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Radio Stations Plan Digital Programs to Battle Satellite

Posted on: Friday, 20 January 2006, 15:00 CST

By Chris Reidy, The Boston Globe

Jan. 20--With Howard Stern's debut on Sirius Satellite Radio Inc. bringing publicity to satellite radio, traditional radio station owners such as Greater Media Inc. and Clear Channel Communications Inc. said yesterday they are launching new programs in Greater Boston that will take advantage of digital signals that let them broadcast more than one show on the same frequency.

Greater Media station WBOS, which airs such artists as Bruce Springsteen on 92.9 FM, will allow the handful of consumers who own high definition, or HD, radios to tune into a second station on that frequency to hear "Coffee House," an acoustic channel featuring singer-songwriters.

"Coffee House" will be commercial free when it debuts next month, said Peter Smyth, Greater Media's chief executive.

One selling point for satellite radio stations such as Sirius and XM Satellite Radio Holdings is the diversity of programming they offer, roughly 160 channels of music, talk, and information in XM's case.

Broadcasters promote HD radio for its superior audio quality, but Scott Fybush, editor of the industry newsletter NorthEast Radio Watch, said diversity of free programming is a more powerful sales pitch. By using HD channels, traditional radio stations can target niche markets of consumers that might otherwise opt to pay a subscription for satellite radio.

"Broadcasters are very aware of Sirius and XM," said Frank Barone, program manager for Boston Acoustics of Peabody, which sells HD radios. "They see HD as the answer to satellite radio."

But broadcasters face a chicken-and-egg problem: They can't sell advertising if only a limited number of consumers own radios that can listen to these new stations. And broadcasters believe consumers won't buy these radios unless there's exciting new programming for them to tune into, station officials said. A Recepter Radio HD from Boston Acoustics has a suggested retail price of $499.

"The first problem is to get these radios in the hands of consumers," said Jake Karger, a regional vice president of Clear Channel Radio, which has plans to multicast new HD programming on WJMN-FM (94.5) and WXKS-FM (108) on Jan. 27 that will initially be commercial free.

Many broadcasters across the nation belong to the HD Digital Radio Alliance, which is promoting the technology and coordinating the launch of new programming on digital channels. The rollouts of new programming mark the "first wide-scale launch" of so-called HD2 multicast channels, the alliance said in a press release Wednesday

Yesterday many broadcasters belonging to the alliance disclosed more specific plans for their HD2 multicast channels.

Some broadcasters have already been broadcasting identical programming over both analog and digital signals.

Entercom Communications Corp., which operates several local stations including rock stations WAAF-FM (107.3) and WMKK-FM (93.7), says it plans to roll out HD channels, including one that will feature live rock music and another that will air some disco.

CBS Radio has similar plans for some of its local stations. For example, WZLX-FM (100.7), a classic rock station, will soon multicast programming that features "lost classics and deep-album tracks," said Karen Mateo, a CBS Radio vice president.

If HD goes mainstream, broadcasters could then explore ways to generate revenue. Instead of selling commercials in 30-second time slots, Starbucks might be persuaded to sponsor a "Coffee House" program, said Smyth of Greater Media.

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Source: The Boston Globe

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