Why is AM still around?

[mimo]

I think there will come a breaking point (we're about there right now) where AM can't possibly get any worse in terms of problems that it faces. The spectrum is useless for any thing else. The problems are fixable. It will come down to whether any one really will put any effort into it. I think it's worth it, even if there are others here who don't think so. AM will still be here in 50 years.

 

[JeffM]

Exactly. No CEO is going to spend corporate dollars on some elaborate radio system that does not contribute to the company's bottom line. Imagine trying to sell that idea to shareholders. Besides, how many people even still have a portable radio that they would bring to the office.

Then why was Muzak a success for over 75 years? (It's still going too, now called Mood; maybe not as strong as it once was, but still serving over 300,000 businesses.) Incidentally, Muzak was invented by a former Army Major General, George Owen Squier; he started the company in 1922 as Wired Radio, Inc. Unlike the other ex-Army CEO, he realized the value of music in the workplace, and turned it into success for himself. Another ex-General, Dwight D. Eisenhower (maybe you've heard of him?) installed Muzak in the White House in the 1950's.

AM blew a big chance back in the 80's by not being able to adopt a standard system for stereo broadcasting, which would have done much to even the playing field with FM. There's always another chance...

 

[TheBigA]

AM blew a big chance back in the 80's by not being able to adopt a standard system for stereo broadcasting, which would have done much to even the playing field with FM. There's always another chance...

I think you're oversimplifying things a bit there. Lot of blame to throw around. Not really AM's fault.

Stereo wasn't going to level the playing field. However, the inability of the industry and the government to settle on a standard was indicative of another problem that still exists today.

 

[ansky212]

Then why was Muzak a success for over 75 years? (It's still going too, now called Mood; maybe not as strong as it once was, but still serving over 300,000 businesses.)

I assume the majority of those businesses are retail and service type businesses that use the Muzak service for their customers rather than workers. You are most certainly not going to walk into an office building and hear Muzak piping through the entire office. I have worked for many companies large and small over the years (in an office environment) and have never heard of this type of service being used.

 

[JPlainJohn]

I'm certainly no engineer but I have to wonder-the main complaint going around about AM's issues are Noise related...Lights,Computers etc....Wouldn't have STEREO made the Noise situation that much worse that much sooner?

 

[davideduardo]

AM blew a big chance back in the 80's by not being able to adopt a standard system for stereo broadcasting, which would have done much to even the playing field with FM. There's always another chance...

Two things that "on time" AM stereo could not do:

One. Overcome the fact that most AMs in most markets did not cover the entire market day and night. In fact, using today's Nielsen market definitions, only 175 total stations in the top 100 markets cover even 80% of their markets day and night. On the other hand, most full C or B class FMs do cover their whole market.

Two. The noise levels from man made interference have increased dramatically since the 70's. Where even below a 5 mV/m signal might have been very listenable in urban areas three or four decades ago, today you need two to three times the signal strength. In effect, AM stations' effective coverage has been reduced by as much as 75% by noise.

 

[gr8oldies]

I did work at a company that was a cube farm and did have Muzak playing in the background (the "FM1 channel). The company did not allow streaming of audio to our computers. That's another problem with the possibility of an OTA-free Utopia

 

[landtuna]

People don't like to pay for things. You've heard about people trying to cut the cord with cable? What makes you think people are going to pay substantial amounts for radio? You're forseeing a world where OTA is completely eliminated. That's not going to be as easy as you think.

Sirius/XM is living proof people are willing to pay for radio (both for coverage and for content not available elsewhere).

 

[1L6E6VHF]

It may also be thought of as proof that people won't pay for radio - personally, I'm the only subscriber I know. And if I were satisfied with rap and bathroom humor, I wouldn't pay to get around the commercials. If we had one of each of a standards station, an oldies station, a instrumental-easy-listening ("beautiful") station and a regional mex on the local AM or FM dial, I'd drop the XM in a heartbeat.

Anyway, AM radio still exists because there still are people who want to be in the broadcast business and don't have $50,000,000 to buy a Class C FM. It shows up in the use of TV stations (low-power channel 6) just for the audio signal in several markets, and in the legions of people who risk federal prosecution by operating pirate stations.

