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The open letter from Russ Oasis

I just got an e-mail from Russ Oasis. I'm sure most of you got it, too. Here it is, in full. Discuss.

An Open Letter to the industry, From Russ Oasis:

Is this a bad dream or am I living in "The Land of the Brain-dead?" What is wrong with this industry? We are at the most important crossroad of our existence since the inception of FM and our "Leaders" are overdosing on "Stupid pills."

HD radio is at our doorstep and IT IS TEN YEARS LATE. Why? Because our "Leaders" fought needlessly over engineering standards. We COULD have been first to digital radio, but weren't. The result: A huge opening for satellite, based on digital quality and new channels that you'd never hear on terrestrial radio.

Next, instead of using the greatest marketing minds in America, people who brand and market companies like Microsoft, Mini, and Target, our industry leaves its critical marketing decisions to CEO's and committees who run broadcast groups. What do they know about marketing? If they were brilliant marketers, THEY'D BE IN MARKETING AND NOT RADIO. You wouldn't ask Ries and Trout or Seth Godin how to create a format clock, or whether omni-directional antennas are better than directional antennas. So, why would you ask a radio executive how to market a new product? The HD radio effort is going to take more than TV spots with album covers, music videos, and the Birthday Game.

Continuing our stroll down the path of insanity, there's the HD Alliance. It consists of a group of companies and station owners who march toward doom and failure, in the face of impartial, irrefutable research, warning us to change course. Only one executive had any common sense, commissioning a research project, to determine the basis for the way the HD band is displayed on the YET TO BE PRODUCED HD radios. It's not like the horse is out of the barn....YET.

In fact, not only are there a VERY small number of HD radios in existence, but many of them don't have the ability to receive the additional HD channels that are at the heart of this issue. And, NONE of the manufacturers (Kenwood, Panasonic, Boston Acoustics, to name a few) have agreed upon a standard as to how the extra channels will appear to the listener, or how the listener tunes to them. THIS IS THE TIME FOR US TO SET THE STANDARD; TO ALLOW THE RADIO MANUFACTURERS TO SET THE STANDARD WOULD BE "THE TAIL WAGGING THE DOG." Furthermore, the manufacturers don't really care which standard we use, they just want to know what it is. Why isn't "The Alliance" creating and setting a standard that makes sense and then TELLING the radio manufacturers what we intend on using?

Bob Neil, at Cox, hired Bob Harper to determine listener perceptions and how to best capitalize on WHAT THE PUBLIC ALREADY BELIEVES. The results were definitive and irrefutable. The public wants a display that is simple and intuitive, NOT a layered approach. In fact, when the layered approach was suggested to the 12 groups researched, they thought it was a trick question. It made no sense to them. On the other hand, they understood the concept of the expanded band, instantly. The results of this bona fide research are available in both streaming form (you can watch the actual interviews being conducted) or as a written summary, by going to www.bobharper.com/reports.htm. This research has been available and accessible to the HD Alliance, and what was their response? "That's nice but we're doing it the layered way, in spite of overwhelming evidence to the contrary." Are these "Leaders," who, for the most part, have no programming or marketing background, so omnipotent, that their whim overrules even the most compelling and irrefutable research?

Oh sure, the Alliance would rather not change directions midstream, that might create some actual work. I've also heard the argument that if we went to the expanded band, perhaps the FCC would have to approve it. Hey fellas...the expanded band is VIRTUAL. We would not really be using the 108.1 or 111.7 (expanded band) frequencies; the radio would ONLY BE INDICATING that is where the listener had tuned. THIS IS THE KIND OF SYSTEM THAT PEOPLE WANT AND ALREADY UNDERSTAND. If the "Leaders" of the industry don't understand it, they can call me and I'll explain that 108.1 is really a MACRO that performs a combination of functions with one button push.

With the layered approach, if a person listening to the second (or third) new HD channel of 103.5 wants to listen to the third HD channel of 95.7, he must FIRST manually tune down the band until he arrives at the main 95.7 analog / digital channel. THEN, wait 7 seconds for the main channel to buffer to digital and THEN must tune up the dial two stations to FINALLY reach the third HD channel of 95.7 (95.7 HD-3). THAT IS AN UNNECESSARY AND DISORIENTING ORDEAL. With the layered approach, a listener cannot listen to, sense the existence of, or tune to a second or third HD channel without first being forced to hear the audio from the original analog / digital station on that frequency. PLEASE UNDERSTAND: Before being able to listen to one of our new stations, listeners will always be FORCED to first tune to a station that they may hate.

