The National Association of Broadcasters, Ibiquity, and four major broadcast equipment manufacturers are all working together to try to make it easier and more budget friendly for radio stations to upgrade to HD Radio. The team intends to make the upgraded technology available to station owners at the NAB Radio Show in Las Vegas.

Bigger terrestrial radio ownership groups led the charge in getting HD Radio exposure and launched. This latest move targets medium and smaller stations to follow suit. HD Radio now has over 1,600 channels broadcasting.

The challenge for HD radio now is to get consumer acceptance, and installations into the automobile channel. Ibiquity has been lobbying the FCC to have HD technology incorporated into SDARS receivers capable of getting traditional AM and FM signals. Such a move, if implemented as a concession for the SDARS merger would enable broad based installations into cars, and circumvent the need for Ibiquity to negotiate with the major automotive brands.

NAB PRESS RELEASE

NAB AND PARTNERS UNVEIL RESULTS OF PROJECT TO LOWER HD RADIO UPGRADE COSTS FOR STATIONS

– ‘Embedded Exporter’ technology unveiled at the NAB Show —

LAS VEGAS — The National Association of Broadcasters (NAB) today unveiled the results of an unprecedented partnership with iBiquity Digital Corporation and four broadcast equipment manufacturers to accelerate the commercial development of products based on next-generation HD Radio “Exporter” technology. The products, which significantly reduce a radio station’s cost to upgrade to HD Radio, are being introduced and made available for purchase during the NAB Show in Las Vegas.

“NAB is playing a critical role in the creation of new technologies to benefit our members and promote the future of broadcasting,” said NAB President and CEO David K. Rehr. “This is just one example of how we’re fulfilling our advocacy promise to broadcasters.”

HD Radio stations use the Exporter to combine multicast audio channels and advanced data services along with a station’s main audio channel into a format suitable for transmission. NAB and iBiquity, the developer of HD Radio digital broadcasting, worked with four manufacturers — BE, Continental, Harris and Nautel — to accelerate the development and implementation of this next-generation technology. Known as an “Embedded Exporter,” the technology further reduces the size and cost of HD Radio transmission facilities.

The project began in 2006, and the newly formed NAB HD Radio Technology Advancement Task Force was charged with overseeing the effort, culminating in today’s announcement.

Task Force Chair and Beasley Broadcast Group Executive Vice President and CFO Caroline Beasley said, “NAB is putting its money where its mouth is when encouraging stations to broadcast in digital. This new technology will give a big boost to the advancement of HD Radio, which ultimately means more choices and better sound quality for our listeners.”

Because of NAB’s contribution to this effort, NAB members receive an additional discount on these already cost-reduced products. All four manufacturers are displaying, and offering for sale, products incorporating Embedded Exporter technology at the 2008 NAB Show.

Position - Long Sirius, Long XM

Sirius Buzz has learned that Slacker has now inked deals with some of the biggest movers and shakers in the music publishing world. The deals, which have been in the works for some time, enable a full integration between the Slacker Internet radio service and the Slacker portables.

Some noteworthy comments made by music industry executives point to the broad audio entertainment landscape as well as take what may be perceived as a jab or two at satellite radio with regards to law suits surrounding recording capabilities on the wearable devices.

Consumers who have not tried slacker may want to test drive the service by visiting the Slacker website

Comments by Music Industry Executives:

“By working with the publishers, we can offer a radio experience that is more personalized and - for the first time - completely portable,” said Dennis Mudd, CEO of Slacker. “These new partnerships give Slacker customers the freedom to customize personal radio stations to their style and take them wherever they go.”

“As publishers, we must continue to be flexible and open to new business models and find creative solutions to license them,” said David Renzer, Chairman and CEO, Universal Music Publishing Group. “Credit to Slacker for making sure they secured the proper rights before launching and we look forward to distributing royalty checks from Slacker to our UMPG songwriters.”

“People who love music want to discover new artists, listen to their favorites and take their songs with them wherever they go,” said Roger Faxon, EMI Music Publishing Chairman and CEO. “Slacker’s Personal Radio service is a promising distribution channel that fulfils a clear consumer demand, and that has to be good for our songwriters and for the industry as a whole.”

“The multi-tiered format of this new digital service creates a potentially rewarding user experience,” said Martin Bandier, Chairman and CEO of Sony/ATV Music Publishing. “We are happy to agree to license a business where our writers get paid, and move the industry forward in legal song streaming and delivery in the digital space.”

Dave Johnson, CEO of Warner/Chappell Music added: “Today’s music delivery options are evolving rapidly and interactive Internet radio services have the potential to be a promising new business. Slacker’s personalized service provides the kind of interactivity and portability that consumers demand and it offers an ideal platform for us to distribute our talented roster of artists, songwriters and producers.”

