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Yes, the HD Alliance was formed by the major groups (like Clear Channel, Cumulus, Infinity/CBS, Entercom, etc.) to promote HD2 channels and decide which formats would be offered. Part of the agreement was that these formats would run commercial-free through 2007, and that's why AM simulcasts were frowned upon, even if proven to attract an audience.
According to a reputable source, the way the "cartel" operated was that the biggest FM station owned by the largest Alliance member in each market got first pick of formats -- then the bosses worked their way down the list before offering the smaller owners a choice, so it's no wonder most of these formats turned out to be flops.
Remember all the hype and hoopla about Clear Channel's "Format Lab"? Here's what was forecast five years ago -- and, well, now we know how this actually turned out:
Even after the HD Alliance allowed HD2s to air commercials, most are still commercial free. Not much use being allowed to sell commercials if no one's buying them.
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