If we utilize the expanded VIRTUAL band, the listener would simply press one button that says (for example) 109.7 and instantly the macro switches to the 95.7 main, analog / digital channel, then automatically mutes that main channel (so that the listener never hears the main channel on the way to the second HD channel) and then it instantly tunes the radio to the second HD channel and unmutes it. The listener never knows that any of that has happened. HE SIMPLY THINKS THAT HE HAS TUNED TO 109.7 AND HE IS NOW LISTENING TO THE STATION WHICH BROADCASTS ON THAT FREQUENCY, when in fact; it is the new second HD channel of 95.7. Why do "The leaders" of the industry not see the simplicity of this?

Remember, in the layered system, if a listener wants to listen to one of the new HD channels, he must first tune to a station that he does not want to listen to, before he gets to the station that he does. If that happens, the new formats on new channels of (each main frequency), become permanently associated (in the listeners' minds) with the format of the main channel. Another negative is that the additional HD channels will seem to not be on the air if a person attempts to tune directly to them, without first going to the analog / digital main frequency. DOES THIS LAYERED SYSTEM MAKE ANY SENSE?

Here's another question: Why would we think that Madonna can promote terrestrial radio? She is a musician. Aside from the fact that Madonna is irrelevant to people under 25, what credibility does she hold in the radio landscape? Would Jerry Seinfeld be a good spokesperson for HD or analog TV because his programs were broadcast on television? Same thing here. Madonna's SONGS were played on radio, nothing more. If you want to bring some credibility to radio, IMPROVE THE QUALITY OF WHAT GOES OUT OVER THE AIR. And by the way, "Less is more," only if less really is. Reducing the minutes of commercials, while increasing the number of units, is hurting the cause, not helping.

Where are the "Leaders" who understand that this moment is the most important moment in the life of terrestrial radio and we are treating it as if we're choosing the color of a car? Now is the time to stop thinking like shareholders and start thinking like consumers. Listeners have told us what they want: 1) Diverse content options, 2) A clutter free environment and 3) A simple and easy way of locating the content (the expanded band).

How many times do we need to make the same mistakes? Take the advice of the listeners and give them what they want, or the satellite broadcasters will.

Russ Oasis
305 667-6800
[email protected]
 
> I just got an e-mail from Russ Oasis. I'm sure most of you
> got it, too. Here it is, in full. Discuss.
>
> An Open Letter to the industry, From Russ Oasis:

OK, my comments...

I think some of his arguments are quite valid and hold merit. On the topic of how to label or display the additional Multicast streams, I disagree.

Oasis is in favor of using an "Expanded Band" approach to creating a standard for HD Radio's Multicasting channels. This would mean continue the FM Frequency numbering scheme from 108.1 on up to whatever it would end at. And Just what would it end at? That is the issue. The possibilities of Digital are endless. Some of the HD Test stations that are running Multicasts are running 1 additional channel. Some run two, or three... Where does it end? As coding algorithms improve, more and more channels could be added.

Then there is Technology out there Like DRE Inc's FMeXtra http://www.dreinc.com/www/index.htm Which allows the addition of even more additional digital program streams in the SubCarrier range. The FMeXtra system can operate by itself or even in addition to Ibiquity's HD system. All of these digital possibilities would make it quite difficult to establish a coherent logical faux frequency numbering scheme without placing restrictions on broadcasters.

If the "Expanded Band" approach is truly that much simpler for consumers than a "Layered" approach, I think it would be much better to do like they did with TV and satellite radio and just give the digital streams Channel Numbers. This would probably be easier for the consumers than the so called "Expanded Band" approach. Once again the trouble is how do you set a standard for what stream gets what channel number when the amount of streams a station can run is undefined? This "Channel Number" approach runs into the same logistical problem that the "Expanded Band" approach encounters.

I think a simple solution to this Multicasting Labeling would easily be accomplished in the "Layered" approach. The most simple way would be to have the radio tune to the actual real frequency. The additional channels could be distinguished with a letter. For example, you could say that (Hypothetically) Jake-FM would be on 101.1 FM For CVS-FM Oldies tune to 101.1-A For Big Orange Country tune to 101.1-B For CVS Headline News tune to 101.1-C For CVS Local Traffic and Weather on demand tune to 101.1-D........Now that works for that station, but the Classical Music station on the same frequency in the next market wants to devote as much bandwidth as possible for Premium Audio Quality. Once again for Example Tune to 101.1 FM for Big City Classical in 5.1 Surround Sound, Tune to 101.1-A for Big City Traffic on Demand, And thats it because they want the main channel to sound the best.

