[BC] An HD coalition has formed

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Eight Groups Form HD Radio Alliance
/Dec. 06, 2005/
By Paul Heine


Recognizing it needs to move more aggressively in the face of 
competitive digital threats, eight of radio's largest companies came 
together Tuesday morning (Dec. 6) to unveil an alliance to put HD 
digital radio on a fast track.

Lead by former Clear Channel executive Peter Ferrara, the HD Digital 
Radio Alliance includes Bonneville, Citadel, Clear Channel, Cumulus, 
Emmis, Entercom, Greater Media and Infinity. Other radio groups are 
welcome to join, the group says. Cumulus, in fact, came on board the 
night before a splashy press conference announced the alliance at New 
York City's Waldorf Astoria Hotel.

To be part of the coalition, radio companies are required to agree to 
its goals and mission; commit ad inventory to marketing HD radio; and 
make a monetary contribution.

Formed to prevent what otherwise could have been a digital radio Wild 
West, the alliance plans a "unified direction" for the long-awaited 
roll-out of HD2 multicast side channels, widely regarded as the new 
technology's killer app.

HD2 channels - comprised of entirely new programming -- will be launched 
in the top 25 markets beginning in January. One of the purposes of the 
alliance is to fairly and equitably coordinate local market "format 
allocations," so that companies aren't stepping on each other as they 
launch what amount to scores of brand new radio stations.

The new channels will be commercial-free for at least two years. 
Programmed locally, they will be free to anyone who purchases a new HD 
radio.

However, competitively priced HD radios are not widely available. By 
launching new formats dedicated to jazz and blues, Hispanic love songs, 
female talk and other programming not widely available on free radio, 
the alliance hopes to spur manufacturers to crank out more and cheaper 
radios and convince automakers to install them in cars.

Collectively, the coalition has pledged more than $200 million in 
airtime next year to promote HD radio.

Clear Channel president/CEO Mark Mays, Greater Media president /CEO 
Peter Smyth and Infinity chairman/CEO Joel Hollander will serve on the 
alliance's oversight management committee.

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