BusinessWeek on HD Radio
BusinessWeek has a good article today on the state of HD Radio and hurdles that terrestrial radio face in spurring adoption.
One interesting section of note:
The problem for the broadcasters, who continue to see their audience become fragmented and struggle to boost ad revenues, is that HD radio "is not a new offering. It's a defensive move," says Ted Schadler, an analyst with Forrester Research (FORR). "It's better radio, but it's not a whole lot better radio." He calls it a replacement product and likens it to the transition from black-and-white to color TVs.
"People still got a picture and their shows on black-and-white so they waited until their sets went on the fritz. Then they bought a color TV." For 2007, the industry will sell a few HD receivers, but 10 years from now, everyone will have one. "It's that kind of thing. It will happen without a ripple," says Schadler.
The only difference with this analogy is that color TV was "cool" - HD Radio, in this rapidly evolving technological environment - is being challenged by a heck of lot of other "cooler" things.
Now let's flip it around (because I can't bring up HD Radio without talking about Satellite Radio)... what about satellite radio isn't "cool" enough to the consumer?