The Latest on HD Radio

In light of its advantages regarding content and audio quality, HD radio has been gaining ground across the country. HD radio, also known as digital radio, is different from standard terrestrial radio in that it transmits not only an analog signal, but a digital signal as well. This allows the radio reciever to pick up adjacent frequencies, which are also higher in overall audio quality. Allegedly, the audio quality of an AM station becomes that of FM station, and the quality of the FM station becomes the quality of a compact disk.




With benefits such as these, many are wondering why it hasnt become more popular, more quickly. It has lagged far behind satellite radio in its rollout- and the advantages are quite similar. The answer lies in the heavy marketing that XM and Sirius Satellite have implemented, as well as the high cost of a new trnasmitter for radio stations. For a radio station to broadcast in HD, they have to purchase a new transmitter that costs approximately $150,000. We are seeing that the only stations that can afford these transmitters are stations in bigger cities. A radio station in a more rural area would most likely not have enough income to afford the transmitter.

There are just over 11,000 commecial radio stations in the country, and only 700 (roughly 6%) of them are currently broadcasting in HD. Radio stations are not the only ones who need to pay their way to get to HD audio, consumers need to buy an HD reveiver (much like satellite radio). Also like satellite, the real turning point for HD's growth in popularity will probably be when auto manufacturers begin putting the receivers into their cars standard. This feature could be a unique selling point for brands that realize the benefits of HD radio. Some pressure for this to come about will most likely come from wall street. iBiquity, the company that headlines the HD radio effort would love to see their product become popular in the auto world in order to gain profits for its shareholders.

One unique feature of HD radio that marketers may find enticing is the ability to have text messages appear on the HD receivers. Every HD receiver has a screen that allows the song and program titles to appear. Marketers could now not only send out audio messages, but now visual as well.

The newest development regarding HD radio is the concept of "tagging." The idea was put together via a joint effort from iBiquity and Apple. Basically a song that a listener hears on his HD radio receiver can be tagged and marked for download on the user's iTunes account. This would allow instantaneous purchasing of music due to a connection between the reciever and the user's computer or online account. Initially this feature will be available on HD receivers at home, but it is predicted to be ready for car receivers early next year.


Sources:
http://www.betanews.com/article/HD_Radio_to_Debut_iTunes_Tagging/1189193594
http://www.jacobsmedia.com/articles/tech3_hdradio.asp
360 Degree View Podcast
http://www.hdradio.com/how_does_hd_digital_radio_sound.php

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