[opendtv] Re: Digital TV Finds It Hard to be Free
- From: DISMO@xxxxxxx
- To: opendtv@xxxxxxxxxxxxx
- Date: Fri, 15 Oct 2004 20:41:08 EDT
In a message dated 10/15/2004 1:34:49 PM Pacific Standard Time,
albert.e.manfredi@xxxxxxxxxx writes:
Just because a service gets a large increase in
subscribers when it starts from absolute 0 does not
translate to long term success. We'll see if "85
percent" of radio users migrate to satellite radio.
Any bets?
XM is a sure success. It's already above break-even with 2.5 million+
subscribers. The picture is less clear for Sirius, still way below break-even
with
only 600,000 subscribers, but gaining. If Sirius hits its target of 1M by
mid-winter it should make it.
Both companies have almost unlimited growth potential and are getting
excellent exposure through sweetheart deals with car rental agencies and auto
makers.
Once you've had satellite radio, you won't go back. You can't go back. 60
channels of commercial-free music on both services, in every imaginable genre,
unbelievably deep catalogs and very knowledgeable DJs. Plus dozens of talk,
news, sports, comedy etc channels for every niche. An excellent bargain at
$10-$13
per month.
Traditional AM/FM has nowhere to go but downhill, especially given the
listening public's distaste for screaming commercials, obnoxious announcers,
and
narrow playlists. Most Americans spend several hours a day in their cars, most
radio listening is done in the car, and most Americans buy new cars every few
years. That points in one direction: Satellite radio will ultimately dominate
traditional radio, just as cable TV dominates OTA. The question is when, not if.
BW
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