Remember how concerned everyone in the public radio industry was about the threat of satellite radio? Particularly those of us purveying “niche” formats (e.g., folk, jazz, classical) whose audiences would be siphoned off by larger better-funded competition?
Well. Today’s Digital Music News reports that the now-combined Sirius XM radio has just reported its second consecutive quarterly drop in subscribers - the first declines in satellite radio history. Leaving the entire viability of the business in some jeopardy. Here’s the headline:
What happens when disposable incomes shrink substantially? The early learning is that premium access models take a hit, while ‘essentials’ like internet and mobile access are maintained. In the case of Sirius XM Radio, that is a serious problem given the large number of lower-cost or free alternatives. A seriously-bruised automobile industry is also dragging the total, especially for such a dashboard-intensive format.
Back to BKR: To be sure, WDAV – and all public media stations – face competition from all sides. But as I’ve opined before I don’t think satellite radio will ever be a serious threat. In fact, the recent layoffs as a result of the Sirius-XM merger included many of personnel involved in those “niche” format programming. The business may muddle through, but I’m skeptical that it will ever be a dominant force in the radio business.
Read the entire article here.
