HD Radio Report

[KFodor]

OK...I admit, I'm broadcaster and a radio geek.

That having been admitted, I went out today and purchased an HD radio for my house.

For the record, it's an Accurian from Radio Shack. I also purchased an amplified FM antenna and a bookshelf type speaker system to plug into the radio for a little extra "oomph".

The set up was pretty easy. The FM antenna sits on top of my TV in the living room. The AM antenna is hooked to a drywall screw that was up near the ceiling. Everything worked as advertised when I turned it on. When switching to an HD-2 channel, it only took the customary 5 seconds or so before the digital signal was engaged. The programming was what was advertised.

Now, as a broadcaster, I can say I want to see at least some of these HD-2 channels treated more like a radio station than a jukebox, but I know that's (supposedly) down the pike.

I live "in town", so I can appreciate that if you live further away in the country, it might take an outside antenna to properly receive some of the HD-2 channels. But, my reception in Dayton is good on all of the stations presently transmitting in HD, both main and HD-2 channels.

And, yes...WLW sounds like FM once digital is engaged.

For me, it works as advertised. And, though I'd like to see a more portable HD receiver be developed, I thought the price was OK given I was looking for a "receiver-style" radio for my living room. (I paid $175 about 10 years ago for the old receiver I'm now using in my office/studio, so $199 for the radio and $39 for the antenna didn't sound overly expensive.)

Now...can radio succeed in proving the benefits? That's the next step. But, I appreciated the HD-2 programming I heard. I think if radio can come up with formats not being done on current main channels, and use some of those channels to try and get people under 35 "excited" about over the air radio again, it could work. But, it's going to take work, committment and better marketing than I've heard so far.

Nonetheless...I was reasonably impressed. Oh yeah...did I tell you I once owned an AM Stereo radio in my car?

 

[major]

Jason,
I surely hope you're right. But, how do you expect it to succeed with companies like CC who cuts their staffs to the bone? There aren't enough people around to make HD-2 channels work. I don't see the CCs of the world hiring the people to do them right.


I hope I'm wrong.

 

[kyscott]

Jason,
I surely hope you're right. But, how do you expect it to succeed with companies like CC who cuts their staffs to the bone? There aren't enough people around to make HD-2 channels work. I don't see the CCs of the world hiring the people to do them right.

I have to agree here. Broadcasters are driving away listeners from their main channels, what makes you think they will do any better with several channels to program.

I have had two HD receivers given to me since I do contract work for a couple of stations with an HD signal. If I had to purchase them, I'd be highly upset.

 

[KFodor]

Major:

Not every company approaches radio like Clear Channel. And, I suspect, time and circumstances may eventually change the way they do things. I could be wrong here, but I suspect all the recent budget cuts were driven by an extremely soft advertising market in '07 and the pressures that are on them since they way overpaid for a lot of stations and now have to service that debt in a soft advertising market. And that's a big problem when you have to answer to Wall Street investors.

Granted...I expect "jukebox style" stations in the beginning for HD. (Remember: FM was largely automated in the the 60's, even into the 1970's.) And probably, there'll be little hiring in the beginning, at least not until HD gets to the point where a channel or two begins to attract enough measurable listeners to begin to grow the revenue. But, I do think that will change over time. And radio has to, somehow prove to the advertising business we're not a withering dinosaur. (Though I don't think the situation is as dire as some in the advertising business (and the "hired cheerleaders" read, press agents for XM and Sirius) make it out to be.)

No argument though, there's still a lot of ways radio can "screw the pooch" on this. But, there's a lot of people in the business...those already transmitting HD and those who aren't, who are seriously thinking about what to do with HD-2 and HD-3 channels, services than can be offered and trying to project the potential profit that could be made.

FM wasn't built in day...neither will be HD. But when the radios first started coming on the market, I read a lot of "horror stories" (on these and other boards) about how the radios didn't work, you couldn't pick up the HD-2 channels, etc. The only point of my original post was to say: I bought one, set up took about 20 minutes and it works as advertised. I was also pleased to see the radio comes with a "line input" so as to pull up a CD player or an iPod. And the HD car radio I have came with a 4 gig memory card to allow me to download music directly into the radio. Radio's going to have this competition. That has to be accepted as a "given". It's what we do to expand and improve our product as this goes along that will determine success or failure. That expansion and improvement will take some time.