Regardless of which approach is chosen, I don't think using Phony frequency numbers is a good way to go. I really don't see what is so bad about the Layered approach. By setting a standard the radio manufacturers can design radios that won't need to tune to the base frequency first like they currently do. That seems to be where most of the confusion comes from. Besides, Most people have a few favorite stations that they program into their PRESETS. Remember P1s? The use of Presets by consumers really makes this whole argument fairly trivial.

I feel that Using the "Expanded Band" or Channel Number approach would require the FCC to set limits on how many streams each broadcast station could provide. That would be a real shame and would be a case of more FCC restrictions in a time where radio wants to be more unregulated.

By employing the "Layered" approach, this Lets the Broadcasters decide what and how much they want to provide to the public, and at what quality. By setting a standard that is simple, like the A-B-C approach I outlined above or something similar, the consumer electronics manufacturers will be able to overcome the current technical hurdles they now face. The end result will be better radios that will be more user friendly for our Listeners.
 
Let me have at this.....


> I just got an e-mail from Russ Oasis. I'm sure most of you
> got it, too. Here it is, in full. Discuss.
>
> An Open Letter to the industry, From Russ Oasis:
>
> Is this a bad dream or am I living in "The Land of the
> Brain-dead?" What is wrong with this industry? We are at the
> most important crossroad of our existence since the
> inception of FM and our "Leaders" are overdosing on "Stupid
> pills."


Mix stupid pills qith a ton of mis-information are you might be closer to the truth here.

>
> HD radio is at our doorstep and IT IS TEN YEARS LATE. Why?
> Because our "Leaders" fought needlessly over engineering
> standards. We COULD have been first to digital radio, but
> weren't. The result: A huge opening for satellite, based on
> digital quality and new channels that you'd never hear on
> terrestrial radio.
>

Ummm excuse me, but if it wasnt engineered properly, then you all would be here whining about "well we didnt do it right this time". In other words we could have thrown any digital format out there, but it probably was not fully "cooked" nor ready to hit the airwaves. You talk about standards below, but shrug off engineerign standards here.

Why the need to be first? Example... anyone remember Beta VCRs? They were first out. Anyone have a Beta Deck yet?

When you talk about "digital quality" for satellite I have to laugh. Have you actually HEARD satellite? Personally I find it fatiguing.

> Next, instead of using the greatest marketing minds in
> America, people who brand and market companies like
> Microsoft, Mini, and Target, our industry leaves its
> critical marketing decisions to CEO's and committees who run
> broadcast groups. What do they know about marketing? If they
> were brilliant marketers, THEY'D BE IN MARKETING AND NOT
> RADIO. You wouldn't ask Ries and Trout or Seth Godin how to
> create a format clock, or whether omni-directional antennas
> are better than directional antennas. So, why would you ask
> a radio executive how to market a new product? The HD radio
> effort is going to take more than TV spots with album
> covers, music videos, and the Birthday Game.

Why cant good marketers be in radio? ANYONE worth their salt should be a good marketer.... including engineering!

>
> Continuing our stroll down the path of insanity, there's the
> HD Alliance. It consists of a group of companies and station
> owners who march toward doom and failure, in the face of
> impartial, irrefutable research, warning us to change
> course. Only one executive had any common sense,
> commissioning a research project, to determine the basis for
> the way the HD band is displayed on the YET TO BE PRODUCED
> HD radios. It's not like the horse is out of the
> barn....YET.
>

Um yet to be produced? Hello? I just ordered three this past week. Two have arrived and the last will be here next week. I haev been listening to HD for almost a year now. Have they hit the big consumer outlets yet? Nope. They will.


> In fact, not only are there a VERY small number of HD radios
> in existence, but many of them don't have the ability to
> receive the additional HD channels that are at the heart of
> this issue. And, NONE of the manufacturers (Kenwood,
> Panasonic, Boston Acoustics, to name a few) have agreed upon
> a standard as to how the extra channels will appear to the
> listener, or how the listener tunes to them. THIS IS THE
> TIME FOR US TO SET THE STANDARD; TO ALLOW THE RADIO
> MANUFACTURERS TO SET THE STANDARD WOULD BE "THE TAIL WAGGING
> THE DOG." Furthermore, the manufacturers don't really care
> which standard we use, they just want to know what it is.
> Why isn't "The Alliance" creating and setting a standard
> that makes sense and then TELLING the radio manufacturers
> what we intend on using?
>

Good point. No one is driving the marketing or standards.

