One pundit's view on the state of local radio and why sats are merging

[petertrip]

Do Howard Kurtz's thoughts ring true in Houston?

http://www.washingtonpost.com/wp-dyn/content/blog/2007/02/21/BL2007022100354_pf.html

The reason these two companies have 13 million subscribers willing to cough up $12.95 a month for something we all grew up thinking should be free is that commercial radio has self-destructed.

All these folks (including me) are paying for satellite because they're tired of cookie-cutter radio formats stuffed to the gills with commercials. They're also fed up with focus-grouped music stations that play the same 60 songs until you start hearing the chords in your sleep.

And local radio stations covering news? There are a few across the country. For the rest, forget about it.

Really, can you think of an industry (okay, maybe American automakers) that has frittered away such huge advantages and sent its customers scrambling for alternatives? I know 13 million isn't huge, but buying a radio and getting it installed is a hassle; if you could pre-order it in cars, which is the wave of the future with GM and other manufacturers, a lot more people would take the plunge.

[Oldbones]

The reason these two companies have 13 million subscribers willing to cough up $12.95 a month for something we all grew up thinking should be free is that commercial radio has self-destructed.

All these folks (including me) are paying for satellite because they're tired of cookie-cutter radio formats stuffed to the gills with commercials. They're also fed up with focus-grouped music stations that play the same 60 songs until you start hearing the chords in your sleep.

And local radio stations covering news? There are a few across the country. For the rest, forget about it.

First of all 13 million is a drop in the bucket compared to the number of listeners terrestrial radio has.  And when you take into account the number of people who have multiple subscriptions the true number is even less.  And it's growth has slowed to a crawl.  Look at it another way...285 million (+/-) DON'T think it's worth $13/mo. 

What's a "cookie cutter" format, and why is it bad?  I look at the houses they're building in my neighborhood.  Ugly colonial boxes that all look alike, 3 or 4 colors (all pastels) to choose from is all that diffrentiates them.  Yet there are people willing to pay $350k + to buy them.  Or cars...a Camry looks just like an Accord which looks just like a Malibu which looks just like an Altima which looks just like a 500 and so on.  But they sell.  Yet for some reason every radio station in America has to be a unique creation with huge playlists, a full news department and live jocks taking requests & dedications 24/7?  Spare me. 

Terrestrial radio will be with us for a long time.  Unless the satellite services can start generating black ink, they may not be.

[AZJoe]

Actually is  over 14 million units and they  figure  2.5  listeners  per...  so  its over 35 million audience, not bad  for anywhere..bigger than NYC  or LA  audiences.  If you want to overlook  35 million people , go ahead.  DISH and DirecTV have  13  and 14 million subscribers each, does anyone think that insignificant?  The satisfaction rate of terrestrial radio has never been lower, and its high with  XM & Sirius subs.

[XM RADIO]

Old  Bones,  Ive  got XM  and  Sirius,  I  wouldnt  get  into  a  car  with  out  it!  In  the  Bay  Area  Theres  NO Station  worth  listening  to, And  as  far  as  the  12.95  a  month  fee  ,its  nothing, its  44cents  a  day, and  Sirius  Gold is  worth  every nickel  !!!  Could  you  imagine  going  on  a  trip  to  LA  with  no  Satelite  Radio? What  a  pleasure  to  hear  music  in  lieu  of  9  commercials  then  3  songs  on  Terrestrial!!  Kenny  in Concord

[RadioMahn]

A big reason for Satellite radio's appeal to a few is that it's a new toy, not that terrestrial radio has killed itself.  A lot of people simply want the latest and greatest technology.  Actually, quite a few people I know who bought the service early on have grown somewhat tired of it and still listen to local radio a great deal.  Terrestrial radio won't be dying anytime soon.  If you think it will, you probably thought cable was going to kill local TV too. 

The REAL reason the Sats are merging is because they're not making money individually.

