LAS VEGAS – Of course, next February’s transition to digital over-the-air television is a big deal here on the show floor at the National Association of Broadcasters annual convention. But, another HD transition has also emerged as a top-of-mind-issue among U.S. broadcasters this year.
HD Radio, the standard which American radio broadcasters have chosen to go digital, is continuing to gain traction, with various automakers having made announcements to add the technology to their vehicles. Giant retail chain Target has also said it will stock a range of the devices (now over 60 of them, some as cheap as $80). Click here to read yesterday’s story on taking some of the costs out of an HD Radio upgrade.
(Ed note: In Canada, digital radio’s rollout is off the rails. Broadcasters here picked the DAB standard, but with few stations spending to upgrade and with few receivers in the market for consumers, digital radio in Canada seems not just on a back burner, but off the stove altogether.)
At this morning’s “state of the industry” speech NAB president and CEO David Rehr spent a considerable amount of time talking about radio.
Quoting a magazine story that outlined how radio’s model is broken, Rehr attempted to dismantle that theory, pointing to how many people still love and rely on radio and the opportunities presented by the medium’s progression towards digital.
Technology hasn’t changed consumers’ desire for radio, “it has just changed the devices of delivery,” he said. Last year, the NAB commissioned a study of 5,000 Americans to figure out what they wanted from radio – and what they liked, and didn’t like, right now.
“For years, we’ve been saying local, local, local. And that’s true, but we have a new wrinkle. We also learned from these consumers that being local, in and of itself, is not what defines radio’s value. It’s the accessibility and the connection with radio personalities. And it’s being everywhere and available to everyone. A radio is not a jukebox,” said Rehr.
“If you’re listening to radio, you want to hear a human voice sharing that same moment in time that you are. There is power in that personal bond. A CD doesn’t have that connection. An iPod doesn’t have it. No, our model is not broken.”
(Ed note: Rehr wasn’t likely criticizing his own members but one wonders if radio station owners who like to voicetrack vast swaths of their weeks will closely listen to that quote and its inherent advice.)
Rehr went on to note that 235 million Americans say they listen to radio and rely on it for news and information, as well as entertainment and outlined the ongoing growth of Radio 2020, the NAB’s initiative that will grow until radio’s centennial anniversary in 12 years.
As part of that thrust, “(w)e are going to make sure that radio is incorporated on every new gadget, everywhere – especially mobile, hand-held devices,” said Rehr. Semiconductor manufacturers have already completed chipsets to make that happen.
Plus, the NAB is going to push its members to diversify and offer niche digital audio stations that can expand and diversify radio’s listenership. Many of the reported 1,650 stations who have adopted HD Radio technology are already doing, like diving deeper into music niches for devoted listeners, hoping advertisers will come, too, thanks to more targeted demos.
Adds Rehr: “We are reminding people: That radio is accessible and everywhere they are; that it’s simple and convenient to use; that it’s available to everyone; it reaches out to you no matter what your status or station in life.
Cartt.ca editor and publisher Greg O’Brien is in Las Vegas this week at NAB.
