“That’s it,” I thought to myself. “Satellite Radio will finally give enough people a reason to go for it.”
I’ve been a fan of Satellite Radio for about a year now. Honestly, I will never be without it again. I enjoy the freedom of choice it affords me and the $10 or $12 bucks-a-month cost is worth the price.
But, up until this news, my only regret was the lack of wearability. I either had to listen at home or in my car. But, I’m selfish: I want to be able to take it anywhere like when I’m at the gym or walking or if I go to the beach or the lake. Yes, I want it all - and it looks like I’m going to get it.
And while this is good news for me, this impending hardware evolution is bad news for traditional radio stations and here’s why:
Up until now, terrestrial (land-based) radio stations have been cocky when it comes to the Satellite Radio threat because...
1)Subscribership is still relatively low compared to the number of people who listen to “free” commercial radio
2)Satellite subscribers have been “chained” to either home or car and
3)Free radio hardware (walkmans, portable radios, etc.) have allowed it to saturate the marketplace
So, traditional radio has not flinched in its continued attempt to stick to “safe” formats, in the quest of target demos, while invoking the latest cost efficient techniques like voice-tracking technology to lower costs. But, the “wearability” factor in Satellite Radio is surely going to boost subscribership immensely and possibly will turn out to be one of the key reasons SIRIUS and XM begin a reign of profitability.
It’s all about the money and while traditional radio will always be free - in the sense you don't actually write a check for it - it comes that way because the listener “pays” in a different form: by patronizing a station that often skimps on the live DJ and heavies up on the automation.
You do think your time is worth something, don’t you? Well, then when you listen you need to remember that you are giving something of value in return for something that is supposed to have value. Over the years, your time has probably increased in worth while much of your radio listening has decreased in value.
But, Satellite Radio wearability will seduce millions more who will finally be at the point of "readiness" for this type of service in their life. And in return for their payment - which now will be upfront and in cash - they will receive dozens and dozens of commercial free music channels, information, and entertainment in exactly the format and genre they want, to better satisfy their aural preferences.
We’ve always been taught that traditional radio is completely free to the listener. But, when you realize and accept that your choice to listen is really a type of “payment” in the form of your valuable time, real Radio fans will soon be faced with the question of how much money is your time worth and in exchange for it, are you getting the value you expect.
“Free” radio may not be your best value in the future, especially with all the “baggage” it carries: limited playlists, annoying commercials, and a general lack of choice.
If I can borrow from those famous MasterCard TV ads:
Satellite Radio wearability: Over 100 Channels at the cost of about two fast food dinners per month. Priceless.
