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Nine Lives of Radio
by Andrew McCaskey
Satellite is Going to Need All of Them
The biggest news story of today is the prediction of the demise of Satellite Radio within the next two years, advanced by Roger Elgan at Datamation. Elgan is a fan of the exclusive content that suits his tastes that’s not available on AM/FM radio. But he thinks the world is moving to fast for satellite radio to keep up, and notes that Sirius XM has $3.4 billion in long-term debt, $1 billion of which is due next year — $300 million of that due by February.
Here are the reasons:
Every smartphone with mp3 – like the iphone – is a satellite radio competitor. And, that smart phone goes along for the ride in the car.
Automobiles are mp3 ready – not only with mp3 jacks but increasingly with mobile broadband- just the wifi hotspot needed by the smartphone. Add in purchased mp3 tracks – or if you don’t like that, fire up Pandora.
Podcasting kicks talk radio, and real-time podcastcasting like Blog-Talk radio removes the one advantage for local news and sporting events. Plus, downloadable time shifting as a bonus.
And the biggest source of new satellite subscribers ? Purchasers of new cars, especially GM, Ford and Chrysler.
Looks like a pretty grim list. But, as the Ken Burns PBS special Empire of the Air pointed out, radio (in terrestrial form, at least) has been knocked down for the count before. And each time it has reinvented itself in some way, and morphed into another form that aligned with the needs of the market. If satellite radio was the Great White Hope of radio in the late 20th Century, that might have been life number seven or eight. There are not many left.
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