John Higdon wrote:

There certainly is a fee to be paid to iBiquity, and it is based on the
number of HD channels the station uses, plus a portion of the station's
gross revenue.

Well that doesn't sound fair if the fee is based on the revenue of the
analog side of the station.

heat; 10% of the analog power is burned off. The bottom line is that
thousands of watts are thrown away as heat, 24/7. Really green, eh?

How "green" it is is really a side issue.

And...with HD, there comes considerable upgrades to the
program-producing facilities, new digital STLs, and for HD-X, additional
program control facilities. Yes, the current players put a PC jukebox in
a closet and forget about it, but remember I work for a family that
takes serving its listeners seriously.

Yet there is some programming where the jukebox in a closet suits the
listeners just fine, and it has nothing to do with treating listeners
seriously or not.

What good does it do to move the listeners to HD-X channels? No
commercials = no revenue! All you have done is cannibalize your bread
and butter source.

No one ever said that you aren't allowed to sell advertising on the HD-X
channels. Granted, until the installed base of HD receivers is much
greater it will be a hard sell.

I have told the owners of my three stations that converting their three
stations will come to about a half-million dollars (not counting
iBiquity's cut), but including site modifications and equipment, STL
replacements, and studio upgrades. Tell me...how do I sell that kind of
capital investment with no clear ROI path in this economy? The last time
we talked, they saw no downside to spending that money on program
improvements instead.

It depends on how much of those costs are real. You don't necessarily
need any studio upgrades if you're doing "jukebox in a closet." You've
got to look at the long term and the big picture. At least ensure that
new equipment that's purchased is "HD ready" so when HD reaches critical
mass in a few years the time and money to bring it up will be minimal.

Another "solution" without a problem, do you think?

It could have worked if done properly.