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"The Age of Dark Payola"

You wanna' make me angry? Tell me that radio advertising doesn't work. You better not be close while saying it, because them's fightin' words! You'd be safer insulting my mother!

I make a living writing and producing radio commercials. My clients REQUEST my work BECAUSE IT GETS RESULTS! Think radio doesn't make an impression? I'll leave you with my alltime favorite example of the effectiveness of radio...."We'll leave the light on for you." For nearly 20 years that slogan was heard ONLY on radio, and yet everybody, and I mean EVERYBODY knows it refers to Motel 6. And who spoke those words? If you don't know it's Tom Bodett, then you must have been living on another planet.

WKBC FM here in North Wilkesboro, NC is a 100 kilowatt FM with a MONSTER signal...solid a hundred miles in most any direction. Car dealers beat down the doors to advertise, BECAUSE THE STATION GETS RESULTS FOR ADVERTISERS! Radio works through repetition. HD is growing ENORMOUSLY...from a few hundred a couple of years ago to THREE THOUSAND by later this year, and from about three radio models a year ago to perhaps 30 or 40 today, with more arriving all the time. There are more stations AND radio models available now than EVER for AM stereo. And AM stereo sold MILLIONS of radios over the last two decades. It's probably the best selling technological "failure" in radio history.

In the 1980s there were two AM Stereo stations in Charlotte...WBT (1110), and WSOC-AM (930). 'BT used Kahn, 'SOC Harris (I believe). Today EVERY major FM in Charlotte is HD, except for 95.7 WXRC...the one not owned by a mega-corporation. HD is everywhere, and growing. It can't be stopped. Deal with it!
 
Because Clear Channel, Entercom, etc. are investors in Ibiquity don't mean they run it.

I'm an investor in Lowes Companies (headquartered here in North Wilkesboro NC...and beating Home Despot bloody!) That doesn't mean I run Lowes. Duh!
 
Mike Walker said:
HD is growing ENORMOUSLY...from a few hundred a couple of years ago to THREE THOUSAND by later this year, and from about three radio models a year ago to perhaps 30 or 40 today, with more arriving all the time. There are more stations AND radio models available now than EVER for AM stereo. And AM stereo sold MILLIONS of radios over the last two decades. It's probably the best selling technological "failure" in radio history.

In the 1980s there were two AM Stereo stations in Charlotte...WBT (1110), and WSOC-AM (930). 'BT used Kahn, 'SOC Harris (I believe). Today EVERY major FM in Charlotte is HD, except for 95.7 WXRC...the one not owned by a mega-corporation. HD is everywhere, and growing. It can't be stopped. Deal with it!
Click to expand...

"Find HD Radio Stations Near You"

"Currently, there are 1,236 HD Radio stations broadcasting across the nation."

http://www.ibiquity.com/hd_radio/hdradio_find_a_station

"Digital Audio for Cars: A Guide to What's New"

"Jury says 3,000 radio stations have committed to broadcasting HD Radio by 2010. There are approximately 13,000 radio stations in the U.S., according to Jury.

http://www.edmunds.com/insideline/do/Features/articleId=115510

Means little, with no consumer interest:

http://www.statsaholic.com/hdradio.com

The FCC has left the success of HD Radio up to the marketplace:

"FCC: Market to Decide Fate of HD Radio"

http://www.radio-info.com/smf/index.php/topic,67842.0.html
 
1. $10k plus for an ibiquity license (before any equipment), and being ramped up every 6 months is pretty tough for a small market station with 10,000 people in the coverage area, and my listeners can't afford new tires for their house, much less $200 for a new radio.

2. The license fee doesn't seem to be a problem for CC or Citadel, etc., since the fee goes back into their other pocket as an ibiquity investor,
and, I doubt seriously that the fee CC pays per station is the same as what I would have to pay to license my 250 watt AM.

3. Look at (analyze) the ibiquity stations list for almost any state. In my state, the only HD stations are those owned by the Cartel in the largest market, or the non-coms that have been subsidized by my taxes.

