Satrad fan sees bleak future for the industry
Leslie Shapiro at SciFi.com laments satellite radio’s limited market penetration:
Although it’s clear that I love satellite radio, it’s equally clear that most everybody else doesn’t. I recently bought a new car, supposedly “with XM.” The salesman had no clue if there was actually an XM receiver built into the car, and neither did his manager. Finally, three people later, I found out that my system is “XM ready,” and they still couldn’t tell me how to get XM in the car (I just needed a plug-and-play tuner connected to the Aux input). If I can’t figure out how to get XM, how could the average consumer? Clearly, satellite radio isn’t winning any popularity contests.
He then lists the main reasons for why he thinks that is. Among them are HD radio, iPods and lackluster satellite radio receivers.
It is a bit strange that XM and Sirius have created premium-priced services without providing their premium content with premium distribution.
May 14th, 2007 at 2:08 pm
Seems, as if consumers are no longer interested in “radio”:
“4/4/07 - FCC: Market to Decide Fate of HD Radio”
http://www.diymedia.net/archive/0407.htm
“Sirius, XM, and HD: Consumer interest reality check”
“While interest in satellite radio is diminishing, interest in HD shows no signs of a pulse.”
http://www.hear2.com/2007/02/sirius_xm_and_h.html
“U.S. automakers not jumping into HD Radio”
http://www.reuters.com/article/ousiv/idUSN2632750220070427?pageNumber=1
“Bridge Ratings: Sweat the cell phone and don’t count on HD”
“In other words, Bridge says interest in HD radio is decreasing even as your station works hard to increase awareness. What can I possibly add to this honest and bleak picture that I haven’t said before? My well-intended warnings about HD’s “premature death” seem to be rearing their ugly heads almost two years later.”
http://www.hear2.com/2007/04/bridge_ratings_.html#comments
“But is ‘availability’ of HD radios the problem?”
“And one broadcaster reported to me that he asked an iBiquity rep how many HD radios had actually been sold as of the most recent accounting. And this was his answer: 150,000.”
http://www.hear2.com/2007/04/but_is_availabi.html#comments
May 14th, 2007 at 3:34 pm
Sounds more like consumers are by and large satisfied with the value provided by traditional terrestrial radio: A number of genres to choose from, no fees, and no need for fancy new equipment. It’s probably the case that many listeners who’ve cut back on radio are instead listening to iPods and other protable recorded digital programming devices rather than satellite or HD radio.
Satellite has a number of strengths that XM and Sirius should be able to take better advantage of than they have so far. Besides signal strength and reception, they need to create compelling programming that truly warrants the subscription fee. They need compelling original content that cuts through the clutter. Material tht goes beyond licensed content like NFL rights or poached entertainers like Howard Stern and Opie & Anthony.