Where's The Love?
Great article in the Washington Post about on-demand audio and control over content.
Favorite piece of info in the article:
"Arbitron/Edison survey finds that iPod listeners already use less broadcast radio than do others. Perhaps the more telling finding comes in the percentage of people who say they "love" their iPod (35 percent) or their satellite radio (40 percent) versus those who "love" over-the-air radio (19 percent)."
While I'm not big fan of Arbitron's arbitrary rating systems, the internet survey's from Edison have proven reliable in the past. I think it's important to digest that word "LOVE" -- 35 & 40% of iPod owners and Satellite subscribers LOVE the product.
They LOVE it so much they'll pay subscription fees to Satellite and pay for music downloads from iTunes. They LOVE it so much that they don't care if they can't hear the broadcasts on generic devices (you have to have a satellite receiver for XM or Sirius, and iPod uses a proprietary file format.)
Terrestrial Radio is FREE and you can tune it in on any five-buck portable radio -- but only 19% of the people LOVE it.
Think about the products people LOVE --
Starbucks, Harley-Davidson, Mercedes-Benz, Porsche...
Radio is touting Free as the answer! One consultant to the industry asks "How hard do you have to sell 'Free'?" But (again!) they're wrong.
It's CONTENT not COST.
You've got consumers who will pay upwards of $4 for a cup of coffee and 20-grand for a motorcycle because they are passionately in-LOVE with the product.
While the article gives further voice to Radio's favorite mantra of the moment -- 95% of the country regularly listens to radio, while only 20 percent of Americans own an iPod, subscribe to satellite radio or listen to Internet radio -- They also temper it with the fact that the 95% will NOT remain static, but merely gives Radio a chance to evolve before they become extinct. The slower Radio is to change, the fewer of those 95% will be around to witness it.
Twenty-two percent of Howard Stern listeners say they'll follow Howard to Satellite radio. Howard only has six months left on his contract with Terrestrial Radio.
What would happen to any other business if 22% of their customers stopped doing business with them? How will THAT affect Radio's stat of 95%?
Great article in the Washington Post about on-demand audio and control over content.
Favorite piece of info in the article:
"Arbitron/Edison survey finds that iPod listeners already use less broadcast radio than do others. Perhaps the more telling finding comes in the percentage of people who say they "love" their iPod (35 percent) or their satellite radio (40 percent) versus those who "love" over-the-air radio (19 percent)."
While I'm not big fan of Arbitron's arbitrary rating systems, the internet survey's from Edison have proven reliable in the past. I think it's important to digest that word "LOVE" -- 35 & 40% of iPod owners and Satellite subscribers LOVE the product.
They LOVE it so much they'll pay subscription fees to Satellite and pay for music downloads from iTunes. They LOVE it so much that they don't care if they can't hear the broadcasts on generic devices (you have to have a satellite receiver for XM or Sirius, and iPod uses a proprietary file format.)
Terrestrial Radio is FREE and you can tune it in on any five-buck portable radio -- but only 19% of the people LOVE it.
Think about the products people LOVE --
Starbucks, Harley-Davidson, Mercedes-Benz, Porsche...
Radio is touting Free as the answer! One consultant to the industry asks "How hard do you have to sell 'Free'?" But (again!) they're wrong.
It's CONTENT not COST.
You've got consumers who will pay upwards of $4 for a cup of coffee and 20-grand for a motorcycle because they are passionately in-LOVE with the product.
While the article gives further voice to Radio's favorite mantra of the moment -- 95% of the country regularly listens to radio, while only 20 percent of Americans own an iPod, subscribe to satellite radio or listen to Internet radio -- They also temper it with the fact that the 95% will NOT remain static, but merely gives Radio a chance to evolve before they become extinct. The slower Radio is to change, the fewer of those 95% will be around to witness it.
Twenty-two percent of Howard Stern listeners say they'll follow Howard to Satellite radio. Howard only has six months left on his contract with Terrestrial Radio.
What would happen to any other business if 22% of their customers stopped doing business with them? How will THAT affect Radio's stat of 95%?
0 Comments:
Post a Comment
<< Home