Industry Group to Laud Digital Radio By SARAH MCBRIDE Staff Reporter of THE WALL STREET JOURNAL
December 7, 2005; Page B10 http://online.wsj.com/article/SB113391579403815681.html?mod=home_whats_news_us Eight large radio groups said they will join forces to promote digital radio, a new technology that makes radio signals clearer and allows companies to squeeze in more stations on the dial. The radio groups, including Clear Channel Communications Inc. and Viacom Inc.'s Infinity Broadcasting, also said they will lobby auto makers to get digital radio in more cars, and they will work with radio makers and retailers to market digital radios. In addition, they said they will coordinate the formats on the extra stations that come with digital radio. Radio companies have long heralded digital radio as a technology that will bring buzz back to radio. The technology eliminates hissing and static and allows companies to squeeze two or three stations on the dial where there is just one. The extra stations are typically called HD-2 and HD-3. For example, Infinity's WUSN, a regular country-music station in Chicago, also broadcasts WUSN HD-2, which features new country music. The extra stations are free, and for now, they air without commercials. However, receiving the HD stations requires specially designed digital radios, which currently are more expensive than normal analog receivers. Other companies joining the HD effort are Bonneville International Corp., Citadel Broadcasting Corp., Cumulus Media Inc., Emmis Communications Corp., Entercom Communications Corp. and Greater Media Inc. Formation of the group "gives us the critical mass to market this, and it also gives us the platform to work aggressively with Detroit" auto makers, said David Field, chief executive of Entercom. Mr. Field said the industry group will roll out a substantial number of new stations to fill in gaps in existing offerings in each radio market. For example, he says New York City will get a country music station, which it currently lacks. There and in other cities, radio companies will offer stations devoted entirely to niches such as reggae, blues and comedy. The group plans to announce specific plans early next year. The new technology could eventually fragment the current radio audience, allowing advertisers to demand lower rates if they reach fewer people per station. The radio industry could sell ads on the new stations, but there's no guarantee they would generate the same amount of revenue overall. Another issue: digital signals can sometimes interfere with the signals of neighboring stations, especially on the AM band. Engineers are working to fine-tune the technology. For now, few people can hear the digital broadcasts. Almost 600 stations around the country already broadcast in digital, some with extra stations, but because so few digital-radio receivers are available, hardly any consumers can tune in. Stations that are broadcasting in digital are also broadcasting in analog, so consumers with regular radio sets can continue to hear the signal -- but not the new extra channels. "First of all, you've got to create awareness for the technology," said Lew Dickey, chief executive of Cumulus, who predicts gathering critical mass will take several years. "You've got a fabulous technology that the public isn't really aware of." Some new cars come with built-in digital radios, or consumers can upgrade by buying an in-dash digital radio from a manufacturer like Kenwood Corp., which sells one for $480. Makers such as Polk Audio Inc., Boston Acoustics Inc. and Radiosophy LLC, are rolling out in-home models, retailing for $599, $499 and $269, respectively. Prices are expected to come down over the next year. ================================================= George Antunes Voice (713) 743-3923 Associate Professor Fax (713) 743-3927 Political Science Internet: antunes at uh dot edu University of Houston Houston, TX 77204-3011 Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
