Insignia NS-HD01: first-ever portable HD Radio on sale at Best Buy

by Darren Murph, posted Jul 12th 2009 at 12:01AM
OK, one million radios "in use?" Not sold, but in use. Putting that vague reference aside, it strikes me that even at 1 million units after 3 years, the number is quite weak. By comparison, it is believed that when Apple released iPhone 3g in the US there were 1 million sold in the first 3 days.HD Radio milestone: One million receivers are now in use. Three years after the first HD Radio receivers arrived, iBiquity says it’s crossed the one million mark. “We expect that number to grow tremendously in the coming years,” says iBiquity VP Joe D’Angelo. He tells Inside Radio the recent economic downturn has yet to make an impact on sales. At yesterday’s Kagan Radio Summit, D’Angelo noted, “The take-up rate has really grown as prices for receivers have come down.” He says the number of units in circulation should continue to grow more rapidly as HD Radio chipsets have been shrunk to fit into MP3 players and other portable devices. An iPod accessory is set to be released this summer. Even though a dozen other automobile brands are offering HD Radio options, General Motors has yet to commit. D’Angelo says iBiquity has “ongoing discussions” with every automaker, but notes it gets help from suppliers like Delphi who also push the car companies to adopt the technology. The rollout comes as car sales have plummeted. Detroit’s Big Three yesterday reported weak March sales figures. General Motors sales fell 45% last month, while Ford reported a 41% drop and Chrysler had a 39% decline. By positioning HD Radio as a replacement “upgrade” for the estimated 800 million analog radios in use, D’Angelo says, “There’s still more than enough head room for us to grow.”
Mercedes-Benz has already toyed around a bit with some internet-connected in-car systems, but it looks to really be going all out with its new myCOMMAND system, which it's now showing off at the Los Angeles Auto Show. Among other things, it would constantly pull various traffic information off the internet and take it into account for route selection, as well as give you access to internet radio stations, let you make VoIP phone calls, and even give you a browser that'll let you " surf the internet in the accustomed way." Mercedes is also promising that the entire system will be completely intuitive, with most of the primary functions controlled with a single rotary pushbutton, and two secondary buttons provided for things like menu operation. Of course, it's all still very much a demo at this point, and Mercedes itself says it'll be least a "few more years" before it actually winds up in a production vehicle.Interesting that there is no mention of AM and FM radio. While I don't think it won't be included, it's a sign of the times that it is not viewed as MOST important. HD Radio...ahhhhh
Only 58% of adults younger than 30 say they watch TV almost every day, while 23% of say they watch television only a few times a week. That's according to new research by the Pew Internet & American Life Project.
Numbers decidedly weaker than we are experiencing in radio. What's not mentioned is what the numbers were in the past and how far they have fallen. It's reasonable to guess that younger demos have always watched less TV than their older counterparts.
Among older adults, the numbers are higher. Seventy-two percent of people age 30-49 watch TV almost every day, as do 80% of those 50-64 and 89% of those 65 and older.A huge difference.
Get this...from the same MediaPost article:
Independent of the Pew study, The Wall Street Journal recently wrote about the growing number of adults who have stopped paying for cable TV because they can watch any programs they want online. Presidential debates can now be streamed live, shows on cable channels like MTV are available for free streaming, and the best moments from "Saturday Night Live" can be viewed on demand at Hulu.com and NBC.com.
And the article goes on to say:
If people had already started canceling their cable subscriptions before the recent economic events, it's easy to imagine that more will do so in a recession. And that means that Internet video, which already commands some of the highest CPMs out there, will grow in popularity. Current predictions are that the market could reach $1 billion by 2010, but that could turn out to be an underestimate if more people than expected stop watching TV.
Additionally, as people spend more time online, search advertising also is likely to continue to grow. Many Web users now view search engines, and not portals, as the gateway to the Web; when those people go online, they start at Google, Yahoo or another company's search engine. Just last week, Google reported that second quarter profit grew 26%, showing that paid search is holding up very well, even as the rest of the economy teeters.
The future is here and it's on-demand. Honestly, I had never heard that cable TV subscriptions were being canceled. But if that tidbit is accurate, that's got to send chills down the spine of TV exec's everywhere.
And we wonder why there is little to no appetite for HD Radio--good content or not.
