HD Radio’s High Hopes for 2016

2015 was a potentially pivotal year for HD Radio, if only for a changing of the guard in the system’s ownership. In September, audio technology company DTS Inc. announced the acquisition of iBiquity Digital Corporation, the proprietor of the HD Radio Standard, for $172 million. Last month, DTS’ chairman and CEO, Jon Kirchner, penned a paean to the technology in an industry trade.

Calling HD “the biggest advancement in terrestrial radio broadcasting since the advent of FM radio,” Kirchner is obviously very upbeat on the technology’s prospects. His biggest hope is pinned to using HD Radio as a pipeline for “wider adoption of HD Radio and various DTS technologies,” supposedly working in concert, primarily in the automotive space. This, Kirchner believes, will foster an “independent and neutral [digital radio] platform for the radio industry.”

Two weeks after penning this missive, DTS announced a management shakeup at iBiquity. Founding CEO Bob Struble has been set aside (to become a “special advisor” to Kirchner) while iBiquity chief operating officer Jeff Jury was promoted to a new managerial-level position within DTS responsible for both “Automotive” and HD Radio. Read More

Radio Stocks on the Dollar Menu

Many industry-watchers have been fixated on the travails of Cumulus Media, which ousted its founding family earlier this year and replaced them with new management backed by the private-capital firms that now control the company. It hasn’t yet resulted in a massive turnaround for Cumulus stock, which is up about ten cents or so from its lowest low earlier this fall. Still, that values the country’s second largest radio conglomerate at a paltry $82 million and change — you can now pick up a few shares of Cumulus for a dollar and still have change left over for a gumball.

But Cumulus is not the only company now trading under a buck. There’s also Emmis Communications — the primary driver behind the NextRadio application and a major innovator in the HD Radio space — whose shares are now trading at just 62 cents, triggering a delisting warning from NASDAQ. Just three months ago, Emmis stock was worth $1.42 per share; a decade ago, the stock was worth 100 times more than it is today. Read More

HD Proponents Seek Protection for “No New Spectrum”

An interesting trial-balloon was floated last month in Radio World. In it, John Kean, one of the founding employees of NPR Labs (who was let go in a reshuffle this past August) suggested that the FCC’s spectrum allocation rules be revised to better “protect” FM-HD Radio sideband signals.

Before going any further, it’s best to cover some history. HD Radio was adopted by the FCC in 2000 primarily on the premise that the system used “no new spectrum.” In fact, FM-HD signals double the spectral footprint of FM stations — but HD’s proponents got around this by appropriating fallow spectrum the FCC leaves between stations as the stations’ own allocation. Read More