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

NAB Show Leaves Radio in Shadows

According to reportbacks from the just-concluded NAB Show in Las Vegas, it was a lopsided affair in favor of the future of television. And why not: broadcasters stand to make billions over the next year selling off their spectrum, and those who stay on the air will be rolling out a new digital television standard with new content and datacasting potential.

Meanwhile, the radio industry’s been rocked back on its heels by a slew of bad fiscal news. iHeartMedia, for now, has managed to stave off several billion dollars’ worth of its debt being called in early by angry bond-holders, but the company’s effectively now engaged in increasingly nasty legal maneuvering to decide its debt end-game sooner rather than later. #2 conglomerate Cumulus Media’s still squeezing its broadcast properties also in hopes of keeping bankruptcy at bay. Emmis faces delisting by NASDAQ in early June. Even the relatively fiscally-sound CBS has announced its intent to spin off its entire radio division into a separate company, selling it also seems to be an open option. Read More

European Digital Radio Transition A Mixed Bag

This month, the Media Intelligence Service of the European Broadcasting Union published a comprehensive overview of the state of digital radio broadcasting throughout the continent. Unlike in the United States, where there’s little love for our proprietary, spectrum-squatting HD Radio system, many European countries are making such great strides with their digital-exclusive DAB/DAB+ networks that they’re mulling the sunsetting of analog radio within the next decade or so.

European Brodcasting Union DAB/DAB+ Map, 2016The EBU report contains mini-briefs on 21 countries and says states like Denmark, Norway, Switzerland and the United Kingdom lead the way in building out their digital radio systems and enticing listeners to migrate to them. Other countries such as Germany and France – who were key innovators in the DAB/DAB+ development cycle – only committed to building out a digital radio network earlier this decade. Even so, in Germany the sales of digital radio receivers already outpace analog radio sales. Read More