MTV Networks learned long ago that music and music videos were becoming too much of a commodity (not to mention the declining ratings) to center most of it's programming around it. The channels today are largely about music and the people making the music but not music videos.
It's a very difficult lesson for radio to wrap its arms around. I'm guilty, we are all guilty of selling "more music." It was a plausible strategy before more music could be better deployed elsewhere. Now the challenge is to develop radio programming (live, on-line, on demand) that gets beyond the songs exclusively.
What exclusive content do you have worth searching for and consuming on-demand?
And that's where this story begins. Add that to the fact that HD Radio does not fulfill a [consumer] need or solve a real problem [for consumers] and now we are witnessing a technology struggling to find a reason to exist.
Can it be saved? Maybe, but I think the odds are long.
Two things that might have made a difference:
Can these issues be addressed now? Seems to me that it might be too late on the engineering side of things and it's never to late to produce great programming.
Let me share with you a great column I read written by Brad Burnham on the Union Square Ventures website (a venture capital firm in NYC). It is talking about computer technology and its applications, but I think the article applies nicely to HD-R. Read the entire piece here.
In the old days, electrical engineers focused on getting computers to work not on getting people to engage with the systems built on top of those computers. The folks that built enterprise software were vaguely aware that their systems had to be accessible to the humans that used them but they had a huge advantage. The people who used them did so as part of their job, they were trained to use them and fired if they could not figure them out.
Today, no one tells you to use Facebook. There are no employer sponsored training sessions on the use of del.icio.us. The burden is on the designer of the system to meet a need, entertain, or inform their users. They also have to seduce those users, hiding complexity, revealing one layer at time, always enticing, never intimidating, until the user one day finds they are intimately familiar with power and the pleasures of the service.
Designing a system that does that is not an electrical engineering problem. It is a social engineering problem. The best social engineers are working today on consumer facing web services. They understand that there is enormous potential leverage in those services. The creators of these services recognize that services like theirs will ultimately disrupt the economics of many, if not most, parts of the global economy in much the same way that Craigslist collapsed the multi-billion dollar classified industry into a fabulously profitable multi-million dollar web service.
Streaming makes a bigger showing in PPM ratings. Stations meeting minimum reporting standards for online listening more than tripled last month, as 11 stations in the first 13 PPM markets had enough listening to “make the book.” The webcast of New York AC “Lite FM” WLTW had a 0.6 cume rating while sister CHR “Z-100” WHTZ reached a 0.7. Both stations did better in suburban embedded markets, even topping a 1.0. In Los Angeles AC KOST and modern rock KROQ both had a 0.5 cume rating. Chicago’s WLS hit a 0.6 — with a big spike in online listening during Rush Limbaugh’s show. Arbitron SVP Bill Rose says while online listening remains primarily an at-work medium, it is proving to be more of a 25-54 phenomena than first thought. Last month, more than one in ten working Men 25-54 (11.4%) listened to a station online. For working Women 25-54 it was 10.9%. That compares to 7.5% for Persons 6+. Rose says “Streaming has been around a little while and it’s gotten a little older.”It's a very optimistic story, one that is closer to the early FM comparison.
Wachovia analyst Marci Ryvicker says “HD Radio is not a catalyst” for radio, at least not now.
Marci’s précis of last Wednesday’s SNL Kagan Summit concludes with this paragraph: “HD Radio has been in the works for years, yet it is amazing to us that #1, it is still not in cars (please tell us who would actually buy a radio in the store when there are sexier technological gadgets out there). #2, Radio groups still plan to use the spectrum for programming rather than datacasting or on-demand alternatives. #3, No one can figure out what the revenue model will be.” Ryvicker says “our thoughts: radio does not need more formats or more inventory. Use the spectrum for something else [like datacasting] and get it in the car, as a non-pay option, ASAP.”
Well said.
Your BlackBerry can tell you what song just played on the radio, thanks to a new free downloadable program named “Radio Companion”, developed by Nobex Technologies. The airplay data comes from suburban Philly-based Mediaguide, which tracks more than 2,700 U.S. stations.Being a long time Blackberry user and proud owner of the a BB Curve I had to download the small piece of software to see what it could do. Easy to download and install and easy to use once on the Blackberry Desktop.
Radio Companion does not yet stream audio from radio stations directly to BlackBerry smartphones. Nobex and Mediaguide anticipate adding this feature in late summer of 2008.So by summer's end I could be streaming any of 2700 stations right on my blackberry from coast-to-coast? Seems ambitious. Seems somewhat unlikely. Seems exciting. A free platform for radio stations to get on mobile devices? Hmmmm We will have to watch this one and see how things develop.
