Business Case Studies, Restructuring / Turnaround Strategies Case Study, Hybrid Digital Radio, an Upgrade to Struggling Terrestrial Radio

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Restructuring / Turnaround Strategies Case Study

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Case Title:

Hybrid Digital Radio, an upgrade to terrestrial radio: Will it bring back the listeners?

Publication Year : 2008

Authors: Kirti Nair, Bharathi S. Gopal

Industry: Entertainment

Region:US

Case Code: RTS0153B

Teaching Note: Available

Structured Assignment: Available

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Abstract:
In 2004, the iBiquity Communications Corporation developed a new digital format for the terrestrial radio operators, which was called HD Radio with a view to bring back listeners to the radio. The HD radio alliance was created to market and attract listeners from the satellite and Internet radio and devices like iPods. Inspite of the massive marketing efforts the technology which needed radio receiver for its broadcast did not pick up among the consumers even 3 years after its launch. The Alliance members announced a new marketing campaign of $250 million in 2007 and were optimistic about reviving this new technology. But industry critics and analysts doubted if HD Radio was what the consumers really wanted and whether it had the potential to make the terrestrial radio's days greener.

Pedagogical Objectives:

  • To understand the reasons for the decline in popularity of terrestrial Radio
  • To understand the new forms of digital music media
  • To understand the consumer preferences in the music industry
  • To analyse the reasons for lack of acceptance of HD Radio by consumers
  • To analyse whether HD Radio is a strategically correct product to entice customers.

Keywords : HD Radio; Terrestrial Radio; Satellite Radio; Internet Radio; MP3 players; iPod; Marketing Myopia; Strategic Inflection Points; Industry Change; Changing Consumer habits and preferences; Digital media; Music; Restructuring - Turnaround Strategies Case Study; On-demand forces; iBiquity

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