RADIO COMPANIES FORM "HD DIGITAL RADIO ALLIANCE" FMQB Eight of the top U.S. radio companies have announced a strategic alliance to accelerate the rollout of HD Digital Radio. The HD Digital Radio Alliance will be supported by Bonneville, Citadel, Clear Channel, Cumulus, Emmis, Entercom, Greater Media and Infinity. The group's goals are (1) coordinate the rollout of HD digital radio, including coordinating the formats on new multicast channels known as HD2 (2) work together to secure automotive design wins and lower receiver price points and (3) jointly market HD digital radio, in partnership with receiver manufacturers and retailers.
"Today's historic HD Radio announcement sends an unmistakable signal that local radio's best days are still ahead," commented NAB President/CEO David Rehr. "Consumers will benefit from scores of additional program formats and improved signal clarity, coupled with community-based news, weather and traffic reports that remain hallmarks of free radio. NAB salutes our member companies for visionary leadership that will incentivize development of HD Radio receivers and keep free, local radio on the leading edge of digital technology."
The eight companies will devote more than $200 million in commercial inventory on their own stations in 2006 to promote HD digital radio and the new HD2 multicast channels. The group expects to announce its first market-specific HD2 programming line-up early in the new year, including launch dates, specifics on specialized multicast signals, and a nationwide consumer marketing campaign.
Member companies have agreed to coordinate the use of all multicast HD2 channels to create the greatest diversity of formats. The goal is to create new, unique and compelling content within a high-quality listening experience across a broad spectrum of music, news and entertainment programming. HD2 channels will be locally programmed in each market. And HD2 programming will initially be commercial-free.
The HD Digital Radio Alliance will be headed by 30-year radio-industry veteran Peter Ferrara, who was named CEO. Serving as the Alliance’s oversight management committee are Clear Channel Communications President/CEO Mark Mays, Greater Media President/CEO Peter Smyth and Infinity Chairman/CEO Joel Hollander.
"The industry today has stepped up in a major and unprecedented way," said Ferrara. "These companies should be congratulated on coming together to create a joint action plan, and committing air time and money to move HD digital radio forward. I’m honored to be asked to help lead this important initiative."
Ferrara has an extensive background in radio-group management, station ownership and trade association oversight. Among his previous executive positions, Ferrara was a senior vice president of Clear Channel Communications, chief operating officer of both U.S. Radio and Granum Communications, executive vice president of the National Radio Broadcasters Association, and a board member of the National Association of Broadcasters. |