[BC] An HD coalition has formed

[Rich Wood]

------ At 04:42 PM 12/6/2005, WFIFeng at aol.com wrote: -------

>HD2 channels - comprised of entirely new programming -- will be launched
>in the top 25 markets beginning in January. One of the purposes of the
>alliance is to fairly and equitably coordinate local market "format
>allocations," so that companies aren't stepping on each other as they
>launch what amount to scores of brand new radio stations.

This is wonderful news, particularly for lovers of the old WCBS 
Oldies format. I assume the secondary channels will be regarded as 
real radio stations and all the great jocks on the old WCBS will be 
brought back at their previous income levels. It's good to see 
companies will follow the satellite model and present 
ready-for-prime-time programming even before there's anyone available 
to receive it. The is an incredibly major advancement in 
broadcasting. It's also going to be glorious for all the talent put 
out of work during consolidation. Finally, "live and local" will be a 
reality. Thousands of jobs. How will Wall Street react when they see 
humans being employed?

I still occasionally wonder why the addition of the 80-90 stations 
were so terrible, yet the addition of maybe 7,000 plus stations will 
be created, doubling the number of FM "signals" in each market. Has 
anyone checked to see if there's an ad market for these stations once 
the two year moratorium is over?

Two possible glitches: will anti-trust laws allow competitors to 
conspire to limit the formats a station can run? Also, we have an 
organization without a single person on the front lines making 
decisions. Their natural CEO habitat is a golf course, not a studio. 
Who gets to determine who runs the Swedish Polka format and who will 
run the format people will actually listen to and get the ratings 
applied to their main call letters? I see cat fights here.

>The new channels will be commercial-free for at least two years.
>Programmed locally, they will be free to anyone who purchases a new HD
>radio.

I'm sure that'll thrill ad agencies. As HD radios begin to dominate 
the market in the next few weeks, the secondary channel listeners 
will be credited to main channels. They'll get the credit for 
listeners who won't ever hear the spots unless the Arbitron 
Peoplemeter gets universally accepted and each channel (analog, 
digital main and secondary) have encoders. Historically, ad agencies 
haven't appreciated the promotions of commercial free anything. To 
them commercials are good. They should be a positive part of 
programming. It often escapes us that that's where our income comes from.

>Collectively, the coalition has pledged more than $200 million in
>airtime next year to promote HD radio.

There goes Clear Channel's "Less is More." There's no mention of how 
much money will be set aside for external promotion. How much will be 
allocated to newspaper and TV advertising? How much for spiffing 
sales people in stores. How much for all those store displays I keep 
bumping into for satellite radio and iPods? Strangely missing are 
sources for portable devices. You know, those things that are, 
allegedly, wiping us out. Where's the HDPod? How much money will be 
allocated to fixing AM IBUZ? Will this august organization determine 
which stations have to endure interference and who will go scott free?

The more I read about this stuff the more fun the rabbit's tea 
parties become. IBUZ is dead. Long live IBUZ.

Rich