The reason terrestrial radio has fought the merger so hard

[letmethinkaboutit]

When Howard Stern left CBS, their radio division lost mega $$$ and imploded. When the merger goes through, terrestrial radio morning shows, especially rock/talk, will lose whatever is left of their audience. Word of mouth, and cheaper prices will send people Howard's/Satellite's way. The people running terrestrial radio know it, and mornings...where most of the $ is in radio...will be severed from terrestrial stations' income.

 

[War Of Attrition]

When Howard Stern left CBS, their radio division lost mega $$$ and imploded. When the merger goes through, terrestrial radio morning shows, especially rock/talk, will lose whatever is left of their audience. Word of mouth, and cheaper prices will send people Howard's/Satellite's way. The people running terrestrial radio know it, and mornings...where most of the $ is in radio...will be severed from terrestrial stations' income.

Pretty much everything you said is wrong. What I want you to tell me, is how two huge money-loosers, that so far have very little mainstream popularity, are going to come to together and magically become popular and set the world on fire?

A the end of the day, radio is really just a popularity contest. And satellite radio is a looser.

 

[letmethinkaboutit]

When Howard Stern left CBS, their radio division lost mega $$$ and imploded. When the merger goes through, terrestrial radio morning shows, especially rock/talk, will lose whatever is left of their audience. Word of mouth, and cheaper prices will send people Howard's/Satellite's way. The people running terrestrial radio know it, and mornings...where most of the $ is in radio...will be severed from terrestrial stations' income.

Pretty much everything you said is wrong. What I want you to tell me, is how two huge money-loosers, that so far have very little mainstream popularity, are going to come to together and magically become popular and set the world on fire?

A the end of the day, radio is really just a popularity contest. And satellite radio is a looser.

Well, I guess everything you say must be right. Wow, what a looser I am. I know someone as smart as you, would never be a loser.

 

[JustinCase]

Where is there cheaper prices for SAT radio? XM and Sirius are running on virtually borrowed money, they need to show profitibility soon or they'll be doomed... the merger is a last ditch effort to make headway, they are years behind on their target listener numbers already. Watch for more commercials and higher rates for speciality station packages... just like cable and sat television...

 

[Keith321]

Word of mouth, and cheaper prices will send people Howard's/Satellite's way.

You think once the merger/aquisition/concolidation happens, that prices will magically get lowered?

Just look at what has happenned with other industries that consolidated into a monopoly.

Banking, your paying more fees than ever and getting the lowest interest rate return on all you accounts.

How has your cable bill been lately? Hard to believe we are now all paying for something that used to be free.

Once they eat and eliminate the competition, there is very little concern about lowering the prices.

 

[davideduardo]

Banking, your paying more fees than ever and getting the lowest interest rate return on all you accounts.

You should shop around. I find that banks are very competiive, and there are more of them than I can memorize. I get interst on my checking, ATM fees refunded on all banks, free bill payment service, etc. I did not have that 10 or 20 years ago.

How has your cable bill been lately? Hard to believe we are now all paying for something that used to be free.

Much of the cable charge includes the up-to-$1-a-channel fees they pay to the cable channels.

 

[John Waywoods]

I have difficulty accepting that monopolies are good.

 

[LinoNYC]

I have difficulty accepting that monopolies are good.

It probably doesn't matter anymore. Ten years ago the idea of paying for radio that is a "better fit" might have had a chance, today tech and the times have passed it by.

Sat, radio's current turnover rate requires it to replace the equivalent of it's entire audience every 5-6 years..unsustainable.

Since the launch of Napster in Dec 1999 there has grown a sentiment that people don't have to pay for music anymore.

In Asia, bootlegging-piracy, whatever you wish to call it, has transformed the music industry away from the outright sale of music to concert promotion, film soundtracks, commercials etc. That will eventually happen here, what chance does a pay radio model have longterm in that environment?

As I see it, the merged sat companies will eventually phase out one of the platforms and seek to raise cash by leasing satellite space and will offer their customers some form of rebate to change radios (hopefully).

The satellites are not going to last forever and Howard stern is now in his mid-fifties, how many young people listen to him anymore?

Six to seven years max.

Lino

 

[alexanderthepeon]

LINONYC is a very smart poster.

I would add that in the next 3-7 years, as WIFI hits the car, the whole thing morphs into Internet delivery, and the towers and transmitters and satellites are all just leased for their bandwidth to fill the gaps.

Sat Radio is the next cassette player for your car.