A recent Radio World ebook explores trends in digital radio around the world. This is an excerpt.
Ashruf El-Dinary is senior vice president, digital platforms at Xperi Inc. He oversees the company’s HD Radio systems engineering teams, manages certification and quality control processes, and represents HD Radio technology standards at ITU and international regulatory discussions.
He has spent more than two decades working on digital radio programs and has earned several patents on digital radio solutions. Earlier in his career he developed science instruments in support of space research and launched solutions on several satellites.
He spoke with Radio World this summer.
Radio World: It has been 22 years since the FCC approved in-band on-channel digital broadcasting in the United States. How would you assess the state of the HD Radio rollout here?
Ashruf El-Dinary: HD Radio had a robust and extensive rollout in rated markets around the U.S. and the automotive industry. Currently with 105 million cars on the road and counting, HD Radio is now woven into the fabric of listener engagement with over-the-air radio. It has elevated radio with peer-level features (images, song titles, etc.), compared to satellite and streaming competitors.
We always anticipated that HD Radio adoption would happen in multiple stages. Initially, the hybrid analog/digital transition would occur in major markets, as we have seen. The next milestone is to increase HD Radio station rollout in secondary and rural markets. The final stage would be full adoption by stations of digital services.
RW: What is the state of HD Radio in Mexico and Canada, and what is the outlook for broader use there?
El-Dinary: HD Radio continues to grow in Canada and Mexico.
The recent announcement from Innovation, Science, and Economic Development Canada (ISED) formalized the technical specification for HD Radio in Canada. This document removes the experimental status, clarifies the country’s system parameters, and gives the broadcast industry confidence that HD Radio is the solution for the market. In 2023, over 50% of new cars sold in Canada included HD Radio. With the recent ISED publication, we expect this to grow in the coming years.
In Mexico, the technical specification has been in place with regulatory approval for 13 years. Since then, the market has grown, servicing more than 51 million people. Upcoming frequency auctions in Mexico will grow the number of HD Radio stations in the next few years.
RW: Xperi has said that 58% of new cars that ship in North America come with HD Radio. What will it take to get that number toward 100%?
El-Dinary: We believe that more stations on the air, and more content unique to radio, such as more local content on HD2/HD3/HD4, as well as broader adoption of digital emergency alerts, will drive more listeners for both entertainment and local/safety information. This, in turn, will help drive the auto industry to quicken the pace of adoption.
RW: Common wisdom is that the percentage of U.S. FM radio stations that have adopted HD Radio here has held relatively steady for quite some time. Is that accurate?
El-Dinary: Over the past several years, we have seen continued growth with an increasing number of digital channels and new transmissions.
RW: What would it take to get more small- and medium-market stations to make the jump?
El-Dinary: The small and medium market stations have strong potential for going digital. We see several interesting initiatives that could help drive greater adoption in these stations.
First, continuing to increase the number of HD Radio receivers and car products across those markets. This will ensure that there are listeners for the new services.
Second, focusing on ROI for broadcasters. This is critical, and among the innovative programs Xperi has worked on to support this is visual advertising, which has proven to be a primary driver of new revenue.
Third, streamlining the implementation process. Our software teams are working with the equipment manufacturers to lower the bar for adopting digital broadcasting as well as to reduce implementation costs.
The combined impact of these initiatives provides an excellent foundation for greater adoption by small- and medium-market stations.
RW: What’s your prognosis for when the U.S. FCC might proceed to allow the formula change that would permit more FM stations to increase digital power and/or use asymmetric sidebands?
El-Dinary: FM stations have been allowed to increase digital power and use asymmetric sidebands since 2014, with experimental authorization. The proposed rules would formalize the methodology for setting those power levels and eliminate the experimental designation.
The aviation industry has expressed some concerns that digital power levels at 107.9 MHz might have an impact on navigational aids, so we are working closely with them and the NAB to support any technical and test details they require.
[Related: “Aviation Groups Urge Caution on Asymmetric Sidebands”]
RW: In what other countries or regions is HD Radio starting to grow?
El-Dinary: We see a lot of growth potential in South America, so that is where our next expansion in the Americas will be. International broadcasters invest in visiting the NAB Show every year, because they see the impact that HD Radio has had on the North America market. In the past few years, many broadcasters from South American countries have approached us to inquire about field testing and regulatory policy.
RW: India represents a large potential market. Where does the FM decision-making process stand and what do you hope will happen next?
El-Dinary: India is a large, developing market for digital radio. We have been talking to broadcasters across the country about the benefits of HD Radio services. Both government radio (All India Radio) and private broadcasters see the potential for transforming the last analog service to digital. That would represent over 800 transmitters across the country, and future frequency auctions.
The Telecom Regulatory Authority of India has stated that radio stations can use their current spectrum authorization for digital services. This year we anticipate a more comprehensive Digital Radio Policy for India outlining more technical and regulatory details.
RW: Can you cite good examples of non-U.S. broadcasters that have embraced HD Radio and its various features?
El-Dinary: Pattison Media, Canada’s largest Western-based media company, has been very enthusiastic about HD Radio technology. They are running logos effectively and have leveraged multicasting to reposition their analog station formats.
