Way back in mid-April, we did a series of blogs about satellite radio, culminating in a plea to terrestrial radio broadcasters to dump their XM and Sirius stock. The premise was that satellite is truly out to destabilize and destroy our business, so why would terrestrial broadcasters invest in these companies?
Well, it certainly wasn’t due to our blog, but the reality is that since the first of the year, both XM and Sirius stock prices have plummeted. On April 13th, Sirius closed at $5.32, while XM finished up at $23.31.
As I write this, Sirius has fallen below $4, while XM is now flirting with life below the $11 mark.
And here’s more data. It turns out Father’s Day was not the big opportunity that the satellite companies anticipated. Inside Radio reports that there was "next-to-no-growth" from last year, despite Father’s Day campaigns. This is consistent with the conclusions from our Technology Poll we conducted this past February. Our conclusion was that the "Stern exodus" was about over by the time our survey was being taken.
It’s also interesting to note that XM announced that it is placing its $50 million ad budget in review, signaling a change of ad agency.
While terrestrial radio struggles with how it’s going to pay for and develop new content, all the while fighting perceptions that it is "old media," the entire satellite model is clearly being questioned by Wall Street.
POST SCRIPT: According to results from the Top 10 markets in Arbitron’s Winter ’06 survey, satellite radio mentions make up about 3% of diary mentions. Thus, nearly 97% of Arbitron diaries to not show any satellite radio listening.
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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