But, the one thing I say all the time to people is: radio stations aren't stupid. (OK...maybe some of the people who run them and work in them occasionally are.) My point here is: there's a reason for everything radio stations do. And, I'm sorry, but I don't see station groups making the multi-million dollar investments necessary to make this conversion, unless there was more than ample reason to believe it could eventually make money.

We're on the tip of the iceberg here. And when most all of the major groups finish coming up to speed and launch their HD-2 channels (And, maybe HD-3's down the road), then it's time for some of the "imagination" that's going on now behind the scenes to hit the air. I simply don't see radio using these channels only to play "the same 700 songs" they're already playing.

The imagination happened with FM. It can happen with HD. All we have to do is say "what if..." and do some reasoned level of risk taking. And, there's still enough companies in America owning radio stations who (I suspect) can and will do this...even if some of the big guys don't.

 

[ouuc]

The main problem with radio is that, no matter how you package it (AM, FM, HD, satellite, Internet), the user does not control what's on. With an iPod, they do. And, for those who still like radio, they are not going to pay $200 for a HD set when they can get a large variety of music on the web.

Radio people can keep living in Fantasyland and think that they can create some magic format or device that will bring people back into the radio fold, but it just isn't going to happen. As the older listeners pass away, younger ones will not replace them. When this wreckage washes up on the beach in a few years, radio won't know what hit it.

 

[Tom Wells]

AM loop hung up on a drywall screw? How do you rotate it if it's hung on a drywall screw?
And if you don't rotate it, what axis for reception have you chosen by hanging it there?
You've given yourself two big permanent reception nulls.
Get that loop down where you can aim it at the desired AM station.

How can you listen to AM if you're within a few yards of the TV? ???
If you live alone, and don't try to listen to AM and watch TV at the same time, I guess you'd be fine unless your TV is one that makes
a lot of RF hash even when turned off, but still having it within 12 feet of the cable (if so fed) will ruin most AM reception.

If someone else is watching TV, you will not be able to use the AM at ALL if you're close enough to set the FM antenna on the TV.
And it probably picks up RF hash over the FM antenna enough to hurt the AM.
How close is the AM loop to the TV and/or cable?

Please do yourself a favor radio-wise and situate the radio in a place where you're not compromising reception.

 

[titoisradio]

AM loop hung up on a drywall screw? How do you rotate it if it's hung on a drywall screw?
And if you don't rotate it, what axis for reception have you chosen by hanging it there?
You've given yourself two big permanent reception nulls.
Get that loop down where you can aim it at the desired AM station.

How can you listen to AM if you're within a few yards of the TV? ???
If you live alone, and don't try to listen to AM and watch TV at the same time, I guess you'd be fine unless your TV is one that makes
a lot of RF hash even when turned off, but still having it within 12 feet of the cable (if so fed) will ruin most AM reception.

If someone else is watching TV, you will not be able to use the AM at ALL if you're close enough to set the FM antenna on the TV.
And it probably picks up RF hash over the FM antenna enough to hurt the AM.
How close is the AM loop to the TV and/or cable?

Please do yourself a favor radio-wise and situate the radio in a place where you're not compromising reception.

I rarely use my radio feature on my home entertainment system but have no problems with the TV on & listening to local AM radio.

 

[alans613]

The main problem with radio is that, no matter how you package it (AM, FM, HD, satellite, Internet), the user does not control what's on. With an iPod, they do. And, for those who still like radio, they are not going to pay $200 for a HD set when they can get a large variety of music on the web.

Radio people can keep living in Fantasyland and think that they can create some magic format or device that will bring people back into the radio fold, but it just isn't going to happen. As the older listeners pass away, younger ones will not replace them. When this wreckage washes up on the beach in a few years, radio won't know what hit it.

