Media Trend Watching: Radio Right Now
Labels: cellphone, FMQB, Google, HD Radio, Internet, John Parikhal, Joint Communications, Jointblog, Karmazin, Media, Media Trend Watching, MySpace, PPM, Radio, Sirius, XM
Joint Communications marks 30 years this month advising the radio industry through format programming, consulting, market research, marketing development and media strategy services.
The month of April also means it's time for John Parikhal's annual spring check-up as this week's featured FMQB cover story to discuss radio and the evolving mediaspace challenges radio faces in the immediate future.
Among the discussed topics:
> The proposed XM/Sirius merger -- including the financial and competitive implications as well as Mel Karmazin's catalyst role (puzzling; Stern probably helped save Sirius; Mel sees opportunities)
> The trend led by Clear Channel and other big groups toward privatization (more squeeze and bleed? And Clear Channel gets rewarded?)
> HD Radio (just another local spectrum)
> PPM ratings measurements (consistency of measurement will help)
> The cellphone (risky for electronic ratings measurement)
> Blink spots and other "Less is More" initiatives (applaud the experimentation; spare listener energy; don't invade the consumer)
> Radio's needed presence on the Internet and its mishandling of opportunities that went to MySpace instead (getting better...but still behind due to insufficient support staffing and streaming fee penalties)
> Google's new deal selling radio ads ("It's nonsense")
> The lucrative potential of selling and targeting the 30-59 year old demographic (so much money radio could grab)
> An updated look at radio's emerging trends (demographics!)
FMQB's chief editor Fred Deane gets it all started by saying:As the radio industry evolves at a rapid pace, critical decisions about the medium’s future become increasingly more urgent. Technology issues have enveloped the industry to such a challenging extent, that the call for radio leaders to be actionable has never resonated so loudly. John Parikhal has never met a challenge he didn’t like, he relishes the very concept. While Parikhal’s client list continues to remain firmly entrenched in radio, the macro version finds him involved with a variety of media and marketing companies. His latest foray with strategic Internet initiatives with some large clients has him thinking about the future 24/7. It’s spring and time for our annual check-up with one of our industry’s deep thinkers.
Thanks, Fred. All that and more...just click here for some great reading. Then come back and add your thoughts here on the Jointblog.
Additional reading: Thinking Through The Decision Making Process
posted by Unknown @ Friday, April 27, 2007,
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XM/Sirius Merger: WWHT? (What would Howard think?)
Labels: CBS Radio, competition, FCC, Jointblog, Karmazin, merger, NYPost, rumours, Satellite, Sirius, Stern, XM
"Wha-wha-WHAT?" (if you've been a Stern fan over the years, you know the SFX)...
This gave me a laugh reading Jossip's Media Blitz this morning. Too bad I was drinking my coffee at the time (thank god for Bounty):Sirius and XM merger described as imminent possibility; Howard Stern described as "too rich to care."
Of course, whether this announcement happens or not, the next 15 months of FCC regulatory hell would serve as either a sideshow or a distraction...and Stern will still be "too rich to care".
(canned applause in response)
Obviously, it is a BIG deal, if it can get through. A predicted operating savings of $7 Billion (if an accurate estimate) means satellite radio has a much better chance of thriving and surviving. But at what cost will come those savings? There's always a cost...
Update at 1:30PM EST: ABC NEWS has "confirmed" through their sources the merger deal is happening today, although it has not been announced or commented directly by either XM or Sirius officials...yet.
So...if the story is accurate and eventually approved, how would the merger play out? Here's one way to see it...(click through)
Here's another point of view from Wall Street. And more. And yet more comments on the possible end of XM's and Sirius' head-to-head competition.
Winners and losers? Your thoughts?
Another update (3:45pm EST): It's now official.
For a MoneyCentral financial analysis of Sirius share/investor history and its future prospects, click here.
So what does Howard Stern and Mel Karmazin think about the merger? Click here and here.
posted by Unknown @ Monday, February 19, 2007,
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John Parikhal on What if XM and Sirius do merge?
Labels: gadgets, Joint Communications, Jointblog, Karmazin, merger, New Media, Pinero, Radio, Satellite, Sirius, XMThe merger speculative talk about a possible XM and Sirius merger continues to stay red-hot.
There are many pros (reduced operating and competitive costs, larger OEM relationship network, etc.) and cons (FCC opposition, less competition no longer contraining subscriber fees, incompatible technologies, etc.). The Street.com's Jim Cramer loves the idea -- while Wall Street continues to speculate.
If it happens, the deal will have to happen soon (within the next 6-8 weeks, and approved by company stakeholders by this summer) if it is to pass through all the regulatory hurdles before the 2008 elections.
Bridge Ratings just released their updated subscriber projections (assuming the two companies don't merge), anticipating a total of 35 million subscribers by 2020. Here's their provided chart:
Both XM Radio's CEO Hugh Pinero and Sirius Radio's CEO Mel Karmazin publically say they are not exploring combining the satellite radio into one company. Of course, that doesn't cover any possible private conversations.
If the merge did happen, who would win?
Joint Communications' CEO John Parikhal shares his thoughts on a possible XM and Sirius merger:
XM and Sirius have different programming philosophies. Sirius has more technical problems than XM. In a perfect world, XM would win.
But ... Mel Karmazin is a smart cookie. He's pushing for a merger to deflect the fact that Sirius is far behind XM. My bet is (I could be wrong) that he figures Wall Street will crown him to run any merged entity ... so he beats the merger drum.
Because ... XM has fumbled the marketing ball more than once. They have not created enough need. Which is what gives Mel his bully pulpit.
XM had a huge opportunity to grow during the early years of consolidation when the arrogant roll-up artists were bragging about how they could run 16 minutes of spots an hour on music radio. Where was XM with a "commercial free" ad campaign? Instead we got stupid TV ads with David Bowie crashing through the roof.
XM still shies away from "commercial free" music with lots of choice, choosing to promote second tier programming that has big names but little that is fresh or new. And ... much of the "talk" and news programming has commercials!! How many people are going to pony up $14 a month for Oprah's sidekick (Oprah is not really Oprah) or to listen to a golf match.
XM lost the chance to cripple if not kill Sirius when it raised its price to $14 a month from $10. They could have clobbered Sirius (before they hired Stern) by focusing on what a deal $10 a month was compared to Sirius $14.
Having said all this ... there's still a good business in satellite radio. There is a real market of between 20 and 25 million people for the product. It will coexist with terrestrial radio just as cable coexists with network.
Both companies need to focus on marketing, not personality stunting, if they are going to get the respect they deserve. They might take a page from the old Rolls Royce advertising strategy - who focused on those who already bought a Rolls - "reminded" them of how great their car was - tried to make others envious - used "emotion" to create the need.
posted by Unknown @ Saturday, January 27, 2007,
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