Can't Afford an HD Radio Conversion? Trade it

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Can't Afford an HD Radio Conversion? Trade it

Oct 6, 2010 10:00 AM, By Mark Krieger

Looking for ways to jump-start a flat-line HD Radio-broadcaster adoption curve, iBiquity Digital says it has now teamed up with Citadel Media to provide a trade-out option for the purchase of everything from licensing to HD Radio data importers and transmitters.

Long a staple of radio broadcasters needing new vehicles, carpeting or the like, trade is an established industry practice that converts unsold inventory into equipment and services. Trade deals are typically offered to broadcasters at a ratio of 2-to-1 in favor of the vendor, depending on market conditions and whether cash constitutes a portion of the transaction.

Total cost of a typical IBOC FM digital conversion can run around $100,000 to $200,000 per station, depending on unique variables. Although a standard one-time main channel HD Radio license fee is priced at $2,000, iBiquity's website indicates the firm is offering a temporary reduction to $10,500 for stations paying cash up front and signing before Dec. 31.

According to an iBiquity press release, Citadel plans to work directly with hardware manufacturers, including Broadcast Electronics, Continental Electronics, Harris and Nautel, as well as iBiquity, in providing the trade facility.

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