This week's Convergence conference in San Jose was a terrific gathering of broadcasters and their partners who feel radio's best days might very well lay ahead. No sticks in the mud, these. Rather, folks with brains and vision and a plan, or at least the hopes of developing one.
This was no place for spin doctors and conventional wisdom. So I was not surprised when Kurt Hanson spoke on radio's future with an emphasis on radio's inevitable future on the Internet.
Nor was I surprised when Kurt veered left to discuss - and dismiss - HD Radio.
What fascinated me was the reaction.
Any room full of broadcasters is full of HD radio doubters, nowadays. But the vibe in this room was remarkable for the eye-rolling and audible snickering that greeted virtually any mention of HD.
Kurt disassembled HD's premise by dividing the total number of radios now in circulation by the markets in which those radios live and other relevant assumptions (I did something like this a while back myself). He arrived at the conclusion that the average HD radio advertiser in any given market could reach more prospects by standing at the bottom of their driveway and handing out fliers.
In a panel session immediately following Kurt's, the lone iBiquity spokesman filibustered on his talking points, spitting one after the next, but the effort seemed surprisingly desperate. You could almost hear the sweat forming on his brow as he reiterated his case, oblivious to the thrashing that had just occurred.
Although he described himself as Kurt Hanson's "evil twin," the feeling in the room was that he was at least half right.
It left me feeling that a corner had been turned. That broadcasters understood new media presented scores of new opportunities, few of which had anything to do with selling newfangled radios to consumers who don't want or need them.
This should create great hope for those of us in radio: Hope that good ideas really will rise to the top. Hope that we're too smart to be taken in by pyramid schemes. Hope that those with a vested interest will be revealed for what they are. Hope that those with the interests of broadcasters and listeners and clients at heart will create the kind of future those constituencies demand and deserve.
All along, HD radio was designed as the industry's counterpunch to XM and Sirius. As the satellite titans near a merger (which I do believe will happen and could come any day now) in order to save themselves, as satellite's control over one pocket in the dashboard accelerates, as another pocket opens up for all-things-Internet, HD radio will rapidly dim into obsolescence like the technological also-rans which preceded it.
All technology is transitional, but some never make it to the transition.
In this new media world, opportunities are actually less about "convergence" than about emergence. Chaotic storms of passion bring audiences together. Their whims and tools and discussions allow them to take the driver's seat. We are and always will be in service to them.
HD radio was always about what the industry wants, not about what consumers want. That's why it was doomed to fail from the start.
And, unless there's some remarkable consolation prize embedded into the satellite radio merger decision, that day shall be Black Friday for HD radio.
So far, according to a story I saw on CNBC, this site has amassed 15 million users in about a year and a half. Not bad. When you go to the site you can easily check out whats hot and get this radio friends--"most added."
Add this site to all the others doing similar things and at the very least one has to realize that any radio station that is in the business of playing CHR, Active Rock, Alternative, Hip Hop, or any other genre of music that appeals to under 35's these sites are:
1. Great resources to better understand what's hot and what's not.
2. They are our competitors when it comes to music discovery--an area that radio has traditionally been the leader (and still was based on research conducted 2 years ago).
iLike is also doing a couple of other things that radio has always done well: concert listings for the US and Canada and the iLike challenge--a game where you have to name the artist and song.
Here you can check out their own description of what they do and the people (you will see some familiar names) behind the company http://ilike.com/about.
Now, I am off to discover a new song or two.
For the most part HD Radio has not broken any new ground. FM's have programmed mostly line extension formats or narrow niche formats and AM's have banked on the improved audio quality to draw listeners. While the audio quality improvement is impressive (yes, there are those who disagree with that), that alone will not bring new listeners to the band. And don't get me started on the channel numbering!HD Alliance defends new ad campaign. The HD Radio Alliance's new ad campaign is drawing fire. Critics worry about how the campaign portrays existing analog radio - while doing little to sort out consumer confusion about HD Radio. Consultant Fred Jacobs says the new campaign "stunned" him because he thinks it positions analog radio as "repetitive, and lame." But Alliance chief Peter Ferrara says the industry needs to adjust its message to what today's consumers are thinking.