Don't you have to pay $150+ for an iPod and then 99 cents for each song? I don't know about you, but Steve Jobs doesn't need anymore money than he already has. ;D I read gloom and doom posts like this about radio on here daily...Man does it get old. : Radio will always be around in some way, shape, or form. I think HD Radio could be "the next big thing" if broadcasters do with radio what they did with TV: Force an end to analog broadcasts. People would go out and buy HD Radios in mass quantities(With props to the "Coneheads" lol). Also, another idea would be to maybe do a weekend of HD2 programming on your main channel to give listeners an appetizer of what they're missing without an HD Radio. Maybe if you're a Hot AC and you have a Triple A subchannel, do a full weekend of your Triple A station. Or if you're a current Rock station, maybe segue to a full weekend of Classic Rock from your HD2 subchannel. Right now, radio is being too conservative with taking risks on HD. They need to go all-out and balls to the wall. 8)

 

[nmoore6676]

The main problem with radio is that, no matter how you package it (AM, FM, HD, satellite, Internet), the user does not control what's on. With an iPod, they do. And, for those who still like radio, they are not going to pay $200 for a HD set when they can get a large variety of music on the web.

Radio people can keep living in Fantasyland and think that they can create some magic format or device that will bring people back into the radio fold, but it just isn't going to happen. As the older listeners pass away, younger ones will not replace them. When this wreckage washes up on the beach in a few years, radio won't know what hit it.

Don't you have to pay $150+ for an iPod and then 99 cents for each song? I don't know about you, but Steve Jobs doesn't need anymore money than he already has. ;D I read gloom and doom posts like this about radio on here daily...Man does it get old. : Radio will always be around in some way, shape, or form. I think HD Radio could be "the next big thing" if broadcasters do with radio what they did with TV: Force an end to analog broadcasts. People would go out and buy HD Radios in mass quantities(With props to the "Coneheads" lol). Also, another idea would be to maybe do a weekend of HD2 programming on your main channel to give listeners an appetizer of what they're missing without an HD Radio. Maybe if you're a Hot AC and you have a Triple A subchannel, do a full weekend of your Triple A station. Or if you're a current Rock station, maybe segue to a full weekend of Classic Rock from your HD2 subchannel. Right now, radio is being too conservative with taking risks on HD. They need to go all-out and balls to the wall. 8)

Finally someone gets it, unfortunately I sense you are not an executive at (insert name of mega-broadcast conglomerate here)____. Digital TV will succeed because there is no choice after February next year. It will also succeed because it is being done as a transition where digital only is broadcast on a separate transmitter not some kind of hybrid noise generator like on the AM band.

FM hybrid has a better chance because it is not so destructive of adjacent channels and can send out multiple sub channels. However a full power digital transmitter would get more receivers in the home than the present system but all of this requires a change in regulatory policy. If it had been properly planned a portion of the old VHF TV spectrum could have been ceded to digital radio transmission.

 

[gr8oldies]

Radio's death has been greatly exaggerated. One stat I read concluded that even heavy iPod users are using radio 15 minutes less per week than everyone else. No, when people become adults it's not going to be "drop the kids off at daycare, stop by the drycleaners, program my personal playlist, download 50 more songs aty 99 cents apiece because I can't listen to any given song more than once in a lifetime, then go to work". Having said that, HD needs to take a hint from the early days of FM, when stations gave away free FM converters. Maybe it might be a nice idea to put some verteran folks back to work on creating radio with a "cool" factor. Not sure what that would be, but let's say our choices in Dayton aren't that inspiring. In some other markets, like Chicago, there's "real jazz" on the smooth jazz HD2 for example.

 

[anti-em]

HD sucks

IBOC screwed the pooch--- bad tech equals bad radio

 

[nmoore6676]

Radio's death has been greatly exaggerated. One stat I read concluded that even heavy iPod users are using radio 15 minutes less per week than everyone else. No, when people become adults it's not going to be "drop the kids off at daycare, stop by the drycleaners, program my personal playlist, download 50 more songs aty 99 cents apiece because I can't listen to any given song more than once in a lifetime, then go to work". Having said that, HD needs to take a hint from the early days of FM, when stations gave away free FM converters. Maybe it might be a nice idea to put some verteran folks back to work on creating radio with a "cool" factor. Not sure what that would be, but let's say our choices in Dayton aren't that inspiring. In some other markets, like Chicago, there's "real jazz" on the smooth jazz HD2 for example.

Another good suggestion, hope the suits are listening (er, reading). I don't remember a converter give-away, I built one from a kit from a Heathkit wannabe company. It plugged into a jack beside the regular audio out on my tuner and then has the L & R out to my stereo preamplifier. I would imagine that there were giveaways in those days I wasn't aware of. In any event for today, having listener contests and promotions where winners could get an HD radio would drive interest and get more people aware. Also stations marketing discounted radios should help as well, I've heard of some doing just that.

