HD Radio's Business-Model

[700WLW]

"HD isn't just for TV anymore"

"Minnesota Public Radio first launched HD Radio in the Twin Cities market in June 2005 and recently expanded to Collegeville, Fargo-Moorhead and Rochester. It plans to bring HD to all of its Minnesota listeners within the next five years, costing $7.2 million. The conversion is contingent on the membership-driven broadcaster raising the necessary funds through donations and government grants... The company estimates it will cost between $100,000 and $150,000 per station, General Manager John Sowada said... Many radio manufacturers have not gone HD, Laudenbach said, and attention around HR radios has been derailed by satellite radio and other technology. Local retailers said HD Radio has been slow to catch on and some question if the technology will take off.

http://www.sctimes.com/apps/pbcs.dll/article?AID=/20070205/NEWS01/102050060/1009/RSS

"HD Radio: Fun with Math"

"In Washington, the number is 15,000... For satellite radio, a national service under one big roof with subscription support, I get it. But explain to me the model for HD Radio, please."

http://www.hear2.com/2006/06/hd_radio_fun_wi.html

Like Ramsey said, anyone care to explain HD Radio's business-model ?

 

[SUPERCASTER]

Mike Walker claims broadcasters have plenty of money to burn, (as long as layoffs continue).

The company estimates it (HD radio) will cost between $100,000 and $150,000 per station, General Manager John Sowada said.

Operating HD Radio has increased the local MPR's electricity costs by 30 to 40 percent, Olson said.

I thought we were supposed to conserve energy to reduce imports from the problematic middle east?

FMeXtra digital HD radio costs less then one tenth as much to install, has no license fees, has better coverage, equal fidelity, full FCC approval, and is over 100 times more power efficient.
We have a Winner! (And it is not iBiquity/HD radio).

 

[Mike Walker]

I never claimed that radio stations had "plenty of money to burn". Damn it, dude, point to where I ever said any such thing! I said that most radio stations are profitable, and that those profits have shown moderate (about 3 percent) growth in the last year. Not huge growth, but not in "trouble" either. About treading water, is how I'd describe the industry as a whole now. I've also said if radio is to grow, INNOVATIVE PROGRAMMING is the only path to that growth. Some actual creativity. What a concept!

Misquote me again, and expect to find your tires flat when you go out (KIDDING!)

 

[700WLW]

I never claimed that radio stations had "plenty of money to burn". Damn it, dude, point to where I ever said any such thing! I said that most radio stations are profitable, and that those profits have shown moderate (about 3 percent) growth in the last year. Not huge growth, but not in "trouble" either. About treading water, is how I'd describe the industry as a whole now. I've also said if radio is to grow, INNOVATIVE PROGRAMMING is the only path to that growth. Some actual creativity. What a concept!

Misquote me again, and expect to find your tires flat when you go out (KIDDING!)

"How To Do An Intervention On Radio"

"The human element -- when you have your job downsized, outsourced, combined or replaced by virtual technology you no longer work in an industry conducive to new ideas. In effect you are no longer in a growth industry. Google is a growth company. Todays Clear Channel and CBS are not."

http://insidemusicmedia.blogspot.com/2007/01/how-to-do-intervention-on-radio.html

Interesting, that you haven't attempted to explain HD Radio's business-model !

 

[SUPERCASTER]

I never claimed that radio stations had "plenty of money to burn". Damn it, dude, point to where I ever said any such thing! I said that most radio stations are profitable, and that those profits have shown moderate (about 3 percent) growth in the last year. Not huge growth, but not in "trouble" either. About treading water, is how I'd describe the industry as a whole now. I've also said if radio is to grow, INNOVATIVE PROGRAMMING is the only path to that growth. Some actual creativity. What a concept!

Misquote me again, and expect to find your tires flat when you go out (KIDDING!)

Mike Walker:

So don't worry about "our" (broadcasters) expenditures promoting this "defective technology". We can "spend" many millions on RADIO, and not feel any ill effects, Dude! Perhaps that is a point that detractors really miss.

It seems it is your own tires you will be flattening.
Why have CC, CBS and other broadcasters been laying off by the thousands?
As usual, your posts are contradictory.

 

[NE Miss Radio]

Like Ramsey said, anyone care to explain HD Radio's business-model ?

I think it's merge the two competing companies, mislead potential users, and lobby the FCC to mandate your technology in order to get your investment back and make money.

I wonder what % of HD stations are not Ibiquity shareholders (I know CC is one)?

 

[RadeoEngineer]

The Ibiquity system can't be mandated. It's proprietary, requires fees be paid, and would be a violation of anti-trust laws. It would also bankrupt numerous small operators.

