"The Age of Dark Payola"

[PocketRadio]

"The Age of Dark Payola"

"To recap what I wrote in March, HD Radio tops the list of corporate scams. The word "monopoly" fails to encompass this carny shill. Public broadcasting licenses are licenses to print money, and Big Radio's mints just got four times bigger with no givebacks to the public... A lot of veteran broadcasters wrote in positing very cogent points. One pointed out: "All my peers in radio have been silenced, even though they don't want to go along." They say HD's flaws include super-bad distortion in the AM range and a bass-ackward interface courtesy of thirty-year-old technology. Yet, these keen readers don't see HD and the billions of dollars that support it in Washington as a done deal. Public comments on HD are still open, they say, and people on the street seem to be voting "no" with their pocketbooks. "Big Radio covets our public airwaves," says Milspec390. "Our influence counts. Let's use it."

http://www.eastbayexpress.com/2007-04-18/music/the-age-of-dark-payola

And of course, here's David's first article:

"HD Radio on the Offense"

"But after an investigation of HD Radio units, the stations playing HD, and the company that owns the technology; and some interviews with the wonks in DC, it looks like HD Radio is a high-level corporate scam, a huge carny shill."

http://www.eastbayexpress.com/2007-03-07/music/hd-radio-on-the-offense/

Yea, our influence counts and we're using it !

 

[davideduardo]

"To recap what I wrote in March, HD Radio tops the list of corporate scams. The word "monopoly" fails to encompass this carny shill. Public broadcasting licenses are licenses to print money,

Then explain why, since the late 50's, half of all radio stations have not made money.

and Big Radio's mints just got four times bigger with no givebacks to the public... A lot of veteran broadcasters wrote in positing very cogent points. One pointed out: "All my peers in radio have been silenced, even though they don't want to go along." They say HD's flaws include super-bad distortion in the AM range and a bass-ackward interface courtesy of thirty-year-old technology. Yet, these keen readers don't see HD and the billions of dollars that support it in Washington as a done deal. Public comments on HD are still open, they say, and people on the street seem to be voting "no" with their pocketbooks. "Big Radio covets our public airwaves," says Milspec390. "Our influence counts. Let's use it."

HD simply makes better use of the spectrum... there is no increase in frequencies used, no loss of stations, but an increase in available program options.

It will be years before any station makes any money from HD... for the moment, it is an investment in next generation technology and an effort to keep terrestrial radio viable.

The stuff about the "Alternative Newspaper" East Bay Express have been snipped... we are talking here about a paper that carries several pages of personals from people with fetishes, along with the regular straight and GLBT ads... mixed in with the poignent articles about how a mixed Christian / wiccan marriage can work.

 

[Mike Walker]

Sounds like a great paper. Where do I subscribe? Insightful commentary on business, technical saavy, AND wonderful advice on how to conduct my personal life (after all, I've only been married for 30 years, so what do I know about interpersonal relations? This Christian/Wiccan thing is really intriguing!) How could I NOT sign up for a publication like that. There is so much to learn!

 

[amfmsw]

It's always a monopoly for the company who owns the patent. It's called Capitalism.

Zenith got royalties on every FM Stereo Generator and FM mpx decoder ever made for years.

RCA got royalties for every color tv made for years.

Armstrong got royalties for AM Superhereodyne circuits and FM transmitters and receivers...oh wait...sorry...RCA's Sarnoff stole them from him. And after 40 years in court, Armstrong's widow collected.

I'm no fan of AM IBOC, but, hey...it's IbIquity's turn to collect.

 

[radiopilot]

It will be years before any station makes any money from HD... for the moment, it is an investment in next generation technology and an effort to keep terrestrial radio viable.

I don't understand this comment, supposedly satelite radio is going nowhere, internet radio is dying because of the CRM digital rights rule, WIFI radio is going nowhere, at least according to the posters here YET others claim MORE people listen to radio than any other sources according to Arbitron and other ratings systems YET you claim 'an effort to keep terrestrial radio viable'?

I think you've answered that question by the very fact that other sources for listening to music/talk is REALLY challenging terrestrial radio and this HD effort is going nowhere even if the HD Alliance is throwing tons of money to get the word out...

Too bad that same effort isn't spent on getting 100 mile per gallon cars and carburetors out into the market....

Radiopilot

 

[Mike Walker]

The real effort isn't trying to "keep terrestrial radio viable", it's trying to make all other forms of radio, none of which are profitable, viable! It's satellite, internet, wi-max, etc. that need to worry about viability. And the clock is ticking...investors aren't going to endlessly stack more money onto the pile of mounting debt. WHEN (if ever) internet and/or satellite radio ever make one red cent in profit, THEN you guys will have something to crow about. Wake me when that happens! In the meantime, HD is the next evolution in the PROFITABLE, ever expanding frontier of terrestrial radio...now entering it's second century of growth!

 

[davideduardo]

>>>It will be years before any station makes any money from HD... for the moment, it is an investment in next generation technology and an effort to keep terrestrial radio viable. <<<

I don't understand this comment, supposedly satelite radio is going nowhere, internet radio is dying because of the CRM digital rights rule, WIFI radio is going nowhere, at least according to the posters here YET others claim MORE people listen to radio than any other sources according to Arbitron and other ratings systems YET you claim 'an effort to keep terrestrial radio viable'?

