Is Satellite Radio Becoming Terrestrial Radio (And Does It Matter?)
written by: Jerry Del Colliano
Audio Revolution
date: September 15, 2005
http://www.audiorevolution.com/news/0905/15.satradio.html
The more I listen to satellite radio, the more it sounds like terrestrial
radio.
I have personally owned both XM and Sirius for years now. Ultimately, I
prefer Sirius for superior programming despite XMs more powerful signal,
but I have become concerned with a noticeable slip in Sirius programming
style. In the early days of satellite radio, the media had vast amounts of
channels that allowed a listener to get much more specific with what he or
she wanted to jam to. While there are still many times more programming
choices on both XM and Sirius compared to terrestrial radio, there is also
now the same kind of mindless chatter, blabbering, goofy anecdotes and even
commercials on a growing number of satellite radio stations.
Sirius is now run by ex-Infinity head Mel Karmazin, who sheparded Howard
Stern at Infinity and who will once again be his boss at Sirius. Karmazins
track record for increasing profits at Infinity during radios boom in the
late 1990s is impressive. The thinking is that Mel is going to make Sirius
look more like Infinity than Sirius. The commercials are coming at least
on the non-music channels. Revenue is up, according to Karmazins own
recent report to Wall Street. Karmazin has never been known as a content
guy. A programmer he is not. The fortunate meet-up with Howard Stern has
gone a long way to creating the false impression that Karmazin knows
programming, but industry insiders know otherwise. He is a salesman. And a
dealmaker. Its not likely hes the man to create new formats to
distinguish satellite from radio.
Terrestrial Radio Cant Fix Their Programming
Satellite radio needs to not fear terrestrial radio. The Jack format is
the best example of the radios industry inability to come up with a new
format that will be successful long-term. Industry insiders know this. Can
you say, Jammin Oldies? Whats Jammin Oldies? Not too long ago, it was
another radio industry attempt at reinventing the oldies station. It
failed. Now Jack is apparently the best terrestrial radio has come up
with since consolidation started in 1996. Its same-old, same-old. Sweeps,
promos, attitude, no jocks, arrogance (We play what we want). And even
though the format is aimed at Generation X, dont look now, but the college
campuses show masses of the next generation who cant stomach Jack, let
alone terrestrial radio. Oh, and Jill is reportedly on the way aimed at
women. Only in radio can you declare your only new format in years a winner
without an enduring ratings track record while creating another one just
like it. Jack, by the way, took off like an arrow (sorry) on Infinitys
Arrow in L.A., but the last month of recent rating trends show that
listening has begun to decline, far too early for a lasting winner.
The idea of Four Non-Blondes paired in a musical set with George
Thorougood, along with Hotel California, isnt really that riveting.
Moreover, if you want something to sound like it is shuffling, youll plug
your iPod into your car stereo. Music industry students at the University
of Southern California (my alma mater) have said as much. They now ask
their professors, Why is radio doing this? Why is radio so arrogant? Why
dont they get it?
Clear Channel is betting the ranch on Less Is More their initiative to
cut bloated spot loads and run shorter commercials. They are taking what
they say is a temporary revenue hit. There is some evidence that average
quarter-hour listening on Clear Channel stations has increased since they
cut commercial loads. Yet the larger question is: is less more or is it
time for the radio industry to offer more for less? More value in
commercials. More innovation in formats. More local programming that is
unique and in contrast to what satellite has to offer.
Infinity has been saying the long goodbye to Howard Stern and should cut
bait now before Stern is slated to leave for Sirius. They are reportedly
trying to land Loveline host and Crank Yanker co-creator Adam Corolla to
replace Stern in some markets. David Lee Roth is also being groomed to fill
in. Both moves are mistakes. Infinity should accept that it had a great run
with Stern and do something new perhaps music that speaks to the male
demo of the Stern audience. Recreating the Stern phenomenon is asking for
lighting to strike twice. It wont. Infinity should be creating new
programming, not replacements for Howard Stern (old programming that is
headed for terrestrial radios biggest imitator satellite).
Traditional Radio Should Be Scared of WiFi
Major cities like Philadelphia and San Francisco are making a major push to
get WiFi access for their entire areas. This will be a creative and
powerful move that will make the Internet, email and streaming audio
available to the masses at little to no cost. One way it empowers people is
to allow them to use handheld and car audio devices to receive Internet
radio. If you havent checked it out lately, Internet radio is getting
better and better in terms of programming. It truly is the ultimate in
niche broadcasting. Make no mistake, it has a long way to go in terms of
professionalism and audio production to meet the standards set by the
terrestrial and satellite guys, but for free (or a few dollars per month
subscription), Internet radio is a powerful new media that can additionally
fragment the already splintered radio market. It is likely that the
satellite radio providers will migrate over to WiFi at some point in the
future. However, if one was trying to build the next radio empire like
Clear Channel and Infinity, the best potential is on Internet radio. It
speaks to the lost Gen Y audience in ways traditional radio and satellite
radio dont and likely never will.
So, as the Summer of 2005 draws to an end, here is the New World Order of
Radio. Terrestrial Radio is on the skids an imitation of itself, choked
by the debt owners carry in a world that offers new options to new kinds of
listeners. Void of leaders who understand the next generation. Satellite
radio appears to have missed its best opportunity to make a good first
impression. It has become radio-lite no commercials on music stations,
and little to no innovation in programming. Worse, satellite radio sounds
more like terrestrial radio every day. Internet radio is the grassroots
unpolished answer to entertainment freedom for a new generation. Its free
or almost free. Its devoid of arrogance or corporate panache. All it needs
is WiFi or WiMax to make it on-demand on the go. And Apples iPod what
can we say? It took a computer company to do what broadcasters should have
and could have done if they had understood the end user the way Steve Jobs
does.
Satellite is becoming terrestrial radio, but both risk becoming further
irrelevant to the coming generation.
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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