Digital-Only Signals Could Help Bring AMs ‘Back From The Brink Of Extinction

[rbc]

AM broadcasters could soon be allowed to power down their analog transmitters. The Federal Communications Commission will vote at its October meeting on a proposal that would allow all-digital operations for those AM operators that want to make the leap. FCC Chair Ajit Pai said Monday that all-digital AM would help owners “keep pace” with changes in the market.

“The revitalization of the AM radio service has long been a passion of mine,” said Pai, who first put a focus on the AM dial in 2012 shortly after he joined the Commission. Since becoming chairman nearly four years ago, he has pushed through several moves to help AMs. “Since all-digital broadcasting would be on a voluntary basis, AM operators would decide for themselves if the transition is right for them and their listeners,” said Pai.
[...]

http://www.insideradio.com/free/ajit-pai-digital-only-signals-could-help-bring-ams-back-from-the-brink-of-extinction/article_eff2af86-0793-11eb-aa73-4f22fb8254f3.html

 

[oldradiotapes]

You mean, at a time when mediumwave stations are shutting down their digital feeds and/or simulcasting on FM digital?

The Ajitator's about 10 years late to the party....

 

[CTListener]

And once again, the big questions are the willingness of Americans to buy new radios, of manufacturers to produce new radios, and of retailers to promote and sell new radios. No, no and no.

 

[Kelly A]

And once again, the big questions are the willingness of Americans to buy new radios, of manufacturers to produce new radios, and of retailers to promote and sell new radios. No, no and no.

Saw an updated statistic the other day, that 60% of the new cars being delivered have an HD Radio. Since HD Radio's can decode AM-digital/MA3, there are already radios in, and continuing to enter the market. But, as you point out, only a tiny percentage of listeners would make the effort to seek out an HD Radio tuner.

 

[davideduardo]

Saw an updated statistic the other day, that 60% of the new cars being delivered have an HD Radio. Since HD Radio's can decode AM-digital/MA3, there are already radios in, and continuing to enter the market. But, as you point out, only a tiny percentage of listeners would make the effort to seek out an HD Radio tuner.

And with the average age of US vehicles now over 10 years, think of that huge percentage of cars that don't and never did have HD.

 

[davideduardo]

AM broadcasters could soon be allowed to power down their analog transmitters. The Federal Communications Commission will vote at its October meeting on a proposal that would allow all-digital operations for those AM operators that want to make the leap. FCC Chair Ajit Pai said Monday that all-digital AM would help owners “keep pace” with changes in the market.
l

That is total ignorance of reality. Nearly not HD-capable home and work radios, and few cars with HD. Add to that the fact that the total usage of radio has declined by 60% in the PPM markets and what we have here is an attempt to refloat the Titanic. Or reconstruct the Hindenberg.

 

[Kelly A]

And with the average age of US vehicles now over 10 years, think of that huge percentage of cars that don't and never did have HD.

Not that I'm in the business of being Mr. Glass Half Full-thinking: There seems to be an increasing amount of new cars being sold. Friends in the auto industry attribute it to not only major no interest and cash-back incentives, but once urban dwellers are buying cars because they don't feel comfortable using public transportation anymore.

 

[rbc]

I’d like to think that AM HD will provide a path forward for the medium wave band to survive in North America. I think that the broadcasters that that ride AM to the end face the risk that established FM stations will win the spectrum competition, blocking existing AM programming being permanently moved to FM.

 

[CTListener]

I’d like to think that AM HD will provide a path forward for the medium wave band to survive in North America. I think that the broadcasters that that ride AM to the end face the risk that established FM stations will win the spectrum competition, blocking existing AM programming being permanently moved to FM.

But there are only a few formats that meet advertisers' criteria in size and demographics of audience, and all but one -- sports -- is music-based. Most markets of any size already have an FM sports station, some even two. So what's left to move to FM? News (in a very few major cities), largely syndicated-right wing talk and what else? Anything that anyone under 55 might want to listen to?

 

[davideduardo]

I’d like to think that AM HD will provide a path forward for the medium wave band to survive in North America. I think that the broadcasters that that ride AM to the end face the risk that established FM stations will win the spectrum competition, blocking existing AM programming being permanently moved to FM.

The issue is that only a small percentage of cars have HD and nearly no home radios have it and essentially no portables do. There is so much available via streaming that there is no reason at all to buy an HD replacement radio.

 

[davideduardo]

Not that I'm in the business of being Mr. Glass Half Full-thinking: There seems to be an increasing amount of new cars being sold. Friends in the auto industry attribute it to not only major no interest and cash-back incentives, but once urban dwellers are buying cars because they don't feel comfortable using public transportation anymore.

there is an increase over the last two terrible car sales years. But that is still very low. And the average age of cars on the road is increasing now to nearly 11 years.

more than half of all terrestrial radio listing is not in the car and there are no HD radios there.

 

[rbc]

The issue is that only a small percentage of cars have HD and nearly no home radios have it and essentially no portables do. There is so much available via streaming that there is no reason at all to buy an HD replacement radio.

I don't know if I totally agree with all of that. There seems to be a pretty good collection of HD ready car radios on the market. Pioneer and Kenwood come to mind. As for home and portable, at least Sangean has made an effort, with a couple of portables (HDR-14 and 16), a clock radio (HDR-15) and a table top (HDR-18). They even have a component HD radio, the HDT-20. I own all of them but the HDR-15. They work just fine.

I acknowledge that getting people to replace their analog radios is a challenge, but where is the marketing? Obviously Xperi should be investing in that, given the royalties they charge to use the technology. Broadcasters could do more promotion, and they have a marketing vehicle to get the word out.

