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Monday, January 22, 2007

MediaWeek: HD Radio Strategy Has It's Perils

It's the Talent, Stupid
Radio must improve content and market itself to stay competitive
Mark Lefkowitz, MediaWeek, JANUARY 22, 2007

The Radio industry is glad to see 2006 come to an end. It was the second consecutive year without any revenue growth. Over the past four years, radio has averaged revenue growth of less than 1 percent. During that time, radio has also seen its share of audience erode. Time spent listening is down 10 percent over the past eight years. The industry has been slow to react, allowing itself to be portrayed as a third-tier medium. The major radio operating companies (Clear Channel, CBS, Cumulus, Citadel etc....) need to be doing much more if they wish to remain a significant part of the advertising media-landscape.

Radio has embarked on a major initiative to develop and promote high definition or "HD" radio. As retail prices for the units have dropped, there has been an increase in the purchases of HD radios, but, at present, that number remains very small. Radio has been negotiating—with little success—with automobile manufacturers to get HD radios installed in new cars. Without HD radio as a standard option in cars, it seems unlikely that these radios will reach critical mass anytime soon...read more: here

1/22/2007 01:50:00 PM


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1 Comments:

  • We now know, that with 75% of Americans aware of HD Radio, at some level, the number of HD radios sold each year, will probably decline:

    http://beradio.com/eyeoniboc/instat-digital-radio-set/

    To check on-going interest in HD Radio, which is flat:

    http://www.google.com/trends?q=%22hd+radio%22

    To check interest in HD Radio versus Satellite and Internet Radio:

    http://www.google.com/trends?q=%22hd+radio%22%2C+%22satellite+radio%22%2C+%22internet+radio%22&ctab=0&geo=all&date=all

    Even after a $200,000,000 advertising campaign, by the HD Radio Alliance, the popularity of HD Radio, Satellite Radio, and Internet Radio, are just blips on the screen, compared to iPods and MP3s:

    http://www.google.com/trends?q=%22HD+Radio%22%2C+iPod%2C+MP3%2C+%22Internet+Radio%22%2C++%22Satellite+Radio%22&ctab=0&geo=all&date=all

    HD Radio/IBOC is a farce - IBOC causes adjacent-channel interference and has only 60% the coverage of analog. The HD channels are only low-bitrate streams of the same old repetitive material, and will eventually, contain commercials.

    Senator Sununu, may put an end to FCC mandates, anyway:

    "SUNUNU: FCC TECH MANDATES MUST BE BANNED"

    http://www.sununu.senate.gov/pressapp/record.cfm?id=267281&&year=2007

    By Anonymous 700WLW, at January 22, 2007 4:47 PM  


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