Satellite Radio Becomes Smarter While HD Radio Remains Left in the Dark

This past Monday, CEOs at XM and Sirius Satellite Radio announced their decision to combine forces. Yes, this will mean that the two main satellite radio service providers will be merging in the near future! In an attempt to lower overall costs, XM and Sirius will form one main satellite radio network that will provide the same "quality" programming of both stations, respectively. The only thing standing in their way, however, is the law. This minor aspect specifically prohibits this merger from happening. According to reports, the FCC will evaluate this case to see if it is in the public's best interest and, if it is, then the merger will be on its way to finalization.

XM and Sirius' goal to lessen its cost through a merger, theoretically, will attract more consumers. However, these companies will have to do a lot more to retain the interest of its listener public. XM's advertisements on television are entertaining and of the times, but what is a commercial without the content to back it up? I am not degrading the programming of XM radio, it just seems like people in this day and age are more prone to listening to their music on-demand via an iPod than tuning their satellite radio to a certain station. Hopefully, this merger will exhilarate motivation to respond to such issues.





HD radio, on the other hand, is becoming even more pathetic. Constant spots on terrestrial radio advertise its HD counterpart as the "hidden channels you didn't know you had". These "hidden channels" come at a cost, however. In order to access the hidden channels, one must purchase a device equipped with HD radio. Currently, HD radios can cost anywhere from $200-$1,000. This high cost may make most consumers wary of purchasing this device. Some potential purchasers of the HD radio could ask themselves, "why would I purchase a device that costs more money than an iPod when I will most likely be more satisfied from my iPod?" This question is completely valid. HD radio is terrestrial radio's attempt to save its listenership while attracting even more listeners. So far, things have not gone according to plan.

The high cost of HD radio is daunting. Some reason that programming on side channels will be a bit better if not the same as the main terrestrial channel and, if this is the case, then why should they spend the money? It has even been mentioned that HD radio will be offered as an option in new BMW models. If anything, HD radio creates exclusivity as opposed to inclusiveness. By valuing HD radio at such a high cost and associating itself with top of the line vehicles, this crack-team in radio is combating competition by isolating its listeners. This just doesn't make sense---why would you attempt to gain listenership through a high cost of listening (in both respects)? Clearly, the radio big wigs have some work to do if they want to compete with the Steve Jobs of the world.

I Found This Interesting...

Here's an old-post from my MySpace blog...


December 24, 2005 • Saturday

XM Radio
Current mood: blah

So I got an XM radio last week and it's safe to say that I'm in love. It isn't safe to say, however, that I will discontinue my listening to commercial radio. I am so completely torn between commercial and satellite radio--->although satellite radio is completely genre specific and virtually commercial-free with minimum DJ banter, I still can't avoid the sound quality that emits from commercial radio---nothing can beat it. Maybe it's because I purchased the cheapest XM car radio transmitter, but regardless I'll always go back to commercial radio.

The only thing I don't like about commercial radio, which you could say is a major problem with all commercial radio stations, is that they do not have enough flexibility within their playlists, this is why it's so hard for Indie musicians----even those new musicians signed to major labels----to get airplay. XM and other satellite radio provdiers create a niche for these artists to flourish and for their music to be exposed.

Ok, that's enough of my discussion on commercial vs. satellite radio. Merry X-Mas to all the Jews of the world.


....Interesting. Even back then I was able to determine the problems that still trouble the radio industry. What I am suprised by here is that, back then, I preferred terrestrial over satellite radio--which is INSANE! How quickly things change, my friends. I haven't listened to XM in over a year and I can't even tell you when the last time I heard good terrestrial programming. These are the problems our industry unfortunately faces.

Today one of my old professors told me that radio is not dead. In fact, he said, Internet radio has been the fastest growing radio format in the past few years. According to him, once WiFi becomes readily available, Internet radio will quickly gain popularity. There will be thousands upon thousands of stations available to listeners on-demand. Back in 2004, About:Radio reporter Corey Deitz saw the future of Internet radio as "bright". He agrees that Internet radio "will slowly evolve and with the help of broadband, wireless, and product development it will find it’s rightful place in the home, auto and hand-held device." Maybe someone should give the heads up to stubborn terrestrial programmers so that they can develop a game-plan for breaking into Internet radio niche-markets.


You can find more information regarding this subject here: The Future of Internet Radio Is Bright