JBL: Revolution Calling

High definition (HD) radio will technologically leapfrog satellite radio. XM Satellite Radio (XMSR Quote) and Sirius Satellite Radio (SIRI Quote) still have a pulse, but they are on life support. They may find a niche, but it will not be the widespread market that many once believed.

On April 24 Clear Channel (CCU Quote) announced that its HD radio service, Format Lab, will be expanded from 28 to almost 50 cities. Clear Channel has 196 stations in 48 markets that are now capable of receiving digital radio and is working with Motorola (MOT Quote) to deliver programming content to cell phones. HD radio will be able to tailor content for local audiences.

There will be many companies that offer HD radio with many channels and local programming. This will be the first nail in the coffin for satellite radio.

On the Go

The cell phones is becoming an indispensable tool in modern life, just as the PC did in the 1990s. Cell phones that play music, videos, video games, and, of course, provide high-speed Internet access, will soon be the norm.

Sling Media's Slingbox already allows consumers to hook up their phones to their TIVO (TIVO Quote) and watch whatever signal is on their television via their cell phone wherever they are. Talk about amazing. By allowing only one stream at a time, the technology avoids copyright infringement.

Advertising agencies are going to have to morph quickly and often to keep their customer's ad dollars well spent. However, the content distributors that also sell ads will potentially make money from ads and subscriptions. This is what the television networks have in mind when they allow their shows to be downloaded almost immediately after they are broadcast. It's also what CBS (CBS Quote) is aiming for with its newly launched free broadband channel called "innertube". In fairness, this is what XM and Sirius have in mind as well.