valley_stream
02-07-2005, 01:07 PM
Satellite radio's big draw: no commercials - survey
Mon Feb 7, 2005 11:53 AM ET
NEW YORK, Feb 7 (Reuters) - Satellite radio's biggest attraction is the absence of commercials, not original content like a planned show from ribald radio host Howard Stern, according to a survey released on Monday by J.P. Morgan.
The fledgling satellite radio medium, a battleground between industry leader XM Satellite Radio Holdings Inc. (XMSR.O: Quote, Profile, Research) and smaller rival Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile, Research) , is expected to have nearly 35 million subscribers by 2010, according to J.P. Morgan's forecasts.
The survey of 1,600 consumers, which included subscribers as well as non-subscribers, found almost two-thirds of subscribers' radio listening time is spent with satellite radio over traditional radio. Commercial-free programming is the biggest driver of demand, J.P. Morgan said.
"Unique content, on the other hand, appears to be the least important factor, which implies that the loss of Howard Stern and other programming should not have too negative an impact" on traditional radio, J.P. Morgan said in a report from analyst Spencer Wang.
Last year, Sirius signed Stern to a five-year deal starting in 2006.
J.P. Morgan estimates that satellite radio likely will eat into traditional radio listeners by 3.5 percent in 2010, a relatively modest amount. That amount could grow if more satellite radio is available in other places beyond users' cars, J.P. Morgan said.
The survey found that 57 percent of respondents were willing to pay a fee for satellite radio, but that non-subscribers are more concerned about price than those who were early adopters of satellite service.
Shares of XM and Sirius were both down in morning trading. XM fell 80 cents, or 2.5 percent, to $31.70, while Sirius declined 13 cents, or nearly 2 percent, to $6.29.
Mon Feb 7, 2005 11:53 AM ET
NEW YORK, Feb 7 (Reuters) - Satellite radio's biggest attraction is the absence of commercials, not original content like a planned show from ribald radio host Howard Stern, according to a survey released on Monday by J.P. Morgan.
The fledgling satellite radio medium, a battleground between industry leader XM Satellite Radio Holdings Inc. (XMSR.O: Quote, Profile, Research) and smaller rival Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile, Research) , is expected to have nearly 35 million subscribers by 2010, according to J.P. Morgan's forecasts.
The survey of 1,600 consumers, which included subscribers as well as non-subscribers, found almost two-thirds of subscribers' radio listening time is spent with satellite radio over traditional radio. Commercial-free programming is the biggest driver of demand, J.P. Morgan said.
"Unique content, on the other hand, appears to be the least important factor, which implies that the loss of Howard Stern and other programming should not have too negative an impact" on traditional radio, J.P. Morgan said in a report from analyst Spencer Wang.
Last year, Sirius signed Stern to a five-year deal starting in 2006.
J.P. Morgan estimates that satellite radio likely will eat into traditional radio listeners by 3.5 percent in 2010, a relatively modest amount. That amount could grow if more satellite radio is available in other places beyond users' cars, J.P. Morgan said.
The survey found that 57 percent of respondents were willing to pay a fee for satellite radio, but that non-subscribers are more concerned about price than those who were early adopters of satellite service.
Shares of XM and Sirius were both down in morning trading. XM fell 80 cents, or 2.5 percent, to $31.70, while Sirius declined 13 cents, or nearly 2 percent, to $6.29.