[Via Slacker Active ]

Position - Long Sirius/XM

One can not help but wonder. The day after the Department of Justice gives the green light to the merger of Sirius and XM, Bain Capital and Clear Channel part ways. According to the press, the deal collapsed because the parties could not come to financing terms. However, could it be possible that Bain, the buyer, was stalling the process all along to see the outcome of the merger of Sirius and XM?

Would a merged satellite radio company have an impact on the value of Clear Channel in the eyes of Bain Capital? Perhaps it would. While neither Bain, nor Clear Channel would ever admit that this is the case, the timing of the issue, and statements of market insiders that Bain no longer wanted the deal have to leave people scratching their heads.

One thing is certain. The audio entertainment landscape is no longer dominated by the Clear Channels and CBS’s of the world. Satellite, wireless, and many other players are now gaining market share. Granted, the theory that Bain backed out of the Clear Channel deal because of the Sirius/XM merger is pure speculation, but the timing is curious if nothing else.

Clear Channel has taken a virtual beating in after hours trading.

Position - Long Sirius, Long XM, No Position Clear Channel, No Position CBS

The National Association of Broadcasters is a bit upset over the royalty decisions made by the Copyright Royalty Board (CRB) on broadcasts over the Internet. This is no surprise, as many Internet streamers, inclusive of Sirius and XM now face higher royalty rates for Internet streams of covered content. Many smaller Internet radio companies argued that the cost of the fees would doom their services. Terrestrial Radio’s streaming of content gives them a national platform, and is a burgeoning part of their business model. The crux of the NAB argument is that there should be a separation for companies that broadcast in traditional methods and “simulcast” that content on the web. Ironically, Sirius and XM would likely benefit if the National Association of Broadcasters is successful.

SUMMARY OF ARGUMENT

The Board’s threshold ruling that terrestrial radio stations that stream their stations on the Internet (“Simulcasters”) must pay a per-performance, per-listener royalty, instead of an annual flat fee royalty, was unlawful. The Copyright Act requires the Board to determine the rates and terms that a willing buyer and willing seller would have negotiated in the marketplace, and it separately requires the Board to identify the different “types” of webcasters that should pay different rates. Simulcasters submitted extensive evidence showing that these statutory tests required an annual flat fee royalty, because that is what Simulcasters have negotiated in other similar marketplace contexts and because a per-performance fee structure would undermine Simulcasters’ business models. The Board’s Order never addresses any of Simulcasters’ arguments. See Order at 17-25 (JA__). This is a fundamental violation of basic principles of administrative law. Motor Vehicle Mfrs. Ass’n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983) (decision must be reversed if it “entirely failed to consider an important aspect of the problem”).

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In a development that was published by the FCC today, Ibiquity has taken the next step in what could be a merger concession up for consideration. This development now takes the issue past the theoretical stage and brings us to something with more substance that all parties can consider. Ibiquity is seeking that if the merger were approved that the following rule be added to the licenses:

PROPOSED RULE

25.144 Licensing Provisions for the 2.3 GHz satellite Digital Audio Radio Service

(a)(3)(iv) Each licensee will certify no later than June 1 of each calendar year, in accordance with the dates specified below, that any newly introduced satellite receiver models that operate with the licensee’s satellite DARS system and includes the ability to receive terrestrial analog AM/FM signals, will also include the ability to receive digital AM/FM signals in accordance with the technical specifications for terrestrial digital radio specified in MM Docket No. 99-325. This requirement will be effective three years from the date of this rule for new model Original Equipment Manufactured (”OEM”) automobile receivers and one year from the effective date of this rule for new model non OEM receivers.

It would appear that the stage of concession discussion regarding the merger has matured to a point that filings are beginning to have some specificity. With this proposed rule, Sirius and XM now have a concrete and specific platform of exactly what Ibiquity is seeking. This would allow a more permanent dialogue between Sirius/XM and the FCC, and perhaps an indication of the tenor that various meetings with the FCC have taken.

Continue Reading »

On the front page of Yahoo, they often give little tid-bits of information that show what is popular among Yahoo users. The section, called the PULSE toady gave the popular cell phones, and they all have something in common. They are all phones that are blurring the line between cellular and audio entertainment.

The Most Popular:

The iPhone
Product Line - iPhone
Cell Phone Type - Camera, Digital Player, Bluetooth, MP3
Carrier - AT&T Wireless
Cell Network - Technology GSM
Wireless Technology - Wi-Fi, Bluetooth
Weight - 4.8 oz

HTC Tilt
Cell Phone Type - Smartphone
Carrier - AT&T
Cell Network Technology - GSM
Wireless Technology - Bluetooth, Wi-Fi
Weight - 6.7 oz

LG Black Label Shine
Cell Phone Type - Camera, Digital Player, Bluetooth, MP3, Video
Cell Network Technology - GSM
Wireless Technology - Bluetooth
Weight - 4.2 oz