> Bob Neil, at Cox, hired Bob Harper to determine listener
> perceptions and how to best capitalize on WHAT THE PUBLIC
> ALREADY BELIEVES. The results were definitive and
> irrefutable. The public wants a display that is simple and
> intuitive, NOT a layered approach. In fact, when the layered
> approach was suggested to the 12 groups researched, they
> thought it was a trick question. It made no sense to them.
> On the other hand, they understood the concept of the
> expanded band, instantly. The results of this bona fide
> research are available in both streaming form (you can watch
> the actual interviews being conducted) or as a written
> summary, by going to www.bobharper.com/reports.htm. This
> research has been available and accessible to the HD
> Alliance, and what was their response? "That's nice but
> we're doing it the layered way, in spite of overwhelming
> evidence to the contrary." Are these "Leaders," who, for the
> most part, have no programming or marketing background, so
> omnipotent, that their whim overrules even the most
> compelling and irrefutable research?
>
> Oh sure, the Alliance would rather not change directions
> midstream, that might create some actual work. I've also
> heard the argument that if we went to the expanded band,
> perhaps the FCC would have to approve it. Hey fellas...the
> expanded band is VIRTUAL. We would not really be using the
> 108.1 or 111.7 (expanded band) frequencies; the radio would
> ONLY BE INDICATING that is where the listener had tuned.
> THIS IS THE KIND OF SYSTEM THAT PEOPLE WANT AND ALREADY
> UNDERSTAND. If the "Leaders" of the industry don't
> understand it, they can call me and I'll explain that 108.1
> is really a MACRO that performs a combination of functions
> with one button push.
>

I think that making a virtual band would do more harm than good. How are the HDTV people handling it? For example, channel for is 4-1, 4-2 4-3 etc. I think this is the best way to make it happen. Will some education be needed? Heck yes.

> With the layered approach, if a person listening to the
> second (or third) new HD channel of 103.5 wants to listen to
> the third HD channel of 95.7, he must FIRST manually tune
> down the band until he arrives at the main 95.7 analog /
> digital channel. THEN, wait 7 seconds for the main channel
> to buffer to digital and THEN must tune up the dial two
> stations to FINALLY reach the third HD channel of 95.7 (95.7
> HD-3). THAT IS AN UNNECESSARY AND DISORIENTING ORDEAL. With
> the layered approach, a listener cannot listen to, sense the
> existence of, or tune to a second or third HD channel
> without first being forced to hear the audio from the
> original analog / digital station on that frequency. PLEASE
> UNDERSTAND: Before being able to listen to one of our new
> stations, listeners will always be FORCED to first tune to a
> station that they may hate.
>

Um no. How many people these days actually manually TUNE a station? Very few. Most are pushing buttons to their favorite stations. If they do manually tune, it would be the same situation as today. They may have to tune past a station they "hate" to get to the stations they want. In other words, they may have to tune past 96.5 to get to 97.3. They are FORCED to tune past 96.5 to get to 97.3. Same with HD, they may have to tune past 97.3-1 to get to 97.3-2. It is no different.


> If we utilize the expanded VIRTUAL band, the listener would
> simply press one button that says (for example) 109.7 and
> instantly the macro switches to the 95.7 main, analog /
> digital channel, then automatically mutes that main channel
> (so that the listener never hears the main channel on the
> way to the second HD channel) and then it instantly tunes
> the radio to the second HD channel and unmutes it. The
> listener never knows that any of that has happened. HE
> SIMPLY THINKS THAT HE HAS TUNED TO 109.7 AND HE IS NOW
> LISTENING TO THE STATION WHICH BROADCASTS ON THAT FREQUENCY,
> when in fact; it is the new second HD channel of 95.7. Why
> do "The leaders" of the industry not see the simplicity of
> this?
>

Simplicity? I personally dont see it as being simplified.

