USA Today reported Tuesday that "more carmakers are adding digital tuners in their bid to woo audiophiles and add electronics." The report comes on the heels of South Korean based Hyundai Motor Company offering digital -- or HD -- radio in new Genesis model sedans up for sale this month. Germany-based BMW already offers HD radio tuners as a stand-alone option, and Ford Motor Company (NYSE: F) owned Volvo Cars will begin offering HD Radio as a standard feature in 2009 for most of the company's models.

HD radio has picked up significantly since 2002, when only 11 stations (AM and FM) offered a digital signal in addition to traditional analog signals. Now, more than 1,700 stations offer HD radio as well as second and third signals of specialized shows because digital signals use less bandwidth than analog signals. USA Today reports that carmakers moving in this direction is a major positive move for HD radio since the car is a major venue for radio. The newspaper also speculates that HD radio might prove a major threat for XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc. (NASDAQ: SIRI) subscriptions as well as any merger those companies make.

Unfortunately, many insiders point to many consumers unfamiliarity with and not knowing about HD radio as a problem for the product's success. It seems likely that with carmakers picking it up as a standard feature, more consumers will become aware and adopt HD radio as a venue, if at most because it will be a standard feature. Regardless, HD radio much like HD television is another development that gives consumers better quality and offers technology that audiophiles can enjoy and embraces new developments that are occurring concurrently with music industry and digital tracks.

Best Buy Co., Inc. (NYSE: BBY) will start making HD Radio technology available at all 832 of its U.S. stores, according to the retailer and the HD Digital Radio Alliance. HD Radio is the terrestrial radio industry's response to the satellite radio industry, although it's been late to come into the game and so far, is an unproven product even though it was released some time ago.

My bet is that most satellite radio customers (a majority) fled to the pay-for-service model of satellite radio to escape the boring playlists and incessant advertising that terrestrial radio stations broadcast. I'm sure commercial-free content played a role in the growth of satellite radio as did the sheer amount of individual programming. Now that HD Radio has found friends in two of the largest retailers in the country (Wal-Mart and Best Buy), is it destined to give satellite radio a run for its money?

That is doubtful unless the HD Radio industry moves beyond simply transferring the same tired content from the analog airwaves and packaging it into a slicker "HD Radio" format that sounds better. All that will happen is that staid and boring content will, well, sound absolutely superb. It'll still be staid and boring content, though. Now that HD Radio has a few high-profile retail friends, the programming choices and content (perhaps even pay content) needs to be looked at or HD Radio will fade into the sunset rather quickly.

In-car entertainment is becoming as sophisticated as multi-channel surround sound in the media room these days. Well, to a point. Consumers now have standard old FM and AM radio, hundred-channel satellite radio, iPod and other 10,000-song portable libraries and now even HD Radio. HD Radio is basically the same old content (I think) that is on the standard analog FM band, but with digital clarity and enhanced features.

Do customers care about all this or are they interested in content over "crystal-clear quality"? Both XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio (NASDAQ: SIRI) would argue that content is king, and 10+ million American satellite radio customers would back that statement up pretty nicely. What about terrestrial radio's comeback, as in HD Radio?

There are some industry watchers who say the death of terrestrial radio is imminent. Too much annoying advertising, deejays who have little to no function, boring and repetitive play lists and boring content in general are the standard gripes. But when HD Radio receiver units come to Wal-Mart Stores, Inc. (NYSE: WMT), will consumers pay for those radios to hear their "boring content" in perfect digital clarity? HD Radio, unlike satellite radio, is free to receive (no monthly costs), which is a boon to many listeners. Add to that the advertising spending the HD Radio partners are planning this year along with national station support (in a fight for survival, no doubt), and Wal-Mart becomes a powerful ally for the aging radio industry. Will consumers even notice though?

XM Satellite Radio Holdings Inc.(NASDAQ:XMSR) and Sirius Satellite Radio Inc. (NASDAQ:SIRI) are
booming, even amid constant predictions of future doom for the industry. Will HD radio be able to pull those subscribers back to earth? Circuit City Stores, Inc. (NYSE:CC) hopes so, as the retailer will begin selling HD radios soon along with online retailer Crutchfield.com and RadioShack Corporation (NYSE:RSH).

Roughly 1,000 terrestrial radio stations are broadcasting in HD Radio already, but relatively few listeners can hear the signals. HD radio gives FM radio CD-like audio quality while giving AM radio FM-like quality.

I don't see how HD radio can lure back former listeners. Sure, there are fidelity enhancements. But all they'll hear is the same tired content, all plugged playlists and tons of ads.

But, the HD Digital Radio Alliance is hoping to change all that now that the country's second-largest consumer electronics retailer has become the first 'big box' retailer to put HD radio products on its shelves -- and just in time for the holiday season.

Will you continue to listen to terrestrial radio stations with the same content, even though it'll sound better than it ever has? Or, are you planning a move to satellite radio soon? I'd be interested to hear from XMSR and SIRI investors as well as consumers on this one.