 

[mimo]

Some people don't know AM exists because when you buy any radio (over the past 20 or so years). It defaults to 87.7 FM when you turn it on. People don't read their manuals, and may not know the button or switch labelled BAND allows them to switch to AM and hear another set of frequencies. Many radios don't have that labelled as AM/FM...so they may think that FM is all there is.

 

[CTListener]

Some people don't know AM exists because when you buy any radio (over the past 20 or so years). It defaults to 87.7 FM when you turn it on. People don't read their manuals, and may not know the button or switch labelled BAND allows them to switch to AM and hear another set of frequencies. Many radios don't have that labelled as AM/FM...so they may think that FM is all there is.

So people who bought AM/FM car radios (and I assume you're talking about car radios, although you just say "any radio") that defaulted to 530 rather than 87.7 never found out about FM? Highly unlikely.

 

[Ai4i]

I remember a time when the ignorant masses could not figure how to get TV stations above channel thirteen.

 

[Ravens]

Why is AM still around?

Because most of the stations still make a profit. The ones that don't shut down. Like any other business. Just because YOU don't like something doesn't mean other people (and advertisers) don't.

Is AM what it was 40 years ago? Of course not. But it's still a viable business.

 

[gr8oldies]

Some people are willing to pay for radio. A very far cry from the entire population being willing to pay for radio. Many don't pay after that 6 month trial period

 

[landtuna]

Some people are willing to pay for radio. A very far cry from the entire population being willing to pay for radio. Many don't pay after that 6 month trial period

I am one of those who chose not to pay after the trial period that came with my new car. And the reason is twofold:

1. I am not in the car enough hours.
2. Sirius/XM does not offer me content that I can't get for free elsewhere.

If S/XM offered WDJO (for instance) without commercials and empty space where commercials once were and in decent fidelity I would subscribe. Until then my flash stick works fine.

 

[davideduardo]

Why is AM still around?

Because most of the stations still make a profit. The ones that don't shut down. Like any other business. Just because YOU don't like something doesn't mean other people (and advertisers) don't.

Is AM what it was 40 years ago? Of course not. But it's still a viable business.

The one thing that was true 40 years ago that is true today is that half of all stations do not make a profit. In fact, that state goes back to the 50's and can be seen in the mandatory FCC reports of that era.

When they don't make money, they get sold. Over and over. There is always someone who wants a station and thinks they can make it profitable.

 

[ContinuousWave]

They have them they are called TIS Stations and they are good for about a mile inside and 2-3 miles outside.

TIS stations are NOT broadcast stations...and are licensed under Part 90, not Part 73 or 74 of the FCC Rules...they are also limited in audio bandwidth and commercials broadcast operators cannot own them (same with LPFM)

 

[mimo]

So people who bought AM/FM car radios (and I assume you're talking about car radios, although you just say "any radio") that defaulted to 530 rather than 87.7 never found out about FM? Highly unlikely.

I'm talking about all radios and I've never seen one that defaulted to AM, although my ex wife bought an 88 reliant years ago that she claimed was AM only..despite the fact that Chrysler had stopped installing AM only radios in the car.

 

[kenglish]

Our internet department is remodeling another floor of the building, so they can expand again. I asked if they were going to need the local FM radio and TV stations, from our MATV system.
They said, "No! We are having DirecTV installed for everybody".

I guess they also need a big screen above the Foosball table and one above the Pool Tables.

(Different folks, these Gen-X'ers) .

 

[Groove1670]

Commercial AM's have not been licensed for 10 watts since the 20's. From the 30's until a few decades ago, the minimum daytime power was 100 watts.

You can get a 1 kw daytimer in some rural community for less than $100 k. The reason why it would be so cheap is that it is likely to be losing money, or off the air. And it's likely it can't make money, although there is almost always someone who thinks they can.

Just had the chance to pick up a 1KW (dark but ready to go back on) for 60K. No Thanks. Also a FM for the same price (Commerical) but needed equipment and EAS, I'm sure the public file was missing too. The FM only covered about 1200 people, and no opportunity to move or upgrade.