> Remember, in the layered system, if a listener wants to
> listen to one of the new HD channels, he must first tune to
> a station that he does not want to listen to, before he gets
> to the station that he does. If that happens, the new
> formats on new channels of (each main frequency), become
> permanently associated (in the listeners' minds) with the
> format of the main channel. Another negative is that the
> additional HD channels will seem to not be on the air if a
> person attempts to tune directly to them, without first
> going to the analog / digital main frequency. DOES THIS
> LAYERED SYSTEM MAKE ANY SENSE?
>

People will just set a memory button to the HD2 channel they want. 97.3-2 is a memory preset. No big deal. They never need to go to the main channel if they dont want to. Again, how many people actually manually tune a station in?

> Here's another question: Why would we think that Madonna can
> promote terrestrial radio? She is a musician. Aside from the
> fact that Madonna is irrelevant to people under 25, what
> credibility does she hold in the radio landscape? Would
> Jerry Seinfeld be a good spokesperson for HD or analog TV
> because his programs were broadcast on television? Same
> thing here. Madonna's SONGS were played on radio, nothing
> more. If you want to bring some credibility to radio,
> IMPROVE THE QUALITY OF WHAT GOES OUT OVER THE AIR. And by
> the way, "Less is more," only if less really is. Reducing
> the minutes of commercials, while increasing the number of
> units, is hurting the cause, not helping.
>

Sorry but this doesnt make any sense to me. Musicians would be good to promote radio as most people are there to listen to the musicians. So what if Madonna doesnt cover the under 25 crowd? Find someone else that does. Again no big deal.

I disagree with your idea about less is more. People tune out when the comercials are played end to end. If there are smaller breaks they are more inclined to stay tuned.

> Where are the "Leaders" who understand that this moment is
> the most important moment in the life of terrestrial radio
> and we are treating it as if we're choosing the color of a
> car? Now is the time to stop thinking like shareholders and
> start thinking like consumers. Listeners have told us what
> they want: 1) Diverse content options, 2) A clutter free
> environment and 3) A simple and easy way of locating the
> content (the expanded band).

I agree that is is time to think like consumers. GREAT POINT!! I dont understand where you are getting your third point. Memory buttons will work just fine thank you. I think you are overthinking this situation. There is a simple solution. At present, the multicast receivers scan through the HD channels just like they are in line with the rest of the analog channels. No big deal!

>
> How many times do we need to make the same mistakes? Take
> the advice of the listeners and give them what they want, or
> the satellite broadcasters will.
>

How long have we heard this? Give the audience what they want. What exactly DO THEY WANT? Are we sure? Sometimes what they SAY they want and what they REALLY want are two different things. So often I have heard -- "RADIO SUCKS". Does it? I really dont think so (at least in my market). If we base how radio operates on 16-22 years olds, we will screw ourselves. I remember when I was that age. I didnt listen to radio that much. I certainly do now! I dont have the time to set up an MP3 player or futz with CDs. When these 16-22 year olds get a job, have families and kids, do you really think they will be creating a "best mix" MP3 list? Doubt it.

People change as they change. Their entertainment choices change. I dont go to concerts like I used to when I was 22. Check with a 21 year 10 years from now. I would bet all I own that thet are not using their MP3 player as much.

The following is from a Bridge Ratings & Research report......
"Listening to AM/FM radio is returning to pre-2004 levels in many cases," reads the study. "Interestingly, terrestrial radio returning to former high-water marks seems to be the result of both the medium's lower commercial load policies plus a growing segment of MP3 users who, after some time immersed in their new technology toy, become fatigued with their time spent with the MP3 player and return to terrestrial radio among other sources of audio entertainment."

> Russ Oasis
> 305 667-6800
> [email protected]
>


Kent Winrich
Chief Engineer
Clear Channel Milwaukee
 
> Then there is Technology out there Like DRE Inc's FMeXtra
> http://www.dreinc.com/www/index.htm Which allows the
> addition of even more additional digital program streams in
> the SubCarrier range. The FMeXtra system can operate by
> itself or even in addition to Ibiquity's HD system. All of
> these digital possibilities would make it quite difficult to
> establish a coherent logical faux frequency numbering scheme
> without placing restrictions on broadcasters.

I would like to see an FMeXtra radio - it would be nice if it also received IBOC.

I also think the A-B-C system would be just fine, rather than phantom nonexistent frequencies.
 
> I also think the A-B-C system would be just fine, rather
> than phantom nonexistent frequencies.

I think you guys are arguing over the wrong thing. Who cares what the channel layout is like? NON-EXISTENT FREQUENCIES? They wouldn't be non-existent to the listener. It just makes it easier to remember...

The point we're all missing is...