As for streaming, it has some disadvantages. That marketplace is fragmented with a lot of different options that can be confusing to the consumer. It also requires bandwidth that's generally not free. One of the reasons that I have HD radios, is because some of the programming I listen to is only available in HD or by streaming. Why use the bandwidth for streaming radio programming when it can be received over the air?

Getting back to digital AM, I think there is an opportunity for broadcasters to avoid the FM spectrum competition and move out with digital AM. It supports a wider spectrum of programming. It seems to be shovel ready if the business case makes sense for broadcasters. I guess that's the big if.

 

[Kelly A]

I don't know if I totally agree with all of that. There seems to be a pretty good collection of HD ready car radios on the market. Pioneer and Kenwood come to mind. As for home and portable, at least Sangean has made an effort, with a couple of portables (HDR-14 and 16), a clock radio (HDR-15) and a table top (HDR-18). They even have a component HD radio, the HDT-20. I own all of them but the HDR-15. They work just fine.

I acknowledge that getting people to replace their analog radios is a challenge, but where is the marketing? Obviously Xperi should be investing in that, given the royalties they charge to use the technology. Broadcasters could do more promotion, and they have a marketing vehicle to get the word out.

And that's David's point; the vast-vast majority of consumers don't look for portable radios on Amazon, or visit their nearest Best Buy looking for radios. Portable media consumption has long moved to phones.

Getting back to digital AM, I think there is an opportunity for broadcasters to avoid the FM spectrum competition and move out with digital AM. It supports a wider spectrum of programming. It seems to be shovel ready if the business case makes sense for broadcasters. I guess that's the big if.

I'm all for allowing AM owners the option of taking a chance with MA3 digital mode. I know some dyed in the wool analog AM fans are trying to hyperbolize the whole scenario of stations will be forced to go MA3, but that will never be the case.

 

[TheBigA]

I acknowledge that getting people to replace their analog radios is a challenge, but where is the marketing?

You can lead a horse to water, but you can't make him drink. People already have digital radios. It's their phone or their computer. If AM stations want to go digital, all they need to do is stream their signal on the internet. Problem solved.

 

[louis_p]

How does MA3 impact sky wave propagation and DX at night? Listeners in isolated and rural areas rely on distant AM signals where local radio is almost nonexistent. Will MA3 improve reception or will it create sideband noise like HD AM did?

 

[Kelly A]

How does MA3 impact sky wave propagation and DX at night? Listeners in isolated and rural areas rely on distant AM signals where local radio is almost nonexistent. Will MA3 improve reception or will it create sideband noise like HD AM did?

Because the analog (AM) modulation is removed, the digital sidebands are well inside the mask. MA3 stays within the NRSC mask much better than IBOC.

Skywave is being studied, but so far in tests, skywave or fringe area is deemed better because you either have a good sounding signal with low signal to noise, or silence. The ol' cliff effect in action.

 

[bulwnkl]

As for streaming, it has some disadvantages. That marketplace is fragmented with a lot of different options that can be confusing to the consumer. It also requires bandwidth that's generally not free. One of the reasons that I have HD radios, is because some of the programming I listen to is only available in HD or by streaming. Why use the bandwidth for streaming radio programming when it can be received over the air?

That’s me. No cash for the data, and no desire to give away everything to 35 different app makers so I can have 1-3 programs I like apiece. My HD radios are vastly preferable.

 

[rbc]

You can lead a horse to water, but you can't make him drink.

But that's the thing. I don't really see much marketing going on, at least not presently.

 

[TheBigA]

But that's the thing. I don't really see much marketing going on, at least not presently.

For what? HD Radio? That train left the station ten years ago. The company was sold, and then sold again. All the marketing was done in 2001 to 2005. Radio stations played lots of free spots extolling the virtues, but nobody could find any radios. The electronics industry was too busy making phones and video games. So you had radio marketing a product that no one could hear. Thud.

The FCC hasn't approved all digital, so that will start from square 1. Unless there's a company that gets behind some product, there won't be any marketing at all. You need to start somewhere.

 

[davideduardo]

And that's David's point; the vast-vast majority of consumers don't look for portable radios on Amazon, or visit their nearest Best Buy looking for radios. Portable media consumption has long moved to phones.

And why would anyone who has a smartphone that has multiple devices integrated smoothly into a single small package want a larger "box" that does just one thing that can be easily duplicated in huge multiples on the smartphone?

And all this ignores the main issue that in most larger metro areas... lets say the top 100 markets or so... there are few if any AM stations that cover the whole market area. My count, based on a signal that covers 80% or more of the land area of a Nielsen market day and night, shows about 175 stations meeting that criteria in the top 100 markets. Some markets have 2 or 3 or more, while others have none.

And my count is declining as in many metros, AM stations that have a transmitter site that is worth more than the station have downgraded the AM to move to another site while selling the land for much more than the station is worth. Examples are KHJ, and 570 and 630 in DC.

Add in the noise levels from all kinds of electronic devices, wall warts, certain types of lighting, home security devices, electronic electric meter measurement and so many other devices that have been created in the last 30 to 40 years and AM is even further reduced. I'm a careful, interference aware user of home electronics yet there is no AM in my market that I can listen to anywhere on my property.

I'm all for allowing AM owners the option of taking a chance with MA3 digital mode. I know some dyed in the wool analog AM fans are trying to hyperbolize the whole scenario of stations will be forced to go MA3, but that will never be the case.

AM, except for listeners in their late 40's and older, is dead. With every year that passes, the audience becomes less commercially viable. And as noise levels continue to increase, usable coverage will be further reduced.