SUPERCASTER said:
Satellite is working HARD on the portable receiver and they're trying to do a lot more than HD Don't be so sure, several members of the HD cartel are talking about monotizing HD Radio by making it a subscription service. That way they would not develop competition for their overabundant main channel unsold advertising inventory.
Although the HD Cheerleaders tout the fact that their service is free, being able to make the digital channels a subscription service has always been a part of the design architecture. I suspect the “free” aspect is just a timely jab at satellite radio, more than anything else.
In my never so humble opinion, subscription sub-channels are just about the only way I see HD being a financial success. Adding more free channels that compete with your existing bread and butter product just doesn't make a lot of sense, unless you are a public broadcaster. In that case, you operate under an entirely different business plan than your commercial compatriots. Right now, it’s OK to have free channels, since there are not enough receivers out there to make any difference. At least for a while, “free radio” will continue to be the party line.
The only way adding free channels would be a good business model in the long term would be if there was an insatiable desire on the part of the public to do nothing but listen to the radio. Let's face it: There are a lot of other distractions out there which compete with radio for your time. Just look at the sales of video gaming devices. It is astounding how much time people devote to these devices. It's pretty hard to listen to your favorite voice tracked radio station while playing video games. As we all know there are many other competitors for your time. Radio does have one advantage though. It does fit in with today's tendency to multitask. Usually, you can listen to the radio and do something else at the same time.
Radio as we know it is not going away in the foreseeable future. It can be a very good business but it is fairly obvious that it is probably not going to continue to be much of a huge growth industry. It certainly will be nothing like it was just a few years ago. If HD succeeds, using these new-found data streams for some type of subscription service would be a logical way to generate revenue for the radio station at little expense. They may end up being leased for brokered programming, or possibly for ethnic or nontraditional broadcasting that is outside of the mainstream that shows up in Arbitron books. You want something that appeals to people who usually never listen to radio. You most certainly do not want to do anything that competes with your core business. For the majority of independent broadcasters outside of the top 50 markets, it is very hard to come up with a compelling business reason to convert to HD. It is also fair to point out that subscription sub channels are also possible using FMExtra, which is lower cost and quite possibly a better way of doing things. The dance is not over.
As for the interest in Wi-Fi, that should come as no surprise. Even the most technology ignorant person can see the excitement in that technology once they are exposed to it. Like many things that you didn't know you needed until you got one, Wi-Fi has some steak to go along with the sizzle. It has a lot to offer, and you do not have to be a member of an exclusive club to participate