HD Radio: “We’re Still Here”

After its lackluster appearance at the NAB Show earlier this year, HD Radio‘s new owners, DTS Inc., are trying mightily to demonstrate that the technology remains a viable future for broadcast radio. In May, DTS announced its first-quarter financials, representing the first full quarter of its ownership of iBiquity. As expected, the acquisition had a positive effect on DTS’ bottom line, no doubt from the revenue stream involving licensing HD receivers in cars (for which the company gets paid as much as $12 per unit).

Presently, however, HD Radio is found in just 37% of all new vehicles sold in the United States — a far cry from widespread penetration, but more than enough to move the needle in DTS’ ledgers. According to a company conference call earlier this year, the acquisition of HD Radio is part of a pivot by DTS away from developing/acquiring audio enhancement systems for home entertainment technologies (which are on the decline) and toward the mobile and portable device spaces (which are growing mightily). By the end of 2016, DTS expects its automotive division (which includes HD Radio) to account for some 40% of all revenues. Read More

iHeartMedia Dodges Bankruptcy, Option Remains

iHeartMedia’s lawyers are probably very happy to see May in their rearview mirrors, after dodging a bullet in a Texas courtroom last week. A friendly judge barred the company’s creditors from seeking notices of default on some $6 billion of iHeart’s $21 billion in corporate debt, racked up primarily from pillaging the radio industry over the last 20 years.

iHeart’s creditors were attempting to call out the company for constructing a shell game in an attempt to keep its debt from crushing it. They noticed last year that the company had begun transferring hundreds of millions of dollars in assets to two “independent” subsidiaries named Broader Media and CC Finco. In simple terms, having already borrowed tens of billions against hundreds of stations, thousands of billboards, and countless other media ventures, iHeart moved some of those assets to “new” corporate parents, thereby creating “new” value against which to borrow even more money. Even better, this shuffle protected those assets against existing debt claims. Read More

When Will They Learn: Several Radio Stations + One Network Hijacked

Listeners to at least three radio stations and one (unidentified) radio network got quite an earful last week when their programming was hijacked by an unknown hacker. The intruder, who used a search engine of internet-connected devices to find unprotected audio transfer equipment in radio stations/networks’ airchains, was able to compromise several of them because the targeted stations/networks either never changed the equipment’s default password, or they used a weak password that was easily bypassed.

The hacked stations all broadcast episodes of a comedy podcast devoted to furries, a subculture of people who like to dress up (and oftentimes, have sex) in animal costumery. “FurCast” is defintiely not-safe-for-work material, and the stations spent more than an hour airing them. According to the podcast’s producers, they noted a spike of “hundreds of connections” in podcast-download traffic last week, all of which were coming from hacked radio stations/networks, and were able to cut off the OTA simulcasts by changing the IP address from which podcast downloads originate. Read More