Some of what I'm about to say has already been said...But I see some of the people saying it were sort of in attack mode.
First, XM does have commercials on the talk, sports, comedy, and news channels.
Second, it sounds like, since the commercials will be on the Clear Channel stations, I'm guessing XM and its shareholders won't see a dime of the revenue...It'll all continue to line CC's already fattened pockets.
Third, yes, cable does have commercials...But, even their digital music channels are commercial-free.
Now, if XM did add commercials to their other channels, as long as they kept the breaks to say two or three spots at a time, and only did them maybe once an hour, I think they'd still retain their subscriber base. There are other advantages to the music channels on XM, not just the fact that they're commercial-free. For one thing, I'm always hearing songs I haven't heard on FM in years. This happens both on the channels that play deeper cuts as well as the more hits-oriented channels. Also, regardless of what campaigns the NAB runs, I'd swear that, especially with country, I hear new music on XM long before FM touches it. Also, (and I know edited versions of songs serve some purpose somewhere), it's nice to hear Godsmack or Korn without bleeps, or backwards curses, or whatever...Especially if it's a live concert broadcast. I remember in the old days, living in Phoenix, when KUPD or Z-Rock would run live shows. Chances are, a rock band is going to drop an F-bomb on stage, either in a song or during the speaking between songs...It's nice not to hear bleeps every few seconds, which interrupts the flow of the show. Also, XM seems to have more artist interviews than commercial radio, at least here in Seattle.
So, I guess I can see both sides of the issue. Initially, what sold me on XM over Sirius was content. The fact that both offer commercial-free music was also a plus. But, if XM decided to do a couple minutes of spots every hour on the music channels, I don't think it'd cause people to run back to terrestrial radio and cancel their XM subscriptions. And hey, as long as all the channels don't go to break at the same time, it's easy to do like I do with Opie and Anthony...When they go to a break, I flip to another channel, and tune back in after a few minutes.
Hopefully though, if they were to add commercials in general, it'd make them able to keep the subscription price where it's at for a while.
> What subscriptions do you have that do not include other
> advertisements?
>
> Newspaper...nope tons of ads there...in fact the ads are the
> only reason I buy the Sunday paper.
>
> Magazines...again, tons of ads.
>
> The CD club where you get 7 CD's for a penny...nope still
> have forms of advertising including the shipment of the CD
> you really don't want but they hope you'll keep.
>
> CableTV...other than premium channels no ads in fact the
> Cable Company even places ads on the channels they carry.
>
> So please can someone tell me logically why Sat radio would
> be any different than these subscription models and be able
> to be profitable in the long term? I fully support ads on
> satellite radio, especially as a shareholder.
>