The focus of his article was about digital quality on radio. That is HARDLY the reason THE AVERAGE CONSUMER goes to get XM or Sirius. Why does digital quality matter? Are we going to take the non-existent content radio is currently offering and just put it in higher quality? Beautiful - err, STUPID!

I want to know what the programming will be like on these channels. Who cares how great the technology is if there is no quality use for it. It's like a station saying "We play 18 songs in a row." That doesn't matter if it's not 18 GOOD songs. Same thing, forget the background hype until we know what will be delivered using that technology.
 
> > I also think the A-B-C system would be just fine, rather
> > than phantom nonexistent frequencies.
>
> I think you guys are arguing over the wrong thing. Who cares
> what the channel layout is like? NON-EXISTENT FREQUENCIES?
> They wouldn't be non-existent to the listener. It just makes
> it easier to remember...
>
> The point we're all missing is...
>
> The focus of his article was about digital quality on radio.
> That is HARDLY the reason THE AVERAGE CONSUMER goes to get
> XM or Sirius. Why does digital quality matter? Are we going
> to take the non-existent content radio is currently offering
> and just put it in higher quality? Beautiful - err, STUPID!
>
> I want to know what the programming will be like on these
> channels. Who cares how great the technology is if there is
> no quality use for it. It's like a station saying "We play
> 18 songs in a row." That doesn't matter if it's not 18 GOOD
> songs. Same thing, forget the background hype until we know
> what will be delivered using that technology.
>

Define 18 GOOD songs. You will get 360 million different answers.
 
It should be interesting how Arbitron deals with this too. Having, say 15 rated stations in a market versus 60? And if a listen writes in his diary that he listens to Hot Sports Talk 101.1, and the channel is actually on 101.1-3 and Country 101.1-1 gets the credit? I see where Russ's phantom labeling could sort out some confusion in this instance.

The question of content on these new channels is pretty simple. LISTEN TO YOUR CURRENT RADIO STATION! The same people that program & own these frequencies will program the new channels.<P ID="signature">______________
[email protected]</P>
 
> It should be interesting how Arbitron deals with this too.
> Having, say 15 rated stations in a market versus 60? And if
> a listen writes in his diary that he listens to Hot Sports
> Talk 101.1, and the channel is actually on 101.1-3 and
> Country 101.1-1 gets the credit? I see where Russ's phantom
> labeling could sort out some confusion in this instance.
>

Most stations have some "name" to them. Z104, The Bear, The Mix, KISS, ya da ya da. Should be no problem.


> The question of content on these new channels is pretty
> simple. LISTEN TO YOUR CURRENT RADIO STATION! The same
> people that program & own these frequencies will program the
> new channels.
>

I dont think the two relate. So the same people own them. What does that prove? Not a thing. We will see new formats for markets. If a market doesnt have striaght Jazz, they may get it now. If a market doesnt have gospel they may get it now. And so on.
 
>
> I dont think the two relate. So the same people own them.
> What does that prove? Not a thing. We will see new formats
> for markets. If a market doesnt have striaght Jazz, they
> may get it now. If a market doesnt have gospel they may get
> it now. And so on.
>
Which is exactly what radio DOESN'T need at this time.

Take WFMS. Say they would run 3 HD channels:
WFMS-1 -- The Country Station
WFMS-2 -- Spanish
WFMS-3 -- Gold 95.5 (that's be a good jingle ;) )

Hey look, WFMS just put two class A stations, 107.3/Danville and Gold 95.9 closer to the edge of shutting down than they already are. Doesn't matter if WFMS-2 and WFMS-3 are ad-free, if they are sucking listeners from those two stations, their ability to generate profit decreases.

There aren't that many formats out there to choose from.

Continuing the Indianapolis analogy, there are 27 rated stations in the market. Since AM IBOC seems unlikely, subtract 7.

If all 20 FM stations were to go HD and have 2 streams, Indy would need 20 more formats. If they would have 3, 40 formats. Right now with 27 stations, there are 20 "unique" formats -- counting Sports talk as something different than news talk and CHR rythmic as different than CHR-pop. When you add in rimshots that don't rate, more duplication occurs. Where I live, I get 6 country stations clearly (7 if you count Crock 92.7) and a couple more faintly.

Where would twenty more formats come from? I think we'd more likely see WFMS-2 be country leaning classic, and WLHK-2 mirroring WIBC on FM.

