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It's a secondary digital signal piggy-backed onto the existing analog signal. Traditional terrestrial radio stations are starting to feel the heat from the satellite market. Since they can't get around the FCC regarding content, the only value-add left is "CD quality" audio.
Much like HDTV broadcasts, some stations are already broadcasting in this format but you need a special receiver to decode it.
It'll be interesting to see whether this catches on or bites the dust like stereo AM did in the 90s.
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