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Brokerage Analyst: "HD not a catalyst for radio"

D

dumber than a box of hair

Just got this on an engineering remailer I subscribe to:

"Wachovia analyst Marci Ryvicker says “HD Radio is
not a catalyst” for radio, at least not now.

"Marci’s précis of last Wednesday’s SNL Kagan
Summit concludes with this paragraph: 'HD Radio
has been in the works for years, yet it is
amazing to us that #1, it is still not in cars
(please tell us who would actually buy a radio in
the store when there are sexier technological
gadgets out there). #2, Radio groups still plan
to use the spectrum for programming rather than
datacasting or on-demand alternatives. #3, No one
can figure out what the revenue model will be.'
Ryvicker says 'our thoughts: radio does not need
more formats or more inventory. Use the spectrum
for something else [like datacasting] and get it
in the car, as a non-pay option, ASAP.'”
 
>>> on-demand alternatives

Here it goes again. Radio owners hoping to make money off of the HD-2 channels by making them pay-per-listen forget: they are simultaneously erasing the only two selling points for HD Radio, that it is free (as opposed to satellite), and HD-2 channels offer more variety.

It won't take very long for the average consumer to figure out - they can pay $13 per month to access ONE HD-2 channel, or they can pay $13 per month to access over a hundred channels, probably including the very format they are after. Pretty much a no brainer - charge for access to HD-2, and you will drive people straight to satellite.

Or if they are really smart, figuring out how to use their cell phone to stream internet audio into their car radio. The only thing stopping me from doing it right now - I'm not sure of the cost - is "unlimited" really "unlimited data", I'm not sure of the quality, and if the cell drops it is a pain to get the station back. Solve those problems, and people like me will do it right now. And how long before it is standard in the head unit?
 
rbrucecarter5 said:
>>> on-demand alternatives

Here it goes again. Radio owners hoping to make money off of the HD-2 channels by making them pay-per-listen forget: they are simultaneously erasing the only two selling points for HD Radio, that it is free (as opposed to satellite), and HD-2 channels offer more variety.

It won't take very long for the average consumer to figure out - they can pay $13 per month to access ONE HD-2 channel, or they can pay $13 per month to access over a hundred channels, probably including the very format they are after. Pretty much a no brainer - charge for access to HD-2, and you will drive people straight to satellite.

Or if they are really smart, figuring out how to use their cell phone to stream internet audio into their car radio. The only thing stopping me from doing it right now - I'm not sure of the cost - is "unlimited" really "unlimited data", I'm not sure of the quality, and if the cell drops it is a pain to get the station back. Solve those problems, and people like me will do it right now. And how long before it is standard in the head unit?
Click to expand...

Sprint, of course, is rolling out 4G-class WIMAX service this year and next. Verizon executives who plan to go with 4G-class LTE service by 2010, say the coming deployment and adoption of wireless broadband will create "a tidal wave of innovation" as existing desktop applications move over to cell phones and the wireless world.

http://www.informationweek.com/news/mobility/3G/showArticle.jhtml?articleID=207001832

As for now, 3G EVDO unlimited service has worked fine for me using Verizon Wireless. I've generally kept my in-car streaming in the 24k to 32k range without incurring the wrath of VZW. I understand Sprint has no restrictions at all on their EVDO use.

Where does all of this leave HD Radio? Click on the link below.

http://www.cbc.ca/consumers/market/files/home/failedproducts/index.html
 
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