David Eduardo wrote:
"D Peter Maus" wrote in message
...

David, David, David....the chairman of iBiquity said the words. The
system will facilitate a smooth transition to an all-digital system. That
he envisioned less than a decade to phasing out analog entirely.



It doesn't get any clearer than that. The goal is to move to
digital, without analog.

iBiquity is selling HD. Broadcasters sell ads. Ad sales requires listeners.
A transition like that to HDTV, mandated and with a fixed cut off, would not
please broadcasters and I doubt they would do it. I think the possibility of
an all digital AM band are 10 to 12 years out. If ever... if the band
survives.



Which may be the case. But that's not the point I've been
trying to make.

My point is that this IS being discussed. And it IS being
planned for. And has been since the beginning. Not in a nebulous way,
but in specific ways, and, because Radio is ALWAYS about the money, it's
being planned for in ways that not only protect but enhance the revenue
stream.


And iBiquity is not just selling HD. It's also selling a future.


Whether or not iBiquity has the capacity to influence the move,
it was iBiquity that started and sustains the conversation. And you've
been around the biz long enough to know that all it takes is a
conversation to start the revolution.







Yes, I believe I made that point last year. But the key here is
FM Stereo is backward compatible, costs next to nothing to implement,
produces no savings to turn off, and most listeners, or broadcasters for
that matter, don't notice the difference when it's not there. The pilot is
more important to most listeners than the separation.

But Digital/Analog is a different animal. And iBiquity, and General
Manglers all over the industry are looking at the day when digital will
supplant analog broadcasting. Because, analog requires 10 times the power,
maintaining two audio streams, with separate processing chains, is also
expensive.

For the markets where HD is installed, the small cost is not particularly
signficant. Once you have the hardware, there is very little extra cost on a
monthly basis. And power savings, today, are not that big a deal until you
get to very small markets.


Small cost are not significant to who? Bean counters try to
reuse postage stamps. We had to reuse the toner in the copy machine at
CBS. Tens of kilowatts do not go unnoticed in that environment. And my
own GM very nearly salivated at the prospect of the day he will be able
to turn off the analog carrier, sell off the extra audio chain, and turn
that into bottom line numbers.

It may not be alot in real cash, but on a corporate P&L, stamps
and paper clips matter.



We're not talking FM stereo, here. We're talking two separate and
distinct radio stations on the same dial position. GM's don't like that.
And iBiquity has facilitated the demise of one in favor of the other, and
sold the system for that purpose.

I don't see that many GMs that really look at it that way. They look at it
more like and SCA, not a separate station.


Except it's not. Different spots, different processing. SCA is
a tape, or a live feed that's self sustaining, and produces direct lease
revenue. HD does not. It's a separate facility in house, maintained and
operated in house. Funded in house. If the future really is digital,
I've heard more than on GM say, then let's get on with it. Turn off the
carrier, and let the digital carry the freight.




We recently had iBiquity "leadership" at a meeting of all GMs and PDs and
GSMs... and replacing analog was not metioned ever, even by the President of
iBiquity. I wonder why they are hiding this form us?


It's not being hidden, David. But corporate meetings are not known
for their catholic (pardon the pun) embrace of content.

And such discussions would be had between upper echelons, not GMs
and PD's, or GM's and general staff. It would also be discussed between
upper echelons and specific individuals involved.

I, myself, was involved in meetings that the PD was not. Given
duties the PD didn't know of, and responsibilities to answer only to the
GM. I thought it was pretty stupid way to run a radio station, but it's
not the first time I'd encountered it. And things I was specifically
told in less public meetings were never discussed in general staff
meetings.

Karmazin has been talking of his since IBOC was proposed. He's
mentioned it, now publicly in Senate hearings this past week.

And going back to the origin, iBiquity specifically described IBOC
as a transition from analog to digital broadcasting, with an all digital
system the goal.





I go to the NABs, RABs and programming conferences. I don't hear
elimination of analog and replacement with digital discussed at all.

