In article ,
SMS wrote:

Add an HD signal generator and an exciter that combines HD Radio and
analog FM and then concentrate on the more difficult task of actual
content, but as you stated hooking up with webcasters would be good
model. John says it would cost "six figures" to add HD, and I wonder
where that number came from. Is there some big up-front payment you have
to make to iBiquity, because the equipment certainly doesn't cost
anything close to $100K?

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.

Adding IBOC to a station (and every station is different) amounts to a
helluva lot more than "adding an HD signal generator". If that were all
it was, I wouldn't even care about it. At lower powers, stations
typically buy new transmitters. At higher power levels, IBOC
transmitters are obtained, and combined at high level with the analog
transmitters. In this process, 90% of the IBOC power is burned off as
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?

Sometimes, there isn't enough room and additional transmitter space must
be rented to house the additional IBOC transmitter, the rack of gear,
the combiner and the reject load. Sometimes, there is not enough power
available in the building and the entire building's electrical system
must me revamped.

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.

That is just scratching the surface.

You have the potential to add listeners with different formats on HD (or
not lose listeners when you change format by moving the old format to
HD). I.e. I'd love an oldies station, but the Bay Area market can't
support a regular FM oldies station the way other markets can, so if you
want that content you have to subscribe to satellite radio at rather
ridiculous prices.

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.

Time for the broadcasters to realize that HD is here, and that fighting
it is rather hopeless. Closing your eyes and pretending it doesn't
exist, and hoping for a better digital radio standard to emerge is not
productive.

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.

Now when will the SAP actually have some content on my TV?

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

--
John Higdon
+1 408 ANdrews 6-4400
AT&T-Free At Last

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.

On 10/16/09 14:33 , SMS wrote:
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.


That's a time honored way of doing fees. BMI and ASCAP fees are
based on a percentage of gross, and before divestiture, the Bell
companies even based business phone rates on gross revenues. They
went so far as to ask for gross and net revenues on the order form
so rates can be calculated. Their thinking was that there is no
business without a phone, so they deserve a cut.

iBiquity is no different. The HD 1 stream is a simulcast of the
analog channel, there is no HD audio without iBiquity, so they take
a cut of revenues.



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.


Not in today's business environment.

In article ,
SMS wrote:

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.

Once the commercials start, then it is just another commercial-laden
ho-hum competitor in a sea of commercial programs. Most of the stations
that are adopting IBOC are having one helluva time getting listeners on
their main channel. Why will they do better attracting listeners to a
grungy HD-X channel? And if they can, why don't they put that killer
program on their main channel and make some real money?

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.

First, we don't do jukebox in a closet formats at our stations. That
isn't what we do. We serve listeners. We do need to have real
program-production facilities. Second, I don't personally believe that
"long term" and iBiquity are compatible concepts. Third, going HD Radio
means trashing audio quality both in the analog channel and in the
multitude of HD-X channels. That's a "no sale" to us and at least a hard
sell to most quality-conscious broadcasters. Fourth, the current crop of
HD equipment is egregiously unreliable, and there is no expectation that
the condition will improve in the foreseeable future. Don't take my
word...ask any radio engineer who is responsible for a cluster of
stations employing iBiquity's scheme. I personally know one engineer who
got national attention for tossing all of the IBOC from his stations, AM
and FM.

[regarding SAP]

It could have worked if done properly.

Gee, I've never hear that before in my career!

--
John Higdon
+1 408 ANdrews 6-4400
AT&T-Free At Last