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AM/FM Radio Most Important In-Car Entertainment Option for Buyers, Xperi Study Shows

The future of AM radio in vehicles — especially electric models — has been cloudy at times in recent years. But a new study from Xperi shows terrestrial radio remains a high priority for car buyers.

According to the study, 59% of respondents said AM/FM radio remains the most important entertainment option when considering their car purchase.

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Additionally, terrestrial radio remains the most popular audio format for music listening. A nice portion of respondents — 69% — said it’s their top choice. Streaming music was used by 53% of those surveyed, while 30% said they use satellite radio.

Some of the new study focused on the use of video games in cars. 58% said they would like to see rear cabin screens, while 54% said they would welcome front cabin screens. 60% of Gen Z respondents and 49% of millennials said gaming is more prevalent in rear-seat passengers than front-seat passengers, though.

“Consumer perception of the car as a leading ‘third space’ is driving demand for audio, video, and gaming,” said Xperi Senior Vice President and Connected Car GM Jeff Jury. “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. And the emergence of in-vehicle gaming with younger generations, particularly casual games, is indicative of its growing importance to in-cabin entertainment platforms.”

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