In summary: The HD revolution might bring 5 or 6 new city-grade formats to any given market (especially top-50). But it will hurt those communities who rely on their Class A station for the polka hour or news.
 
Then again, 95.9 might eventually have to start super-serving the Franklin area. There is more than one Spanish format that could be on the dial, however.<P ID="signature">______________
Have a Happy New Year!
http://www.thebig8.net/have_a_happy_new_year_with_cklw.mp3</P>
 
> >
> > I dont think the two relate. So the same people own them.
>
> > What does that prove? Not a thing. We will see new
> formats
> > for markets. If a market doesnt have striaght Jazz, they
> > may get it now. If a market doesnt have gospel they may
> get
> > it now. And so on.
> >
> Which is exactly what radio DOESN'T need at this time.

I beg to differ!

>
> Take WFMS. Say they would run 3 HD channels:
> WFMS-1 -- The Country Station
> WFMS-2 -- Spanish
> WFMS-3 -- Gold 95.5 (that's be a good jingle ;) )
>
> Hey look, WFMS just put two class A stations, 107.3/Danville
> and Gold 95.9 closer to the edge of shutting down than they
> already are. Doesn't matter if WFMS-2 and WFMS-3 are
> ad-free, if they are sucking listeners from those two
> stations, their ability to generate profit decreases.
>

No their ability to draw in new listeners is what is happening. Perhaps people that were not listening to radio in teh past.

> There aren't that many formats out there to choose from.
>

Oh really???


> Continuing the Indianapolis analogy, there are 27 rated
> stations in the market. Since AM IBOC seems unlikely,
> subtract 7.
>
> If all 20 FM stations were to go HD and have 2 streams, Indy
> would need 20 more formats. If they would have 3, 40
> formats. Right now with 27 stations, there are 20 "unique"
> formats -- counting Sports talk as something different than
> news talk and CHR rythmic as different than CHR-pop. When
> you add in rimshots that don't rate, more duplication
> occurs. Where I live, I get 6 country stations clearly (7
> if you count Crock 92.7) and a couple more faintly.
>

Open your mind. Seems like sat radio can come up with a bunch of formats.


> Where would twenty more formats come from? I think we'd
> more likely see WFMS-2 be country leaning classic, and
> WLHK-2 mirroring WIBC on FM.
>
> In summary: The HD revolution might bring 5 or 6 new
> city-grade formats to any given market (especially top-50).
> But it will hurt those communities who rely on their Class A
> station for the polka hour or news.
>


How would it hurt those stations? If the community relies on these station then they would not be hurt.
 
> No their ability to draw in new listeners is what is
> happening. Perhaps people that were not listening to radio
> in teh past.

Perhaps. We'll have to wait and see, but I am not optimistic.

> > There aren't that many formats out there to choose from.
> >
>
> Oh really???
> Open your mind. Seems like sat radio can come up with a
> bunch of formats.

All right. A summary of the formats on Sirius and XM follows:

Christian (Music): 6
Classical: 8
Comedy: 5
Country: 12
Dance: 6
Variety Hits: 19
Jazz: 10
Children's: 5
Spainish: 8
News/talk: 55
Rock: 35
Sportstalk: 18
Christian Talk: 4
plus some local stuff.

Out of 187 channels, there are 12 real formats. Yep, sat. is imaginitive radio. Plus, while I don't know about you, I don't think "40s hits" is my idea of radio I'll tune to for more than a few minutes at a time.

Lets cut the channels down from 197 to the number I just cited for Indy (27). What would appear in Indy to match the "variety" on satellite:
Christian (Music): 1
Classical: 1
Comedy: 1
Country: 2
Dance: 1
Variety Hits: 3
Jazz: 1
Children's: 1
Spainish: 1
News/Talk: 8
Rock: 5
Sportstalk: 3
Christian Talk: 1

(All decimals rounded to nearest whole number. Number of signals accounted for: 29. This is a statistical error: I did not weed out the channels that appear on both XM and Sirrius, such as Radio Disney and CNN)

Or, with 47 stations with HD-2
Christian Music: 2
Classical: 2
Comedy: 3
Country: 3
Dance: 2
Variety Hits: 5
Jazz: 3
Children's: 1
Spainish: 2
News/Talk: 14
Rock: 9
Sportstalk: 5
Christian Talk: 4

Total signals: 53. Same discrepancy as above.

>
>
> How would it hurt those stations? If the community relies
> on these station then they would not be hurt.
>
It is an accepted economics principle that too much competition hurts all of the competitors.

