HD Radio: Sold…Again

It came as a surprise to attendees of last week’s NAB Radio Show in Nashville: just a day before the CEO of DTS, the company who bought HD Radio proprietor iBiquity just last year, was to be a featured guest at a convention luncheon, his company was acquired by Tessera Technologies in an $850 million deal.

Who is Tessera? Founded in New York back in 1990, the company initially began as a designer and manufacturer of semiconductor chipsets, including memory modules. It went public on the NASDAQ stock exchange in 2003; five years later it acquired FotoNation, a company devoted to image analysis. Read More

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

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