Verizon Wireless invests in HD Radio

Verizon Wireless will be invading HD Radio with a branded channel on the HD2 channels of 21 Clear Channel Radio Station. The company began sponsoring air waves last April and will continue until next year.

The sponsored channel called ?Verizon New Music? can also be streamed on the Web. It targets the 18-34 age demographic, and that?s why the station will feature music from up and coming artists, along with exclusive artist interviews. Advertising will comprise only 40 seconds to every hour of airing, spots which are exclusive to Verizon Wireless.

Some experts doubt that this move will pan out. After all, HD radio has had slow consumer acceptance?with less than one million receivers sold. That makes it a very risky investment.

However, Bob McCurdy of Katz Media thinks otherwise. ?This is about a first mover advantage,? said McCurdy. ?The bet is that HD Radio is going to grow and ownership in the early stages is especially important. We recognize it doesn’t have the reach of the terrestrial brands.?

In an effort to attract listeners, Verizon Music is promoted 18 times a week to 30 million listeners that tune-in to Clear Channel?s big radio brands.