[opendtv] Re: Portable Insignia brand HD Radio

At 4:27 PM -0700 7/20/09, Dale Kelly wrote:

Bert wrote:
"How typical. No subscription fee? So keep very few in inventory, hide
them from view, and then discontinue them citing "no customer demand" as
the excuse."

Unfortunately this self-fulfilling tactic works and those injured by such
actions have little recourse, unless the FCC mandates receivers, which will
likely not happen for this radio service.


I think that Bert is reading more into this than reality suggests...
Radio is NOT losing listeners because of subscription services. In case people have not been paying attention satellite radio is struggling to hang onto the audience it has - new subscriptions are few and far between. Type "satellite radio growth" into Google and you will get a bunch of hits that are 2 to 5 years old.
"Music Radio" is loosing listeners because consumers have so many better alternatives - subscription music services are only a tiny part of this. MP3 players are a huge part of the story, and now they are being integrated into phones, which are providing an alternative RF based music service that is FREE, and mostly free from ads.
I still listen to radio - mostly talk radio, but also music radio on occasion. I spend much more time listening to MY music collection on the iPod at the brewery and on my iPhone. And I can now create my own radio station via Pandora, which uses the AT&T 2G/3G network (or any WiFi hot spot) for the RF link.
In all of this Best Buy does play a role. They sell iPods and other MP3 players. They sell iPhones and other phones that have MP3 playback capabilities. They sell iTunes pre-paid cards which can be used to buy music and apps at the iTunes on-line store. All if these products have prominent placement in the store because these are among the most demanded products by consumers.
I'll bet that when Bert went to Best Buy he was the only customer on the aisle looking at portable radios - there may have been a few customers in the car audio department.
Bottom line, this is simply a reflection of consumer demand. If I were in the radio business I would be VERY concerned, given the huge number of spots that are run promoting the HD radio service.
If they want to turn this thing around they should be begging Steve Jobs to add HD Radio to iPods and iPhones, and negotiating with the music industry to sell tracks via the HD radio service rather that fighting them tooth and nail to prevent the music industry from imposing a performance tax on broadcasters. 

Regards
Craig


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