With the words, “Alexa, play Howard Stern on SiriusXM,” the venerable satellite radio network may be well on its way to conquering the challenge of in-home listening.
Up to now, SiriusXM listening has been largely confined to the car. Yes, they’ve sold “radios” that some diehard fans purchased for their homes or workplaces, along with the ability to stream satellite radio channels.
But now by using the Amazon Echo voice technology as its “radio,” SiriusXM seamlessly moves from the driveway to the kitchen…the den, the bedroom and even the bathroom. It’s a brilliant move as they realized long ago that few would buy a device just to tune in satellite radio programs outside the car. As broadcast radio people have learned (perhaps begrudgingly), no one buys a standalone radio anymore. In fact, it’s become difficult to do so.
Instead, they buy a device with a “radio” built in – a smartphone, a car, and now, the Amazon Echo, Google Home, and later this year, the Apple HomePod.
For SiriusXM, accessing their 200+ channels with a simple shout-out to the ever-popular Alexa is a giant leap forward.
An interesting aspect of the satellite radio platform is how much it mirrors the broadcast radio audience. Unlike many modern technologies and media outlets, SiriusXM skews older, male, and suburban. The experience of listening to satellite radio in the car – with pushbutton presets – is also remarkably similar to selecting and changing AM/FM stations.
For broadcast radio operators, this new SiriusXM collaboration with Amazon is a shot across the bow. Our Techsurveys – both the commercial and the soon-to-be-released Public Radio version – peg ownership of Echo-type devices at 11%-12%. And they will continue to grow, especially as these types of partnerships are announced.
Radio companies need to get moving, to strategize how their stations will make optimal use of the technology and these highly affordable gadgets. It’s no longer enough to simply hope that Alexa locates a station’s stream on TuneIn. It’s now becoming table stakes for these devices to take consumers to a station’s proprietary stream, as well as open the door to accessing content features and on-demand resources.
This one’s moving quickly.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Radio needs to do some work on this – quickly. If it does a great job of figuring out a way to make their local streams accessible without doing some other things, they’ve created a big problem while solving another.
Right now, local streams sound terrible because radio cuts out all local spots to avoid paying an additional fee. So PSAs and instrumental interludes generally fill the spot breaks and it sounds bad. But worse, every listener Echo/similar devices move from the airwaves to wifi is transformed from a revenue generator to at best, one that isn’t – possibly permanently.
Yes, stations can sell ads on those streams as the audience increases, but ears online generally bring lower CPPs than ears on the airwaves and it makes buying it harder. Does the radio buyer buy the online stream too? At most agencies that would require some reorganization, which they might not see value in doing. Will Nielsen reconsider adding streams and broadcast even though the spot breaks prevent them from being anything close to simulcasts?
The best solution would be to get the rule (AFTRA I think) that requires extra comp for ads on broadcast streams changed. Virtually every station runs something else, so no one is making any money from that rule and getting rid of it would open the door to Nielsen adding over the air and streams together into one number/ immediately allow the stream experience to mirror the over the air one. I don’t remember ever reading anything about any kind of effort to fix it and there is a real benefit to doing that now.
Bob, one suggestion is to take a look at what Spotify and even snap chat is doing with dynamic digital. Ad teams help buyers create the ad, on the fly 24-7, and places them real time with a real time feedback loop. If OTA does not adopt this method as big advertisers abandon ‘dumb’ ad buying for dynamic and ‘smart’ spots- down to a song, a person, a group so forth….. unfortunately having used Alexa a few weeks, b/w Prime and ALL others (even I heart) and now Sirius the ONLY use for OTA has become local, news, sports, events, maybe traffic. And OTA has watched this tech arrive faster than anticipated. Fortunately- look at video. For the first time since cable – about 52% get TV via an HD antennae. Free, ad supported. OTA radio must go hybrid and the model is no longer the community value prop other than a few who will and can survive- IF they don’t change how the content is delivered. They need to pay for the streaming full on and stop pretending the world has not changed, essentially. OTA radio can be reformatted just as easily but the attitude of the generation in control doesn’t get it. Sirius average age is 47. That’s not so old and still influences the younger gens 25+. The fear is nobody under 25 ‘cares’ his it’s delivered – and my 6+ yr old is loving Alexa and Sirius and and and. OTA must get with it NOW – they still have dominant numbers in the car (if one believes Nielsen who is also in denial). Pa Dora listeners turn it off within 5 seconds of an ad… it’s a new world.
