Recession killed the radio star

The radio business has been struggling lately, to say the least. Traditional, terrestrial radio hasn't found a way to successfully box out competition from Sirius XM Satellite Radio (NASDAQ: SIRI), internet streaming radio, iPods, and other sources.

Plus fewer people are in their cars driving to work lately, so the ratings numbers are down. Not to mention the monotonous nature of much of today's music (or maybe I'm just old . . . get off my lawn, you Jonas Brothers, you!) It's no surprise, then, that the radio advertising business recently saw its worst quarter in history.

The Radio Advertising Bureau said yesterday that combined national and local ad spending dropped 26% to $2.8 billion during the last quarter. Network radio dropped 13% to $238 million while off-air revenue receded 12% to $264 million. The one silver lining was digital platforms (online, streaming, and HD Radio), which collectively saw revenue jump 13% to $101 million. Bottom-lining the numbers to reflect all segments of the traditional radio business, revenue dropped 24% to $3.4 billion during the latest reporting period.

XM vs. Sirius Satellite Radio

Coke vs. Pepsi, McDonalds vs. Burger King, Yankees vs. Red Sox are all examples of some of the most well known rivalries in American culture. Is it time to add XM vs. Sirius to this list? Well, the significance of this rivalry is certainly up for debate, however there is no arguing that it has been bitter battle to this point.



I am of course talking about the satellite radio space, where subscribers receive hundreds of programming options with CD quality reception all across the country. XM and Sirius have many similarities, such as programming and hardware options, making it difficult for consumers to decide between the two. If you’re a Howard Stern junky or addicted to the NFL then Sirius is likely your choice. If Oprah is more your speed or you can’t miss an MLB game then XM Radio is the better choice for you.

So who is winning the satellite radio battle in terms of market share? Well, currently XM has 7.1 million subscribers to Sirius’s 5.1 million. But, who will be winning after the holiday season and into next year? The number of people visiting both Sirius.com and XMRadio.com can be used as a proxy for the future market share of each product. Historically, each site has received similar amounts of people per month, indicating an equal level of consumer interest in both brands. Interesting to note, last month, at the height of the 2006 Holiday shopping season XM and Sirius experienced their largest differential in site traffic ever! While XM skyrocketed past the 1.4 million mark, Sirius hovered to 1.1 million.

When Sirius signed Howard Stern as their marquee radio personality in 2004 they did so with the expectation that he would boost subscriber numbers and thus gain market share on XM. While the signing of Stern definitely increased subscribers, it is clear now, 2 years later, that XM remains the industry leader. With 2 million more subscribers and 350,000 more people visiting their site in November, 2006, it appears the XM’s number one status is secure.

Mitsubishi cuts deal with SIRIUS Satellite Radio

Mitsubishi Motors North America announced that it will offer SIRIUS radio as a standard feature or factory option, starting with four models this fall, and expanding to the full Mitsubishi product line next year. All SIRIUS-equipped vehicles will include a pre-paid six month subscription.

The first models to come standard with SIRIUS will be the 2007 Galant RALLIART, and the Endeavor SE, as well as the Raider LS and DuroCross double-cab pickups.

Other automakers exclusively partnered with SIRIUS include Aston Martin, Audi, BMW and Chrysler, among others.

S50 - New Portable Sirius Satellite Radio Player

If you're serious about keeping your music with you at all times, the Sirius S50 Satellite Radio Receiver and MP3/WMA Player System Pack may be just what you're looking for. Small enough for your shirt pocket, and loaded with all the accessories you need to play it over your car stereo, the Sirius S50 offers an intoxicating blend of satellite radio and digital music capabilities that are certain to transform your portable listening experience.


The Sirius S50 is an intelligent leap forward in Satellite Radio technology providing integration of both live and time shifted content for portable use, including MP3/WMA support and My SIRIUS Studio PC Software. The simplified user interface has a brilliant color screen, contextual media dial, and voice prompts for safe driving.Sirius S50 is a personalized satellite radio experience both on air and off. The many docking options have a simplified user interface for live content and up to 50 hours of intelligent time shifted playback. The slim portable player connects with the PC for downloading digital audio files from your personal music collection.The latest in Satellite Radio technology combines live reception within the home, car, or office with a portable player, which boasts a full color screen and over 50 hours of content storage. Add your favorite MP3's to recorded exclusive content from Sirius for personalized play lists with the PC Software.When placed in a powered dock with an antenna, the Sirius S50 receives live broadcasts from Sirius Radio and records content for playback in the home, car or when portable.