Radio Audience Trends

Another way of assessing the future of traditional radio is to get a sense of the growth in audience for the new technologies. Of those, perhaps the one getting the most attention in the press is satellite radio.

Its audience is still small, comparatively. The combined memberships of XM Satellite Radio and Sirius Satellite Radio exceed 9 million, compared with roughly 247 million listeners to terrestrial over-the-air radio.9

But the satellite number is growing. XM, which reported more than 6 million subscribers at the end of 2005, was projecting adding 3 million more by the end of 2006. Sirius reported a total of more than 3.3 million in 2005 and expected to have 6 million by the end of 2006.

Satellite radio has had similar success in making people aware of it as a possibility. Since January of 2002, awareness of both XM and Sirius has grown at a rapid pace (from 17% to 50% for XM, from 8% to 54% for Sirius).10

At the same time, the satellite providers have made gains in the kinds of content and outreach they can offer. Among other steps in 2005, XM reached an agreement with AOL for online broadcast and with Hyatt hotels to place satellite radio in guest rooms. It crafted an expansion into Canada and signed a deal with the audio content provider Audible.com, which will be creating a unit that will not only play satellite radio but also allow for iPod-like downloading of audio content. The network continued to add new content as well, signing on Ellen Degeneres, Snoop Dog, Food Network and HGTV.

Sirius, the smaller of the two companies, signed a deal with Jaguar to offer the satellite network’s system as an option for their cars and developed a hip hop channel with Eminem, a good-living channel with Martha Stewart and a podcasting channel with the former MTV veejay and “Podfather” Adam Curry. And for those who somehow managed to miss the buzz, on January 9, 2006 , the shock jock Howard Stern added his name to the network’s program list. Sirius had also found a spot on hotel nightstands, with the trendy New York and Los Angeles W Hotels. In the event that you’re unable to get a room at the W, you can also turn to your Sprint phone. In September 2005, Sprint added 20 Sirius channels to its cell phone’s capabilities.

Both U.S. satellite radio companies have moved toward portability, as well. XM released its cell-phone-sized portable satellite receiver, the MyFi player, in October 2004. The unit was designed to offer both portable satellite listening and up to five hours of recorded audio content. Both companies have developed a variety of “plug and play” receivers. Plug and play units allow satellite listeners to move the technology between their cars and their homes through a system based around a detachable receiver. The receiver can be connected to a variety of speakers and ports, turning the car unit into a boombox-style player or a home stereo-style player.