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Interesting article on Sat Radio business


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#1 of 2 OFFLINE   BrianAe

BrianAe

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Posted February 08 2005 - 04:13 AM

Here is an interesting article on sat radio:
http://money.cnn.com....reut/index.htm

The two points I found interesting are:

1) Listeners seem not to care that much about exclusive content like Stern, Bob Edwards et. The main thing they want is no commercials.

2) The growth of the business as projected by JP Morgan isn't very optimistic or compelling. Both services will have to do much better to be in the black by 2010.

#2 of 2 OFFLINE   Brian L

Brian L

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Posted February 08 2005 - 05:16 AM

I kind of question the JP Morgan study, concluding that Sat Radio needs to expand beyond the car to increase listener ship.

Personally, while I do have XM at home, I listen more in the car. And it seems that every day I read about another car company offering XM or Sirius as a factory option. And you can add either service to a car for a tick over $100 (I did just that when I bought a Roady2 as a gift for my Bro).

At some point, that has to hurt standard broadcasters.

And really, how many people on a % basis listen to radio at home, regardless of how good the content is?

I do agree 100% that its the lack of commercials that is the biggest draw for me, probably tied with the variety of musical content that is totally unavailable to me on terrestrial radio.

Like everyone else and his dog, since I got XM in the car, I NEVER listen to FM radio (barring national disasters), and rarely listen to CDs...the content on XM, and total lack or commercials is just too good.

BGL