The FCC is taking its time in completing the satellite radio merger deal. While it’s anyone’s guess as to which way the decision will go, the feud continues about the pros and cons of the deal. Once the deal passed the DOJ, Radio magazine posted a survey question asking you to vote on your thought about the possiblie conditions the FCC might include with the deal. I think it’s likely that the deal will be approved by the FCC, and it will include a conditions. A few days ago, two congressmen sent a letter to FCC Chairman Kevin Martin echoing the idea. The congressmen said that they do not support or oppose the merger, but urge the FCC to include some requirements if the deal is approved. I wonder which lobbying group got them to do that.

Of course this is how politics work. There’s always a deal and a compromise. The Congressional letter doesn’t get any closer to completing the deal, but keeping it at the top of the discussion list will prevent it from being ignored.

The Jacobs Media survey on satellite radio that was released this month included the observation that satellite radio’s “dirty little secret” is that subscription rates have been supported through free subscriptions and packaged offerings, so that subscribers who received the service as a gift or as part of a larger purchase seem less inclined to renew the service when it is due.

Is this really that surprising? Naturally, the NAB and several radio trades jumped on this item like it was a revolutionary concept. Think about it: what makes something have a value to us? If we pay our own money for something, we will likely take better care of it or be more inclined to use it than if we get something as a gift. Why is this any different? I am not surprised to hear this dirty little secret.

What if the tables were turned? What if a survey asked people who were given an HD Radio receiver if they use the HR Radio receiver more than another media device? I know it’s not exactly the same argument, but I think you see my point. I’m sure the results of my survey would show that HD Radio has a dirty little secret too. I also doubt that those touting the sat radio secret would tout the HD Radio secret in the same way.

At the recent Radio Advertising Bureau convention, RAB CEO and President Jeff Haley outlined his vision of radio’s future, which includes audio delivery beyond the traditional transmission systems that we have used for 80+ plus years. Online streaming, podcasting, Wimax and more are part of his vision. Haley also called for broadcasters to work together to ensure that a radio receiver is in every consumer portable device within the next five years.

Read a summary of Haley’s speech at this link.

What caught my attention is that I noted a similar goal for radio more than a year ago (How to Make HD Radio Succeed: Do Nothing, Dec 2006). Haley’s challenge is a broader approach, and it has the correct goal in mind. Listeners have grown and evolved. Radio needs to grow and evolve as well.

By now you have heard that there is a quiet movement to increase the power level of the digital portion of the HD Radio hybrid signal. You can read something about that in the Feb.6 Digital Radio Update newsletter.

On the surface, increasing the level of the digital carriers sounds like a good idea. More power means a better digital signal. But increasing the power raises other questions, with concerns of first-adjacent channel interference being at the top.

The results of the study have not yet been posted. I’m looking forward to reading them.

What’s your opinion of the power increase?

As the digital radio rollout continues — regardless of the flavor, whether it’s HD Radio, FM Extra, Cam-D, DRM or anything else, the one obstacle continues to be the availability of receivers. There were more HD Radio receivers shown at CES2008 than ever before, but it’s still hard to find them on the shelves at the local electronics box house.

Digital Radio Express was touting its shipments of FM Extra receivers for several months, but that attention has also died down.

What’s the answer? A year ago in my Viewpoint column (Dec 2006) I noted that the real success of a digital radio format will be seen when the consumer does not have to make a conscious choice in buying a digital radio of any flavor. (Read that article:
http://radiomagonline.com/viewpoint/radio_hd_radio_succeed/)

Granted, we’re not there yet.

What’s your view? What steps should be taken to help digital radio take off?