The Clear Channel Factor
This action was the result of a legal settlement with Clear Channel Radio which entered into a programming agreement with XM back in 1998. Unfortunately for XM, abiding by this settlement has meant it had to break the promise of all its music channels being commercial-free.
Now, although most of XM’s music channels are commercial-free, a few programmed by Clear Channel Radio are not. XM listeners will have to put up with this until at least 2008 – the year the agreement with XM and Clear Channel supposedly ends.
I’m sure back in 1998 when XM was formulating, it welcomed Clear Channel Radio’s investment in the service. I'm sure it did not foresee that years later it would be forced to renege on its original commercial-free music channel policy.
I doubt it realized at the time that Clear Channel’s investment would turn out to be a form of "blood money" which would later give the radio chain enough legal standing to force XM to sell its commercial-free soul years later.
A Policy Gone Awry
You can be assured that this chink in its commercial-free music armor has not been taken lightly and has probably caused more angst in XM hallways than you can imagine. You can also be sure, in my opinion, that Clear Channel new exactly what it was doing when it sought a legal footing to air commercials on the XM music channels it was contracted to program.
To a chain with over 1200 terrestrial radio stations, the real benefit was stealing some of the lustre away from XM's claim to commercial-free music. At least that's the way I see it.
Damage has been done and XM’s credibility has been called into question – at least by many site visitors who send me email on the subject. To their credit, XM has attempted to deflect criticism by creating clone music channels to offset the commercial-not-so-free ones the Clear Channel settlement has forced them to live with.
That said, people have a right to expect what they've been promised for payment rendered and this whole affair has no doubt soured a portion of subscribers who are literalists with little lattitude for forgiveness.
Afterall, isn't the "Holy Grail of Satellite Radio" the promise of commercial-free music - something those cluttered AM and FM stations could never do?
Excerpts of Recent Emails
"I subscribed to XM for the commercial-free music. I feel bad about abandoning XM because of the commercials on Clear Channel stations. I think airing the commercials is a misguided attempt on the part of CCC to wring money from an audience that fled to XM to escape the control of a sponsor-driven business model. If we all just walk away, no audience, no XM." – George
"I switched to their service ONLY becuase they advertised this as a commercial free service. What recourse have we got ? It seems that XM thinks we are a bunch of idiots held hastage by the fact that we cant return the radios to them !!" – Allan
"...if I'm paying for xm's service of 'commercial free' radio I don't want to listen to someone blabber about their pets medications. Before I had to deal with that I loved XM but now I'll be listening to my favorite tune and my XM will loose signal come back and I'll have to listen to a commercial. I'm not saying this perturbs me enough to switch providers but if things keep going this way I may. Between the spotty service and now the commercials I am beginning to get fed up." – Dan
"I pay decent money for radio with no commercials. How can they get away with deceiving their customers like this? Is Sirius doing the same thing? If not - I'm 'seriously' considering a swith." – A Concerned Listener
"I think I have been duped! When I purchased my XM radio w/ accessories and a two year subscription, I paid serious money for the SOLE purpose of not having to listen to commercials any more. Well I was hoodwinked, there are commercials everyday on XM 'commercial free' radio." - Roger
For the record, readers should be clear on XM’s commercial-free policy. It originally applied to music channels but the service does and has had commercials on other channels. It has never concealed that fact.
(The author wishes to disclose in a separate position he is an employee of Clear Channel.)
