December 8, 2005
Move toward Digital Radio

The radio industry has decided to band together (again, pun intended, unfortunately) and support the development of digital radio.

According to Sarah McBride in Wednesday's Wall Street Journal, eight major companies, including Clear Channel and Infinity Broadcasting, have decided to approve a move toward digital that should lead to the capability of more channels to fit in a particular market, a clearer signal, although concerns are that such moves could fragment the radio audience and attack the current dominant advertising mode for stations because of the greater number of channels, perhaps targeting a niche audience.

Can radio stations follow a similar method as satellite radio and cable television in this regard? Can it be profitable for more stations to enter the market and target certain niche groups in a particular regional market?