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TECHNOLOGY
- January 2003 by Ed Ford A Revolution in Radio My friend John has been in the automobile business for as long as I can remember and has consistently used radio to promote his operation. Basically, AM (amplitude modulation) radio has been John’s chief calling card, getting his message loud and clear to hundreds of commuting motorists during the morning and afternoon drive-time hours. Loud and clear, that is, unless static interfered with his hard-sell spots. “Radio,” John explains, “helps put bread and butter on my table. Static doesn’t.” In the near future, John is going to be much happier. The recent Federal Communications Commission (FCC) decision to adopt digital radio technology means that radio listeners no longer will have to contend with static. It’s estimated that within a year digital technology should provide custom news and information at the touch of a button, compact disc-quality sound for FM (frequency modulation) broadcasts and an end to the snap, crackle, pop, fade and hiss of AM radio static. Manufacturers will take orders for digital radios beginning this month. Initially, the new products will show up in high-end home audio systems and car stereos at an anticipated cost of some $75 to $100 more than traditional analog (non-digital) models. Car stereos in 2003 will allow listeners to select and hear reports on stocks, sports, weather and traffic. Some digital models will have small screens that will display images related to the news, advertising or music being heard. And, in 2004, listeners should be able to program their radio hard drives to record their favorite programs, similar to the TiVo and ReplayTV technology. The digital radio standard has been created by iBiquity Digital Corp., which is backed by such major broadcasters as ABC and Viacom. The iBiquity technology allows broadcasters to use their existing airwaves to send digital and analog radio simultaneously. Radio stations won’t need a new location on the radio band, so no cutoff date is necessary for analog service. This means those without digital radios still can hear their favorite stations. It’s estimated that digital transmitters will cost radio stations on average about $75,000, which means some small stations could be left behind. But iBiquity predicts the consumer cost of digital radio to fall as the technology becomes more common. Company spokespersons envision future digital radios to be combined with cell phones or hand-held computers. And, with global positioning system technology, digital listeners could hear music, news or advertising tailored to his or her location. If there is to be a big winner where digital radio is concerned, iBiquity is the odds-on, no-competition favorite. The Maryland-based consortium of large broadcasters, media companies and researchers has spent approximately $100 million developing the technology. And, with the FCC approval, iBiquity has the exclusive right to license the technology to equipment manufacturers, application developers and anyone else who intends to sell anything related to digital radio. Incidentally, it’s a pretty safe bet that digital radio will be standard in new cars. Ford Motor Company and its parts spinoff, Visteon Corp., are among the iBiquity investors. At this point, it would seem that any iBiquity investor should realize financial success. Approximately 70 million old-style analog radios are sold in the United States each year with 800 million already located in homes and automobiles. Eventually, digital radios will replace all of the above. According to Ken Mueller, radio curator at the Museum of Television and Radio in New York City, digital radio could be the biggest update to the medium since the debut of FM in the 1940s. Like FM, which didn’t attain popularity until the 1970s, Mueller contends that “it’s going to take quite some time to phase in” digital radio. “But,” he adds, “we’re not talking 30 years here. We just have to wait until people start getting receivers to pick this (digital radio) up.” iBiquity began its move to “take AM and FM radio to its next level” some eight years ago and utilized “80 world-class engineers and scientists” in technology development efforts. As a result, the company holds more than 35 patents with more than 40 pending. Not surprisingly, iBiquity also is its own best cheerleader, claiming its technologies “offer the most comprehensive digital transmission solution in history....and the most exciting change in broadcasting since the commercialization of radio more than 80 years ago.” Benefits to listeners notwithstanding, advertisers such as my friend John may be the next most enthusiastic set of groupies for digital radio. New on-screen wireless data services such as station and program content, song and artist identification certainly have great public appeal. But stock and news information, local traffic and weather create a new world of other promotional possibilities. They’ll provide an appealing new service in addition to creating another advertising outlet. A sound bite can be reinforced by a radio screen visual identification. It appears that
John now can have dessert with his bread and butter. Ed Ford is a
staff writer for The Lane Report
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Copyright 1996-2003, by Kentucky Business Online. All rights reserved. Editorial content
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