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Wednesday, February 21, 2007

Howard Kurtz on why people are willing to pay for radio

Howard Kurtz of the Washington Post chimes in on the XM and Sirius satellite radio merger. In this case, why listeners are willing to pay for radio:
The reason these two companies have 13 million subscribers willing to cough up $12.95 a month for something we all grew up thinking should be free is that commercial radio has self-destructed.

All these folks (including me) are paying for satellite because they're tired of cookie-cutter radio formats stuffed to the gills with commercials. They're also fed up with focus-grouped music stations that play the same 60 songs until you start hearing the chords in your sleep.

And local radio stations covering news? There are a few across the country. For the rest, forget about it.

Really, can you think of an industry (okay, maybe American automakers) that has frittered away such huge advantages and sent its customers scrambling for alternatives? I know 13 million isn't huge, but buying a radio and getting it installed is a hassle; if you could pre-order it in cars, which is the wave of the future with GM and other manufacturers, a lot more people would take the plunge.

People used to think it was crazy to pay for television and bottled water too. What about you? There have been commenters on my previous satellite radio posts who scoff at the notion of paying for radio. Think it's stupid? Why?

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