So my question: do you know anyone who listens exclusively to stations of any one format as it is? Or, if your friends are iPod people, do they buy/steal only Country or Blues or Gospel? I know I like Country, AAA, Soft Rock, and CHR. That means I'm listening to at least four stations regularly. Why should stations close in on an even tighter format and make me find <u>even more</u> stations to enjoy?

If I were an XM or Sirius person, I'd be listening to ten or twelve channels because their format is so tight. On XM, I'd be using channels 13, 14, 15, 9, 20, 44, 45, and 46.

Would splintering listenership further be a good thing for broadcast radio, which relies on ad revenue? If so, why?
 
> All right. A summary of the formats on Sirius and XM
> follows:
>
> Christian (Music): 6
> Classical: 8
> Comedy: 5
> Country: 12
> Dance: 6
> Variety Hits: 19
> Jazz: 10
> Children's: 5
> Spainish: 8
> News/talk: 55
> Rock: 35
> Sportstalk: 18
> Christian Talk: 4
> plus some local stuff.
>
> Out of 187 channels, there are 12 real formats. Yep, sat.
> is imaginitive radio. Plus, while I don't know about you, I
> don't think "40s hits" is my idea of radio I'll tune to for
> more than a few minutes at a time.

There is a flaw in your thinking here. Six Christian stations? I am an avid listener of that particular genre, but I like the rock and rap more than I like the CCM, or gospel. So I guess in this particualr so called format, there are two or three stations I wouldn't listen to at all, while thoroughly enloying one or two.

And the same goes for the other so called formats you have there. In any particular format, there are some I would enjoy, some I wouldn't. They are a lot more diverse than you lead us to believe.
 
> > All right. A summary of the formats on Sirius and XM
> > follows:
> >
> > Christian (Music): 6
> > Classical: 8
> > Comedy: 5
> > Country: 12
> > Dance: 6
> > Variety Hits: 19
> > Jazz: 10
> > Children's: 5
> > Spainish: 8
> > News/talk: 55
> > Rock: 35
> > Sportstalk: 18
> > Christian Talk: 4
> > plus some local stuff.
> >
> > Out of 187 channels, there are 12 real formats. Yep, sat.
>
> > is imaginitive radio. Plus, while I don't know about you,
> I
> > don't think "40s hits" is my idea of radio I'll tune to
> for
> > more than a few minutes at a time.
>
> There is a flaw in your thinking here. Six Christian
> stations? I am an avid listener of that particular genre,
> but I like the rock and rap more than I like the CCM, or
> gospel. So I guess in this particualr so called format,
> there are two or three stations I wouldn't listen to at all,
> while thoroughly enloying one or two.
>
> And the same goes for the other so called formats you have
> there. In any particular format, there are some I would
> enjoy, some I wouldn't. They are a lot more diverse than
> you lead us to believe.
>


Indeed. For example.... Many people just hear a Spanish station and think that is a format. How many different formats are available under the heading Spanish? Quite a few.

Also, in the proper business model, there should be no problem revenue wise. Granted some stations will drop revenue, but most people look at the cluster of stations and doing cross selling.
 
> > There is a flaw in your thinking here. Six Christian
> > stations? I am an avid listener of that particular genre,
>
> > but I like the rock and rap more than I like the CCM, or
> > gospel.

Ok, so say that there were six Christian stations in Indianapolis. Would it be too many? Yes.
>
>
> Indeed. For example.... Many people just hear a Spanish
> station and think that is a format. How many different
> formats are available under the heading Spanish? Quite a
> few.
There are several exceptions to my generalization, but genres like Talk, Country, and Rock can only be done so many ways. I could have thrown "Christian Rock" and "Spainish Rock" into the Rock category (and probably should have).

>
> Also, in the proper business model, there should be no
> problem revenue wise. Granted some stations will drop
> revenue, but most people look at the cluster of stations and
> doing cross selling.
>

Indeed. Assuming a cluster exists. Looking at the stations that rate in Indy again, there are 14 unique owners in Indianapolis. 5 of these owners own more than 3 stations in Indianapolis, and 6 are major radio companies (ABC, Emmis, Entercom, Susquhana, Clear CHannel, Radio 1). 5 owners have just one rated station. I know the arbitron data isn't the best list of stations to look it.

There are no guarantees that I'm not being closed-minded. Time will tell. I am certain that HD radio will not help small radio stations, but it is possible that they will be unhurt.
 
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