(jeeer)ppt of sa. radio

8/9/2019 (Jeeer)Ppt of Sa. Radio

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SATELLITE RADIO

Let’s Get Real

A Down to EarthDiscussion

Shirley ThomSales Director, PSRBA



HOW IT WORKSn A ground station beams multi-channel

programming to satellites 30,000 miles in thesky.

n The satellites relay the broadcast back to thecontinental USA.

n Repeaters on the ground spread the signalthrough urban canyons and other drop-outareas.

n Tuners scan for unique activation codes to pickup a subscriber’s selected channels.



Two Companies§ XM: Launched September 2001

150 channels67 commercial free; 83 with adsSubscribers: 4 Million

§ Sirius : Launched February 2002120 Channels65 commercial free; 55 with adsSubscribers: 1.5 Million



Now That It’s Here …

n How Do You Get

ThisNew

Technology?



You Pay For ItInitial Purchase

§ You purchase a tuner for home and/or office: $300minimum … and/or

§ You purchase a portable with home and caradapters: $350 … and/or

§ You purchase a plug-and-play receiver for home andcar: $100 plus $50 per dock

Unlike cable and broadcast television, you cannot have bothsatellite and terrestrial radio in one receiver; you can’t even getboth satellite companies in one receiver. It’s an either/or

situation. You have to buy more to get more.



You Pay Again…Basic Monthly Fees:

n Upon launch, both companies charged $9.95per month

n Three years later, both companies raised thecharge to $12.95 per month

30% increase in the first three yearsDo you believe it will stop there?



And Again …(Basic Means Basic)

Special Programs Cost More

§ Can’t wait to hear Howard Stern?He’s special …Pay More

§ Want to hear your home team games?They’re special …Pay More

How much more?(It’s a mystery)



Commercial Free?Only Music Channels are

Commercial Free

§ You want Howard? Pay additionalmonthly fee and hear commercials§ You want NFL? Pay additional monthly

fee and hear commercialsIf you thought you’d be paying to hear

these programs without commercials,you’ve been had.



Mel Speaks

Mel Karmazin, Sirius CEO, says“Advertising sales are going to be

increasingly important as the companyrolls out exclusive non-music content.”

Not only is he looking to sell ads tonational advertisers, he said there

could be multiple feeds of the shows,with opportunities to sell ads to localand regional advertisers.



Still Want CommercialFree Music?Slap in a CD

OrClick on the iPod

You already paid for these toys.Why pay hundreds of $$for more of the same?



Commercials: Fair Traden 80% of Americans believe that being

exposed to commercials is a fair price

to pay for free programmingn 84% at work rarely or never change

stations because an ad comes onn 73% at home rarely or never changen 43% in car rarely or never change; 22%

sometimes; only 18% always change

Arbitron/Edison Media Research April 2005



Places We Listen To Radion 42% of us listen in our cars

n 35% of us listen in our homesn 22% of us listen at work

To keep what we already have, do we need

three new satellite radios?Or do we need more?



Listener Penetrationn U.S. Satellite Radio 5,500,000n U.S. Free Radio 228,000,000*n

Puget Sound Satellite 27,000n Puget Sound Free Radio 3,555,550*

“We were surprised at how littlemarket penetration has been achieved

by satellite radio.”Bob Jordan, President of International Demographics

*Arbitron estimate @ 94%



In Car Listening is Up 3%

Kurt Hansen, publisher-analyst of RAIN, hasanalyzed the past six years’ worth of

Arbitron radio ratings data for terrestrialradio’s usage.

“In the listening location that would be mostaffected by the growth of satellite radio,

terrestrial radio’s in car listening actuallyhas risen by almost 3% during that time .”

RAIN: Radio and Internet Newsletter, May, 2005



Consumer Intentionsn 4.2% have satellite radio (4.5%M; 3.9%F)n 2.5% plan to buy in next six monthsn

16.1% plan to buy “someday”n 52.6% “don’t think I’ll buy at this time”n 24.6% “don’t know enough to make a

purchase decision”n 18-34 year olds are # 1 age group, for

current and future subscribers

Center for Media Research, March 2005



The Media Audit Study

In the 87 top markets surveyed by TheMedia Audit Survey, satellite radio

attracted only 10,000 or more adultsin just 20 of the markets.

Satellite pulled only one percent or moreof the adults in just six markets and

In No Market

did it attract as much as two percent.

The Media Audit, March 2005



Radio’s Virtual Neighborhood

§ The individual listener perceives thatlocal radio programs/stations are

speaking to him personally,rather than to the mass audience.

§ Each local radio station forms a coreaudience of listeners who also believe

they are part of a “virtualneighborhood” of persons with similartastes and needs.

Wirthlin Study for RAEL Research, August 2004



One More Thing …Obsolescence

§ Radio & Records editor, Adam

Jacobson calls satellite radiotechnology “the eight-track of the 21 st

century.”§ Seattle Times reporter, Mark Rahner,

“Would I buy satellite radio? Not yet.”

What then?



Radio for the21 st Century

If it’s new technology you want,you don’t have to reach for the sky.

HD RadioHas Arrived



What Is HD Radio?HD Radio is a new technology that enables

AM and FM Radio stations to broadcasttheir programs digitally

§ Enhanced sound fidelity§ Upgraded audio quality

AM Digital will have FM Audio quality

FM Digital will have CD audio quality

§ Improved receptionStatic-free, crystal-clear reception, without pops,hiss, or fades



HD Radio: More Benefitsn Advanced data and audio services

Surround Sound and multi-castingStore and replay

§ Wireless data servicesScrolling text displayed on Radio screen including songtitles, artist names, traffic updates, weather, sports, etc.

§ Easy conversion processNo service disruption; same dial position

§ IT’S FREE!After initial purchase, no subscription costs



Bottom Linen Satellite radio is here to stay, but even the

most optimistic forecasts say 10% penetration by 2010n Terrestrial radio is here to stay, with a

proven track record of 94% penetration, NOWn Satellite radio has monthly costsn Terrestrial radio is freen Both have commercialsn Both are on the cutting edge of

technology



Local Radio is Here to Stay

It’s an irreplaceable part of ourpersonal neighborhoods.

And it’s FREE!Why would you buy anything else?

Shirley [email protected]

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