[opendtv] Re: News: Wachovia Forecasts Radio Doom In '09

At 12:06 PM -0500 2/17/09, Manfredi, Albert E wrote:

Craig Birkmaier posted:

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=1
00330

Wachovia Forecasts Radio Doom In '09
by Erik Sass
----------------------------------

The problem is said to be debt burden. It is also debt burden that is
driving Sirus/XM into bankruptcy. I find it hard to believe that all
radio will vanish, although less hard to believe that the large influx
of new subscribers, needed to keep satellite radio alive, was slowing
down.
Looks like Liberty Media has rescued Sirius/XM from bankruptcy. Satellite radio could survive without a large influx or new subscribers. Most of the debt is related to paying too much for content.
The problem with broadcast radio is related to deregulation. Most of the companies that went on a buying binge after the FCC revised the radio ownership caps are highly leveraged, and in deep doo doo now.
What happens to radio if the FCC or Congress reinstates the Fairness Doctrine or something similar to shut down Talk Radio?
The single largest, and most popular radio format today could disappear. It accounts for more than 25% of the audience and an even larger portion of radio revenues.
And then there is Internet radio. I can listen to a customized radio station - Pandora - that plays the music I like without commercials on my iPhone... 

Looks like wireless broadband could become a significant "broadcast" medium.

Regards
Craig









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