Keeping terrestrial radio viable simply means making sure that the future is as well protected as possible. In fact, it took FM nearly 30 years to gain traction, it took FM stereo over 3 years to get its first 100 stations on the year. Even with the faster times today, we still all realize that HD is a long term proposition covering the next many years.

Satellite is a cost vs. potential subscriber base issue. There is no cheap way to put high power sats in orbit... and creating 150 channels per company of content is not cheap, either. Streaming is not dead... probably the royalty issue will, in the long run, be resolved or litigated. Still, radio reaches 93% of all Americans weekly, vastly more than streaming and about 10 to 20 times more than satellite.

I think you've answered that question by the very fact that other sources for listening to music/talk is REALLY challenging terrestrial radio

TV, cassettes, 8-tracks, CDs, video games, the Internet and many other entertainment sources have challenged radio for 6 decades. Radio so far, has adapted nicely. It also, as an industry, makes money (although a huge percentage of marginal or smaller stations do not).

and this HD effort is going nowhere even if the HD Alliance is throwing tons of money to get the word out...

HD Alliance is spending practically no money.

 

[PocketRadio]

HD Alliance is spending practically no money.

"HD Radio Launching $250 Million Ad Campaign"

"The HD Radio Alliance has said they will increase their advertising budget in 2007 to $250 Million. This is sure to add to the costs losses incurred for each HD radio sold (currently at $1,000 for every $300 radio sold)."

http://www.orbitcast.com/archives/hd-radio-launching-250-million-ad-campaign.html

 

[R.F. Burns]

HD Alliance is spending practically no money.

"HD Radio Launching $250 Million Ad Campaign"

"The HD Radio Alliance has said they will increase their advertising budget in 2007 to $250 Million. This is sure to add to the costs losses incurred for each HD radio sold (currently at $1,000 for every $300 radio sold)."

http://www.orbitcast.com/archives/hd-radio-launching-250-million-ad-campaign.html

This is fabulous. You provide a link to a satellite site where they have negative things to say about HD radio. Why not provide a link to one of the Sony beta users groups and we can read all about how wonderful the VHS system is. Dumb, do you understand that? Both sat providers are in deep financial trouble. They are looking to merge and I'm hearing although nothing official that this may not happen. The majority of the public by a very wide margin has voted with their pocketbooks. They don't want to pay for the services sold by XM or Sirius.This site is nonsense and obviously they are not an impartial judge concerning the future of HD radio. If I were a fan of either satellite provider I'd be more interested in what these companies can do to survive as opposed to looking for negative things to say about terrestrial radio. It only makes them and those who support them, look more desperate.

 

[PocketRadio]

"HD Digital Radio Alliance to Spend $250 Million on Promotions in 2007"

"The HD Digital Radio Alliance, a consortium of U.S. radio companies promoting the adoption of iBiquity Digital's HD Digital Radio technology by radio stations and consumers, announced on Monday that it plans to spend $250 million to advertise and promote the new format in 2007."

http://tinyurl.com/23bcrl

 

[radiopilot]

"HD Digital Radio Alliance to Spend $250 Million on Promotions in 2007"

"The HD Digital Radio Alliance, a consortium of U.S. radio companies promoting the adoption of iBiquity Digital's HD Digital Radio technology by radio stations and consumers, announced on Monday that it plans to spend $250 million to advertise and promote the new format in 2007."

http://tinyurl.com/23bcrl

PocketRadio.... Maybe RFBurns needs the HD Radio Alliance website to see it for himself... what does it matter what website it's shown if the same info is correct, namely $250,000,000.00!

http://www.hdradio.com/press_room.php?newscontent=50

Radiopilot

 

[Mike Walker]

That figure is mostly for RADIO AD TIME, on their own stations. Value=250 million. COST=virtually NOTHING!

 

[davideduardo]

"The HD Radio Alliance has said they will increase their advertising budget in 2007 to $250 Million. This is sure to add to the costs losses incurred for each HD radio sold (currently at $1,000 for every $300 radio sold)."

iBiquity and the HD Alliance are seperate entities.

The HD Alliance is an ad hoc committee comprised of many of the large groups that have HD stations on the air. They are committed to a high level of on-air promotion via spots and such, with a total value of $250 million.

iBiquity is a company, not an association. It does not contribute to the Alliance on-air promotion in any way.

Also, iBiquity does not manufacture radios. So there the profit and loss is based on each manufacturer's costs and sales.

 

[davideduardo]

PocketRadio.... Maybe RFBurns needs the HD Radio Alliance website to see it for himself... what does it matter what website it's shown if the same info is correct, namely $250,000,000.00!

The $250 million is in airtime... no out of pocket cost... by the HD Alliance, and has nothing to do with iBiquity.

 

[Hillbillicus]

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity. Now excuse my while I continue to pry little pieces of an Accurian radio from the back of my throat.

