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Digital radio emerged in the radio market backed by large corporations such as Viacom, ClearChannel, Entercom, and Cox Radio in response to the successful emersion of satellite radio corporations XM and Sirius. When satellite radio emerged on the scene, terrestrial radio corporations were already planning a swing back to limit users from leaving conventional radio but never planned for the explosion of popularity that satellite radio would receive. Mostly, they hedged their bets on the fact that many radio listeners would balk at shelling out money for new equipment as well as paying for a monthly subscription service but as it turns out, the marketing campaigns of both XM and Sirius have done their job well. To help integrate satellite radio into terrestrial radio's listener base, satellite radio companies enlisted the help of major automobile manufacturers such as GM to include the equipment into their new vehicles and offered the first several months' service for free, effectively allowing users to try before they buy. But digital radio has seen a growing amount of popularity as well. Often touted as "HD-Radio" which capitalizes on the immense popularity of high definition capable televisions, digital radio utilizes offset frequencies on the traditional dial to broadcast their digital signals much like terrestrial radio. Additionally, digital radio will remain "free" to radio listeners but they still will have to shell out the money for special integration equipment for the home and automobile. However, like satellite radio has done in the past, many digital radio proponents are sealing deals where they know the majority of their marketplace listens to the radio - in their cars. Upcoming models of many new automobiles will offer digital radio-receiving stereos already in them. So while this worked well for satellite radio, it should work doubly well for digital radio, as the user won't have to sign a contract to continue service. They will only have to deal with commercials, an inconvenience that many radio listeners have come to deal with almost without thinking. Digital radio is actually a hybrid system in which analog carriers offer a digital signal to FM radio "side bands." This means that conventional radio stations can broadcast their analog signals on one band like they always have before and an exact replica signal over a digital side band. The technology will even allow a single radio station to broadcast multiple programs over a single radio band, effectively multiplying their appeal across a larger demographic. The claim made by the iBiquity Digital Corporation, the company that developed the technology behind digital radio, is that digital radio is nearly as good as compact disc-quality sound and is available with greatly reduced static and interference. Both AM and FM will have the capability of carrying the digital signals and so AM proponents are excited about being able to broadcast a huge level of increased programming at digital sound quality, which should turn many listeners back to AM. FM carriers are equally eager to broadcast
digital sounds because of the slump in listenership that terrestrial radio has suffered in recent years due to the success of satellite radio and the large success of mp3 personal music players such as the iPod. While the technology is still being implemented, there is a lot of backing for digital radio to succeed. However, consumers are a fickle bunch and so the satellite radio crowd may stay with that format for quite some time yet as that market has started to mature. In order to successfully gain foothold, digital radio manufacturers will have to ensure that the technology is made available to listeners so they don't have to hunt it down. This means ensuring that it is installed in new cars and in new home stereo systems as well. While the battle is heating up between satellite and digital terrestrial radio companies, the consumer is sure to come out the winner.
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