Stingray has added Rapid Quu to CFRQ (Q-104) in Halifax, representing a great example of a station leveraging HD Radio’s metadata capability.
Meanwhile, Red FM CIRV 88.9 in Toronto has developed a format that provides South Indian content — Hindi, Urdu, Tamil, Punjabi — on their multicast services. This has successfully opened the market for diverse content and voices.
RW: Why is there not a meaningful consumer marketplace for portable or tabletop HD Radio receivers?
El-Dinary: The availability of tabletop radios has been declining at retail over the last several years. This organic decline of radio receivers across national retailers has also impacted the availability of HD Radio tabletop products, but we continue to work with manufacturers to ensure HD Radio tabletop receivers are available nationwide. Currently, consumers can purchase HD Radio tabletop receivers from a selection of products available at Amazon as well as Best Buy.
RW: What are your organization’s priorities for the coming year?
El-Dinary: We are always looking to advance and improve HD Radio’s technology and services, such as new service modes for FM or multicasting for AM. We also want to see HD Radio grow across small and medium markets. Our focus will be to continue to grow ROI opportunities, add capabilities and reduce implementation costs for our customers.
RW: What do you think is the most important technical trend on the broadcast hardware side?
El-Dinary: We have seen much innovation in broadcast hardware over the past years. It’s remarkable that, while we are in our fifth-generation product, we have seen costs significantly drop over a 15-to-20-year period. Today, manufacturers are looking at HD Radio in SaaS architectures, where the modulation is done in the cloud and some hardware costs are eliminated. This type of innovation benefits the industry and opens up HD Radio broadcasting to many more stations.
RW: WorldDAB has described DAB+ as “the core future platform for radio in Europe and in other regions.” Would you accept the characterization for Europe?
El-Dinary: Europe’s on-going commitment to DAB+ is extremely strong. The European Electronic Communications Code has helped ensure radios are available in new cars in the EU, and now it is incumbent on broadcasters to take full advantage of what the technology offers. DAB+ is a robust technology that offers a wide range of services that can serve the needs of European commercial and public service broadcasters if deployed and supported correctly.
RW: What are the implications of the hybrid broadcast systems like DTS AutoStage that incorporate IP connectivity and expanded features via non-OTA channels?
El-Dinary: DTS AutoStage begins with broadcast radio and is designed to enhance both analog and digital broadcast services. Broadcast is the foundation. DTS AutoStage provides broadcasters a platform to offer their audiences additional IP-only audio services, ensuring their listeners stay with broadcast content, even if they leave the broadcast environment.
RW: Will the sunsetting of FM accelerate around the world?
El-Dinary: FM stations are facing competition from the rise of streaming services, podcasts and other platforms. However, FM stations have local reach, free access to information across socio-economic groups, and efficient emergency alerting services. And consumers are still wanting radio to anchor their in-vehicle experience. According to the “Connected Car Entertainment Trends” report released by DTS Inc., AM/FM radio is the most popular form of audio entertainment for music listening (69%), compared to music streaming (53%) and satellite radio (30%).
That said, there are regional differences in radio operations. In Europe, we have seen stations transitioning from FM to DAB+ operations. Government initiatives for national broadcast networks have driven must of that transition. Radio in the Americas is different as it has many more independent stations.
So while some regions may see a reduction of FM operations, it would not be universal.
RW: What future do you see for all-digital on the AM band in the United States? There has been no significant uptake other than a very small number of stations that have tried it out.
El-Dinary: AM all-digital has a growth opportunity in the coming years and, to that end, we have focused on upgrading our technology to support many of our FM features, such as multicasting and Artist Experience. Today, stations can now provide two audio programs and logo/images on their AM stations, but we are now ensuring that all upcoming receivers can support the multicast option for AM. As this expands in the car markets, we expect radio stations to expand all-digital operations and look at new services and formats.
RW: Speaking broadly, does broadcast radio have a strong future, in light of the many alternative forms of audio distribution? What are your grounds for optimism?
El-Dinary: Despite the proliferation of alternative audio distribution channels, broadcast radio continues to hold its ground. In fact, AM/FM radio is the most important (59%) entertainment option for consumers when considering their car purchase, according to that DTS connected car report.
Radio stations foster a sense of community by providing local news, weather updates and events. This localized content remains relevant, even in the digital age. It is free and accessible to everyone, regardless of socioeconomic status. It doesn’t require an internet connection or subscription fees.
During emergencies, radio remains a vital communication tool. It can disseminate critical information even when other channels fail.
While digital alternatives are on the rise, broadcast radio’s unique qualities ensure its continued relevance.
RW: What other areas of interest in digital radio technology should we be following?
El-Dinary: Monetization and improved user experiences for listeners. More and more stations across North America are delivering their logos via HD Radio’s Artist Experience feature and getting dynamic with Now Playing artwork for both music and talk programming. Stations are delivering metadata — images and text — to enhance the listening experience with more visuals. In addition, stations across North America are generating new revenue streams through client logos paired with their spots.
I think the key areas will be innovations around revenue through digital broadcasting as well as localized information services for different markets. The U.S., Canada, Mexico, Philippines and India all have different market needs and ways of engaging with media and radio stations. I expect each market will create their own unique flavor based on local opportunities.
