An article published in the NY Post late this week has, of course, caught the attention of many in the radio industry:
http://nypost.com/2015/03/19/more-streaming-siriusxm-may-mean-the-demise-of-car-radios/
Frankly, we’re not quite on board with the idea that the largest markets in the US will eventually belong to Sirius and Pandora. Here is why:
- Radio’s strength continues to be local and, as described by Greater Media’s Peter H. Smyth, “it's our connection to the listeners through our live and local on-air personalities across the country. It's the human touch, coupled with radio's ability to evolve and adapt, that will insure our vibrancy and relevance no matter what the technological channel of delivery.”
- Additionally, radio continues to be free while these competitive options are not and moreover require costly data plans for usage in the car. We continue to support the growth of HD2/HD3 channels since they use minimal data and are completely free to the consumer. The ease of using these free, local services should not be underestimated.
- Listeners, especially in the car, tend to be especially lazy. Let us not forget the study that we posted to our blog on March 2nd from our friends at Ipsos. In this study, 80% of respondents would choose to have a regular AM/FM radio in their car over any other audio option. (Conversely, only 45% opted for satellite radio; 34% said they would prefer the ability to stream internet radio).
The radio industry, however, needs to prioritize optimizing the quality of its product so as to minimize the threat coming from these competitors. We are in the market research business to help radio stations attain this very goal.
