HD Radio's Business-Model

[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.

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

"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

There are also, software/hardware upgrade fees and percentage-fees for the HD channels - good-luck, recouping the initial and on-going outrageous fees, with no one listening !

 

[hipporadio]

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.

Then “i-B-nicking-U” needs to attend an ethics class and dismiss their ASCAP/BMI-like “revenue sharing” scheme. For god sake—just be honest and plug in a flat-rate “support fee”. WHY do they so-savor the "hitch"?

So what’s next?...Stations cutting a monthly check to the Harris Corporation for the “privilege” of purchasing (and continuing to operate) a DX-series transmitter? Fortunately, Harris may remain well above such tactics.

“HEY BOOKEEPER... You need to make out two checks, and code them “transmission expense”... One to the power company—the other to the “Keep iBiquity Alive Fund.”

Allow the first bat out of the box—ANOTHER (then another) will surly follow!

Hey D.E. (or is it “el-C”)... As they say in Dallas... “Do you just bounce between the boards searching for an argument?” :

 

[Mike Walker]

Great point Hippo, and the one thing that would absolutely nauseate me (about HD) if I owned a station. "You're telling me that AFTER I buy the gear, I STILL have to keep sending you money? FOR WHAT???? I bought the freaking gear!" This alone may be enough to keep HD out of small markets. Very sad, because I know several small market station owners who have been preparing for digital radio for years...little by little making their signal path "pure digital". At least their analog audio sounds great as a result.

 

[700WLW]

"You're telling me that AFTER I buy the gear, I STILL have to keep sending you money? FOR WHAT???? I bought the freaking gear!"

On-going fees for software/hardware updates, and percentage-fees for the worthless HD channels.