16
August
2004
Will Digital Radio Kill the Satellite Star?
I spend a great deal of time reviewing articles about Digital Music. And almost always, these articles seem to center on topics like iTunes, RIAA lawsuits, downloading teenagers, and the iPod. Not that these are unimportant topics by any stretch, but I rarely see articles that plunge into some of the "less sexier" aspects of the business - like digital radio and satellite radio.
Digital radio could have a huge impact on our radio listening habits. And with radio, at least in the US, the sensible place to start thinking about the market is the automobile. Right now, commuters in the US usually have a choice of FM, AM, CD, or tape. The ambitious among us will venture into satellite radio, CD/MP3 in-dash systems, Phatbox installations, or simply patch a portable device through the stereo system.
But with digital radio, our options change. FM radio evolves into CD-quality listening, and AM radio steps up to FM-quality. What happens next? More than just a fidelity upgrade will take place.
Think about AM radio. Right now, it is dominated by talk radio, Spanish-language stations and the oddball like the Disney channel. Most of us (especially the discerning readers of Digital Music News) will shy away from listening to music on this frequency band. But once AM improves to FM quality, listening to music on AM won't be so bad. And that could open the door for various niche music stations, including those focusing on genres like Reggae, developing indie artists, and regional music like Go-Go and Zydeco.
All of a sudden it is going to be much harder to complain about repetitive playlists. And it will essentially be free once you have a digital radio installed. Already, affordable devices are on the market, and I would expect auto makers to start installing digital receivers as standard devices in upcoming models. That will be key.
Already major radio conglomerates are beginning to upgrade their broadcasts to the digital standard. iBiquity, which is pivotal to the transition, is supplying much of the technology to make this happen. Who's in? Clear Channel, Enscom and Cox Radio will have most of their stations transitioned within 2-3 years.
Digital radio will not require a $10/month subscription, and will have much more local content - a major selling point for terrestrial stations. Some music lovers will still want 100+ genre targeted radio stations that satellite offers - it's a selection that is simply unmatched. Perhaps the two can share the market, but that will require a major satellite value-add for consumers. In the end, digital radio may be too close of an offering, and at a much lower price. Will that kill the budding satellite radio industry? Interested in hearing your thoughts....
More on digital radio.
More on satellite radio.
Digital radio could have a huge impact on our radio listening habits. And with radio, at least in the US, the sensible place to start thinking about the market is the automobile. Right now, commuters in the US usually have a choice of FM, AM, CD, or tape. The ambitious among us will venture into satellite radio, CD/MP3 in-dash systems, Phatbox installations, or simply patch a portable device through the stereo system.
But with digital radio, our options change. FM radio evolves into CD-quality listening, and AM radio steps up to FM-quality. What happens next? More than just a fidelity upgrade will take place.
Think about AM radio. Right now, it is dominated by talk radio, Spanish-language stations and the oddball like the Disney channel. Most of us (especially the discerning readers of Digital Music News) will shy away from listening to music on this frequency band. But once AM improves to FM quality, listening to music on AM won't be so bad. And that could open the door for various niche music stations, including those focusing on genres like Reggae, developing indie artists, and regional music like Go-Go and Zydeco.
All of a sudden it is going to be much harder to complain about repetitive playlists. And it will essentially be free once you have a digital radio installed. Already, affordable devices are on the market, and I would expect auto makers to start installing digital receivers as standard devices in upcoming models. That will be key.
Already major radio conglomerates are beginning to upgrade their broadcasts to the digital standard. iBiquity, which is pivotal to the transition, is supplying much of the technology to make this happen. Who's in? Clear Channel, Enscom and Cox Radio will have most of their stations transitioned within 2-3 years.
Digital radio will not require a $10/month subscription, and will have much more local content - a major selling point for terrestrial stations. Some music lovers will still want 100+ genre targeted radio stations that satellite offers - it's a selection that is simply unmatched. Perhaps the two can share the market, but that will require a major satellite value-add for consumers. In the end, digital radio may be too close of an offering, and at a much lower price. Will that kill the budding satellite radio industry? Interested in hearing your thoughts....
More on digital radio.
More on satellite radio.
- Posted by Paul Resnikoff, Editor posted at 2004-08-16 01:06
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