Josh, you raise a lot of points here – too many for me to try to tackle with a response. Broadcast radio and Sirius have very similar demographic patterns – they both skew toward a mature audience. Local radio has work to do to remain relevant in a world where the playing fields in the car – and now at home – have been leveled. It is a whole new day. Thanks for commenting.
Thanks for responding, Fred. Yes, Sirius is 47/Male. I wrote my thesis for Telco (B&C) on sat radio, in the 90’s before/as they launched, essentially. Thus, apologize about too many subjects raised in a post.
What I don’t understand is why radio does not quickly re format for the newer splintered audiences? Available ad tech arguably keeps it rolling hybrid. Must remain in OEM dash. We gifted our son an Alexa Puck (dot) as a Pre K grad gift. There is no chance he will have the patience to listen to radio, not remotely close to ‘as we knew’ it. The saving grace, is that he loves music! The world, culturally we all love music. A right of passage and as a reflection of ourselves. I come from a musical background. Play in a band. Band made an original book, original characters could be ‘ours’ as they go along with a song ‘Sammy the Snail’ hitch -hiking across the USA. Nominated for a Grammy. Some songs picked up for small projects or credits, Indy film. I will post the link below. Mama Mac on Facebook. It’s best friends essentially. Fun. Could be more.
Bob, the AFTRA problem is an issue, along with the ongoing problem that broadcasters would prefer consumers listen to over the air signals. Total Line Reporting is preferable for most PPM stations. The point is the ability for smart speakers to help bring “radio” back into homes on a gadget that consumers enjoy using. That’s where the puck is moving. Thanks, as always for commenting.
Still missing the point. Tech is just great, bells and whistles whoopee! Now let’s get down to the REAL issue, Where’s the Talent? Where’s the community involvement? Where’s the attitude? What about content? Branding? WHY am I going to listen in the first place? Does it really matter if you can listen to any station at any time in your home or on Mars if there is nothing compelling to listen to in the first place? All of this ‘new stuff’ is like adding on a ton of shiny accessories to a car that’s rotting in the junk yard.
Tom, there’s no question that many radio stations aren’t providing the services they’ll need to in order to compete. That said, to paint the industry with an “everything sucks” brush is not an accurate assessment of where the industry is positioned. There are a lot of strong radio stations that have personalities, community involvement, and more. Do more stations need to step it up? Absolutely. But distribution matters, too, and new technology provides some of the better stations with the chance to compete. Thanks for the comment.
I think he meant the content on SXM. They are bland vs local radio.
To his point on tech, is valid. Tech isn’t going away. It will evolve. Just as Home video did from beta tapes to steaming today.
You can have a good idea but will it at last and evolve over time. Or will it be replaced by something better that makes it obsolete SXM on echo sounds good. But will people use it.
Your article mentions Stern. Won’t you have to pay for SXM to get on echo?
Absolutely. No free ride for Echo owners – they still have to pay for SiriusXM. But the point here is that Alexa gets them into a key listening location they haven’t had success in up to this point. Now it’s up to them to prove the value proposition. Thanks for commenting.
I forgot to add… DAB FM… will free up all FM spectrum for IoT use. I won’t write about this tech here but everyone should know it. Just look at the Finnish experiment. In year 5. If UK and Germany adopt next – it ‘should’ get to the US. It’s smart radio … two ways, smart, in dash, all huge attributes for OTA survival. The multiple passenger screens in new cars provide new advertising ops, that’s just a no brainer of many positive attributes. OTA is not ready for this here, as an industry. IMHO, DAB FM is the best way for radio to reinvent, go. As a B&C / Telco / Biz Major – it was the financial world who hired me first. I would love to get back to my passion, within a modernized comm firm as I know it so well for 25+ Yrs now. Look up DAB (radio .. )
Whoa there, don’t hang up the “closed sign” on broadcast radio quite yet. This quote from an article “With the SiriusXM skill for Alexa, SiriusXM trial or paid subscribers will get easy access to exclusive music and entertainment, including Howard 100 and Howard 101 as well as commercial-free music, news, exclusive talk, and a broad range of comedy and sports talk channels.” So, Alexa will supplant the need to buy a “Sirius/XM” Home receiver or listen online through your home computer. It’s still gonna cost you as I see it.
There are plenty of points here-good points. The technical issues with the switch from a terrestrial stream to an online only insert. How many broadcasters have been accused by AFTRA of violating the online rule ?
