HD Radio™ and the HD Radio logo are proprietary trademarks of iBiquity Digital Corporation.

The Details:

•  A minimum of 3 local ABA member stations would agree to license HD Radio Technology in Alabama, and commit to upgrading their stations to digital broadcasting within 36 months of signing.

•  In exchange, iBiquity Digital would discount the one-time license fee for these stations from $10,000 down to $7,500 for as many stations as were interested in converting. A minimum of 3 in that state would be required to earn this discounted rate for all, however. These 3 stations could come from 3 different ownerships, or all be a part of the same station cluster.

• Additionally, iBiquity would only require a $1,500 down payment for each station at signing. The remaining balance would be payable over 5 years, with payments beginning only when the station commences digital operation. There would be no interest fee or carrying charge applied to this payment of the balance over time.

•   In effect, this allows stations to “reserve” an HD Radio license at a discounted rate, with 3 years to begin digital operation and an additional 5 years to pay the remaining balance.

The Bottom Line

• Each station would only have to make a $1,500 down payment to secure an license for their station, thanks to this package deal.

• The annual multicast fee for additional digital channels (HD2, HD3, HD4) is just $1,000/year or 3% of incremental net revenue. This fee is only assessed if and when stations begin multicast operation. Of course, the digital simulcast of the analog main channel (HD1) is covered in perpetuity by the one-time license fee. There is no additional charge for rebroadcast on analog translators.

• Stations would have 36 months from the time of signing to upgrade their facility to HD Radio Technology. At that time, the monthly payments for the balance of the license fee would begin. Each station would then pay just $100 per month for the next 5 years (60 months) to pay off the remainder of the license fee interest-free. In effect, they have up to 8 years from signing to pay off the entire discounted license fee!

One  Closing  Thought:

• Radio can’t be the last analog medium in a digital world and hope to remain competitive for its rightful share of audience and advertising dollars. Listeners need to be able to access content digitally, whether streamed on the internet or over the air. HD Radio Technology provides the equivalent of up to 3 additional signals for a single station for a tiny fraction of the cost of an additional station license.

Contact:

Rick Greenhut
Director – Broadcast Business Development
iBiquity Digital Corporation | HD Radio™
6711 Columbia Gateway Drive, Suite 500
Columbia, MD 21046
Phone:  443-539-4335
Fax:      443-539-4291
E-Mail:  greenhut@ibiquity.com