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New iBiquity Digital Licensing Incentive Program Targets Smaller Groups and Independents in Upgrading to HD Radio Technology
Columbia, Maryland – February 21, 2007 – iBiquity Digital Corporation announced today a new incentive program for broadcast groups upgrading to HD Radio™ technology that extends current discounts on license fees for groups meeting certain conversion commitments. The program also allows participating groups to lock in discounts on future station acquisitions, making it particularly advantageous to smaller groups and independent station owners.
Per the terms of the program, any radio broadcast group not currently licensed under a previous iBiquity Digital station conversion incentive program will have their primary audio license fees capped at $10K per station (HD Radio license fees are scheduled to increase to $15K per station in July 2007 and then to $25K in July 2008).
"The top 20 radio broadcast groups own just 20% of the AM and FM stations in the U.S., which means the overwhelming majority of the nation's radio stations are owned by small groups and independents," said Ron Davis, Chairman of the Small Market Operators Caucus. "This new program is an especially good fit for small, independent broadcasters, as it will help us accelerate our transitions to digital and allow more consumers to enjoy the many benefits made possible by HD Radio technology."
Robert Struble, President and CEO of iBiquity Digital said, “Consumer interest in HD Radio broadcasting continues to rise as a result of exciting new product launches, falling receiver prices and the increased enthusiasm for HD2 multicast programming. Our new incentive program will enable stations to more quickly capitalize on this momentum and keep pace with the 1,200 stations that have already begun digital HD Radio broadcasting.”
Qualifying groups will commit to license and convert stations under the following terms:
- All group stations currently licensed with iBiquity Digital must be converted under the existing license terms;
- At least one group station not already converted must be converted by December 31, 2007;
- 50 percent of all group stations with revenues in excess of $300,000 must be converted by December 31, 2010 based on a schedule outlined in the License Commitment Agreement (LCA);
- $2,000 of the $10,000 license fee for each station committed under the incentive is due by September 30, 2007. The remaining $8,000 for each station is due at the time the station is licensed.
The discount applies to all group stations, pending the execution of a 2007 LCA between the group owner and iBiquity Digital by September 30, 2007. The LCA can be obtained online at www.iBiquity.com/broadcasters/becoming_a_broadcaster or by sending an email to broadcaster@iBiquity.com.
About iBiquity Digital
iBiquity Digital Corporation is the developer of the HD Radio™ system, which is powering the AM/FM digital radio revolution. This transformational technology allows AM and FM stations to broadcast digital signals in tandem with their analog signals, providing broadcasters with a platform to offer multiple channels of programming on the same frequency (HD2 multicasting); crystal-clear, CD-quality sound; services such as real-time traffic updates; and scrolling text and graphics content. Nearly 1,200
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To arrange interviews or for additional information, please contact:
Vicki Stearn
iBiquity Digital Ogilvy Public Relations
410-872-1565 518-355-0966
stearn@ibiquity.com gil.chorbajian@ogilvypr.com
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