 

[dbdigital]

"HD isn't just for TV anymore"

"Minnesota Public Radio first launched HD Radio in the Twin Cities market in June 2005 and recently expanded to Collegeville, Fargo-Moorhead and Rochester. It plans to bring HD to all of its Minnesota listeners within the next five years, costing $7.2 million. The conversion is contingent on the membership-driven broadcaster raising the necessary funds through donations and government grants... The company estimates it will cost between $100,000 and $150,000 per station, General Manager John Sowada said... Many radio manufacturers have not gone HD, Laudenbach said, and attention around HR radios has been derailed by satellite radio and other technology. Local retailers said HD Radio has been slow to catch on and some question if the technology will take off.

http://www.sctimes.com/apps/pbcs.dll/article?AID=/20070205/NEWS01/102050060/1009/RSS

"HD Radio: Fun with Math"

"In Washington, the number is 15,000... For satellite radio, a national service under one big roof with subscription support, I get it. But explain to me the model for HD Radio, please."

http://www.hear2.com/2006/06/hd_radio_fun_wi.html

Like Ramsey said, anyone care to explain HD Radio's business-model ?

One guy on Ramsey's blog testily replied: "That's not what this is about. If you've read what people in the consortium have said, it's all about offering programming, not about making money. That's why most of the HD channels are done on the cheap, with no announcers, and no commercials."

If that's the case, then what justification is there for a small market or single station broadcaster to invest 100K or more in converting to HD-R? If I was a station owner being asked to spend that kind of money, I would want to see a return ASAP, unless iBiquity, the equipment manufacturers (Harris, BE, etc.) and contractors would be willing to wait for their money until my HD2 stream started paying off.

This a prime example of terrestrial broadcasters looking over their shoulder (at satellite radio) instead of looking ahead.

db

 

[Mike Walker]

Again...I never claimed that stations had "plenty of money to burn". Investing in the infrastructure of radio to prepare for a digital future sure as hell ain't "burning" money. It's investing in our business! As is recruiting, and maintaining creative people (something I'll admit radio has failed at miserably since deregulation of ownership limits! Having a couple of large corporations own EVERYTHING sure as hell doesn't contribute to the competitive environment necessary to foster CREATIVITY! These pencil-pushers never learned that CREATIVITY is the engine that powers radio! These sales-types who rise to management are so quick to dismiss the efforts of creative people...let's see how well they do when we're gone!)

 

[700WLW]

Again...I never claimed that stations had "plenty of money to burn". Investing in the infrastructure of radio to prepare for a digital future sure as hell ain't "burning" money. It's investing in our business! As is recruiting, and maintaining creative people (something I'll admit radio has failed at miserably since deregulation of ownership limits! Having a couple of large corporations own EVERYTHING sure as hell doesn't contribute to the competitive environment necessary to foster CREATIVITY! These pencil-pushers never learned that CREATIVITY is the engine that powers radio! These sales-types who rise to management are so quick to dismiss the efforts of creative people...let's see how well they do when we're gone!)

That's nice - what's HD Radio's business-model ?

 

[hipporadio]

Mike Walker claims broadcasters have plenty of money to burn, (as long as layoffs continue).

I never claimed that radio stations had "plenty of money to burn". Damn it, dude... Misquote me again, and expect to find your tires flat... (KIDDING!)

CAREFUL SUPERCASTER... Don’t bet your Bridgestones!

He lives adjacent to an area historically-known for fiercely-independent and rugged individuals—I believe it’s famous in folklore for its name—“The Lost Provinces”... And tires aren’t totally off the table. I know a few Watuaga County boys... Actually, they’re as good as men come—and they enjoy “kidding” also!

[from Amazon]
“For whatever reason, the so-called "Lost Provinces" of North Carolina--Ashe, Watauga, and Alleghany Counties--were a breeding ground for fantastic string bands in the late '20s. Maybe it was the isolated and tough nature of the region that inspired folks to turn to music.”

http://www.amazon.com/gp/music/clipserve/B00000I9NA001003/0/002-8954217-5108869

http://www.amazon.com/Music-Lost-Pr..._bbs_sr_1/002-8954217-5108869?ie=UTF8&s=music

BTW, this CD is an awesome resurrection of near-ancient music... Perfect for NPR’s new program, “HD Playhouse”

 

[SUPERCASTER]

Again...I never claimed that stations had "plenty of money to burn". Investing in the infrastructure of radio to prepare for a digital future sure as hell ain't "burning" money. It's investing in our business! As is recruiting, and maintaining creative people (something I'll admit radio has failed at miserably since deregulation of ownership limits! Having a couple of large corporations own EVERYTHING sure as hell doesn't contribute to the competitive environment necessary to foster CREATIVITY! These pencil-pushers never learned that CREATIVITY is the engine that powers radio! These sales-types who rise to management are so quick to dismiss the efforts of creative people...let's see how well they do when we're gone!)

