streaming services (53%) and satellite radio (30%).
The report notes, however, that emerging entrants, notably video and gaming, are competing for consumers’ in-vehicle attention.
The report examines in-vehicle entertainment consumption, including how consumers experience audio, video, and games while they’re on the road.
Audio continues to dominate, confirming radio’s importance as vehicle entertainment’s anchor. But, the growing impact of video is clear, not only in its dramatically increased usage but also in consumers’ increased interest in front and rear cabin screens. The emergence of in-vehicle gaming among younger generations, particularly casual games, indicates its growing importance on in-cabin entertainment platforms.
According to the report, there’s evidence that in-vehicle entertainment affects vehicle purchase choices. More than half say they’re willing to pay more for better in-car entertainment, with AM/FM overwhelmingly rated as the most important entertainment option for potential car buyers.
Growing video consumption is also a key factor for those shopping for a vehicle. The research found that video watching in vehicles grew to nearly 40% vs. 31% a year ago. While consumers are primarily listening to audio while running errands or commuting, DTS found that video consumption grows when kids enter the vehicle.
The report found that gaming is rapidly emerging in vehicles, particularly casual games like Candy Crush.
Another key finding: Consumers aren’t delighted with current in-vehicle entertainment options. They want more options and a more convenient entertainment system, with 50% interested in screens in their next vehicle’s front and back seats.
Among the report’s main findings:
- Audio remains the most consumed form of entertainment in the vehicle, with nearly 90% listening to some audio in the car, most commonly music.
- AM/FM radio is the most popular form of audio entertainment for music listening (69%), compared to music streaming (53%) and satellite radio (30%).
- Consumers mainly spend time in a car to run errands around town (46%). When they do this, they are in the car for under 30 minutes and use audio entertainment (87%).
- 52% are willing to pay more for a better in-car entertainment system.
- AM/FM radio is the most important (59%) entertainment option for consumers when purchasing cars.
Information: Inside Radio.