[XM RADIO]

RadioMahn,  Its  all  about  entertainment  and  XM  and  Sirius do  exactly  what  they  say  no  commercials!  no traffic reports  ,weather,  or  contests!  The  Music  you  hear  on  XM  and  Sirius is  music  Terrestrial  wouldnt  touch!  And  living  in  the  Bay Area  its  amazing  that  you  couldnt  hear  any  Elvis Presley,  or  CCR!  No  wonder  people  have  moved  on!  CBS/Infinity  have  to  feel  a  little  the  pinch in  the  Advertising  Biz, they  brought  it  on  themselves , Lots  of  commercials  and  a  little  music, same  old  worn  out  songs  over  and  over!! I  counted  9  commercials straight  on  KFRC  last  year ,  then  two overplayed  songs, then  the  news, and  a  couple  more  commercials, some  silly  chatter, a contest, then  2  more  songs, Ill pass , XM  and  Sirius  are  hardly  a  fad  or  something  new,  its  real!!  Ive yet  to  hear  any  Terrestrial radio  station worth  my  time!!  Kenny in  Concord  2 X M s  and  4  Sirius  accts

[Oldbones]

Actually is  over 14 million units and they  figure  2.5  listeners  per...  so  its over 35 million audience, not bad  for anywhere..bigger than NYC  or LA  audiences.  If you want to overlook  35 million people , go ahead.  DISH and DirecTV have  13  and 14 million subscribers each, does anyone think that insignificant?  The satisfaction rate of terrestrial radio has never been lower, and its high with  XM & Sirius subs.

This logic makes no sense.  Who are "they" and how did "they" determine that each receiver has 2.5 listeners?   Sounds like a number someone pulled out of the air to me.  Keep in mind that if you subscribe to both services, you count as 2 subscribers, even though you're only  person.  Likewise for those who have multiple receivers.  The "subscriber" count=# of activated receivers, not actual listeners.  Of course the services tout those figures since it makes them look bigger than they really are.  Is there any data on actual number of subscribers, not activated receivers?

As radiomahn said, it's a new toy and a niche product.  Most people don't really care about obscure 50s oldies or Americana music.  I'm not even sure that being commercial free is all that much of an attraction to most listeners.  I'm glad you like your satellite radio, but don't assume you're representative of the public at large.

[jason7973]

I live in the philadelphia area, and have had sirius for a year and a half, and can honestly say that I have not listened to a philly station in that time and have no desire to do so. The big radio companies have killed terestrial radio(Just look what they did to WYSP, and many other CBS stations, just because ONE man went to satelite). Is regular old radio going away? No it never will. Is satelite a drop in the pan, and be gone in ten years? No way, as a matter of fact, it could become as big as cable tv is today, which by the way many people said cable tv would never last.    just my rant

[PhilGalasso]

I got satellite radio because I cannot find the music that I like on terrestrial radio anymore. There are plenty of local FM stations, but only four formats: rock (2 stations), nauseating soccer mom music (Billy Joel, Phil Collins, etc.; 4 stations), country (2 stations), and a lily-white version of CHR that's heavy on whiny ballads and light on music with a beat (2 stations). I thoroughly detest all of those formats and wouldn't spend five minutes listening to any of those stations. How about AM? There, one can hear AC interspersed with infomercials and a block of Spanish-language programming (1 station simulcasting on three frequencies), the syndicated right wing hate clubs of the air (1 station simulcasting on three frequencies), religion (1 station simulcasting on two frequencies), or syndicated sports talk (2 stations simulcasting on five frequencies). There is also a decent oldies station, but I live in a pattern null, so the reception is very poor during the day and nonexistent at night.

While terrestrial FM radio is busy chasing the soccer moms and mall rats and AM has become a dumping ground for generally rotten programming, satellite offers something to those of us who are not members of those sacred demographic cells. Although I am not happy with Sirius replacing the standards channel with an all-Sinatra channel, I still enjoy Jazz Café (smooth jazz), Pure Jazz, Heart and Soul (smooth R&B), Soul Town, and Sirius Gold. The standards channel (Standard Time) was my main reason for subscribing to Sirius, but the other channels are still a lot better than what I can hear on the local terrestrial stations.

Does anybody here think I enjoy having to pay to hear decent music? Out here, the only alternative is silence. CDs are grossly overpriced and the Internet service sucks.

If satellite goes away, it will be due to unwise spending practices by management. XM overpaid for sports rights while Sirius overpaid for Howard Stern, spending the money before they had enough of a subscriber base to support this programming.

[nativeatlanta]

Satellite Radio is not going anywhere. More & more people like myself (who cannot take commercial radio anymore ), will make the switch. There is so much more variety of music, talk, entertainment on Sirius & XM.
It is so refreshing to hear songs from 1970s, 1980s & 1990s you don't hear anymore on commerical radio. Not just classic rock, I am talking alternative, country, R&B, pop.
I signed up for Sirius in Aug 2006. I fell in love with it. I cannot go back to commercial radio.