Radio trying to reinvent and compete

Randall's post yesterday on Clear Channel had great timing with regards to the radio industry. Truth be told, traditional radio is dying a slow, painful death. When satellite radio hit the airwaves, radio said "Why would you pay for something you get for free?" I suppose that the radio industry paid no attention to the pay-TV model that cable and satellite adopted in the last few decades.

Ironically, the radio industry is asking the same question today, but this time they are looking for a different answer. John Hogan, the CEO of Clear Channel's radio organization, just asked "Why would you pay for something you get for free?" This time he expects to win customers back with a similar radio model that's used by XM and Sirius. More channels and better quality, but all for free. Clear Channel expects to upgrade over 95% of their 1,200 radio stations to digital in the next two years.

Could we see digitial terrestrial bring a wave of new portable receivers or iPods with timeshifting and recording ability for digital or HD radio? Will podcasts be adopted by mainstream radio? Who knows, but one thing is certain: if the radio industry doesn't react quick enough this late in the game, you won't hear anything but static on that dial. What do you think terrestrial radio needs to do in order to compete? Or...is it too late?

Albuquerque radio stations plan earlier HD launch

Five Clear Channel Communications (NYSE:CDL) radio stations in Albuquerque will go on the air with "high definition" radio side channels starting Feb. 3.

Twenty-eight radio markets around the nation are part of the systematic roll-out of HD digital radio, an advance in broadcasting that promises clearer sound and more formats airing alongside already established frequencies.

The first wave of HD broadcasts in the nation will begin Jan. 19 in San Francisco and New York City, part of a joint initiative by the HD Digital Radio Alliance, a joint effort of several radio broadcasters aimed at accelerating the introduction of the new technology. The biggest obstacle to widespread listening to HD radio is the availability of receivers, which the Alliance members hope to begin changing with HD radio giveaways in the coming months.

In Albuquerque, what had not been expected to take place for another two months now will be a reality in about two weeks, says Chuck Hammond, local Clear Channel manager. The equipment and modifications to transmitters to handle HD radio alrleady have been largely installed, Hammond says. The new formats, which are essentially related offshoots of existing stations, will operate commercial-free for about 18 months, he says.

The Duke City stations included in the Feb. 3 HD introduction range from country to rock.

At KZRR-94 Rock, the adjacent channel will air "deep tracks," or selections from rock albums played on the station. At 104.7-The Edge, which already airs alternative rock, an additional classic alternative format will be offered. Hot 95.1 FM, which now plays "old school and today's R&B," will add a separate format called new hip-hop. Clear Channel's 100.3-The Peak's HD channel will play adult album alternative music, which Hammond says will resemble a now-deceased format in Albuquerque called world class rock. The company's country outlet, Big I-107.9, will feature a format of country variety.

A sixth FM station owned by Clear Channel, Mega-104.1, which airs Hispanic-urban music, won't be among the first wave of HD roll-outs in Albuquerque. But Hammond says the necessary upgrades should be installed so the station can begin airing its planned channel that will feature Spanish oldies.

Listeners with HD radios will be able to hear the new formats by simply tuning to the usual FM channel, 94.1 FM, for instance, and then slightly changing the frequency to 94.1-1 for the new offering. In the meantime, the new formats will be streamed on the Internet at the stations' various Web sites.

Hammond, who says he's expecting to acquire his own HD radio shortly, adds that the stations involved in the roll-out in Albuquerque plan to give away 100 HD radios over the course of the next several months to promote the new technology.

The coming HD broadcasts are the not the first in the country. A few scattered stations are already on the air with the new formats, including a station in Denver.

Citadel Broadcasting Corp. (NYSE:CCU), another major corporate broadcaster in Albuquerque, also is expected to initiate HD broadcasts. Milt McConnell, the local Citadel manager, was not available to comment on the company's plans.

XM SATELLITE RADIO AND NEURAL AUDIO ACHIEVE AUDIO BREAKTHROUGH WITH RADIO'S FIRST 24-HOUR CHANNELS IN 5.1 SURROUND SOUND

Denon, Onkyo, Pioneer, and Yamaha to introduce home audio systems that play select XM music channels and programs in XM HD Surround powered by Neural Audio

Washington D.C., December 28, 2005 -- XM Satellite Radio, the nation's leading satellite radio company, will broadcast select XM music channels in 5.1 Surround Sound, marking the first time that a radio company has broadcast in 5.1 Surround Sound twenty-four hours a day.

The audio breakthrough was announced today by XM and Neural Audio Corporation, a leading provider of digital signal processing and surround sound technology for the broadcast industry, in advance of the 2006 International Consumer Electronics Show (CES). The new offering of 5.1 Surround on XM is called XM HD Surround, which provides content with six discrete channels of digital full fidelity audio powered by Neural Audio technology.

Beginning in March 2006, XM will broadcast the free-form music channel Fine Tuning (XM Channel 76) and the classical pops music channel XM Pops (XM Channel 113) in XM HD Surround. XM will also broadcast a variety of special shows and live music performances at the XM studios in XM HD Surround.

XM manufacturing partners such as Denon, Onkyo, Pioneer Electronics (USA) Inc., and Yamaha will introduce home audio systems capable of playing XM HD Surround powered by Neural Audio in 2006.

XM will demonstrate XM HD Surround broadcasts at the 2006 CES January 5-8 in the XM booth #4606 in the North Hall of the Las Vegas Convention Center.

"XM is the first radio company -- satellite or terrestrial -- to broadcast 5.1 Surround Sound on the radio 24 hours a day," said Hugh Panero, XM President and CEO. "Terrestrial radio stations are just starting to convert from analog to digital. XM has been broadcasting in digital format since the day we launched in 2001, and now we are taking another leap forward with the introduction of 5.1 Surround in partnership with Neural Audio. XM HD Surround is the latest example of the technological edge that has made XM the number-one satellite radio company.

"XM was the first company to offer satellite radio, the first to introduce satellite radios for the car and home, and the first to offer portable, live satellite radios. Now we're the first to offer radio channels in 5.1 Surround every minute of every day. We have an outstanding partnership with Neural Audio, which shares the same passion for high-quality sound that we have at XM," Panero added.

"XM HD Surround is setting the bar at a new level with surround sound that enriches the listener's experience with full envelopment and image detail never before available in traditional broadcast," said Geir R. Skaaden, Neural Audio CEO. "We are excited to partner with XM to provide the largest source of 5.1 original music content of any medium today."

Home audio systems enabled with Neural Surround will deliver the full surround experience of XM HD Surround. These broadcasts can also be heard on any existing mono, stereo, or matrix style receiver.

About XM Satellite Radio
XM (NASDAQ: XMSR) is America's number one satellite radio service with more than five million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM offers 160 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier sports, talk, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 130 different vehicle models for 2006. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com.

About Neural Audio
Neural Audio Corporation, an audio development company specializing in digital signal processing solutions for broadcast and consumer electronics, is the developer of Neural Surround™, a proprietary audio format that embeds the rich envelopment and discrete image detail of surround sound and is 100% compatible with stereo content. Chosen by XM Satellite Radio as the format for their 24/7 XM HD Surround programming, Neural Surround™ will introduce the excitement of surround music to a broad audience. Neural Surround™ is supported by major home theater brands and automotive OEM's and is expected to be available in more than 50% of surround sound receivers starting in Spring '06. Neural Audio Corporation is a privately owned company headquartered in Kirkland, WA. For more information; http://www.neuralsurround.com.