Tuesday, October 17, 2006
A Winning Concept from XM
October 17, 2006
Satellite Radio is still in its infancy. What was merely a concept at one point is now growing to become a media community. This can happen because satellite radio can offer virtually any kind of content a person could want, whether it is rock, pop, classical, talk, or comedy.
XM Satellite Radio has taken some interesting steps that could well become very big in the near future. By example, take a look at the XM Sponsors page
HERE. These 63 companies all pay money to XM to be sponsors in one form or another. This means additional revenue for XM.
Now it is time to grow this concept to the next level. Make XM a community where subscribers can garner subscriber only specials from the sponsors. XM benefits by collecting sponsor money, the sponsor benefits by being able to sell to a captive audience, the consumer benefits by getting special deals. Imagine a Bose commercial on XM that sends consumers to the sponsor section of the website.
This concept makes the $12.95 cent subscription price more valuable to a consumer, because it no longer only a subscription, but also a method to garner better deals on products.
This can be taken a step further, and put it into some of the hardware such as the Inno. Create a "sponsor page" where listeners can view sponsors and specials if the so desire. Such a page can also include "daily specials", "bonus buys", and "contests" which will ensure that people check out the sponsor section frequently. This is something that can not be duplicated by AM and FM radio, and would give potential advertisers more reason to spend their advertising dollars on satellite radio.
This form of marketing is very simple. XM has the framework in place. They should now expand on that, and turn it into something that gives consumers yet another reason to subscribe. When consumers consider paying a subscription, they assign a value to the expense they are incurring. For many the value is already there, but people always want more. The idea is to create more value for the consumer while minimizing expense. The sponsor program ca actually create consumer value and HELP the bottom line.
By extension, Sirius could do the same type of promotions, but they are a bit behind at this point because they do not yet have a sponsors page.
XM and Sirius can both benefit greatly from this concept, and it can even grow into something that can create a lot of buzz with the right types of promotions.
10/17/2006 10:45:00 AM
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