700WLW said:
db: "As Ramsey indicates, for HD Radio to succeed iBiquity is going to have 'give it away' by making it standard equipment in other devices to reflect the new reality surrounding consumer listening habits."
Ibiquity is really in a no-win situation - iBiquity is two years late ROI (it has been 7 years total) and needs to generate considerable funds. HD radios are not selling, so there is no way they are going to be able to "give them away', or at a steep discount. 100 million analog radios continue to be sold every year, broadcasters cannot afford to turn off analog for many years, IBOC can only be transmitted at 1/100th power of the analog signal so there will always be poor reception, and the general public does not have a problem with current AM/FM except for lousy content and commercials. And, if it were to become standard equipment in automobiles, which will never happen (Satellite Radio pays car manufacturees a premium for each Satellite Radio installed - smart), there would be an out-cry because of poor reception.
I agree with what you're saying and you can see that iBiquity is working hard to recoup its R&D through the exhorbitant licensing structure it has set up for broadcasters.
The point I got from Mark Ramsey's presentation is that for HD Radio to achieve deep penetration, iBiquity is going to have to offer electronics manufacturers incentives and very generous licensing terms so that the technology will appear in a whole host of products. This means iBiquity would be making pennies (or maybe nothing) per unit instead of dollars. Motorola, of course, did something similar with C-Quam by giving away the licensing and then made money selling the chips for it. Unfortunately for iBiquity, they don't actually 'make' anything. HD Radio is just intellectual property.
We know from surveys done that the average consumer sees no advantage to HD Radio, but what if he/she had no choice. It's standard in every consumer electronics item. Ford Motor Company is an investor in iBiquity. If nothing else, HD Radio could appear in Ford products as standard equipment.
Like you, I think once they actually experience it, the complaints from consumers would be horrendous if HD Radio achieved that kind of market saturation. Hopefully, the consumer will have the option to switch it off.
db