4. Not to mention the recurring annual fees for HD2, even though no one is listening (no radios, remember).

4. If ibiquity really wants the technology to spread, they need to make it affordable to all stations, not just their investors/customers. For me, no radios means no listeners means no HD and no incentive to even look at it for the future. Its just pissing money away. I'll be in a hole in the ground before there are 100 HD radios in my listening area.
 
PocketRadio said:
Mike Walker said:
HD is growing ENORMOUSLY...from a few hundred a couple of years ago to THREE THOUSAND by later this year, and from about three radio models a year ago to perhaps 30 or 40 today, with more arriving all the time. There are more stations AND radio models available now than EVER for AM stereo. And AM stereo sold MILLIONS of radios over the last two decades. It's probably the best selling technological "failure" in radio history.

In the 1980s there were two AM Stereo stations in Charlotte...WBT (1110), and WSOC-AM (930). 'BT used Kahn, 'SOC Harris (I believe). Today EVERY major FM in Charlotte is HD, except for 95.7 WXRC...the one not owned by a mega-corporation. HD is everywhere, and growing. It can't be stopped. Deal with it!
Click to expand...

"Find HD Radio Stations Near You"

"Currently, there are 1,236 HD Radio stations broadcasting across the nation."

http://www.ibiquity.com/hd_radio/hdradio_find_a_station

"Digital Audio for Cars: A Guide to What's New"

"Jury says 3,000 radio stations have committed to broadcasting HD Radio by 2010. There are approximately 13,000 radio stations in the U.S., according to Jury.

http://www.edmunds.com/insideline/do/Features/articleId=115510

Means little, with no consumer interest:

http://www.statsaholic.com/hdradio.com

The FCC has left the success of HD Radio up to the marketplace:

"FCC: Market to Decide Fate of HD Radio"

http://www.radio-info.com/smf/index.php/topic,67842.0.html
Click to expand...


I'm seeing growth here. If 3,000 major market stations run IBOC that would probably cover 95% of the countries urban areas. In other words where people live. By the way, those stations have commited to HD radio. That dosn't mean other stations won't join in. Right now with the 1200 stations most of the major cities where people live have IBOC stations. You might not want to believe this but from a business standpoint alll that matters is that enough people are reached to make the service profitable. If they tuned off every station outside of the top 50 markets or so, the majority of citizens would be served.
 
slim101 said:
1. $10k plus for an ibiquity license (before any equipment), and being ramped up every 6 months is pretty tough for a small market station with 10,000 people in the coverage area, and my listeners can't afford new tires for their house, much less $200 for a new radio.

2. The license fee doesn't seem to be a problem for CC or Citadel, etc., since the fee goes back into their other pocket as an ibiquity investor,
and, I doubt seriously that the fee CC pays per station is the same as what I would have to pay to license my 250 watt AM.

3. Look at (analyze) the ibiquity stations list for almost any state. In my state, the only HD stations are those owned by the Cartel in the largest market, or the non-coms that have been subsidized by my taxes.

4. Not to mention the recurring annual fees for HD2, even though no one is listening (no radios, remember).

4. If ibiquity really wants the technology to spread, they need to make it affordable to all stations, not just their investors/customers. For me, no radios means no listeners means no HD and no incentive to even look at it for the future. Its just pissing money away. I'll be in a hole in the ground before there are 100 HD radios in my listening area.
Click to expand...


And I'll ask you, who is making you purchase an IBOC encoder? Stay analog, you don't have to go digital. Your signal will be protected within it protected contour and you can continue broadcasting as you once did. Where did you read that there are continuiing licensing fees for AM IBOC stations? I was told one time fee (included in equipment price) and the only future payment IBIQUITY will receive is from anyone who purchases your station in the future. If you have proof from Iboquity stating continuing licensing fees for AM stations I'd like to read it.
 
