HD radio is in the Twin Cities, but who's listening?

There is a sound in Minnesota's airwaves that almost no one can hear. It is called "HD Radio." It is a phenomenon that is running under the radar in American broadcasting.

"HD is really the digital transmission of what we now do in analog," Clear Channel of Minnesota President Mick Anselmo explained.

That is true, but HD is much more than that. It could be the biggest boon to terrestrial, or Earth-based, commercial radio since FM joined AM on the dials in the 1940's. Or it could be a big bust.

The last time terrestrial radio tried to make a major improvement in signal quality was back in the early 1980's with something called AM Stereo. There were tabletop models for the system and Sony even came out with a Walkman version, but the public didn't buy it. That is, they didn't buy the equipment, the receivers. Thus, AM Stereo never became a factor.

"No, it didn't work," agrees University of Minnesota Communication Studies Professor Donald Browne, "and it was proclaimed at the time as a same kind of possible savior. Of course, it didn't help that the FCC licensed four different systems for it."

It took the new millennium to kick radio into the space age with the satellite radio systems Sirius and XM Radio. In store promotions trumpeted "Beyond AM, beyond FM, Welcome to the next generation of radio."

Terrestrial radio is literally tied to the earth. Its towers reach toward the sky, but Satellite radio broadcasts from above the sky. HD radio has the same signal range as FM. What this means is: you can drive out of range of any terrestrial radio station, HD or not, and lose the signal. Anybody who has driven from Saint Paul to Chicago knows that. With Satellite radio, at least in theory, you could drive coast to coast and never lose the signal.

Even though listeners have to buy special equipment and pay a monthly subscription fee, Satellite radio's large and commercial-free selection of stations began cutting into the terrestrial radio audience. They even lured a terrestrial star Howard Stern, into space.

The often embattled Stern's public explanation? "This is the future. Satellite's the future. I gotta go."

Which brings us to HD Radio. To avoid the AM Stereo fiasco of the 1980's, the Federal Communications Commission chose the HD system over a competing "DRM" system in 2002. HD became the accepted digital radio system for U.S. broadcasters. HD radio has been anointed officially as American terrestrial radio's attempt to compete with those satellite signals.

"Well, if that's the case," says CBS Radio Senior Vice President and Minnesota Market Manager Mary Niemeyer, "I think it's a very competitive attempt and actually I think this is where terrestrial radio is going to win that race."

A fair question to pose is why anyone should care about this? After all, unlike HDTV, which will soon be the exclusive signal for American TV, the government is not compelling broadcasters to stop analog radio broadcasts and only offer digital signals. So, why bother to buy HD radio?

Clear Channel's Anselmo has a three-pronged response. "First of all, quality of sound, better than CD. Variety. It's going to add lots of consumer choice ? lots of different formats. And, on top of it all, it's free, free to the consumer."

The sound quality is digital and better. AM in HD sounds like FM. FM improves as well. Moreover, HD offers what AM Stereo could not, more programming.

CBS's Niemeyer is happy to explain. "In addition to bringing better sound to AM, better sound to FM, it also provides you additional channels on the FM band. That is why people would go to Sirius and XM. We're going to solve that."

How many additional channels? In theory, a limitless number, but Anselmo says quality concerns allow "As many as up to five stations on each of our FM frequencies."

HD Technology lets companies broadcast different programming on each channel. Infinity Radio's FM program director John Lassman tunes in HD on a special receiver in his downtown Minneapolis office.

"You can't pick this up on a regular radio," he notes. "You have to have an HD receiver, but there it is. 104.1 FM is ?Jack FM'. 104.1 HD2 is ?Pure Jazz'. 102.9 FM is ?Lite FM'. 102.9 HD2 is ?WCCO simulcast'."

Those are the first two HD offerings from Infinity Radio in the Twin Cities. Clear Channel has even more. In his Saint Louis Park office, Mick Anselmo demonstrates on a small, gray receiver manufactured by Boston Acoustics.

"With a click of the radio dial, it gives you the second station on Cities 97 and that really an eclectic mix of acoustic sunrise and Studio C."

As an example, at 100.3 FM, Clear Channel offers a talk station, KTLK. Any FM radio owner can hear the station. An HD receiver picks up the KTLK signal, but also offers, a click away, "The Wolf" HD2 channel, which is country music. Another click and HD3 is a simulcast of KFAN-AM. Three channels with entirely different programming, all broadcast on one FM frequency. Anselmo sees unlimited possibilities for new voices on dozens of new channels.

"You know there are 86 languages spoken in the Twin Cities today. Could be some kind of alternative lifestyle."

It is impressive. There are currently seven or eight exclusively HD stations broadcasting in the Twin Cities, but who is listening? One thing is clear about HD's future. In order for it to work as a commercial broadcast, the public must be able to hear it. That is, you've got to get people to buy a device that they don't absolutely need.

Anselmo puts it this way, "I think our challenge is how to create compelling content in the new world when the consumer has lots of choices."

Niemeyer agrees. "It's up to terrestrial radio to really build that demand."

WCCO-AM is simulcast as an HD2 channel at 102.9 FM. Program Director Wendy Paulson warns that programming is more than signal quality. "Content is still king. High Definition is an opportunity to make ourselves more available to more people who happen to have that ear for that high tech need that they may feel that they need, but again, if you don't have good content, content is king. Doesn't matter what you do."

At 92.5FM, HD listeners not only can get KQRS, but also "KQ BLUES." At 93.7FM, KXXR rock listeners can click over to a Comedy Channel on HD. That's assuming they have HD receivers.

So far, HD radio table top receivers are only readily available from Internet sales sites like Amazon.com. They are not yet in electronics stores like Best Buy, Ultimate Electronics or Radio Shack. Mick Anselmo says Radio Shack does plan to put HD table top receivers in all 4,000 of its stores in the United States, perhaps as soon as this holiday shopping season. To be successful, however, any radio system has to work "on the road."

Todd Olson is the General Manager of Sears Auto Imports in Minnetonka. He knows he has an exclusive option. "The BMW is the only manufacturer that offers HD radio. It's about a $500 option."

Even that is a limited availability. BMW only offers HD Radio on two 2007 models, the "5" and the "7" series. Olson says only about 10 percent of customers even ask about HD radio. Sirius and XM are another matter.

"Satellite Radio, we are doing much better on. They've done a better job of marketing to the consumer."

Ford is making noises about offering HD Radio on some models next year, but the auto "answer" for HD may be finding an economical way to retrofit existing car models of all types. Satellite radio targeted cars and trucks first. Only later did manufacturers promote portable receivers that fit into desk-mounted units. HD reversed that approach. A few table-top models are offered at prices ranging upwards of $100-$200 now, with auto availability coming more slowly.

HD Radio is a gamble for ground-based broadcasters. Many have already installed new transmitters. Now they are counting on potential listeners to buy the receivers and choose "free" HD over the monthly charges for Satellite signals. For more information on HD radio, including a complete listing of all HD stations in the United States, try the website link above.

By Allen Costantini, KARE 11 News

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