Savage said:
If as an industry we're really interested in "cutting edge," it would be far more productive to work with wireless apps and internet-based features, which interface with devices consumers actually want and like. Clear Channel is doing a good job of this with iHeart radio. I hear far greater awareness of iHeart than I do HD in general.
Well said. The marketplace has basically decided that HD radio is irrelevant. There are technical and business issues with the technology that will severely impact its adoption. I have several HD radios. I tried the medium out, and despite having some great DSP capabilities in the radio - it became quite apparent to me that the technology has fundamental flaws.
1. Audio Quality - Double-blind test an FM HD signal and the Analog signal. The codec used in FM-HD has very detectable artifacts. While the frequency response is higher (20-20kHz vs 30-16kHz), the extra 4 kHz of frequency bandwidth is barely detectable.
2. 7 Second Buffer - In a mobile environment, this just serves to annoy the listener. When driving in from Buffalo in a rental car with an HD radio, I needed to be in Hilton to get WPXY's HD signal. When it finally came in, it skipped in and out between Analog and Digital. This is where it was clear that the Analog sounded fuller, better, cleaner, and artifact free.
3. Coverage - HD radio has a substantially lower coverage area.
4. Interference - IBOC (In-Band, On-Channel) is really IBAC (In-Band, Adjacent Channel). Try listening to 1040 within the 1040 service contour at night. When the skywave of 1030 WBZ comes in, it puts a blanket of white noise all over 1040. How the FCC accepted this, boggles my mind.
5. AM Bandwidth - While the digital has an extended bandwidth with a high level of artifacts, the analog signal's bandwidth is cut by over 50%. Listen to 1040 on a quality AM receiver and compare it to WHAM. WYSL has a nice bottom end, as well as crisp highs.
The business model has substantial limitations as well. For a broadcaster, the upgrade requires a substantial amount of capital to upgrade. Everything from the Exciter, Transmitter and STL need to replaced or modified for HD. This is in addition to the substantial ongoing investment in licensing for the technology.
What are the alternatives to be cutting edge?
1. Develop a streaming strategy - How many iHeartRadio ads versus HD ads do you hear on Clear Channel? Clear Channel, from what I understand is one of the investors in HD radio. Look at where their money is being spent
2. Lobby the Receiver Industry for better DSP-built radios. Through DSP processing, you can pick up very weak signals and clean-up noise artifacts. How does WDNY-FM come in well in Pittsford with a simple whip antenna: DSP technology.
3. Investigate CAM-D and other AM technologies. These technologies can help correct, or assist in recovering Analog signals with noise through digital error correction
How many Internet radio listeners are there versus HD receivers? I think the ratio is 100:1 or more. Mobile streaming has a 20% CAGR.
Brian