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Selling HD Subchannels

PTBoardOp94

PTBoardOp94

I have no experience with radio sales at all, but I can't help but think that making HD subchannels financially independent will be difficult.

I also don't know if any HD channels are running anything but automated music with the exception of WJMK/Chicago.

Let's assume that HD Radios become commonplace and some GSM somewhere decides to try and sell ads on the HD2 subchannel. Let's also assume current economic conditions. Will business owners be willing to double their investment with your station? If not, will IBUZ be the least of the concerns of HD-ready stations? How long will the public companies (CC, soon to be Citadel, CBS...) be able to write off those (theoretical) losses?

My guess: business owners will not be super excited about it, and only some of them will be persuaded. And if that is the case, subchannels will be out of the picture by 10 years after everyone gets their shiny new radios, but Digital Radio will remain to try to placate the people.

I realize it is highly speculative at this point, so argue away.
 
> I have no experience with radio sales at all, but I can't
> help but think that making HD subchannels financially
> independent will be difficult.
> snip <
> My guess: business owners will not be super excited about
> it, and only some of them will be persuaded. And if that is
> the case, subchannels will be out of the picture by 10 years
> after everyone gets their shiny new radios, but Digital
> Radio will remain to try to placate the people.
>
> I realize it is highly speculative at this point, so argue
> away.
>
That's a good question. Right now there is a "gentleman's agreement" to keep them noncommercial for a while (2 years, I think.) It seems to me that these additional channels simply dilute your market share. If I do buy a HD radio in the near future, it will be to listen to the HD 2 channels. That means I won't be listening to a commercial station. Hmmm....

Realizing that you have to sow some seeds before you harvest, I see the wisdom in this, but I also see how it may create more problems than it solves. Even when it does become commercial, you still have to sell it. Somehow this sounds to me like "more work, less money." Maybe not

In any case, you have to think in the long term to see light at the end of the tunnel. <P ID="signature">______________
Chuck
www.kzqx.com
</P>
 
Heres been my problem, that if you start getting into 2 or 3 sub channels, that are niched, for example ONLY, my station, WXSS-FM M-CHR

HD-simulcast of WXSS
HD2-old school KISS (commercial free)
HD3-hip hop KISS (commercial free)

Arent we devaluing our current product? People's main gripes with the fm band is A)commercials and B)DJ's. So you give them 2 channels that are focused more without either of the above mentioned, and then why do they need the original format.

And then advertisers will want to hop on the HD side, thus, ruining what the people liked about them.

All speculative of course, depending on the fact that EVERYONE will have a HD radio soon, which I dont see happening.
 
> Heres been my problem, that if you start getting into 2 or 3
> sub channels, that are niched, for example ONLY, my station,
> WXSS-FM M-CHR
>
> HD-simulcast of WXSS
> HD2-old school KISS (commercial free)
> HD3-hip hop KISS (commercial free)
>
> Arent we devaluing our current product? People's main gripes
> with the fm band is A)commercials and B)DJ's. So you give
> them 2 channels that are focused more without either of the
> above mentioned, and then why do they need the original
> format.
>
> And then advertisers will want to hop on the HD side, thus,
> ruining what the people liked about them.
>
> All speculative of course, depending on the fact that
> EVERYONE will have a HD radio soon, which I dont see
> happening.
>


You're jumping the gun a bit however...

A) There is a good chance that the channels will NOT mirror the main ones for that reason and

B) HD-3's will generally NOT carry music.

Finally:

C) Money is money. If they don't buy the main channel, but buy HD-2, you get the money either way.<P ID="signature">______________
</P>
 
Why not as a replacement for SCA's used in major markets for ethnic programming like Korean, Japanese, Arabic. Plus in markets where their isn't a RadioDisney (Washington D.C) one of the ABC FM's could run this as a HD2. I could even see this as a way to help AM Daytimers. Since the FCC has done just about everything to kill these stations (no night time power, but considering Night IBOC, considering commercial Low Power AM, the adjacent channel noise 50kw AM's cause to 1st and 2nd adjacent Daytimers. How about allowing AM Daytimers to have first right of refusal for HD2 on a nearby FM. Here's an example: Chestertown, Md has a Daytimer, WCTR on 1530. Why not allow them to work with WKHS (FM), a 17,500 watt non-comm at 90.5. They could paid for the upgrade to HD for this County School Board owned station, in return for the HD2. This gives them a 24 hour signal, and they would be promoting HD Radio in their market. This would also provide the ability for the school station to do much needed upgrades that would ultimately benefit both stations, and more importantly the listeners in this community so close to a major market (Baltimore), but not really serviced by those stations.
 
>
> I also don't know if any HD channels are running anything
> but automated music with the exception of WJMK/Chicago.

Miami:
WLRN (NPR) airs <a target="_blank" href=http://minnesota.publicradio.org/radio/services/cms/>Classical 24</a> on their HD-2, with live announcers (better than dead ones).
WPOW airs Sportstalk Viva La Voce on HD-2, but I believe at this point they are 100% voice tracked by the station's main channel announcers.

> WCTR on 1530. Why not allow them to work with...a...non-comm...

No way!
No commercial signals below 92MHz.<P ID="signature">______________
Proud 2 B a pioneering satellite radio subs¢riber
Ai4i is always on the trailing edge of technology
______________</P>
 
This is a huge problem if HD ever becomes widespread. How else could the big companies get 2-3x the number of channels in a market without even having to bid on licenses, and without the possibility that new companies will enter the market?

If the FCC wants to do this right, then IMO, they would do the following: the station ownership cap in each market should remain exactly where it is today. However, if broadcasters start selling HD2 or HD3 channels as commercial stations, this will prove that HD is viable. Therefore, those channels will count toward the cap. Any broadcaster already at the cap with analog will need to sell some stations in order to begin selling HD. Can't have CC owning 20 channels in one market.

> That's a good question. Right now there is a "gentleman's
> agreement" to keep them noncommercial for a while (2 years,
> I think.) It seems to me that these additional channels
> simply dilute your market share. If I do buy a HD radio in
> the near future, it will be to listen to the HD 2 channels.
> That means I won't be listening to a commercial station.
> Hmmm....
>
> Realizing that you have to sow some seeds before you
> harvest, I see the wisdom in this, but I also see how it may
> create more problems than it solves. Even when it does
> become commercial, you still have to sell it. Somehow this
> sounds to me like "more work, less money." Maybe not
>
> In any case, you have to think in the long term to see light
> at the end of the tunnel.
>
 
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