Lost in Transmission

Mainstream radio's most ambitious plan to save itself is something called HD Radio. In a direct shot at satellite, the largest radio networks are investing in new digital broadcasting technology, which they hope will wow the sort of tech-savvy listeners they're rapidly losing. ''This is the first killer application for broadcasters — multicast channels,'' says Bob Struble, CEO of a company called iBiquity Digital, which created the technology. ''Every FM station wouldn't have just one audio stream — they would have several.'' The result — already broadcasting in all of the country's top 50 markets — allows for many more channels, which means broader playlists and some cool interactive features. ''By giving people more choices, we can adjust,'' says Joel Hollander, chairman and CEO of Infinity Broadcasting, which owns 178 stations. ''We're living in a more personalized media environment, and I think HD Radio can serve the audience.'' It also requires a special receiver, which will likely set you back a few hundred dollars. Nobody said progress was cheap.

Whether traditional radio will transition into something new or ultimately fade out is hard to say, but many experts are thrilled simply by the possibility of change. ''I've been working in radio for almost 23 years and I don't remember a more exciting, exhilarating, and more important time for stations,'' says radio consultant Fred Jacobs. ''Everybody needs to fasten their seat belts and get ready for the bumps ahead.''