Quu recently released the results of its inaugural In-Vehicle Visuals report, which showcased how AM/FM radio is presented in the top 100 best-selling new car models of the last year.
In the report, it was revealed — not unexpectedly — that AM/FM radio still has a strong position in new vehicles, with 100% featuring the FM band and 98% offering the AM dial. Quu found that 92% of the models were equipped with SiriusXM, while a surprising 70% had HD Radio capabilities.
Meanwhile, digital options were also strong in the latest models. Both Apple CarPlay and Android Auto saw integration in 98% of vehicles.
In a question and answer session, Quu CEO Steve Newberry told Barrett News Media about his biggest takeaways from the study, the biggest surprises, and how the idea even came to be.
Garrett Searight: Before we dive into the results of the study, I wonder if we can talk about the genesis of the In-Vehicle Visuals Report. Where did the idea come from and what was the undertaking of getting that started and finished?
Steve Newberry: Well, I’ve been involved in looking at the dashboard as it relates to the radio industry for a number of years. First, during my time at NAB as a member of the team there and then as CEO Quu. It became very obvious that there was a lot of disparity among the vehicles but there was no central place or point of information gathering. Radio stations would call Quu and say ‘I’ve got a client that’s got this type of vehicle, but they can’t see the logo.’ We would do everything we could to help but no one has ever gone out and gathered this information.
And so last fall, we kind of got to the point that if no one else is going to do this, we will, because I’ve probably looked at as many automotive dashboards over the past four years as anybody in the country. And I knew that that information was needed. So we said that the industry needs this information, and let’s set out about doing that.
GS: Were there any big surprises when you sat down and studied the data? Anything that stood out that made you think ‘I would not have guessed that’?
SN: Yeah, there were some positive surprises and there were some not-so-positive surprises. I think what I was excited to see was the significant increase in the adoption of HD Radio across many vehicles.
70% of the vehicles have HD Radio, and of that, 30% remaining, 19% of that — or over half of that — is directly attributable to the General Motors policy. So the positive is 70% of the vehicles have HD Radio.
Then the point of concern or the fact that I did not know is that General Motors just seems to be zigging while everyone else is zagging. The rest of the automotive world is embracing that technology and General Motors has chosen not to. Which I don’t know what the course of action is on that, but the radio industry certainly needs to know that the General Motors vehicles are intentionally not equipped with HD radio. And we need to figure out a strategy related to that.
GS: A lot of talk has been made about the future of AM Radio. 98% of those new vehicles still have it. Were you surprised at all by that number?
SN: Not at all. I think the AM radio issue is a public safety issue. It’s really not something that Quu has been too involved in, but I do think that that issue seems to be limited to a very small number of electric vehicles. And they just haven’t permeated the top 100.
So I was not at all surprised with the ubiquitous nature of A, radio. It’s in 98% of vehicles on the road. That’s pretty high presence. So I wasn’t surprised by that at all.
GS: The image display was at 60%. Can we expect that to grow in the next few years?
SN: I would certainly think so. Historically, of all the vehicles on the road — and that includes dump trucks, taxi cabs, and buses — of all the vehicles, that number has historically been about 20%. So to see that it’s as high as 60% of adoption in the new model years, that’s really good news.
It’s a significant increase in the amount of vehicles equipped and I think that’s a direct relationship to the demand that the consumers have for wanting that visual experience in their cars.
GS: The second biggest takeaway Quu presented was that Radio no longer has a monopoly on the in-dash experience. Is that visual component expected by users why that monopoly has gone away?
SN:
SN: I think that’s just technology. There are a lot more places to get music than there were 20 years ago. There are a lot more places to buy things online than there were 20 years ago. We’re in a society that has a lot more options and choices. Think about television. 30 years ago, it was three channels and your public broadcasting station. And now it’s cable, now it’s over the top and streaming. That’s just the nature of media.
The big message that I would say from this is radio is in vehicles, others are in the vehicles as well. But let’s not try to win by default, let’s win because we have the best products. And so the monopoly is no longer there, because technology has evolved, but the opportunity is still there as much as it’s ever been. We’re in 100% of the vehicles on the FM side and 98% on the AM side.
The opportunity for us to thrive is there. It’s a content issue in many cases. Are we providing the content that the listener wants? That’s what I think the ultimate battle is in the dashboard of the vehicle right now. We’re equipped to receive what we do. Let’s put our best foot forward and let’s go win.
GS: Is there a concern with the radio button only being 36% of vehicles, that there isn’t that dedicated button?
SN: The concern is not so much about the button as much as it is how hard it is to get to your radio station. I think that’s one of those things that will be a trend that we’ll pay attention to in future years. If for three years it stays at 30-35-40%, that’s okay. If it goes to 20% next year, I think the industry needs to pay attention to them.
Because you want it to be easy and convenient for people to immediately get to their radio driving down the road. There’s an automobile accident. or there’s threatening weather. or there’s something that you need to get information and not just be entertained, but you really need the information from your local radio station. I don’t think anybody wants to have to go through a menu of media, audio, and then finally get to the radio selections. Whatever those different tiers may be if you can just push a radio button and you’re on that AM/FM.
If you have that direct access, I think that’s good for the listener. I certainly think it’s good for the radio industry. So I don’t call it a concern. Because it’s the first year I’ve really known that. I’ve had my suspicions, but I didn’t know what the percentage was. I think that we’ll be seeing more in future years of what the trend will be with that number.