It is not a digital future for radio that is the problem, it is the problematic iBiquity/HD cartel adjacent channel, interfering, inbred method. FMeXtra is fine digital. It provides additional, new, digital radio service, and does no harm.
Where is the creative new talent and programming that was promised for HD?
It went out the door with all the layoffs.
Investing in HD radio is "burning money".

One guy on Ramsey's blog testily replied: "That's not what this is about. If you've read what people in the consortium have said, it's all about offering programming, not about making money. That's why most of the HD channels are done on the cheap, with no announcers, and no commercials."

No talent, no originality, no creativity, no new entertainment, just computer "iPods" playing the same CD's on shuffle, connected to iBiquity/cartel adjacent channel buzz generators.

 

[Mike Walker]

Again Supercaster, while there may be some truth in your comments, it doesn't really apply to me, or the 20 million other Americans who listen primarily to public radio. Plenty of creativity, musical variety, and QUALITY. Hell, NPR INVENTED multicasting.

 

[dbdigital]

Again...I never claimed that stations had "plenty of money to burn". Investing in the infrastructure of radio to prepare for a digital future sure as hell ain't "burning" money. It's investing in our business! As is recruiting, and maintaining creative people (something I'll admit radio has failed at miserably since deregulation of ownership limits! Having a couple of large corporations own EVERYTHING sure as hell doesn't contribute to the competitive environment necessary to foster CREATIVITY! These pencil-pushers never learned that CREATIVITY is the engine that powers radio! These sales-types who rise to management are so quick to dismiss the efforts of creative people...let's see how well they do when we're gone!)

But here again the priorities are backward. If I owned a station, gearing up for HD-R would be the last thing I would do. Instead of spending 100K to buy into a technology that is more a question than an answer I would spend a portion of that amount to buy the services of a good web consultant. Someone who can help create a site that not just streams content but engages the listener. Then I would hire a freelance webmaster to maintain it so that the content is always fresh and to upload/replace ads that my salesmen are selling along with air time.

Before this or, perhaps concurrent to it, I would invest in talent as well as advertising/promotions that involve the community; hosting events that highlight what the community is best known for. These expenditures would be in addition to the spending for ongoing maintenence and facility upgrades a radio station normally requires.

Only if it became evident that my station was losing listeners and money because of not jumping on the HD-R bandwagon would I then look into such an investment. Admittedly, I've never owned a radio station, but if I did, that's how I'd do it.

db

 

[Mike Walker]

HD's "business model" is the same as radio's business model has been since the 1920s...to gather as many warm bodies around the radio as possible, and sell to 'em. In fact, the government would take quite a dim view of any other business model, since that's what stations are licensed to do.

 

[700WLW]

HD's "business model" is the same as radio's business model has been since the 1920s...to gather as many warm bodies around the radio as possible, and sell to 'em. In fact, the government would take quite a dim view of any other business model, since that's what stations are licensed to do.

With the lack of HD radios, aside from radio-geeks, there is no money to be made in HD Radio - no one is listening:

http://www.google.com/trends?q="hd+radio",+"internet+radio",+xm,+sirius,+podcast

Broadcasters, will not be able to recoup the initial and on-going costs, associated with HD Radio.

 

[Mike Walker]

If that same logic had been followed in, say, 1923 (why broadcast, there are no radios?) or in 1947 for tv, would there be a broadcasting industry? Chicken, or egg? It makes no big difference...but ONE OF 'EM has to come first!

 

[700WLW]

If that same logic had been followed in, say, 1923 (why broadcast, there are no radios?) or in 1947 for tv, would there be a broadcasting industry? Chicken, or egg? It makes no big difference...but ONE OF 'EM has to come first!

Back then, they probably didn't have the IBOC-type outrageous fees to recoup.

 

[Mike Walker]

SO perceptive of you, 700. In fact the earliest radio and TV gear was pretty much free. And of course money was rolling in from the start. That's exactly how it happened. No large sums were invested, and none were ever lost.

Right again. God, you're smart!

 

[davideduardo]

If that same logic had been followed in, say, 1923 (why broadcast, there are no radios?) or in 1947 for tv, would there be a broadcasting industry? Chicken, or egg? It makes no big difference...but ONE OF 'EM has to come first!

Back then, they probably didn't have the IBOC-type outrageous fees to recoup.

The fee, as a percentage of station revenue, is almost insignificant.