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April 05, 2005
New York Times on Growing Interest in Satellite Radio
Posted by Ernest Miller
The New York Times has an important article on how the growing success of satellite radio is changing traditional broadcast radio (As Satellite Radio Takes Off, It Is Altering the Airwaves). The article even mentions podcasting near the end. However, one wonders if the people pushing these expanded formats realise that people are going to expect even more.
Both companies offer stations devoted to the most popular songs, but it is their national reach and dual revenue streams - subscriptions and advertising sales on nonmusic channels - that allow them to offer niche programming. Genres that receive little exposure on commercial radio, like bluegrass, reggae or talk devoted to African-American affairs, get their own channels on satellite services. Individual ratings matter little; listener satisfaction counts for much more, because it determines how long subscribers will keep paying $12.95 a month.
But even satellite radio is limited in the amount of niches it can offer. Radio is also limited by its format. Live is useful for some things, but being able to archive and store content is better in many others.
More importantly, as currently structured, satellite radio remains a gatekeeper. A more expansive gatekeeper than broadcast, but a gatekeeper nonetheless. Why have any gatekeeper? Why not develop some form of open access?
One thing that satellite radio does show, however, is the potential for people to pay subscriptions for access to large amounts of content, particularly content that suits their varied interests. Now what business is it that could benefit from some sort of blanket licensing fee to allow people unlimited access at very low dollar amounts?
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