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INDUSTRY FOCUS: DIGITAL RADIO Public Not Clamoring for It As Conversions Continue

Posted on: Monday, 18 July 2005, 15:00 CDT

Slowly but surely -- and we do mean slowly -- Jacksonville is entering the digital radio age.

A year and a half after the first HD radio receivers went on sale, Jacksonville has two local radio stations broadcasting with the new digital technology and a third is on the way. But the operators of Jacksonville's major radio stations say they are committed to the digital conversion and you will be seeing, or hearing, more of the new technology in the next few years.

"This is kind of the basket where the radio industry has put its eggs," said Thomas Patton, station manager of WJCT (89.9 FM).

Digital, or HD, radio allows local stations to broadcast upgraded, clearer signals. Industry executives say it produces CD- quality sound for FM stations and AM signals that sound just like FM sounds now. It also allows stations to multicast data (such as song titles and artists) and additional broadcasts through its signal.

WJCT, Jacksonville's public radio station, hopes to be on the air with its digital signal in mid-July, broadcasting the same programming as it currently does with its analog signal. But Patton said about four to six weeks after going digital, WJCT plans to add a second signal that will be broadcasting classical music and fine arts programming.

"We're very excited about this," he said.

WJCT will be the third Jacksonville digital station. Clear Channel Communications Inc., which plans to have all seven of its Jacksonville stations broadcasting digitally by the end of 2006, converted WJBT (92.7 FM) and WFKS (97.9 FM) to digital several months ago. Those two stations have been simulcasting their broadcasts in digital and analog, said Norman Feuer, market manager of the Clear Channel stations.

But is anyone actually listening? In order to listen to digital broadcasts, consumers need HD radio receivers. And at this point, they're not easy to buy, as many electronics retailers don't even sell them. Spokespersons for national retailers Circuit City and Best Buy said they don't sell HD radios anywhere in the country because there isn't a lot of interest in them.

In-Stat, a technology research firm, has found through consumer surveys that people are much more familiar and more interested in satellite radio services such as XM or Sirius than in local stations' digital broadcasts. Michelle Abraham, senior analyst at In- Stat, said it's up to the individual stations to raise consumer awareness.

"Once the stations convert and go into promotion mode, I'm sure peoples' awareness will rise," she said.

According to a recent industry report by Wachovia Securities analyst Jim Boyle, more than 320 stations nationally are broadcasting in digital. He said the industry should begin to see significant consumer use of HD radio receivers in 2006 and 2007.

Jacksonville should be getting more digital stations next year. Cox Radio Inc. expects WAPE (95.1 FM) and WFYV (104.5 FM) to be converted by next June, with its other three Jacksonville stations becoming digital later on.

"We're spreading them out over time," said Gary Spurgeon, market manager for Cox's five local stations.

Renda Broadcasting Corp. has not made conversion plans for its four Jacksonville stations, said general manager Bill Scull. He said Pittsburgh-based Renda will probably set a timetable for all of its 24 stations at the same time.

Boyle thinks the digital conversion, when it arrives fully, will be a big boost for radio station operators.

"Many investors and observers have left analog, terrestrial radio for dead. But maybe the sector has life left in it," his report said.

"HD Radio suggests bright growth prospects in 2006 and beyond, if the groups don't muck it up by internally fighting. Indeed, it is radio's chance but it can be lost," it said.

mark.basch@jacksonville.com, (904) 359-4308

Source: Florida Times Union

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