San Diego In The Cross Hairs Of Satillite Radio...click, click...
>
> Stay tuned, as there is one compelling issue that both
> services have to do:
>
> Make a profit.
>
> So, before they "lick their chops" they have to have more
> than jingles on air -- they need jingle in the bank deposit.
> Both in the sky services have been draining money since
> launch. Both expect to make money next year .... still a big
> IF.
>
So you still think that XM and Sirius wont take off? You cant honestly be that naieve. They both have millions of subscribers, and we havent hit this years holiday sales, or the 'stern factor' yet. Yes it took alot to get these services off of the ground, it truely was an investment. But now they have the next 30+ years to work on their profit. Not just 'next year'. dont be so short sighted with your vision.
As for only having jingles on air...have you even listened? I own both services. Just about every channel I listen to has jocks. And they aren't low level re-hash either. The air talent on these services is beginning to read like a radio 'whos who' list of radio talent. Then the specialty shows on each channel, the talent on some of those shows...my goodness! From Liquid Todd to Tony Hawk (huh?!?!) to Cool DJ Red Alert to Groove Radio...it is what radio should be. In a market like San Diego, where they continue to re-hash, re-tread and re-use their buddies and in-laws that they worked with back in the day...FM radio is screwed. Especially with such high gross income households in SD, the people of San Diego can afford the monthly fees and recievers, that is if they dont get one free in their new BMW along with the first years subscrpition paid for. What is 10 bucks a month to a guy who makes $80,000+? Nothing.
I think the companies in large markets like SD have done themselves in by continuing to hand the listeners the same stale product over and over again and trying to pass it off as 'new'. Again, I dont want to mention names...but there are a few prime examples in San Diego. Owners should have looked to (break the bank a bit) bigger name talent...and breaking new talent to at least provide freshness. Bringing on some guy from the 80s, another guy with a 90s specialty show and breaking talentless talent that listeners dont relate to because they read the liner card, interviewed well, and are no more a threat then milktoast to ANYTHING is exactly why the demand and desire for radio service like XM and Sirius came about. What I think is even worse, is local FM stations airing the same syndicated programming (FOX Sports for example) that is provided on Satillite. You might say "well, they get the same thing for free on regular FM", but what they have done is provide a crossover and a name people recognize when considering these services...knowing that if they drive out of town or on vacation they wont have to worry about missing "JT The Brick". In this case I think local FM is providing an appeal for prospective Satillite radio buyers. The reminder will come when they take that drive into Vegas to party. Youknowhutimean. "Maybe that XM is a good Idea because I left all my cds at home and we still have 3 more hours till vegas...uho...accident...we ll be sitting here for 6 more hours with nothing on the radio...but if I had XM..."
FM in smaller markets will be better off battling these services because you dont see as many multi-million dollar homes and people in as higher gross income brackets as you do in larger metropolitan areas.
The only thing I see sticking around in the San Diego market in say, 10 years, is Local Talk Radio, Spanish and Syndicated programming designed to turn people on to purchasing Satillite radio. Even then Im not sure that will be a winning $$$ proposition. In fact I think San Diego will be one of the first and hardest hit by satillite radio over the next 5 years. Why? Bad PDs who have stroked themselves for years and a larger portion of the population who can and will pay for satillite radio.