I’m just leaving the Texas Association of Broadcaster’s Convention. There was an interesting session called “HD Radio Transition.” Panelists were senior engineers from BE, Continental and Harris. In their presentation, they mentioned that one of the revenue features of the HD system is the ability to make the channels addressable, making their programming only available to radios that are subscribed to the service.
That caught my attention, since it is contrary to the popular opinion of some of you on this Board. Just to make sure I wasn’t misinterpreting things, I popped up with the question “So that means that the auxiliary channels can be used for subscriber supported channels that would require a paid subscription?” Their answer was absolutely yes. Technically, it would work in a similar fashion that satellite radio uses to address the subscriber’s receiver. They went on to say that that is part of the business model that should appeal to various content providers. I can see how that might be attractive.
I’m not saying that it is anybody’s intention to turn HD into pay radio, but these gentlemen were quick to tout the ability to do so if you wanted to. Since these guys were about as expert as you can get (and all agreed) I think I will take their word for it that HD radio has the potential to become a subscription service, despite claims made elsewhere on this Board.