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Monday, February 8, 2010

iBiquity hopes to broaden the reach of HD Radio with new lower license fees

Both the licensing fees themselves and the extended payment options are designed to spark renewed interest in the transition to digital. iBiquity CEO Bob Struble says “Radio is now the the last entertainment medium to convert from analog to digital.” One of the benefits from HD Radio: “incremental revenue from new digital offerings” made possible by the HD-2 and HD-3 multicast channels. Those can be leased out to third parties for foreign language or ethnic program, and some broadcasters are creating new all-sports channels, such as Penguins radio in Pittsburgh. iBiquity says there over 1,100 multicast channels on the air now. Here’s the outline of the 2010 licensing and payment program: to broadcast digitally a main channel, there’s a one-time payment in full of $10,500, or a net-30 days price of $11,000, or 12 automatic payments of $1,042 a month, for a total of $12,500. iBqiuity’s Rick Greenhut says “approximately one new HD Radio station goes on the air every three days”, and there are more than 2,000 stations in digital now.

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