HD Radio Makes “Progress,” But Analog Still Rules

Earlier this summer Radio World published one of its occasional special “e-books,” this one called “HD Radio From the Ground Up” (form-filling required to download). Like most industry trade publications, it’s a celebratory document that seeks to paint the U.S. digital broadcast system in the best possible light.

Kicking things off is a tech-centric column from Scott Fybush in which he talks with various enginerring principals about the efficiency of today’s FM-HD Radio systems. Unlike the first few generations of the tech, which involved wildly inefficient combination of the analog and digital signals, improvements to the HD system now make for a better marriage. In HD’s early years, more than 30 percent of the power that went into the analog/digital combination process was lost as waste heat; now that number is down to something like 10 percent. Read More

iHeartMedia’s Thin Skin on Corporate Finances

A funny thing happened just hours after I posted last week’s update on iHeartMedia’s dance with bankruptcy earlier this year: I got an e-mail from a PR flack contesting my analysis. But it wasn’t just any flack — it was Wendy Goldberg, iHeart’s chief communications officer. She was displeased with several points I made.

To begin, Goldberg asserted that I had misconstrued the timeline of events surrounding the company’s near-default. Instead, iHeart conducted a pre-emptive strike against “a small group of lenders” who planned to call in some $6 billion of the company’s $20+ billion outstanding debt burden within 60 days. (This would indeed have immediately tipped the company into default.) Secondly, my she called my assertion that this close call, in my words, worried “the market that the conglomerate is just steps away from bankruptcy” was seemingly, in her words, “confused at best, and speculation at worst.”

Finally, Goldberg took umbrage with my contention that iHeartMedia remains near the precipice: “I am assuming this is your own opinion or speculation, and if so you should either couch it as such or remove it.” Read More

iHeartMedia Seeks Pounds of Flesh for Bankruptcy Pressure

After fending off one legal challenge that would’ve sent the company into default, the nation’s largest radio conglomerate now seeks a spot of revenge.

iHeartMedia is heading back to a Texas courtroom in hopes of getting mega-damages out of a consortium of investors who went after the company, serving a notice of default for playing fast and loose with its $20+ billion worth of debt — a strategy which involves iHeart setting up shell companies to repurchase some of the debt it already owes at lower interest rates, while also working to shield some assets from potential creditors. The conglomerate filed suit to stop the default process, and the Bexar County judge sided with iHeart in May. Read More