R.F. Burns said:
Where did you read that there are continuiing licensing fees for AM IBOC stations? I was told one time fee (included in equipment price) and the only future payment IBIQUITY will receive is from anyone who purchases your station in the future. If you have proof from Iboquity stating continuing licensing fees for AM stations I'd like to read it.
Click to expand...

"Facts About HD Radio Broadcaster Licensing"

Licensing Fees for Main Channel: $10,000 - $25,000.
Supplemental Channel Audio Fees: 3% of incremental net revenue derived from any supplemental audio services.
Data Fees: 3% of incremental net revenue derived from Auxiliary Data.

http://www.ibiquity.com/broadcasters/becoming_a_broadcaster/technology_license

"Radio Station Construction Costs"

Digital Capable Analog Transmitter with digital processing analog exciter (Assumes High Level Combining):

$42,000 (Class A)
$73,000 (Class B)
$73,000 (Class B)

IBOC transmitter w/IBOC exciter for High Level Combined System (Includes IBOC exciter and Exciter Auxiliary Switching Unit):

$69,000 (Class A)
$107,000 (Class B)
$107,000 (Class C)

IBOC Combiner for High Level (range is for 5 to 30KW):

$7,000 (Class A)
$9,000 (Class B)
$9,000 (Class C)

IBOC (HD) exciter for Low Level Combining (includes Exciter Auxiliary Switching Unit):

$32,000 (Class A)
N/A (Class B)
N/A (Class C)

HD Radio Processor:

$9,000 (Class A)
$9,000 (Class B)
$9,000 (Class C)

http://www.ntia.doc.gov/ptfp/application/equipcost_Radio.html

Pretty expensive, considering there is no ROI !
 
slim101 said:
1. $10k plus for an ibiquity license (before any equipment), and being ramped up every 6 months is pretty tough for a small market station with 10,000 people in the coverage area, and my listeners can't afford new tires for their house, much less $200 for a new radio.

2. The license fee doesn't seem to be a problem for CC or Citadel, etc., since the fee goes back into their other pocket as an ibiquity investor,
and, I doubt seriously that the fee CC pays per station is the same as what I would have to pay to license my 250 watt AM.

3. Look at (analyze) the ibiquity stations list for almost any state. In my state, the only HD stations are those owned by the Cartel in the largest market, or the non-coms that have been subsidized by my taxes.

4. Not to mention the recurring annual fees for HD2, even though no one is listening (no radios, remember).

4. If ibiquity really wants the technology to spread, they need to make it affordable to all stations, not just their investors/customers. For me, no radios means no listeners means no HD and no incentive to even look at it for the future. Its just pissing money away. I'll be in a hole in the ground before there are 100 HD radios in my listening area.
Click to expand...

Darn! Another broadcaster bitten by the "hey, this doesn't add up" bug.

Of course, the old stock reply is that the FCC isn't forcing your station to go digital. But let's be honest. In time, it's going to be a case of upgrade or die. Every broadcaster is going to be forced to face the question of digital if they aren't already contemplating or doing it.

And another realization, one that Slim101 has come to, is that for AM stations the payoff is next to nil. At least for FM's there's that nice extra channel(s), one of which will some day be a pay-for-play channel. But AM stations get zip. And IBOC for a low power AM station is a joke. If a listener is standing near the tower, they just might get it. Otherwise forget it.

That's why I say that if most of these turkey HD-R receivers can decode C-Quam, then going AMS is a very attractive option for an AM station looking to improve it's audio.

And while it is true that there is a one time only license fee to iBiquity, the company does warn of software upgrades on a regular basis that a station will have to pay for.

db
 
Thanks for getting my back on that PocketRadio!

R.F., Just because I mentioned a 250 watt AM doesnt mean that is the only station that concerns me.

Certainly there are no HD2 fees for AM since you don't get extra channels on AM. Doesn't it still seem out of porportion to charge the same license fee for a 250 watt AM on a local channel as one would pay for the main channel of a Class C FM ?

