Tuesday, January 17, 2006

Satellite radio, part 4

In the realm of politics there is a term known as “flyover states.” For the uninformed, this moniker is used to refer to any area of the United States that is not New York or California. And so it goes with broadcasting. Listeners in the metro areas of the East or West Coasts enjoy crowded FM dials with a particular variety of format options. Yet it is not so for those who reside in smaller urban areas, not to mention listeners in the rural sections of the U.S. This is certainly not a new problem for small-town dwellers wanting more aural diversity. Some years ago on a radio-related bulletin board a person who was raised in the town of Show Low, Arizona wrote how he and his friends would eagerly await sundown, when they could tune into the high-powered rock stations from Los Angeles and elsewhere. (Bear in mind this was in the 1970's, when AM radio was still dominant and Top 40 music was a common fixture on many of these “blowtorch” stations.) And why should people be confined to just a few formats when musical styles and tastes are becoming more numerous than ever?

I write with some experience regarding the rural area and having few listening options. Many years back I had a job which required some travel time. Often I would put up with weak, static-laden signals just to listen to a particular program or a certain type of music. Not to mention listening to a station simply because it was the only one to be received while on the interstate highways of Arizona or New Mexico. I also am a person who enjoys the random nature of radio, rather than one who is inclined to listen to an I-Pod or CDs while in transit. Some of my fondest memories of certain songs stem from having heard the tune while viewing the landscape through my windshield or enjoying the anticipation of arriving at a certain destination. My Sirius system will not take away that experience, rather it should enhance it.

When satellite radio was introduced to the market in 2001 I remember thinking, “Man, every truck driver will want one of those.” I haven’t seen any research showing the buying trends of Sirius or XM units, but I can’t help but wonder how many truckers now enjoy the benefits of satellite radio. And it is no accident that both providers have a channel specifically targeted to over-the-road truckers. And big-rig operators are by no means the only folks who spend much of their salary-earning hours behind the wheel. Traveling salespeople, delivery drivers, and members of several other professions log great mileage each year. All of these are potential customers for satellite radio. All of them different people with different musical and talk appetites. All will find something on the satellite radio dial to help pass the time. And don’t think the research nerds working for XM and Sirius don’t know that.

In part 5, how satellite will increase its market share and how terrestrial radio will adapt.

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