HD radio pumps up volume

Over 600 new radio stations have come to America's airwaves in the past three years -- and you probably haven't noticed.

Fewer than half a million Americans use a new technology called HD radio, which lets them tune in a host of new listening options. But that may soon change, as HD radio sets are getting cheaper and broadcasters are launching an all-out campaign to draw listeners.

"We're in the early stages of a major technological transition," said Bob Struble, the president and chief executive of Ibiquity Digital Corp., the Columbia, Md., company that invented HD radio. So far, HD radio listening has been limited to affluent early adopters.

HD radio is a digital format that lets radio stations deliver better-sounding audio on both AM and FM bands. With HD, AM sound quality matches that of standard FM audio, while FM signals approach the quality of store-bought CDs. HD radio also lets stations squeeze more broadcasting streams into their current frequency. AM stations can offer two audio signals instead of one, while FM stations can deliver three or four sound streams.

That's good news for an industry that's often criticized for dull, predictable offerings. "Have we put out the most creative, different form of programming that's possible? A lot of cases, we look at our programming and our industry, and say, 'No we haven't,' " said Buzz Knight, vice president of program development at Greater Media Inc., which runs five stations in Boston.

Greater Media is using its HD channels to serve up fresher, more diverse programs. For example, Boston's WTKK, an FM talk station, now offers an HD radio channel that plays nothing but music from Ireland. Classic soft rock station WROR has an HD station that exclusively plays music from the 1970s.

Other major local stations are taking their time about adopting HD. Entercom Communications Corp.'s local AM stations, WEEI and WRKO, which will both broadcast Boston Red Sox games this season, haven't even disclosed a schedule for launching HD service yet. But Jason Wolfe, vice president of AM programming at the two stations, said the change is bound to come. "There is a long-term plan for all of our stations to broadcast in HD," said Wolfe. "Nearly all of our FM's are doing it now and I'm sure corporate has a timetable for the AM's as well."

Many HD radio streams can be heard over the Internet, by visiting the individual stations' websites, or going to radiosherpa.com , a site that provides links to hundreds of online radio streams.

But don't try tuning in with a standard radio. You'll need an HD-compatible set, which until recently cost $500 or more. That's finally starting to change. Wal-Mart Stores Inc., the world's largest retailer, earlier this month launched a promotion to sell HD-compatible car radios for about $190 in nearly 2,000 of its stores. The sales campaign features radio ads that are subsidized by the HD Digital Radio Alliance, an industry coalition created to tout the new technology. Member stations are donating advertising airtime worth millions of dollars to retailers who promote HD radios.

"Once we deliver a sub-$200 price tag radio, that is a significant tipping point in consumer adoption," said alliance president Peter Ferrara. Besides Wal-Mart, specialty retailer Sharper Image and automaker BMW are also running radio ads for their latest HD offerings.

HD radio's diverse programming, all of it free of charge, could give earthbound broadcasters a boost as they compete with the dozens of channels offered by subscription satellite broadcasters Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Ironically, that might be good news for Sirius and XM. The two firms last month disclosed plans for a $13 billion merger.

Critics say federal antitrust regulators should reject a deal that would create a satellite radio monopoly. But officials of the two companies say they'd still face competition against a variety of powerful rivals, including HD radio stations. "Over a decade ago, when the first satellite licenses first came out, there were no iPods, there was no HD radio, there were no streaming music on cellphones," XM chairman Gary Parsons said in an interview with Reuters.

If federal regulators share Parsons' assessment of the challenge from HD radio, the merger is more likely to go through.

But analyst Jimmy Schaeffler of the Carmel Group, a research firm in Carmel, Calif., said that HD radio, with its half-million listeners, is hardly any competition for XM and Sirius, which have about 15 million subscribers. "Just because HD radio has just done a deal with Wal-Mart, it doesn't mean there's going to be this hugely successful rollout," Schaeffler said. "It's got to find its place in the consumers' mind as a viable offering."

Ibiquity's Struble also downplays the idea of competition between HD and satellite radio.

"My view is that the technologies are complementary," he said. HD radio is free and tailored to each local market, while satellite delivers a much larger selection of channels, each available nationwide. "It's sort of like HBO and basic cable," said Struble. "Once's a niche service; one's a mass-market service."

Hiawatha Bray can be reached at bray@globe.com.