[BC] NO HD RADIO FOR CHRISTMAS

[Michael Bergman]

Ernie,

> I have been looking in the usual Retail Outlets this first 
> shopping weekend of the 05 Christmas season.

<snip>

> iBiquity is  waiting for the receiver manufacturers to advertise 
> the receivers... or maybe the radio stations to advertise 
> the receivers......or for radio to broadcast in living "HD Radio" 
> live from in front of the MTV studios in Time Square so consumers 
> could ask "WHAT IS HD Radio Anyway... and Where can I buy one????"

Let's talk high-tech marketing.

First, iBiquity is an IP company.  It's not their ecological niche to build
marketing campaigns for the broadcasters' new tech effort.  Microsoft does
it for Windows now, but how much marketing did MS fund in 1983?  

Yes, iBiquity owns the HD Radio trademark--but broadcasters control this
completely; they could create their own mark and promote it even while they
comply with on-air requirements to say "HD Radio".  

> It will take each of them working together like a symphony orchestra 
> to build  a great work. 

Agreed.  Add retailers, by the way--receiver makers and broadcasters can't
force them to carry the product.  They respond to consumers asking for it,
which goes back to your point about promotion.

> Not one lonely player (Radio) beating a single drum, all by 
> itself, struggling desperately to be heard in a world of well 

Actually, radio has not been beating any drums.  In 2004, Kenwood and others
had products and got some retailers to carry them, but broadcasters were
nowhere to be found.  A few brave souls, like WOR, switched over and talked
about it on air, but most didn't.

At CES 2005, after a year of silence, I watched broadcasters step up to a
microphone and announce "we're here!"  One of them said, "it's time for
receiver makers to get with the program and make some receivers!"  Sheesh.  

Regarding promotion, receiver makers, in aggregate, spend something like
$25M on advertising in a single year (excluding satellite, which is funded
by stock money).  No way are you going to get the word out on HD Radio with
a realistic share of $25M.  

Fortunately, the major radio groups are rumored to agree, and are rumored to
be preparing on-air promotions as soon as the tabletops are here.  Tabletops
are apparently going to hit "December 2005" just technically, but word is
they are going to hit it.  So Q1'06 should be very interesting. 

Mike Bergman