These readers disagree with our view that satellite radio companies are heading for huge churn rates (
2/7/05 RBR #26).
I don't understand how you come to the conclusion that there will be this huge churn rate for satellite radio a year after the new vehicle buyers find out it costs $10 a month to continue the subscription. Everybody I have talked to that has either XM or Sirius loves it. What caused me to try it was their rave reviews and sampling it in a friend's GMC Yukon. I found a receiver on sale at a local retailer for under $100. I thought I'd try it and if I didn't like it I would only be out a small amount of cash and the one month subscription. The only time I listen to over the air broadcasting now, is to listen to Rush. Once he and Neal Boortz are on the bird, I will have no use for over the air broadcasting. I'm afraid 90% of the new car owners are going to feel the same way. That is the very reason broadcasters need to see the threat the satcasters pose to them and start dealing with it now. For if they don't, spot loads will be the least of their worries in the future.
Scott Cason
President
LaGrange Communications, LLC
You guys (and radio in general) love to buy your own self promotion. It is evident in the RBR Observation about Lehman predicting that satellite will hurt radio.
The fact that some people may not renew their satellite subscription is irrelevant. What happens when (notice I said "when" and not "if") satellite providers start broadcasting several (like 20) channels FREE, but play 6 or 8 spots an hour and a lot of cars are already equipped with the satellite receiver? Worse yet, what happens if they offer 50 free channels with limited commercials and those same channels, in commercial free form, for $10 a month. The point is, the more satellite radios are installed in cars, the larger the threat looms.
And here's where you love to buy your own self promotion. What makes you think that so many people will not renew their subscriptions? You speak of satellite as if it is an inferior product to terrestrial radio. The opposite is true. Terrestrial radio has whored itself out to such an incredible extent, it is possible that there is no road back. "Less is More," "Added Value," "Non Traditional Revenue (that ends up on the air)" "Low Priced Talent," "Cross Promotions including a million products," "Voice Tracking," et. al. all take a toll on the product. The only way out is to swallow the bitter pill of next to no commercials, and we already know that top management and the financial markets are way too greedy to ever do that. Heck, let's sell our entire future for an extra 30 cents today.
I never thought that I'd be the one to say this, but consolidation did not have a good effect on radio. Ultimately, the greed of Wall Street and the lack of understanding of what radio is truly about (by upper management) will be the end. I may write you and rant about this frequently, but from the onslaught of articles, not a soul is listening or understands, I'm not sure which is true.
Russ Oasis
WKLU Indy / WJFX Ft. Wayne
Are you reading this from a forwarded email?
