The late Bill Burton had a favorite saying (besides “Be Fabulous!”). He referred to the car “as a radio on four wheels.” As a born and bred Detroiter, Bill had a special insight about the storied relationship between these two industries that grew up together throughout most of the 20th century.
Today, AM/FM radio is still a fixture for every auto manufacturer, and continues to be the most desired entertainment and information media feature among new car buyers. For the past decade, Bob Struble’s iBiquity has made a full court press to ensure that HD Radio has dashboard presence in every possible make and model.
So as we head into the North American International Auto Show here in Detroit next month, as well as CES in Las Vegas, it’s a good time to consider radio’s continuing relationship with its long-time partner – the auto industry.
For a clue about the road ahead, look no further than Jon Kirchner, the chairman and CEO of DTS. They’re the company that bought iBiquity, and with it, HD Radio. And Kirchner is a guy radio needs to know because he comes at the industry from a different point of view, with a different mindset about audio, consumers, and…cars.
Kirchner’s view of the digital times in which we live? As he told C-Suite Quarterly earlier this year:
“I think we’re in the middle of living the biggest transition the entertainment industry has ever seen.”
Few in radio would disagree with that statement. And since acquiring iBiquity, some have wondered what DTS is thinking – what’s their vision for HD Radio, and what does it all mean to the radio broadcasting industry?
Look no further than the newest edition of Radio World. In it, Kirchner writes a front page commentary about his company’s interest in radio.
And you don’t have to read between the lines to understand the DTS vision, and why the company is excited about the future for his new purchase. DTS has extensive experience in the motion picture, mobile, headphone, and home theater spaces. Now they add broadcast radio to their portfolio.
But what’s the fit and what’s the future for AM/FM radio in DTS’s strategic plan?
Here’s how Kirchner sees it:
“Cars are increasingly becoming connected and thus, it’s strategically important for DTS to broaden our reach in both the radio broadcast and auto markets where we can play a bigger role in the coming age of deeper mobile and auto infotainment integration.”
“All 36 automotive brands available in the U.S. now offer HD Radio technology in their vehicles across more than 200 different models. In 2014, HD Radio receivers were integrated into approximately 35 percent of all cars sold in the U.S.”
“Further studies show a high percentage of (radio) listening occurs in the car, which is one of the best places to truly immerse oneself in music and directly engage consumers on the go.”
“Over time we believe that cars will become an ever more important intersection point for technology as consumers seek to have seamless, integrated multi-device content experiences across various listening environments.”
It’s not difficult to appreciate Kirchner’s driver’s seat view of radio, technology, and the customer experience in cars.
Over the past decade, broadcasters have struggled with HD Radio. Faced with a rough rollout and competing against other gadgets and technologies like iPods, smartphones, and streaming radio pure-plays, HD Radio has faced difficult challenges in connecting with consumers – and broadcasters.
The DTS acquisition of iBiquity creates game-changing conditions. Since we started making the journey to CES seven years ago, we have spoken with many auto execs, engineers, and marketers who appreciate the digital integration and feature set that HD Radio affords consumers. Yet, the radio industry has struggled with the technology and the challenge faced with the acquisition of “new stations” during an economically tumultuous time.
It is clear that for Kirchner, the confluence of the radio and the automotive industries is a position where DTS will focus. No one at Jacobs Media would disagree with the importance of these two industries working more closely together.
Next year should be a fascinating one as DTS integrates iBiquity, and in the process, become a major player in the radio broadcasting industry. We’ll check out how this all looks at CES next month where we’ll have the chance to interview Kirchner.
Stay tuned.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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