I don't know what to tell you, David. I've heard it as far back as
a decade, now, and as recently as yesterday.

I notice that the main objections in radio to HD come from engineers... not
because of the technology, but because of the change. The things they write
indicate a lack of knowledge of the business. Maybe you are hearing from
that quarter.


Um....GM's...I'm hearing it from GM's. Engineers generally
speak with me about audio, women, or the really good linguine at
Luciano's.




I've also heard it discussed on WGN overnights. Not that there
were any advertisers supporting it, but it WAS being discussed.

Ah, WGN. The king of the 65 and over listener. What were the comments?


They were discussing HD AM and how good it sounds in the
studio monitors. Even nicer than AM Stereo. And eventually how WGN will
be all digital.



If look at the average age of operating cars in the US, you realize that
that is unduly optimistic, even if there is a covert transition being
planned.

How do you figure? You can retrofit any vehicle with anything
today. Hell, I've retrofitted my factory radios with iPod integration, now
on two Caravans and a GMC Envoy, even though the Envoy was not capable of
being retrofitted with iPod integration when I bought it. Now, Peripheral
is making a drop in device that does it, not only for GM, but for damned
near anything on the road. iPod, AND an Aux input for either my Delphi XM
piece, OR....are you sitting down....an HD radio tuner.

Most people buying used cars do so to save... they do not rush out for new
radios.



Ok...HOLD on...Point of order, Mr Chairman....The gentleman
from Chicago said nothing about new radios, but rather said retrofit of
current radios extant and installed would be retrofitted. Installed by
a professional will cost you less than $200. Thank you. The gentleman
from the Coast may continue.


I still think it will take a dozen years to get anywhere near the
penetration of HD, and it will be driven by FM. AM may already be dead in 10
years when all the listeners are over 55.


Hello, Hello...test 1, 2....aftermarket radios are the
backbone of businesses like Circuit City and Best Buy, Crutchfield, J&R,
even Parts Express. Sullivan GMC doesn't have a service bay as large or
as well equipped as Circuit City's installation bay at Gurnee Mills. And
the FIRST question I've been asked when selling one of my cars is "What
kind of sound system does it have?"

MOST aftermarket radios go into USED cars. They may be buying
used to save money, but they still like to believe they're living the
high life. Aftermarket radios are a BIG part of the used car business.



****, David....if you don't think guys like Karmazin, who openly
spoke of the value of digital terrestrial radio for it's SUBSCRIPTION
potential before the Senate last week, don't know about these devices, you
need to seriously get out of the office. Come to Chicago, I'll buy you a
rib dinner and show you how readily available this stuff is on any corner
from Howard Street to 57th.

I have heard less about subscription models than going all digital. No
broadcaster has enough HD2 channels to be able to support the
infrastructure, and satellite offers so much more for very little money. I
see no future in subscription radio on FM.
And guys like Karmazin not only know of this kind of opportunity,
but have already made plans to exploit it.

KArmazin is not in terrestrial radio anymore.


True, but he did testify before Congress about Sirius/XM,
terrestrial radio and subscription. And reinterating from AllAccess.Com:

(Note content on subscription. It may not be happening today, but it
IS being discussed, and planned for.)

Sirius/XM On HD Radio: See? It's Competition!
The FCC decision underlines that HD Radio on the AM/FM bands provide a
real alternative to satellite ...
SIRIUS SATELLITE RADIO and XM SATELLITE RADIO issued a joint statement
on the FCC's issuance of its final rules for HD RADIO, saying, "The FCC
decision underlines that HD RADIO on the AM/FM bands provides a real
alternative to satellite and that the current audio entertainment market
is broad, robust and competitive. The decision will raise competition to
a new level by stimulating the growth in HD RADIO stations (now 1,200),
enhancing its offerings to consumers and establishing a process for free
radio to offer a paid subscription service for the first time."

SIRIUS CEO MEL KARMAZIN has been raising HD RADIO and its capability for
subscription services as an example of the competition between
terrestrial and satellite radio, most recently at this week's Senate
antitrust panel.