Satellite radio, part 6 (The End)

Another icon decides satellite radio has a future.

Since 1981, when I found out I could pick up another city’s AM station on an table radio, I have been interested in the radio industry. As with many fields, radio today has undergone many significant changes in the past 25 years. Using that perspective there is no reason to think terrestrial radio will not adapt to the challenges posed by the satellite providers. Do you remember the latter half of the 1980's? By that time Top 40 music had all but vanished from the AM dial and FM stations were beginning their ratings dominance in most every metro area. Many, both inside and outside the business, were predicting that AM radio would be extinct in just a few years’ time, particularly when the failure of AM stereo in the United States convinced many that longtime AM listeners were quickly defecting to FM. Then a guy named Rush showed the public that AM radio could once again make a respectable showing in the ratings book.

FM stations now are being challenged not just by satellite radio but also by podcasting. Does this mean that the days of FM listening are numbered? Looking at the ability of the medium to adapt to the changing times, one is inclined to answer “no.” True, people being able to listen to their choice of music without being interrupted by commercial breaks or newscasts is undoubtedly one of the reasons XM and Sirius are continuing to increase their subscriber numbers. And with more people downloading music and converting their existing CD collection to the MP3 format it follows that a larger segment of the population will purchase not only an iPod but also car kits to allow them to enjoy their hand-chosen tunes while behind the wheel. Yes, I predict FM radio will survive but will change to accommodate the particular demands and tastes of the public.

In his outstanding book The Seven Habits of Highly Effective People, Steven Covey advances the concept that the pie is large enough for everyone to have a sizeable piece. Therefore we should avoid the stance that if one party benefits and grows then the remaining parties are somehow denied. If AM and FM broadcasters can recognize the marketplace and adapt accordingly, then the listening public is the ultimate winner without the need for the terrestrial broadcasters to “kill off” the satellite competition.

This morning was a good example of the above. Here in the Valley of the Sun, the buzz for the past 72 hours is regarding Operation Slap Shot. I tuned in to a local sportstalk station to hear the program hosts give their take on the subject. Not long afterward it was time to take Geoana to school. I began to listen to music on Sirius, but later tuned into one of the local AM stations for a traffic report. Back to Sirius for more music. Go to the gym to work out. Listen to terrestrial radio (on an armband radio) while on the treadmill. Listen to Sirius on the drive home. Listen to XM (via my DirecTV dish) while eating lunch. Listen to my iTunes on the computer while writing. You get the idea. I like my audio companionship and each has its place.

I can’t wait to see what the years ahead will give me regarding music, news, and talk, not just in my car but also in my home and on my computer. Not to mention the portable devices that will likely combine aspects of the above technology. I’ll be listening.