Here in LA LA land there are some good uses for HD2 and I'm sure creative programmers could come up with even better ones. If I might, another possible use might be to lease the extra HD channels to special interest programmers like the old FM SC channels were once used in some cases. I believe there can also be an HD3, though maybe not at full bandwidth for stereo. Also there is the market for programming in other languages for areas with immigrant population. If the suits can see a revenue stream on the horizon they would go for it like buzzards for carrion.

 

[KFodor]

A response on a couple of levels here:

To those engineering types who responded to how I have my HD Radio set up, I respect what you're saying, but...my radio works fine. I get all AM stations, all FM stations, all HD-2 channels. No interference from the TV...or having the AM antenna in the air. It all worked the minute I turned it on, and has continued to work perfectly. No problems.

Regarding the programming of the channels I've heard...yeah...I could improve them. But, what's on the air isn't bad for a beginning. And that's my point. Sorry...young people with iPod's still listen to radio. (I talk to many quite often and that's what they tell me.) Gr8t's comments were very relevant and on target. What "digital" system might be better than something else is a point that's debatable. I'm not an engineer. But, neither you...nor I can change the business and what it uses alone.

Can radio improve it's programming? Absolutely. Is it doing everything right? Nope. But radio isn't dead. Far from it. And some of us "get it". One company doesn't run the whole business. And, if you think they're all alike, you are dead wrong.

Radio, certainly has challenges. But, I think there are still enough people working in it who care for it, and have ideas that could make HD work...if...radio, as a business, doesn't totally screw it up. We'll see...but the jury, for the moment, is still out...

 

[almaniac27]

Will HD2 stations someday count towards the amount of stations a radio company can own? Counting the HD2 stations, Clear Channel here owns 12 channels of radio output. I know that HD2s don't count for much now, but will they sometime in the future? I'd like Clear Channel to have less influence in radio, not more.

 

[NDXUFan]

A response on a couple of levels here:

To those engineering types who responded to how I have my HD Radio set up, I respect what you're saying, but...my radio works fine. I get all AM stations, all FM stations, all HD-2 channels. No interference from the TV...or having the AM antenna in the air. It all worked the minute I turned it on, and has continued to work perfectly. No problems.

Regarding the programming of the channels I've heard...yeah...I could improve them. But, what's on the air isn't bad for a beginning. And that's my point. Sorry...young people with iPod's still listen to radio. (I talk to many quite often and that's what they tell me.) Gr8t's comments were very relevant and on target. What "digital" system might be better than something else is a point that's debatable. I'm not an engineer. But, neither you...nor I can change the business and what it uses alone.

Can radio improve it's programming? Absolutely. Is it doing everything right? Nope. But radio isn't dead. Far from it. And some of us "get it". One company doesn't run the whole business. And, if you think they're all alike, you are dead wrong.

Radio, certainly has challenges. But, I think there are still enough people working in it who care for it, and have ideas that could make HD work...if...radio, as a business, doesn't totally screw it up. We'll see...but the jury, for the moment, is still out...

Jason is correct, younger people like my nephew (12) and my niece (14) still listen to the radio, even though they have IPOD's. I will eventually purchase an IPOD, however, I will still listen to the radio. As an economics major, it is hard for me to believe that corporations would invest millions of dollars on a product that would not make money in the long run. With any product coming to the market, it takes some time for it to be embraced by the public, regardless of the sector, radio, medical, automobiles, etc. If HD Radio is not successful in the long run, these executives will have to answer to Wall Street and that will not be a good situation. I really like my HD Radio, however, the success or failure of HD Radio will be contingent on programming.

Shark

 

[alans613]

I don't know about FM radios being given away for free, but I DO remember WMMX/Mix 107.7 giving away free HD Radios a year or so ago on the air and from their website I think(It was heavily advertised on air and online). It seems like they were giving away tabletop receivers.

 

[KFodor]

A response on a couple of levels here:

To those engineering types who responded to how I have my HD Radio set up, I respect what you're saying, but...my radio works fine. I get all AM stations, all FM stations, all HD-2 channels. No interference from the TV...or having the AM antenna in the air. It all worked the minute I turned it on, and has continued to work perfectly. No problems.