 

[davideduardo]

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity. Now excuse my while I continue to pry little pieces of an Accurian radio from the back of my throat.

The fact is that the Alliance is composed of the major groups who have HD on many of thier stations, and is focused on using their own collective airwaves to promote the technology, the sale of radios, the additional HD-2 formats and digital terrestrial radio in general.

There is not even an iBiquity representative among the Alliance representatives.

 

[SUPERCASTER]

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity. Now excuse my while I continue to pry little pieces of an Accurian radio from the back of my throat.

The fact is that the Alliance is composed of the major groups who have HD on many of thier stations, and is focused on using their own collective airwaves to promote the technology, the sale of radios, the additional HD-2 formats and digital terrestrial radio in general.

There is not even an iBiquity representative among the Alliance representatives.

It seems the HD Alliance (hereafter referred to as the cartel) has never even heard of iBiquity, even though they are featured prominently on iBiquity's website.
http://www.hdradio.com/press_room.php?newscontent=50
Perhaps Eduardo should introduce them.

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity.

That figure is mostly for RADIO AD TIME, on their own stations. Value=250 million. COST=virtually NOTHING!

Results=also virtually nothing!
Radio is really proving it's worth (or lack of) to advertisers with this failed half billion dollar (so far) HD radio ad campaign. Perhaps broadcasters should quit while they are ahead, and still have a few advertisers.
Internet advertising is projected to surpass radio broadcast advertising in 2008. If broadcasting can't even sell it's own products and services after wasting a half billion dollars in advertising time promoting HD radio, what impression does that leave with advertisers?

 

[Tom Wells]

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity. Now excuse my while I continue to pry little pieces of an Accurian radio from the back of my throat.

The fact is that the Alliance is composed of the major groups who have HD on many of thier stations, and is focused on using their own collective airwaves to promote the technology, the sale of radios, the additional HD-2 formats and digital terrestrial radio in general.

There is not even an iBiquity representative among the Alliance representatives.

It seems the HD Alliance (hereafter referred to as the cartel) has never even heard of iBiquity, even though they are featured prominently on iBiquity's website.
http://www.hdradio.com/press_room.php?newscontent=50
Perhaps Eduardo should introduce them.

The funniest thing I have read all week on this subject is that the HD Alliance has nothing to do with Ibiquity.

That figure is mostly for RADIO AD TIME, on their own stations. Value=250 million. COST=virtually NOTHING!

Results=also virtually nothing!
Radio is really proving it's worth (or lack of) to advertisers with this failed half billion dollar (so far) HD radio ad campaign. Perhaps broadcasters should quit while they are ahead, and still have a few advertisers.
Internet advertising is projected to surpass radio broadcast advertising in 2008. If broadcasting can't even sell it's own products and services after wasting a half billion dollars in advertising time promoting HD radio, what impression does that leave with advertisers?

Cat's out of the bag!
I was trying to think of a way to tell the radio professionals not to shoot their marketability in the foot, but it's too late.
If your (radio airtime) valuation is in great disagreement with (market) reality, you may find advertisers justifiably questioning radio's worth as an ad medium.
If you can't sell the airtime, claim the value it "woulda" brought in as money invested in ISAs "Ibiquity Service Announcement."

There's an old saying I've modified due to experience.

"You don't always get what you pay for, most of the time you do. But you sure as heck don't get any extra accidentally."
If radio time were as dear as the promos makes it sound, there would be bidding wars to get spots on in morning drive.

 

[davideduardo]

It seems the HD Alliance (hereafter referred to as the cartel) has never even heard of iBiquity, even though they are featured prominently on iBiquity's website.
http://www.hdradio.com/press_room.php?newscontent=50
Perhaps Eduardo should introduce them.

The press release supports what I am saying. The HD alliance is a group of station owners who are promoting HD radio. iBiquity created the technology, but is not part of the HD Alliance (although I am sure they are rooting for the success of the campaign the HDA is doing).

"The HD Digital Radio Alliance is a joint initiative of leading radio broadcasters to accelerate the successful rollout of HD Digital Radio. Current members include major radio groups and independent station owners: ABC Radio (in Los Angeles and Minneapolis), Beasley Broadcast Group, Bonneville International, CBS Radio, Citadel Broadcasting, Clear Channel Radio, Cumulus, Emmis Communications, Entercom, Greater Media and independent owner Jerry Lee with WBEB Philadelphia."

Again, the HD Alliance is a group of radio executives who are ocmmiting airtime to promoting HD and, especially, HD2 channels. It just began about 9 months ago... June of 2006.

 

[slim101]

From http://ibiquitydigital.com/about_us/investor_information

"iBiquity’s investors are global leaders in the technology, broadcasting, manufacturing, media and financial industries all supporting the development and rollout of HD Radio broadcasting: Broadcasters include ABC, Beasley, Bonneville, Citadel, Clear Channel, Cox Radio, Cumulus, Emmis, Entercom, Gannett, Radio One, Regent, Saga, Susquehanna, Univision and Viacom."

Looks to me like pretty much the same list as the HD Radio Alliance.

Give it a different name and a different URL, but it still smells like the big consolidators squeezing the small markets and indepent operators.