A lot of these points are small when it boils down to the true issue. The VALUE of the entertainment. Broadcast/Cable TV has been affected by Netflix/Amazon Prime/Hulu – but they’ve kept the lights on. Cable TV is still charging $200-300 a month for services that people don’t need and cord-cutters haven’t won the fight yet.
Consumers still see value in broadcast radio and we need to keep improving the content to keep them listening. We need to level the technical playing field and find ways to make the online experience as seamless as OTA. We need to eliminate barriers to online success and then we need to make sure the product -whether it be online or AM/FM is relevant to the listener. Howard has blazed many trails-on radio and now online. He probably saved Sirius/XM single-handed. But he won’t kill broadcast radio. Until the people running these companies see the issues right before their eyes we’ll continue to have these conversations.
Where are the technological improvements ? Where’s the talent pool? Where are the efforts to make broadcast more relevant to the electronic consumer?
Radio has always been reinventing itself. Back in the day having a radio station was a license to print money-and then it became a “big business”-which hasn’t helped the creative side of the business one bit. Howard’s great, no doubt about it. People are obviously willing to PAY for Howard. How many of us can say that about OUR stations?
I like where you’re going here. I’m not suggesting that SiriusXM will leapfrog past broadcast radio in homes – they certainly haven’t done so in cars. But the Echo deal gives them an opportunity to make waves on the homefront, and that’s something broadcasters should be paying attention to. I know a lot of people believe that an obsession with gadgets (distribution) takes the focus off of the product (content). The reality is that radio needs to be addressing both – yes, at the same time. Thanks for the thoughtful comment.
So, I just finished your blog amd opened email to my Alexa newsletter…there’s the offer for Sirius/XM free trial…and some Harry Potter freebies and….Hey…this is a wakeup call for all of us. OTA is great; we take huge pride in our audio quality, dependability, on and on…but it’s just part of a package needed to compete and broadcasters have to get over it – or past it.
And, referring to an earlier response, there’s no reason for your streaming to suck. It takes a whle longer, but produce some ‘net only fill spots that aren’t canned Ad Council crap or music fills. Promote your station, special features, sell some internet only spots with no AFTRA attached. It’s a little extra work but it can be fun and It’s just basic good radio.
Tom, totally the smart way to view this. Yes, we want them to listen to us over the air. Economically, that’s our best revenue model. But we can’t control consumer behavior. They will do what they want to do, finding solutions to their media needs in multiple ways. As operators, it’s on us to be sure our programming content is available everywhere – and in an accessible, user-friendly format. It’s fundamental, but it’s sad how many broadcasters have trouble getting their heads around it. Always appreciate hearing from you.
51-53% of homes now get HD OTA for free. 1st time local OTA beats – since cable tv took over in 80’s – 90’s. 4K OTA will be interactive; and allow the networks to charge for the 4K feed they transmit. Unlike the digital transformation w/ 5 year plan. How does radio learn from this? People will listen, as long as it’s easy, is spot on. Radio needs a way into the new distribution tastes; the content, knowledge and local know how will just be called a skill v a station. As long as the product is delivered and easily consumed. We still have 83-90% tuning in old school style – in cars – not dead yet. But it’s really for very particular items// local info, news, traffic. Traffic Maps are competition unless one makes it tech friendly- same with weather. Look what Broadcasting did via Apps for ‘Storm Watch’ and live local radar… Events like sports or a community concert. Can be viewed live with a voice command or button. Cater to the splinters, be an ambient resource, a voice command away. It makes some people get the chills, the future arrived earlier than anticipated. Change is hard. Experiencing Sirius or better Spotify, via Alexa should be mandated for anyone to do for 2 weeks in a row with no breaks, in radio. It would be great to read about the insights all learned.
Enjoy your comments, Josh. Always a lot to think about. Appreciate you engaging on the blog.
Thank you, I have a lot of passion, years applying comm skills into the vanilla fin’l biz world, a productive way to stay engaged, not nearly as fun as B&C world.
A question for anyone: Why is it that the US hasn’t adopted HDR channels the same way Europe has, in the car dash? It feels like a simple answer, others say it’s very complicated. With ownership rules changing, will this then change the HDR approach in the dash? Then DAB FM, what are the odds it expands? That would allow 2 way for OTA, connectivity. Huge… Thank you for an awesome platform to ask such ? here!