Chuck said:DavidEduardo said:Nobody in radio believes HD will increase revenues. It is intended to keep free radio viable, not to increase revenues. Duh!!!!!!!
Many of the HD2 channels already have ads, and the model contemplates ads being there as well. Nobody said it would be commercial free.
Gee David,
I don't think that is what you've said in the past. I've posted the question of ROI for IBOC several times on this and other boards. Seems to me like you've always said that the increased revenue would come form the additional channels. Maybe it will, but I don't see that as happening without a lot of extra work and expense.
For small stations like mine, it's hard to get all "warm and fuzzy" about spending a lot of money without a reasonabe chance of making a positive return on the investment. Adding additional channels merely fragments our potential audience, which doesn't sound all that appealing.
I think a lot of other small station owners feel the same way.
There is really no way to increase revenue, as all you are doing with HD 2 is increasing the fragmentation of the markets. The main HD channel on FM and the AM HD have no way of increasing revenue, as they are simply the same thing as the analog channel but in digital.
The entire purpose of HD is to bring analog free terrestrial radio into the digital world, which offers an opportunity to enhance the image and viability of radio. It's a competitive move against other, alternative, and fully digital delivery systems. It also has the advantage that it sounds better than an iPod or most webcasts and such. It definitely sounds better than satellite music channels.
The return on the investment is based on sustaining the business model for terrestrial free radio. AM is nearly dead in sales demos in the rated markets, and FM will have a much shorter life span without a major move to enhance the system via digital delivery.