HD Radio Device Prices Seen as Falling if Power Rises
The prices of HD Radio devices, already dropping, probably will fall further if stations get FCC permission to increase power levels to as much as 10 times the current limit, broadcast and consumer electronics executives said in interviews. National Public Radio and iBiquity Digital, which licenses technology for HD Radio broadcast equipment and consumer devices, agreed to ask the commission for an interim power increase to four times the current limit (CD Oct 15 p7). Executives from those organizations, the CEA and elsewhere predicted that higher power would increase consumers’ interest in digital radio and the sales of devices by letting a station serve its entire market with digital radio.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Increased production of devices probably will reduce prices, further stimulating consumer interest in a technology not yet as popular as satellite radio or conventional terrestrial radio, executives said. Aftermarket in-car HD devices sold for $600 several years ago and now retail for as little as $90, a spokesman for iBiquity noted. With the recent launch of Insignia portable devices, for about $50 at Best Buy, higher power levels will help in-car and portable reception, he said.
Higher broadcast power “absolutely is going to be a big increase, a big help” to boost the total number of devices used, now in “the millions,” the iBiquity spokesman said. He declined to discuss specific figures. “We are now at a point with the number of units in distribution now, and certainly what we know about our sales going forward, that our broadcast partners will be able to have real conversations with real advertisers about generating revenue around their HD2s and HD3” multicast digital radio streams because there will be enough listeners, he said.
“The power increase will only help” spur consumer adoption, said Mike Starling, NPR’s chief technology officer. “It should simplify the requirements of receiving sensitivity” and “along with that will come increased volumes” of products, he said. Adoption has been slowed because some in the analog coverage area can’t get digital radio and its multicast channels, other executives said. A rise to the interim limit of 6 dB that NPR and iBiquity compromised on should help, they said.
“The reason a lot of us have been advocating as strongly as we have for an HD power increase is to meet the expectations of the listener,” said Milford Smith, Greater Media’s vice president of radio engineering. The company is one of those that sought the permanent increase. “It only makes sense that the listener would expect the HD signal to have just about the same reach and coverage of the current analog” transmission, he said. “Without a significant power boost, this service is going to have a tough time. We're right at the point where we're getting more automotive receivers, more consumer interest.”
Auto makers and original equipment manufacturers want power increased, too, said Chief Technology Officer Paul Brenner of Emmis, another radio company seeking to raise the cap. “The decision needs to be quick and definitive. And the perception if it’s not is that HD is not ready for prime time, that the industry, the [auto] industry will most likely stay with satellite until mobile broadband is ready.”
“Broader rollout of HD Radio throughout the country” would stimulate consumer demand, said Dave Wilson, the CEA’s senior director of technology and standards. “The big picture thing there is coverage: The more stations and the higher power let people receive it in more places.” HD Radio may need to add features to attract more listeners by competing better with subscription radio and MP3 devices, he said. “HD radio is a great tool, but maybe it needs to be more than simply a stream of audio. Maybe the data applications will become more important.”
About 2,000 commercial and noncommercial FM stations broadcast in HD, said Peter Ferrara, president of corporate affairs of the HD Radio Alliance, whose members include Clear Channel, Citadel and Entercom. That’s 21 percent of the more than 9,500 FM stations that the U.S. had in June, according to FCC figures. As consumer interest in the technology grows, more stations will broadcast in HD, Ferrara predicted. “While not in mainstream demand yet, [it’s] clearly increasing in interest level and therefore the manufacturing and consumer level.”