HD Radio Special Report #1:

Monetizing HD Radio multicast formats

The future course of monetizing HD Radio multicast formats is still a bit up in the air. As we get to the point of having enough listeners to make it worthwhile, it will be the agencies, advertisers and HD Radio Alliance that decides how to go about it.

As has been speculated, some multicast channels may have sponsorship hours; some may be brokered out or branded (“The Starbucks Channel” or “Circuit City Channel”) to start pulling ROI. We asked if it would it make sense to begin “HD multicast networks,” where these new formats with their sharply-targeted demos would be present in multiple markets (i.e. “Techno/dub” network).

As well, we think most larger markets have enough stations, where if all were multicasting, the end result could be a very competitive format offering to satellite. If the main formats folks (especially the 18-34 group) have jumped over to satellite are replicated for free in many markets, it may make them reconsider paying $12.95 a month for what they could get for free.

Good format examples we’ve already seen include WIYY-FM Baltimore’s HD-3 Indie Rock format; WCSX-FM Detroit’s Deep Classic Rock HD-2 format and WXKB-FM Ft. Myers’ Reggae Hits HD-2 format. There are plenty of good examples out there, they just all need to be in the Top 50 markets. A simulcast of an AM sister station is not going to cut it.

Click the pdf download link below to read the full report.