930 Forums
=> GENERAL DISCUSSION => Topic started by: Jaguar on April 18, 2006, 01:37:00 pm
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Another one of your favorite topics.
Satcaster Advertising On The Rise (http://www.fmqb.com/Article.asp?id=202276)
April 17, 2006
As XM and Sirius continue to evolve, it looks as if commercials will become more and more prevalent on the satcasters' stations. Already, XM has altered its slogan of "100% commercial-free music" to having the "most commercial-free music channels." Last month it was revealed that ads would be placed on Clear Channel-controlled XM stations as part of the companies' agreements.
Gartner Research analyst Laura Behrens told Business Week that she expects that the satcasters' programming will likely resemble traditional, terrestrial radio within the next five to ten years. "Eventually, [both satellite and terrestrial radio] are going to get more similar as they evolve." Since neither company has turned a profit yet, Forrester Research analyst Ted Schadler says that both "have to be looking for all revenue sources, and ads are one of them."
XM SVP of Sales and Marketing D. Scott Karnedy tells Business Week, "Advertisers were concerned about mass. When we broke through six million subscribers, we saw that as a tipping point [with advertisers]." In 2005, XM tripled the amount of ad agencies it was involved with as ad revenues have skyrocketed in the past two years, reaching $20 million last year. Karnedy says that XM "can't keep up with the demand." The company expects to up its amount of ads on its talk channels in the near future.
As for Sirius, ad sales grew to $6.1 million last year. The satcaster is also considering increasing the spotload on Howard Stern's show from six minutes per hour up to nine, reports Business Week.
Stanford Financial Group analyst Fred Moran tells Business Week that he predicts both satcasters will bring in 10 percent of their sales revenue via advertising by 2011. Sirius predicts they will reach that amount in the next few years, though advertising only makes up under one percent of their current sales.
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I don't think it will take 5 to 10 years to resemble commercial radio. My gym plays xm channel 21 adult contemp. rock and I want to shoot myself when I forget my iPod.
Did anyone really think that some higher level intelligent/taste-maker would program the selections? What a rip-off for people who spent real money for equipment and service.
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Very true. There's not a single channel on either service that even comes close to the programming on KEXP, WOXY, The Current, most college radio stations, et al. The programming is by and large terrible and clueless. However, we do get to hear Lance Armstrong play his favorite songs! Way to go, satellite radio companies.
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Here's what is played most this week at our local college station: # ARTIST Recording
1 SECRET MACHINES Ten Silver Drops
2 BUILT TO SPILL You In Reverse
3 BLACK ANGELS Passover
4 ISLANDS Return To The Sea
5 ARCTIC MONKEYS Whatever People
Say I Am, That's What I'm Not
6 NEKO CASE Fox Confessor Brings The Flood
7 EDITORS The Back Room
8 ENVELOPES Demon
9 BOY LEAST LIKELY TO The Best Party Ever
10 ESSEX GREEN Cannibal Sea
11 HEAD LIKE A KITE Random Portraits
Of The Home Movie
12 MATES OF STATE Bring It Back
13 YEAH YEAH YEAHS Show Your Bones
14 VINES Vision Valley
15 MORRISSEY Ringleader Of The
Tormentors
16 EXENE CERVENKA AND THE ORIGINAL SINNERS Sev7en
17 AMBULANCE LTD New English [EP]
18 PRETTY GIRLS MAKE GRAVES Elan Vital
19 FLAMING LIPS At War With The
Mystics
20 PLAYWRIGHTS English Self
Storage
21 ROBOCOP KRAUS They Think They
Are The Robocop Kraus
22 M'S Future Women
23 BELLE AND SEBASTIAN The Life Pursuit
24 HANK III Straight To Hell
25 CRYSTAL SKULLS Outgoing Behavior
26 QUASI When The Going
Gets Dark
27 CONCRETES In Colour
28 MATTHEW SWEET AND SUSANNA HOFFS Under The
Covers Volume 1
29 EAGLE*SEAGULL Eagle*Seagull
30 WAYFARING STRANGERS: LADIES FROM THE CANYON
Various Artists