Itsme
01-19-2006, 11:27 AM
Clear Channel switches on first multicast stations
By Reuters
Published: January 19, 2006, 10:48 AM PST
Clear Channel Communications will launch on Thursday its first digital multicast channels in New York and San Francisco in an effort to modernize terrestrial radio amid rising competition with satellite radio.
By splitting the frequencies of its radio stations into high-definition (HD) niches, Clear Channel and other terrestrial radio broadcasters can reach broader audiences by providing a more varied menu of content.
In addition to the 10 multicast channels launched Thursday, the company plans to roll out multicast channels on 15 more stations in Chicago, Dallas-Ft. Worth and Los Angeles in the next five days.
The formats of the new channels, which initially will be commercial free, include disco, Hispanic, gospel, "urban oldies," country and traditional jazz.
John Hogan, president and chief executive of Clear Channel Radio, said one of the biggest challenges facing the new HD stations is finding an audience.
"Right now for the high-end audio market, (digital receivers) tend to be expensive and hard to find," Hogan told Reuters. "We are working with consumer electronics folks...to convince them that this is a reality for us."
Clear Channel has converted 200 stations to broadcast digitally--about 75 of those can multicast what is referred to as the "HD2" tier of channels.
The multicast channels will be streamed over the Internet. Hogan said the company plans to promote the multicast channels to 100 million listeners who tune into Clear Channel's analog stations weekly, he said.
"Consumers want choice and, while radio has a long history of having created great brands and giving people the information and entertainment and companionship that they have grown to love, we have been limited because analog stations can only broadcast one signal," Hogan told Reuters.
Clear Channel has not disclosed the cost of creating the new programming, but Hogan said the company drew on personnel from existing stations nationwide to set programming for the multicast channels.
The company does not expect to earn any money from multicasting in the short term, and Hogan said the commercial model for the HD2 tier will likely include fewer commercials than the current revenue model.
"Revenue associated with this is a little further down the list of priorities for us," Hogan said. "We see this as a great technological opportunity for us. We know it will take time, effort and energy to create demand...and as we get more consumers listening to HD we will have greater opportunity to monetize it."
http://news.com.com/Clear+Channel+switches+on+first+multicast+stations/2100-1025_3-6028740.html?tag=nefd.top
By Reuters
Published: January 19, 2006, 10:48 AM PST
Clear Channel Communications will launch on Thursday its first digital multicast channels in New York and San Francisco in an effort to modernize terrestrial radio amid rising competition with satellite radio.
By splitting the frequencies of its radio stations into high-definition (HD) niches, Clear Channel and other terrestrial radio broadcasters can reach broader audiences by providing a more varied menu of content.
In addition to the 10 multicast channels launched Thursday, the company plans to roll out multicast channels on 15 more stations in Chicago, Dallas-Ft. Worth and Los Angeles in the next five days.
The formats of the new channels, which initially will be commercial free, include disco, Hispanic, gospel, "urban oldies," country and traditional jazz.
John Hogan, president and chief executive of Clear Channel Radio, said one of the biggest challenges facing the new HD stations is finding an audience.
"Right now for the high-end audio market, (digital receivers) tend to be expensive and hard to find," Hogan told Reuters. "We are working with consumer electronics folks...to convince them that this is a reality for us."
Clear Channel has converted 200 stations to broadcast digitally--about 75 of those can multicast what is referred to as the "HD2" tier of channels.
The multicast channels will be streamed over the Internet. Hogan said the company plans to promote the multicast channels to 100 million listeners who tune into Clear Channel's analog stations weekly, he said.
"Consumers want choice and, while radio has a long history of having created great brands and giving people the information and entertainment and companionship that they have grown to love, we have been limited because analog stations can only broadcast one signal," Hogan told Reuters.
Clear Channel has not disclosed the cost of creating the new programming, but Hogan said the company drew on personnel from existing stations nationwide to set programming for the multicast channels.
The company does not expect to earn any money from multicasting in the short term, and Hogan said the commercial model for the HD2 tier will likely include fewer commercials than the current revenue model.
"Revenue associated with this is a little further down the list of priorities for us," Hogan said. "We see this as a great technological opportunity for us. We know it will take time, effort and energy to create demand...and as we get more consumers listening to HD we will have greater opportunity to monetize it."
http://news.com.com/Clear+Channel+switches+on+first+multicast+stations/2100-1025_3-6028740.html?tag=nefd.top