Yes, I don't have to go digital...just keep the pumping out the analog signal while my nightime "interference free" contour continues to shrink from the added IBOC "noise" on my channel. We are rural America...my adjacent community is 50 miles away (but still part of my "market"). Nighttime signal is marginal there now. Thanks for the help!

So, my point, I guess,...the cartel gets more channels, and more revenue in Albuquerque and Phoenix and El Paso and SLC, and the small towns loose signals and have less choices.

Seems like the original communications act said "every" community was deserving of service.
 
dbdigital said:
slim101 said:
1. $10k plus for an ibiquity license (before any equipment), and being ramped up every 6 months is pretty tough for a small market station with 10,000 people in the coverage area, and my listeners can't afford new tires for their house, much less $200 for a new radio.

2. The license fee doesn't seem to be a problem for CC or Citadel, etc., since the fee goes back into their other pocket as an ibiquity investor,
and, I doubt seriously that the fee CC pays per station is the same as what I would have to pay to license my 250 watt AM.

3. Look at (analyze) the ibiquity stations list for almost any state. In my state, the only HD stations are those owned by the Cartel in the largest market, or the non-coms that have been subsidized by my taxes.

4. Not to mention the recurring annual fees for HD2, even though no one is listening (no radios, remember).

4. If ibiquity really wants the technology to spread, they need to make it affordable to all stations, not just their investors/customers. For me, no radios means no listeners means no HD and no incentive to even look at it for the future. Its just pissing money away. I'll be in a hole in the ground before there are 100 HD radios in my listening area.
Click to expand...

Darn! Another broadcaster bitten by the "hey, this doesn't add up" bug.

Of course, the old stock reply is that the FCC isn't forcing your station to go digital. But let's be honest. In time, it's going to be a case of upgrade or die. Every broadcaster is going to be forced to face the question of digital if they aren't already contemplating or doing it.

And another realization, one that Slim101 has come to, is that for AM stations the payoff is next to nil. At least for FM's there's that nice extra channel(s), one of which will some day be a pay-for-play channel. But AM stations get zip. And IBOC for a low power AM station is a joke. If a listener is standing near the tower, they just might get it. Otherwise forget it.

That's why I say that if most of these turkey HD-R receivers can decode C-Quam, then going AMS is a very attractive option for an AM station looking to improve it's audio.

And while it is true that there is a one time only license fee to iBiquity, the company does warn of software upgrades on a regular basis that a station will have to pay for.

db
Click to expand...

What AM stations get is survival. Audience demographics are aging quickly for AM and the improved quality down the road will allow for music formats and other programing now heard only on FM.
 
dbdigital said:
Of course, the old stock reply is that the FCC isn't forcing your station to go digital. But let's be honest. In time, it's going to be a case of upgrade or die. Every broadcaster is going to be forced to face the question of digital if they aren't already contemplating or doing it.
Click to expand...

There is this major hurdle to cross, before that will happen:

"FCC: Market to Decide Fate of HD Radio"

http://www.radio-info.com/smf/index.php/topic,67842.0.html

Did you notice, how consumers reacted at the announcement of Slacker:

http://www.statsaholic.com/slacker.com

versus HD Radio (plot hdradio.com for two years):

http://www.statsaholic.com/hdradio.com

or, try sirius.com and xmradio.com:

http://www.statsaholic.com/sirius.com
http://www.statsaholic.com/xmradio.com

I suspect HD Radio will never happen, until consumers react as with Slacker.
 
PocketRadio said:
dbdigital said:
Of course, the old stock reply is that the FCC isn't forcing your station to go digital. But let's be honest. In time, it's going to be a case of upgrade or die. Every broadcaster is going to be forced to face the question of digital if they aren't already contemplating or doing it.
Click to expand...