Regarding the programming of the channels I've heard...yeah...I could improve them. But, what's on the air isn't bad for a beginning. And that's my point. Sorry...young people with iPod's still listen to radio. (I talk to many quite often and that's what they tell me.) Gr8t's comments were very relevant and on target. What "digital" system might be better than something else is a point that's debatable. I'm not an engineer. But, neither you...nor I can change the business and what it uses alone.

Can radio improve it's programming? Absolutely. Is it doing everything right? Nope. But radio isn't dead. Far from it. And some of us "get it". One company doesn't run the whole business. And, if you think they're all alike, you are dead wrong.

Radio, certainly has challenges. But, I think there are still enough people working in it who care for it, and have ideas that could make HD work...if...radio, as a business, doesn't totally screw it up. We'll see...but the jury, for the moment, is still out...

Jason is correct, younger people like my nephew (12) and my niece (14) still listen to the radio, even though they have IPOD's. I will eventually purchase an IPOD, however, I will still listen to the radio. As an economics major, it is hard for me to believe that corporations would invest millions of dollars on a product that would not make money in the long run. With any product coming to the market, it takes some time for it to be embraced by the public, regardless of the sector, radio, medical, automobiles, etc. If HD Radio is not successful in the long run, these executives will have to answer to Wall Street and that will not be a good situation. I really like my HD Radio, however, the success or failure of HD Radio will be contingent on programming.

Shark

Shark:

Your points are very well taken. And, many people who are currently deriding HD are people who have an agenda (engineers who don't like the system, satellite radio press agents, internet radio operators who don't want to see any more competition get off the ground, or just the general "radio sucks" crowd). It will take a number of years before HD can be reasonably expected to gain a foothold. But, there does seem to be some movement in a positive direction. It's glacial...but it's there.

I just think that HD will ultimately allow for more programming choices. (That doesn't mean we'll see a 24/7 polka channel necessarily, but I think more stations can mean more choices.) I also expect radio will use some of these channels to reach out to younger listeners, and, to some degree, older ones as well. I also expect, eventually, that we could see local artists benefit from HD (and some of that might, too...carry over to the main channels.)

You see...it's not just radio that's changing (as many of you point out). But radio will have to adapt to all the changes. Both on HD channels...and main ones as well.

And for the poster who made the comment about ownership of HD-2 channels. Well, I see your point. It's not unreasonable to debate. But, it's reasonable to believe whoever owns the main channel, also owns the subs. That battle will have to be fought after HD catches on and we see what kind of "market share" HD commands.

 

[nmoore6676]

A response on a couple of levels here:

To those engineering types who responded to how I have my HD Radio set up, I respect what you're saying, but...my radio works fine. I get all AM stations, all FM stations, all HD-2 channels. No interference from the TV...or having the AM antenna in the air. It all worked the minute I turned it on, and has continued to work perfectly. No problems.

Regarding the programming of the channels I've heard...yeah...I could improve them. But, what's on the air isn't bad for a beginning. And that's my point. Sorry...young people with iPod's still listen to radio. (I talk to many quite often and that's what they tell me.) Gr8t's comments were very relevant and on target. What "digital" system might be better than something else is a point that's debatable. I'm not an engineer. But, neither you...nor I can change the business and what it uses alone.

Can radio improve it's programming? Absolutely. Is it doing everything right? Nope. But radio isn't dead. Far from it. And some of us "get it". One company doesn't run the whole business. And, if you think they're all alike, you are dead wrong.

Radio, certainly has challenges. But, I think there are still enough people working in it who care for it, and have ideas that could make HD work...if...radio, as a business, doesn't totally screw it up. We'll see...but the jury, for the moment, is still out...

Jason is correct, younger people like my nephew (12) and my niece (14) still listen to the radio, even though they have IPOD's. I will eventually purchase an IPOD, however, I will still listen to the radio. As an economics major, it is hard for me to believe that corporations would invest millions of dollars on a product that would not make money in the long run. With any product coming to the market, it takes some time for it to be embraced by the public, regardless of the sector, radio, medical, automobiles, etc. If HD Radio is not successful in the long run, these executives will have to answer to Wall Street and that will not be a good situation. I really like my HD Radio, however, the success or failure of HD Radio will be contingent on programming.

