Sunday, December 7, 2008

2 and 2 Count on HD Radio













All this talk about the auto industry bailout got us thinking:

Has the financial crisis given HD Radio its second strike in a few months?

Let us explain.

The first strike for HD Radio was definitely the financial market collapse. It is likely that iBiquity will have to raise more money in 2009 and current market conditions are not favorable. With radio stocks in the tank (and Citadel about to be delisted) and private equity firms facing increasing redemptions, even going back to the well may no longer be possible.

The second strike is clearly the collapse of the auto market. With 401K's and home values collapsing, consumers are simply not buying cars. This is bad news not only for Detroit but also businesses dependent on auto sales...namely, satellite radio and HD Radio. It's sad because HD Radio was starting to gain some traction in the auto industry with manufacturers such as Volvo and Hyundai. Whatever forecasts iBiquity had for revenues from factory installs in 2009 probably needs to be divided by 10.

Since we are making baseball analogies, we would like to issue two foul balls attributed directly to HD Radio.

The first foul ball is for iBiquity releasing an HD Radio solution which broadcasts at too low a power. We realize analog radio technology is more an art than a science, but this was a big misfire. The current broadcast power of HD Radio makes its reception outside of a 20 mile radius spotty and inside most buildings almost impossible. Now HD Radio has to go back to the FCC asking for permission to increase its broadcast power...a costly and time-consuming proposition.

The second foul ball has to be issued for HD Radio's lackadaisical programming efforts to date. You simply can't hit a ball out of the park with a check swing.

Thus, HD Radio is sitting on a 2-2 count. The two strikes against it are not really its fault, but the two foul balls on meatball pitches are inexcusable.

A home run is still possible but HD Radio is going to need to be Manny Ramirez the rest of the way.

8 comments:

HD Radio Farce said...

Glad that you guys picked up on this - the HD Radio blame-game has started, indicated by iBiquity/Jacobs HD Radio survey, which they tried to suppress:

http://tinyurl.com/5dbvns

paul vincent zecchino said...

Does 'lackadaisical programming' of streams suggest HD wasn't intended to serve the citizens, but rather to use empty streams' bandwidth to jam adjacent stations to ruin?

Isn't HD a fine 'business model' for our interesting times - in the fullest sense of the Chinese curse?

It's quite possible, isn't it? Why's HD still jamming our airwaves?

Given rampant consumer apathy, exhorbitant cost, palpable cronyism, and a host of other red flags, didn't the market long ago reject HD?

So, why's HD keep returing, like the ghoul in those 'Jason' films?

Is it because cronyistic pols, bureaucrats and corpseorations 'partnered' to jam public airwaves for profit, at great public expense?

Paul Vincent Zecchino
Manasota Key, Florida
11 December, 2008

rfburns said...

It all comes down to consumers and the bottom line is simply that consumers just don't want it. IBiquitys stance is to force feed it on them and, thank God, it's not working.

rfburns said...

It all comes down to consumers and the bottom line is simply that consumers just don't want it. IBiquitys stance is to force feed it on them and, thank God, it's not working.oo.com

rfburns said...

It all comes down to consumers and the bottom line is simply that consumers just don't want it. IBiquitys stance is to force feed it on them and, thank God, it's not working.oo.com

bobyoung said...

You said: "It's sad because HD Radio was starting to gain some traction in the auto industry with manufacturers such as Volvo and Hyundai."

It's not sad for those car manufacturers, just think of how much money they will save because less consumers will be returning the cars for malfunctioning radios (when it is actually IBOC itself that malfunctions).

Bob Young
Millbury, MA

HD Radio Farce said...

"The second foul ball has to be issued for HD Radio's lackadaisical programming efforts to date. You simply can't hit a ball out of the park with a check swing. Thus, HD Radio is sitting on a 2-2 count. The two strikes against it are not really its fault, but the two foul balls on meatball pitches are inexcusable.
A home run is still possible but HD Radio is going to need to be Manny Ramirez the rest of the way."

LMFAO - We've been telling you so!!!

HD Radio Farce said...

"They’re turning off HD in Washington, DC"

"Well, this time it’s not an anomaly or a digital exciter glitch—at least not that we can see. For weeks now the Washington, DC market has been turning off its HD Radio signals en masse. There is no longer any station in the market on AM broadcasting in HD... The most likely culprit is licensing fees."

http://www.rbr.com/radio/12018.html

"CC Radio’s Format Lab gone?"
November 2008

"Really, the next round of budget cuts--out of necessity--is likely going to be HD Radio equipment and licensing renewals. It has cost broadcasters money that so far has not generated ROI. This CC Radio news above, along with the rumors that Citadel has told Engineering not to fix any broken HD transmitters on AM, may be the tip of the iceberg."

http://www.rbr.com/radio/11252.html

The implosion is starting, guys!