There is this major hurdle to cross, before that will happen:

"FCC: Market to Decide Fate of HD Radio"

http://www.radio-info.com/smf/index.php/topic,67842.0.html

Did you notice, how consumers reacted at the announcement of Slacker:

http://www.statsaholic.com/slacker.com

versus HD Radio (plot hdradio.com for two years):

http://www.statsaholic.com/hdradio.com

or, try sirius.com and xmradio.com:

http://www.statsaholic.com/sirius.com
http://www.statsaholic.com/xmradio.com

I suspect HD Radio will never happen, until consumers react as with Slacker.
Click to expand...


And meanwhile back in the real world both XM & Sirius is bleeding money big time. Why you ask? Because once that first monthly bill comes after the free trial people say so long to you. If nbobody wants HD (Which is less than one month out of being an experiment) then the sats are in even more trouble. They give away the radios and yet few actually subscribe after the free period ends.
 
R.F. Burns said:
If nbobody wants HD (Which is less than one month out of being an experiment) then the sats are in even more trouble. They give away the radios and yet few actually subscribe after the free period ends.
Click to expand...

But so far the "experiment" is not exactly what I'd call new. When did stations in NYC first go IBOC? It's been on the air in most major markets for quite some time.

And yes, the Sats are in trouble. That's why they want to merge. That may be a repeat of a debacle that happened in the auto industry back in the late 1950's when Studebaker and Packard merged. Neither bothered to look carefully at the other's books. On their own, at least one might have survived, and maybe even both, but together they crashed and burned in a rather spectacular manner.

Still I'll bet that we see XM and Sirius becoming one, despite protestation to the contrary.
 
R.F. Burns said:
dbdigital said:
slim101 said:
1. $10k plus for an ibiquity license (before any equipment), and being ramped up every 6 months is pretty tough for a small market station with 10,000 people in the coverage area, and my listeners can't afford new tires for their house, much less $200 for a new radio.

2. The license fee doesn't seem to be a problem for CC or Citadel, etc., since the fee goes back into their other pocket as an ibiquity investor,
and, I doubt seriously that the fee CC pays per station is the same as what I would have to pay to license my 250 watt AM.

3. Look at (analyze) the ibiquity stations list for almost any state. In my state, the only HD stations are those owned by the Cartel in the largest market, or the non-coms that have been subsidized by my taxes.

4. Not to mention the recurring annual fees for HD2, even though no one is listening (no radios, remember).

4. If ibiquity really wants the technology to spread, they need to make it affordable to all stations, not just their investors/customers. For me, no radios means no listeners means no HD and no incentive to even look at it for the future. Its just pissing money away. I'll be in a hole in the ground before there are 100 HD radios in my listening area.
Click to expand...

Darn! Another broadcaster bitten by the "hey, this doesn't add up" bug.

Of course, the old stock reply is that the FCC isn't forcing your station to go digital. But let's be honest. In time, it's going to be a case of upgrade or die. Every broadcaster is going to be forced to face the question of digital if they aren't already contemplating or doing it.

And another realization, one that Slim101 has come to, is that for AM stations the payoff is next to nil. At least for FM's there's that nice extra channel(s), one of which will some day be a pay-for-play channel. But AM stations get zip. And IBOC for a low power AM station is a joke. If a listener is standing near the tower, they just might get it. Otherwise forget it.

That's why I say that if most of these turkey HD-R receivers can decode C-Quam, then going AMS is a very attractive option for an AM station looking to improve it's audio.

And while it is true that there is a one time only license fee to iBiquity, the company does warn of software upgrades on a regular basis that a station will have to pay for.

db
Click to expand...

What AM stations get is survival. Audience demographics are aging quickly for AM and the improved quality down the road will allow for music formats and other programing now heard only on FM.
Click to expand...

That, of course, assumes that HD-Radio gains heavy penetration among consumers. So far, consumer interest has been tepid.

And if you're talking a timeframe of 10 years or so when HD-R is in every home and car then it may well be too late for AM. Either way, there is no survival issue for AM stations, at present, that HD-AM will solve.

db
 
Mike Walker said:
You wanna' make me angry? Tell me that radio advertising doesn't work. You better not be close while saying it, because them's fightin' words! You'd be safer insulting my mother!
Click to expand...

