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Chairman Martin's Opening Remarks

D

dbdigital

Guest
If you had a chance to read Kevin Martin's opening remarks at the Harrisburg hearing, you couldn't help but notice this paragraph:

"Another idea for helping small and independently owned businesses overcome financial and resource constraints is to allow them to enter the broadcast industry by leasing some of an existing broadcaster's spectrum to distribute their own programming. Conversion to digital operations enables broadcasters to fit a single channel of analog programming into a smaller amount of spectrum. Often, there is additional spectrum left over that can be used to air other channels of programming. Small and independently owned businesses could take advantage of this capacity and use a portion of the existing broadcasters’ digital spectrum to operate their own broadcast channel. This new programming station would then obtain all the accompanying rights and obligations of other broadcast stations, such as public interest obligations and carriage rights."

Obviously he is speaking about the extra channels made possible by digital FM radio (HD-R and FMeXtra). While such a use is laudible (I've suggested it in a previous post), will the media conglomerates be willing to part with the other channels (and possibly face competition within their own channel assignment) and if so for how much?

Will the broadcasting industry cheerfully allow 'small and independently owned businesses' to actually take advantage of a leased time agreement on the HD2 and 3 channels? They haven't so far.

db
 
I've actually toyed with this idea, since I don't own a radio station. Say you do...a 100kw FM station that's analog. You're mildly interested in HD, but on a tight budget. I have some money burning a hole in my pocket, am an experienced broadcaster, but don't have enough...or am not willing to risk enough to buy a station. Here's my proposal. I buy the gear for you to go HD. It's MINE (incentive for you to continue your arrangement with me). You get to broadcast your audio on the HD1 channel for free. I get to do whatever I want (within the law) on HD2. In addition to revenue from your main channel (of course), you get to sell, say 40 percent of the inventory on the HD2 (remember...I OWN THE EQUIPMENT, it's my 100 grand, so it's actually a pretty good deal). Similar arrangements would apply should there ever be an HD3 stream. Or perhaps you would want to put your AM station on the HD3, and let ME sell some inventory on it.

Promos for ALL streams go on your main channel. I get to produce the promos for HD2, since it's my hiney (and money) on the line. Streams for all are available on your website, as well as podcasts of the best shows from each stream (thus allowing existing listeners to sample the new stuff prior to investing in the radio...so they can make an informed decision as to it's worth). Win/win...particularly for the "little guy" who owns a small or medium market station, right?
 
Mike Walker said:
Win/win...particularly for the "little guy" who owns a small or medium market station, right?
Click to expand...
It certainly could be, assuming you can find willing partners. Even so, I think it will be a long time before such a scheme becomes financially viable in most markets. You also have to find a station that is willing to let you compete with them, even on a small scale. I have a feeling that may be harder to do than it sounds, when you consider the stink made by NAB and NPR over LPFM. Most large broadcasters would prefer there were no small broadcasters.

I remember when the LPFM debate was raging, several well known Internet Group posters (who are still around) said that if a LPFM took just one listener from their station, they would consider it a threat. History has a way of repeating itself.

Hopefully, you can find a friendly local broadcaster who would like to partner with you. Even so, I don't think I'd risk any significant amount of money on it until it is a lot better established. Time will tell about that. When you start seeing HD or FMExtra equipment on the used market, it will be for one of two reasons: Either it is a total failure, or it has become very main stream. At that point, the decision making process will be a lot easier to make.
 
Mike Walker said:
I've actually toyed with this idea, since I don't own a radio station. Say you do...a 100kw FM station that's analog. You're mildly interested in HD, but on a tight budget. I have some money burning a hole in my pocket, am an experienced broadcaster, but don't have enough...or am not willing to risk enough to buy a station. Here's my proposal. I buy the gear for you to go HD. It's MINE (incentive for you to continue your arrangement with me). You get to broadcast your audio on the HD1 channel for free. I get to do whatever I want (within the law) on HD2. In addition to revenue from your main channel (of course), you get to sell, say 40 percent of the inventory on the HD2 (remember...I OWN THE EQUIPMENT, it's my 100 grand, so it's actually a pretty good deal). Similar arrangements would apply should there ever be an HD3 stream. Or perhaps you would want to put your AM station on the HD3, and let ME sell some inventory on it.

Promos for ALL streams go on your main channel. I get to produce the promos for HD2, since it's my hiney (and money) on the line. Streams for all are available on your website, as well as podcasts of the best shows from each stream (thus allowing existing listeners to sample the new stuff prior to investing in the radio...so they can make an informed decision as to it's worth). Win/win...particularly for the "little guy" who owns a small or medium market station, right?
Click to expand...

That's a great idea. However, I'm wondering if, in the end, the FCC will have to step in and regulate how the HD2 and 3 channels are used, especially if what Chairman Martin said is truly the Commission's vision for digital radio.

But your 40% inventory offer (along with the HD build out) is generous and could be attractive to small broadcasters.

db
 
I don't know about the legality (although if it's legal to lease an entire station, certainly it should be legal to lease an HD2 channel). It could be a stupid idea. It wouldn't be my first! ;)
 
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