This is very interesting, especially for an AM that has 3 separate FM translators that cover the entire metro. I will be watching this.
IMO this decision came about a decade too later to save AM Radio. While lots of cars have HD built in (and can receive the MA3 format) who's going to spend money to replace their "obsolete" analog AM radios. Try finding one for $10-$20 at your local electronics dealer.
The guy who pushed for digital AM claims there are "70 million" radios in the market already. But how many are actually used?
On average, what type of capital investment/cost will this be for those existing analog stations that choose to participate?
I'll bet there are not even ten stations today that are even seriously considering this. The math just does not work. It's not the hardware... that is relatively cheap. It is the loss of about 90% of each station's audience and very very slow prospects of recovering it for years and years.
On average, what type of capital investment/cost will this be for those existing analog stations that choose to participate?
I'll bet there are not even ten stations today that are even seriously considering this. The math just does not work. It's not the hardware... that is relatively cheap. It is the loss of about 90% of each station's audience and very very slow prospects of recovering it for years and years.
You are categorizing every Am station the same. Weck does not have 100 percent of our listening done on am. Infact, 70 percent of weck listening is on one of our fms.
This may not be something to do immediately, but it’s a nice option for the future. Especially for an music stations in very populated metro areas.
Basically, it's a bandwidth grab. Digital broadcasting on AM will allow stations to provide more than just audio services.
Entities looking for more bandwidth to distribute lo-fi data, particularly to mobile receivers, will want to acquire moribund AM stations for that purpose.
Seems to me there are cheaper and easier ways to do that.
You are categorizing every Am station the same. Weck does not have 100 percent of our listening done on am. Infact, 70 percent of weck listening is on one of our fms.
But the 30% that is on AM is, following the industry average, over 50% at home or work. You would lose that totally. And less than 25% of vehicles today have HD. It will take five to six years to get to 50% if every car comes with it.
So you would lose 85% of that 30%. So if you have a 3 share, you would drop instantly to a 2.1. And that is not just statistics. That is real people who will not hear your clients' messages.
"Ohhh, digital AM! I'm gonna buy a digital receiver right quick!" Said nobody in particular.
There was an interesting discussion of push-pull marketing not long ago in oen of the advertising trades. One of the serious items of discussion was how radio stations "push" text messages to listeners and how listeners basically respond by saying "Enough! Click."
This is a prime example of "push." Can't imagine anybody being interested, and as Dave E noted earlier, why any broadcaster would seriously want to dive in to this.