"Buying Radio? Read This and Don't Waste Your Money"

"Well, radio can be great way to garner awareness cheaply... ahem, inexpensively... if you do it right. Remember... 97.823 of all radio ads S-U-C-K. That leaves you to carry the banner for great radio advertising. And when you do, you will get noticed. Believe me, you will get noticed. Why do so many radio ads suck? Between the screaming car ads, and nasally voiced business owners who should never get anywhere near a microphone reading their own ads, and the next ?turnkey? business opportunity, they are all dressed in their plaid suits and resorting to hucksterism. They want your money and they want it now."

Will you get angry, if someone else tells you ? :D
 
PocketRadio said:
Mike Walker said:
You wanna' make me angry? Tell me that radio advertising doesn't work. You better not be close while saying it, because them's fightin' words! You'd be safer insulting my mother!
Click to expand...

"Buying Radio? Read This and Don't Waste Your Money"

"Well, radio can be great way to garner awareness cheaply... ahem, inexpensively... if you do it right. Remember... 97.823 of all radio ads S-U-C-K. That leaves you to carry the banner for great radio advertising. And when you do, you will get noticed. Believe me, you will get noticed. Why do so many radio ads suck? Between the screaming car ads, and nasally voiced business owners who should never get anywhere near a microphone reading their own ads, and the next ?turnkey? business opportunity, they are all dressed in their plaid suits and resorting to hucksterism. They want your money and they want it now."

Will you get angry, if someone else tells you ? :D
Click to expand...
You know, Mike... To me them's NOT fightin' words. Them's the words of an uninformed person who goes to work in the morning, goes home in the evening, and basically punches a clock. (Whether they punch the clock or not.) They don't understand radio-- the business or the programming, or the business of selling stuff.

Right now, I am typing this while my AM station is airing a MLB baseball game from our local team. It's sold out. At the same time, we are producing a minor league hockey game on another station we don't even own. (Bought the time and resold it brokered). Another profit center.

While you don't get "Exactly" the same Clouseau as a client of the radio station, I'm still me. Does it strike you these folks buy because they love "ME"? I'll bet not.

When you alledge radio advertising doesn't work, you don't offend me. You demonstrate why your opinions are without merit. I don't say so, my customers do.

Care to try your power of observation and analysis again??

Clouseau
 
PocketRadio said:
"Well, radio can be great way to garner awareness cheaply... ahem, inexpensively... if you do it right. Remember... 97.823 of all radio ads S-U-C-K.
Click to expand...

Not true. Ads are not of interest if you are not interested in the advertiser's offering. If I would never want a pickup truck, ads for such vehicles, to me, suck. But they are of interest to people who are considering a new or used pickup.

That leaves you to carry the banner for great radio advertising.
Click to expand...

The banner is carried by the fact it works. Outside the big agency driven markets, most radio ads are for direct clients. And they know how to evaluate their advertising return on investment. The fact that radio revenue has grown all but 3 years since 1960 shows that they come back over and over.

[/quote] And when you do, you will get noticed. Believe me, you will get noticed. Why do so many radio ads suck? Between the screaming car ads,[/quote]

Car dealers who run loud ads do so because they have found that for their operation, loud ads work better than any other approach.

and nasally voiced business owners who should never get anywhere near a microphone reading their own ads,
Click to expand...

A nasally voiced matress store owner named Larry Miller started giving his own ads about 15 years ago in LA when he had one location. He now has about 20, and is one of the largest independent matress retaillers in the country. He still does his own ads, through an agency, and they sell like nothing else. Why? They are goofy and they are bad enough to be credible.

and the next ?turnkey? business opportunity, they are all dressed in their plaid suits and resorting to hucksterism. They want your money and they want it now."
Click to expand...

What a wonderul example of stereotyping the 60's seller in 2007 when most sellers understand marketing, ratings, and such and work to make sure the client gets results and comes back for more!
 
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