Shark

Shark:

Your points are very well taken. And, many people who are currently deriding HD are people who have an agenda (engineers who don't like the system, satellite radio press agents, internet radio operators who don't want to see any more competition get off the ground, or just the general "radio sucks" crowd). It will take a number of years before HD can be reasonably expected to gain a foothold. But, there does seem to be some movement in a positive direction. It's glacial...but it's there.

I just think that HD will ultimately allow for more programming choices. (That doesn't mean we'll see a 24/7 polka channel necessarily, but I think more stations can mean more choices.) I also expect radio will use some of these channels to reach out to younger listeners, and, to some degree, older ones as well. I also expect, eventually, that we could see local artists benefit from HD (and some of that might, too...carry over to the main channels.)

You see...it's not just radio that's changing (as many of you point out). But radio will have to adapt to all the changes. Both on HD channels...and main ones as well.

And for the poster who made the comment about ownership of HD-2 channels. Well, I see your point. It's not unreasonable to debate. But, it's reasonable to believe whoever owns the main channel, also owns the subs. That battle will have to be fought after HD catches on and we see what kind of "market share" HD commands.

A couple of comments:

There is some valid argument that the present situation for digital radio leaves a lot to be desired from the technical standpoint. If it had been set up as TV was it might have had a better chance though a longer transition.

The promise of more and varied programming will likely end the same way as cable TV which made similar predictions of specialty channels devoted to nearly every interest and taste. As a person who worked for some time in that industry I know from contact. Once the HD channels become viable and additional revenue streams they will become more of the same tried and true programming. Just scan the channels on your TV and see what is on. Remember The Nashville Network, MTV and all the others that have gone entirely or morphed into the same old same old.

I know that Ipods and other personal media players are hot right now and as a devoted gadget geek I approve. However, don't forget 8-Tracks, Cassettes, LP's and the soon to disappear VCR which overtook the Beta-Max. When push comes to shove, radio and broadcast TV remain the best way to get information and entertainment to the masses in a timely and relatively inexpensive manner. There will be competition but only those responsible for manning the stations can really kill it. The new technologies will come and go but radio still goes on, through TV in the past and Internet for the future it will survive.

 

[northernlightsmedia]

I have a Hd Radio in my car, I would speculate I was one of the first in the area to have one, I ordered it online even before the CC stations starting broadcasting it. First of all there are still problem HD is dependable when they are stationary but put one in the car and you will find out how undependable they are. I own one the the first JVCs to offer it and let me tell you there are so many spots in Dayton that HD just doesn't work in. Some of them are right in Antenna Alley. I beleive that if you look at articles they are having even more troubles in the big major cities. The future will be internet , the only thing that will stop that is the battle of song royalty costs. I believe that problem will be resolved successfully. The WIFI grid is slowly connecting across the nation, manufactures of automobiles already have radio prototypes in cars. Everyone talks about how nice it would be to own a station, program what they think is the best. Soon your dreams will come true. You will be able to have your station with a computer, internet provider, software ( which is you can get for free) and you will be a broadcaster too! The face of radio will chage and its not XM or HD it will be internet.

 

[hipporadio]

It’s been a banner Friday in the “HD” Radio kingdom... Check out the universally negative reader comments on Washington Post tech guru Rob Pegoraro's latest "Faster Forward" article on HD Radio. That Washington Post feature is starting to get picked up - this excerpt from NY Public Television [scroll down half-way].

Daily Media Briefing » Media Briefing for Friday, January 11, 2008

"HD radio is a lead balloon that isn't selling and won't sell. It's not needed, doesn't sound much different and cuts the receive range of FM severely, down to about 20-25 miles, per one of the inventors. It needs an outside antenna to even receive half the distance your normal receiver does with a rat tail antenna," says a strongly critical Washington Post blog..."


...And Ramsey is back for a command performance:

"Are you waiting in line for your HD radio? If you lower the price enough, folks will buy the radio. That's the belief about HD radio that is being stoked in our industry. And, of course, it's wrong."


But wait, Mr. R has even-more good news...

"Radio's next evolution is on a tabletop now...and it's not HD It features regular analog AM/FM, WiFi, and direct access to a custom Web radio aggregation service [i.e., a way to make Internet radio easy] and to Slacker's personalized Internet radio service. And you can buy one for as little as $99. Repeat after me... HD what?"


