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BMW will offer factory-installed digital HD Radio receiver with FM multicasting capability as an option in the new 3 Series Hardtop Convertible.

In case you don’t know, HD Radio multicasting feature allows FM stations to broadcast multiple channels of digital programming simultaneously on a single frequency. Of the more than 1,000 stations across the country broadcasting with HD Radio technology, more than 500 FM stations are offering a second (HD2) and, in many cases, a third (HD3) multicast channel. For example, WAMU in Washington, DC, offers three channels: 88.5-1, a simulcast of its news/talk analog channel; 88.5-2, a simulcast of an innovative Baltimore music station not available in DC; and 88.5-3, bluegrass music the key for HD radio to succeed—targeted music channels like satellite. These channels are free but can only be found on HD Radio receivers (which will cost you around $200 for a bookshelf unit or $500 as an in-car option). Unlike satellite radio there are no subscription fees or additional costs associated.

In August 2005, the company announced the first OEM availability of HD Radio technology in its 2006 7 Series models. BMW then followed up in November 2005 by extending the HD Radio option to drivers of its 2006 6 Series vehicles. This past June, the company announced that HD Radio would be offered in its 2007 5 Series models. The HD Radio option on the all-new 2007 BMW 3 Series Convertible will have a Suggested Retail Price of $500.

So what do you choose AM/FM, satellite radio (XM/Sirius), or HD radio?

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