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January 11, 2005
Radio Attacks XM, Sirius The Washington Post reports that traditional terrestrial radio stations are attacking satellite radio companies XM and Sirius. In the past three years, the nation's nearly 14,000 AM and FM stations have come face to face with a new threat: satellite radio. Washington's XM Satellite Radio and New York's Sirius Satellite Radio charge a monthly fee to beam more than 100 channels of largely commercial-free radio to customers. Both services started with zero subscribers and have grown to a combined 4.3 million as of the end of 2004… The promotional ads, sent to thousands of radio stations yesterday, include the tagline: "Radio. You hear it here first." The campaign is designed to show AM and FM radio as the place that exposes listeners to new music. The radio ads feature pop stars ticking off career accomplishments and allusions to hit songs, laid down over a musical track. Canadian rocker Avril Lavigne, whose 2002 single "Complicated" rocketed her to stardom at 17, chips in: "Before the cover of Maxim, before stomping the red carpet, before I stole my father's ties, before the star on my wrist, before boy-beaters beat out wife-beaters, before I got nominated again, before the pop-tart drama, before I toured the world at 19 and 'Complicated' made things so complicated, you heard me -- Avril Lavigne -- on the radio." The Wall Street Journal reports: Radio executives long have dismissed satellite radio, playing down its threat on the theory that few people would want to pay for something they're used to getting free. But that line is getting harder and harder to swallow. There's a few flaws in this campaign. First, I'm not convinced that those interested in XM and Sirius would be interested in Nelly, Alicia Keys, Ludacris, and Avril Lavinge. Second, broadcast (some satellite radio also has terrestrial transmitters) radio isn't "free," it's burdened with constant crass commercialism and endless commercials. Third, the new stuff argument…there has to be more new stuff on satellite. Posted by chris at January 11, 2005 10:05 AM
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