Study On Satellite Radio Growth
July 12, 2006
Somebody wasted their time writing this article which was posted in Billboard Monitor. In general, these studies are way behind the curve, and rarely accurate or predictive.
Study: Satellite Radio To Grow -- Slowly July 12, 2006 By Paul Bond, The Hollywood Reporter
Satellite radio will boast 19.5 million subscribers by 2010 with about 17% of all U.S. households tuning in to at least one of the two pay radio services, primarily because consumers like commercial-free music and the ability to listen to their favorite channels no matter where in the country they are.The projections released July 11 come from Targetbase, a unit of advertising agency giant Omnicom Group, and are significantly lower than other forecasts.
PricewaterhouseCoopers estimates that there will be 30 million sat radio subscribers in 2010.Targetbase said it used old and new data from Forrester Research, Simmons Market Research, Gartner Group and its own methods in putting its report together.Targetbase senior VP communication strategy Jordis Rosenquest said that "the numbers could easily be blown out of the water if you hit the right entertainment buttons."Rosenquest said satellite radio has moved from being considered a technology gadget to a full-blown entertainment device. "Your early adopters are already there," she said. "Now you're moving to the early majority who must be shown the value and quality of the programming content."
The study found that 83% of U.S. households have no intention of subscribing to satellite radio before 2010. Of those who intend on subscribing but have not already done so, about 13% say they intend on subscribing to XM Satellite Radio and 19% plan to subscribe to competitor Sirius Satellite Radio, leaving a lot of consumers who have not yet made up their mind between the services.Rosenquest said there still is a lot of education to be done about satellite radio. For example, many consumers say they intend on subscribing to sat radio, though they say they will choose a service other than Sirius or XM, even though no other service exists.Even subscribers might be in the dark about the differences between the services.
For example, a larger percentage of Sirius users label Major League Baseball an attraction, though it is XM that is the exclusive sat radio home of MLB."That's one of the most interesting things we found," Rosenquest said.At last count, XM had about 6.9 million subs compared with 4.7 million at Sirius. By their own forecasts, XM will have 8.5 million subs by year's end, and Sirius will have 6.2 million.The study, "What Listeners Want: The Value of Satellite Radio," also asked of subscribers what they valued most. Fifty% of those answering the open-ended question cited "no commercials" (on music channels) and 50% cited "same stations everywhere." Also scoring high were "variety of programming," "quality of sound" and "exclusive programming."
link to article:
HERE7/12/2006 04:58:00 PM
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