...And the Marketing sector weighs-in:

“iBiquity Slashing Prices on HD Radio”

1/11/2008

Again - Ramsey, Jerry DC, and Gorman continue to get it right... The Hear2 link provided above leads one to Mr. Ramsey's clearest analogy yet. The fact that these three men REMAIN as invested in "HD" critique as they do, provides a sterling example of the confidence they have in their position...

While "PRICE" is certainly a component in many consumer transactions - it is far-from "The Holy Grail" in regards to the misadventures in "HD" radio! Have the MBAs at CCU and iBiquity forgotten the earliest lessons learned in a 100-level undergrad marketing course; or have they been so-consumed by their-own fantasy that they somehow missed the phenomena of the Apple iPod, iPhone, and every evolution of the latest video game console? The marketing of those products [and a hundred more] bare NO resemblance to the price-and-item proclivities of your neighborhood Price Chopper [supermarket]!

WOW! It seems like a day doesn't pass without the revelation of yet-another piece of technical spawn that piles-on the mounting threat to terrestrial radio... Now it’s RCA's internet-enabled "Infinite Radio" and Sirius' combo SatRad/mp3 player. The irony in this is... Soon, even the "angry and bitter" among the ranks may find a moment to feel sorry for "the poor-old Grand Dame" that once-provided for their livelihood and so-captivated their affection in a prior life.

I'll admit to my penchant for opinion and color - but please understand that I AM NOT [nor have I been] given to wild and global pronouncements about the life or condition of any industry [radio included]... With that disclaimer offered... I am surprised by the pace of terrestrial radio's mounting irrelevance. The industry appears to be fast-approaching a figurative implosion... One need-only peer-beyond his own comfort zone and tally the unfortunate "lay-offs"; the desperate pursuit of "instant gratification" at the expense of ANY "future gratification"; stock market malfunctions; and the overly-creative financial maneuvers intended to camouflage the industry's untidy yard... The authentic picture then quickly comes into clear focus!

R-I "HD" Sand-box sessions not-withstanding, I have passed my professional Marketing pronouncement on "HD Radio" to the overwhelming agreement of my peers who ARE NOT employed in the radio industry:

--The CONCEPTION of the IBOC digital delivery system was at root - a technical COMPROMISE;

--Its DELIVERY was assisted by TWO of THE WORST marketing campaigns in the history of that discipline - at a time that more-savory and aptly-promoted options for consumers were mounting;

--Its own propriety and narrow self-interest make its current and broad-based ADOPTION by the consumer electronics industry - impractical and downright unattractive...

--It will "survive", but NOT AS A SOLO ACT; rather as an "auxiliary" feature within a "box" graced by more-popular and marketable technology - given iBiquity's inevitable confrontation with REALITY and subsequent revision of their ridiculous licensing scheme!


Now let's check the stock market to see how corporate radio and its HD-baby are doin'...


Let’s do a reality check. These broadcast chains lost over 50% of their value in one year.

Citadel - Jan. 2, 2007 - $9.96; Dec. 31, 2007 - $2.06
Emmis – Jan. 2 - $8.24; Dec. 31 - $3.85
Entercom - Jan. 2 - $28.18; Dec. 31 - $13.69
Radio One - Jan. 2 - $6.75; Dec. 31 - $2.34
Spanish Broadcasting System - Jan. 2 - $4.11; Dec. 31 - $1.85
Westwood One - Jan. 2 - $7.06; Dec. 31 - $1.99
Salem just missed the 50% loss club by a prayer: Jan. 2 - $11.95; Dec. 31 - $6.59
CBS fell $31.18 to $27.25
Clear Channel, which wanted to privatize by year end – but couldn’t - is down $35.54 to $34.52 – a price artificially inflated by the $39.90 offering price by BainCapital and Thomas H. Lee. There’s a deal that’s close to turning into a cut and run. If Bain and Lee cut their losses and back out of that deal – Clear Channel will be in free fall.
Theirs isn’t the only deal that could implode. The Merrill Lynch bull, already gelded by the credit and mortgage collapse, is taking a second look at the privatization deal they concocted with Cumulus. When they announced it in July, Cumulus was at $11.75. Last night it closed at $7.25.

ALL this red ink... And we haven't even gotten-around to the 4th-quarter Retal Insider Report on "HD" Radio... Coming soon :