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Radio Goes Digital
About a month ago, I wrote a post about how deals are getting harder to get done.
I spent almost all my time last year working on five or six deals, two of them very big deals. And at the time I wrote that post, I was really struggling with four, including the two big ones.
Well I am happy to say that almost all of them did get done and they will be announced over the next month or so.
This morning the broadcast radio industry is announcing the most complex deal I have ever worked on in my career, a deal that took over a year to get done, and a deal that will transform the way the broadcast radio business operates.
The leading radio broadcasters, 21 station groups in all representing the vast majority of radio stations in the US, have agreed to an agressive rollout of a digital signal using the HD Radio standard. These broadcasters have specifically agreed to convert almost 2,000 stations in the coming years. These are the big stations, the ones with most of the listeners across the country. This committment is real and backed up with significant capital. But the most important thing about this deal is it says to the rest of the industry that digital is here and its the future of broadcast radio.
My portfolio company, iBiquity Digital, is the developer of HD Radio technology.
While I did spend a great deal of time on this deal, it was really the work of the senior management team of iBiquity, led by CEO Bob Struble, and several of the top broadcasters, including Clear Channel, Infinity/Viacom, and Entercom, who made this happen. I salute them for getting something done that many said couldn't happen and wouldn't happen.
It's a new day for the radio business. We will see new devices, new services, new programming, and new listeners as a result.
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» Another chapter in the future of radio from unmediated
Fred Wilson blogs the big announcement that radio companies have committed converting 2,000 stations to HD. Now if we can just get the FCC out of the radio business.... [Read More]
Tracked on Jan 5, 2005 1:06:19 PM
» HD Radio from atmaspheric | endeavors
So one of the things you've probably heard about today is that your existing radio stations are converting to digital. What that means is that you'll get the same clear stations with the limited programming you get now, but in crisp digital, as oppose... [Read More]
Tracked on Jan 5, 2005 3:10:36 PM
» Broadcast radio goes digital from Corante New York
New York VC Fred Wilson shares some exciting news about his portfolio company iBiquity Digital, which is at the forefront of HD Radio technology: "The leading radio broadcasters, 21 station groups in all representing the vast majority of radio stations... [Read More]
Tracked on Jan 6, 2005 7:28:18 AM
Posted January 5, 2005 in Venture Capital and TechnologyComments
Congrats Fred! It must be exciting to be working the front end of a major technology shift that affects most of the American public. It will make for some interesting future posts this year. Don't let us down and keep us informed as much as you can with developements. This inquiring mind wants to know...
Posted by: Tony Alva | Jan 5, 2005 1:28:32 PM
Nice work Fred. Hope your time wasn't wasted. You probably know something nobody else does. You usually do. For your sake lets hope so.
From where I sit (on the front line) broadcast radio is looking pretty bleak. I have an 19 yr freshman daughter at a major university and when quizzed she looked at me funny, scrunched up her nose and said NOBODY she knows even listens to broadcast radio anymore. Ditto newspapers. Ditto broadcast TV.
As for the urban market its all CD's for the most part becuase B-cast is censored...I guess that leaves the over 40 group...which isnt bad , but as it used to be said when the hearse rolled by..."Brooks Brothers just lost another customer" ...I guess we'll see if b-cast radio can make the change. When I look into the crystal ball I see podcasts on my cellphone...
Posted by: JV | Jan 6, 2005 9:02:58 AM
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