Motorola Razr V3
Product Line - RAZR
Cell Phone Type - Bluetooth, Camera, Digital Player
Carrier - Cingular
Cell Network Technology - GSM
Wireless Technology - Bluetooth
Weight - 3.4 oz

Nokia 95
Cell Phone Type - Camera, Digital Player, FM Radio, GPS, Push to Talk, TV, Bluetooth, MP3, Video
Cell Network Technology - WCDMA, GSM
Wireless Technology - Infrared, Wi-Fi, Bluetooth
Weight - 4.2 oz

Sony Ericsson W950i Walkman
Cell Phone Type - Digital Player, FM Radio, MP3
Cell Network Technology - WCDMA, GSM
Wireless Technology - Infrared, Bluetooth
Weight - 4 oz

Cell phones such as these are far more than devices to call a friend. They are entertainment devices capable of giving consumers a vast library of content available at their fingertips in a device that most Americans have anyway. Add data and browsing capability and you have the ability for consumers, no matter where they are in the nation, to access a vast library of audio content. The competitive landscape in audio entertainment is robust, and cell networks have the capability to influence what consumers are doing with their ears in many more ways than was possible only a few years ago.

Position - Long Sirius, Long XM, No Position Cell Manufacturers listed.

CBS Radio and AOL Radio are combining operations. XM, a former partner with AOL will no longer be included in the mix. Whether this is good or bad for XM is in the eye of the beholder, but perhaps the bigger issue is what CBS has indicated about their deal with AOL. Merger watchers should take note of the following points made in the press releases:

1. CBS Radio has indicated that streaming radio is a “HIGH-GROWTH” field.
2. Partnering with AOL has provided CBS the ability to reach goals in streaming content.
3. CBS has spent years building out their content streaming operations.
4. CBS Radio feels that the deal will instantly make them the on-line leader in streaming audio content.
5. A combined AOL/CBS operation affords CBS a greater ability to scale (CBS termed it a vastly improved ability to scale).
6. The deal gives CBS “massive” exposure for their brand.

The streaming radio business has seen $1.6 billion in revenues in 2007. Ironically, this event demonstrates that there is crossover in the audio entertainment market and that consumers are indeed listening to music in many differing ways. While Sirius and XM struggle to gain merger approval, CBS and AOL have come together to form what they term as a leadership position with massive distribution abilities.

Position - Long Sirius, XM. No Position AOL, CBS.

The Apple iPhone is an impressive device to say the least. Users have enjoyed a myriad of capabilities with the iPhone which has blurred the line between telephones, and entertainment devices. Now, Apple has announced that the iPhone will be capable of interacting with Microsoft Exchange.

Worldwide marketing chief Phil Schiller stated, “The iPhone can now work directly with the Exchange server…this enables corporate e-mail, contacts and calendars.”

This new announcement by Apple means that users can more seamlessly integrate their work life with their phone, and they can get a great playlist of music to boot. Devices with capabilities such as the iPohone will become more commonplace over the coming year. These devices are far more than phones. They offer audio entertainment and other benefits to consumers as well.

VIA - Reuters

No Position Apple

In a story that highlights the competitive landscape for listeners ears, and how terrestrial radio can compete on more than a local scale, we see a new battle-front form. Inside Radio reported today an interesting tidbit that foreshadows the future of the audio entertainment landscape, or at least one aspect of it.

We have all heard the “terrestrial radio is about localism”. The mantra has been preached time and time again, but while the “local” chant is being spoken, terrestrial radio is also seeing massive growth on the Internet, which carries national, if not global implications.

New York City recently saw Emmis’s smooth jazz station CD 101.9 switch formats, and move their programming to an HD channel in the market. HD, without broad penetration, means that many New york listeners will be without smooth jazz unless they have an HD receiver. CBS, to counter the move began advertising a Los Angeles smooth Jazz station (KTWV) on their stable of New York stations.

The ads entice listeners to get their fill of smooth jazz via an Internet feed. The fact of the matter is that on line listening is an ever increasing segment for consumers. Radio stations that tout localism are now marketing well beyond the reach that they used to. The fact that this move is being advertised and promoted points to a shift in the competitive landscape that did not exist 5 years ago, and will only grow in the coming years.

In this case, terrestrial radio is marketing against terrestrial radio. In the future, it is not out of the question that terrestrial radio will use the Internet to broaden their business base. Will these moves be a shift away from “localism”? Only time will tell. Already many stations cater to a national feel with only bumpers and advertisements being dedicated to the local market.

No position CBS, No Position Emmis

Slacker Internet Radio is getting busy. The Internet radio service began shipping units last week, and now they have some great videos on line that demonstrate all that Slacker has to offer. So, what exactly is Slacker? Check out this video for an explanation, then check out their Radio, Software Player, Portable, and Premium Radio videos. One video even mentions terrestrial and satellite radio…HMMMM.

[ via SlackerActive ]