Stations to Promote HD Radio
Ibiquity Expects Broadcasters Will 'Take Up the HD Radio Challenge'
by Leslie Stimson
"We need to sell HD Radios."
That's how Ibiquity Digital President/CEO Robert Struble characterized one of the industry's challenges this year as stations convert facilities to digital.
Station promotion of the technology and broadcaster efforts to reach the consumer electronics retailers are part of that effort, according to panelists in "HD Radio: You Ain't Heard Nothing Yet" as well as receiver manufacturers and CE retail representatives at the NAB show.
"The technology curve drives ahead of the consumer demand curve," said Dan Mason, a program consultant to Ibiquity for the rollout. "The only way to close the gap is to take the technology and promote it on the air."
Last year, three manufacturers offered HD Radios, and in only aftermarket automotive form. This year, Ibiquity predicts 15 to 20 models will be available, and in more product categories.
One automaker, at least, reportedly plans to introduce HD Radios in cars this fall; many observers believe it is BMW. Automakers like to announce their own features and normally do so closer to new vehicle launches.
Struble says Ibiquity "has commitments from eight other brands in 30 different vehicle platforms, which we think will be rolling out in the next couple of years."
About 10,000 HD Radios were sold last year. Ibiquity expects that number to grow to about 100,000 this year. And next year? "The story for '06 is more, cheaper, better. Demand drives it all." Struble said.
Home IBOC radios
Polk Audio, Boston Acoustics and Radiosophy say they will release HD Radios for the home this year.
Stephen Shenefield, director of product development for Boston Acoustics, said the HD Radio version of the Recepter would be one of the first home- or office-oriented terrestrial digital radio products.
"The important thing about this product category is it puts the radio where many people listen."
He's had "several" HD Radio aftermarket radios in his car for the past nine to 10 months and said, "As a music user I've been pleased with the advancement of the technology. I think consumers will really get it; it will sell well."
Boston Acoustics offered a $299 NAB show price for the product for broadcasters.
The Recepter Radio HD ships in June and will have the ability to decode several digital channels.
Several other receiver manufacturers plan to introduce HD Radio products this year.
Robert Lopez, group manager for Panasonic Mobile Electronics, said the company is set to introduce its second-generation HD Radio product this spring at half the retail price compared to last year. Then, Panasonic had introduced a separate HD Radio receiver; this year, the HD tuner is incorporated into the head unit, hence a lower price of just under $500.
Given the buzz at the show about multicasting and station interest, he said, Panasonic recognizes the need to introduce that feature in its HD Radio products earlier than planned.
Panasonic is looking to make HD Radio "more of a mainstream product" and is developing future IBOC offerings, he said.
He said retail interest in HD Radio is high. "For us manufacturers, it's always about demand. (You) need to increase awareness to increase demand."
Sanyo Fisher plans to introduce its first aftermarket automotive HD Radio receiver this year. Product Development Manager for the Audio Video Division Chris Palmer said the company has kept abreast of IBOC development for several years. "We are now convinced that the station infrastructure is in place to ensure mainstream adoption of this technology."
Radiosophy, formerly RiverRadio, is offering broadcasters a 30 percent rebate off a projected price of $249.
"Along with your listener education, tell them about our radio," states the company in a brochure. "We sell, ship and bill. Then we send you a check."
Company President Richard Skeie said the name Radiosophy means "intelligent radio. It reflects that we blend computers with radios." Radiosophy is a privately held company with operations in South Dakota, formed in 2004. The founders describe themselves as computer professionals.
"By keeping manufacturing costs low and selling directly to consumers over the Web, we will be able to offer an HD tabletop receiver with multicasting abilities in June," he said. The unit can decode multiple digital signals; the company says it can be incorporated into an existing sound system or used in a car, kitchen or boat.
Ya gotta promote it
Yet as more receiver manufacturers introduce HD Radio product, they and Ibiquity are pushing broadcasters to promote the technology and the radios because much of the public doesn't know what HD Radio is.
To keep HD Radio sales from being converted to satellite radio in stores and car dealerships, Struble told Radio World, much needs to be done.
"There's a massive need for consumer awareness, promotion and education. The plan is for broadcasters to take up that challenge."
Rather than airing massive TV campaigns like their satellite radio counterparts, terrestrial broadcasters will have a grassroots station-by-station effort, Struble said. "The radio broadcasters are fabulous at promoting products and educating their listeners. They know how to do this. They're going to take up the HD Radio challenge and do that.
"It doesn't make a ton of business sense for the broadcasters to invest hundreds of millions of dollars as they've committed to do in (converting) stations and not tell anybody about it."
Struble reported a lot of effort "at the highest levels" of radio groups to develop plans to promote the technology.
Ibiquity is preparing to support stations in their HD Radio promotions. The company has a marketing guide that lays out how stations can incorporate digital radio in their events as well as radio giveaways, on-air promotion, billboards, demo cars and remotes at retail outlets.
The company also is developing an online training program for retail salespeople so they can become acquainted with HD Radio and its products. The online program should be completed this summer, according to company vice president of marketing Dave Salemi.
Ibiquity executives also pointed to the Radio Advertising Bureau as planning to share HD Radio promotion "best practices" with member stations.
As an example of promotion planning that's in discussion now, Good Guys, a retail chain based in the Northwest, is planning to work with broadcasters and vendors in the Los Angeles market to sell HD Radios.
Josh Finkelstein, senior buyer for mobile audio told Radio World, "Some of our local stations and Good Guys are planning to do in-store events, where every commercial break or so the channel will promote 'Come into Good Guys right now and check out what this channel that you're listening to sounds like in HD Radio compared to what you're hearing. We guarantee there will be a difference. Enter to win a product.'
Good Guys has approximately 70 retail locations on the West coast. Through its recent merger with Comp USA, the chain plans to roll out HD Radio product eastward through the 200-plus Comp USA stores, which will promote the HD Radio brand as well.
Broadcasters transmitting digital/analog signals are doing so under the FCC's interim authorization for IBOC.
Deborah Klein, acting bureau chief of the FCC's Media Bureau, said the commission
would address remaining issues for implementing IBOC, such as
multicasting and AM nighttime operation, in the agency's further
order on the technology. She said the agency hopes to get the
order out to the public this summer.
