New Radio Choices Explode, Reception CostlyNew Radio Choices Explode, Reception Costly

HD radio is all the buzz this year now that Clear Channel and CBS have announced launches of about 260 radio stations in nearly 30 U.S. markets, but whether it has a chance at knocking satellite radio down from its competitive pedestal remains to be seen.

HD, or digital radio is providing terrestrial stations with a new means to draw listeners at a time when more and more music fans are turning to advertisement-free content through satellite stations XM and Sirius, not to mention iPods. HD radio is providing commercial-free programming, at least for now.

The technology allows broadcasters to send several types of content from one channel, or multicast from side channels and analog, while providing a clearer sound. It can be integrated with wireless data and supplemented with text information about the music or programming.

There is no subscription fee, but listeners must buy receivers. At this point, they cost about $500 each, leaving HD radio out-of-reach for many consumers.