So it has come to this: iBiquity Digital Corporation, the proprietors of HD Radio, have slashed their licensing fees in half.
According to iBiquity’s initial licensing agreement (circa 2005), early-adopters of the HD Radio technology paid a one-time licensing fee of $5,000 to utilize the software to run their transmitters. By 2008, that fee had increased to $25,000.
However, in the wake of the FCC’s approval of a power increase for FM-HD stations, iBiquity has announced that “new licensees” can take advantage of their swanky software for a low, low one-time licensing fee ranging between $10,500 and $12,500 (depending on your payment plan).
To recap: iBiquity charged early-adopters of HD Radio $5K to transmit in HD. Two years ago, not-quite-early adopters had to cough up $25k. But now, if you want to jump on the bandwagon, it’s only $12.5K to get in on the game.
One can’t help feel sorry for the not-quite-early adopters, who paid full freight for access for a technology that’s now half-price. Unlike Microsoft, from which iBiquity borrowed its business model, it’s usually not a positive sign when a software company lowers the price on its operating system.
Is this a sign of desperation? Given iBiquity’s apparent fiscal stagnation, it’s hard not to wonder.