10 big ideas to increase Satellite Radio growth
Monday, April 2, 2007 at 6:10 PM
Tags: 2, XM
Let's free our minds for a second and look at 10 big ideas that will increase awareness (and in turn, subscribers) for satellite radio. These might go against the grain, but hey that's the whole fun of it. So in no particular order...
1. Go free, get heard.
You're a media company, so your first goal in life is to get as many people as possible to experience that media. And there's no better way of doing that than by going free. What would happen if there was a free satellite radio service (subsidized with commercials)? There's too much quality content hiding behind the paywall... at the very least, do something more with that online trial.
2. Make it a real satellite "radio"
Let's look at the device side. The problem with those satellite radios is that they lack the ability to receive "radio" - so why cripple the device? Enable your consumers to listen to AM/FM as well as satellite radio. Terrestrial is near ubiquitous as it is, so who cares? It's what consumers want. (Psst, the FCC/DoJ might like this one.)
3. Satellite + Internet Radio = Happy users
While we're at it, if you're going to have a WiFi enabled device (like the Stiletto), why not allow your users to tune into Internet Radio as well? Give them access to Pandora, Last.fm, etc. Your consumers are going to do it anyway, so it might as well be on your device.
4. Give me some space!
Enough with these half-hearted 1Gb, 2Gb devices. I'm a music fanatic, and so I have a lot of music. The only way you're going to convince me to replace my iPod is by enabling me to replace my iPod. It's either my entire collection, or nothing.
5. Use the OEM model on Retail.
Retail is hurting. We need to spur retail sales. So apply the same model you use with vehicle purchases to the retail side. Give away 3-months of service free with every device. (You do it anyway when someone tries to cancel the service.)
6. Target fanatics.
OK, to your credit, you're already doing this. Sirius at NASCAR and NFL events. XM at MLB and PGA events. Positioning yourself at events where there fanatics is a great approach, but there's more that could be done on the music side. Concerts, festivals, raves, dank pot-smoked basements, etc. Find a way for visceral placement in areas where music lovers converge.
7. Get social.
No, not Zune-style. Nobody cares enough for that to work. But you can make your websites work better for you by allowing listeners to meet, socialize and interact with each other. Music and sports are a great way to meet people. Word of mouth is the best advertiser, so encourage it! (Psst, your channels and DJs are already using MySpace to connect with listeners.)
8. Be seen and heard.
It doesn't take a genius to see that video is what everyone wants online. Don't just show us pictures from your studios, put up some videos. Create some YouTube channels (or use your own site). Yes, half your guys have "a face made for radio" but that doesn't mean the loads of footage from guest appearances and performances should be lost. Again, you're a media company, let people consume that media.
The reason why everyone listens to terrestrial radio, is because they can. Give away the razor (the receiver), and make your money on the blades (subscriptions). We all know the margins suck on the receivers anyway. And if that makes you sick to your stomach, then I'm sure a 1-year commitment might make the bosses happier. (Wireless carriers do it, why not you?)
10. Open it up.
You'll never reach critical mass until you get past all the early adopters. So why not open up the devices themselves to some tinkering? Allow the geeks to create customized widgets that can be downloaded to the device. Make the interface customizable. Go beyond your own service and let listeners "create their own channel" via a podcast. Make it interactive.
So there's some ideas. What's yours? Add your own concepts to the list and let's get some thoughts flowing.
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Comments
I like your ideas! they would help alot.
My idea: Is esp. for Xm With the radios. If they want to go up on retail theres great deals on recivers. with the rebates i would go buy another reciver for my other car than take it out of one and go to the other. But the rebates are only for "new subscribers". Does it really make a diffrence who buys it??
Posted by: Eatsleepdrivesc ? | April 2, 2007 8:10 PM
Great comments. I especially agree with the user created content. I would like to hear some quirky user created shows....why not. I am sure someone can create something interesting. How about the orbitcast show.
Posted by: Al | April 2, 2007 8:23 PM
999999999 - Give away the razors to sell the blades!!!! This will make satellite radios ubiquitous. Free radios with longterm subscriptions. Its so simple and obvious that every single cellphone company does it! GREAT IDEA RYAN! :)
Posted by: MUSCLE13 ? | April 2, 2007 9:06 PM
very good ideas.
i like the razor/blade idea. How about a free entry level device to get people hooked then allow them to upgrade to a different model at a discount.
Posted by: t-bone | April 2, 2007 10:48 PM
I have been saying to give away service with the receivers for some time. but have it tiered. Visor gets nothing, Skyfi gets 6 months free, Inno/Stilletto gets 2 years free service.
Biggest problem I see is upcomming compitition. All the deals, MLB,Stern,NASCAR,PGA,NBA,IRL and whatever else they spent money on is Exclusive to one service or the other... NONE OF THEM ARE EXCLUSIVE AUDIO PROVIDERS. This means that all of the above can be broadcast on WiFi, Broadband,and Internet without violating the agreement.
All these deals need to be Exclusive Audio content.. not just Exclusive Satellite radio provider.
Posted by: jeff | April 3, 2007 7:16 AM
I don't know why XM/Sirius is not giving away radios with long term contracts? Love the idea of the radios haveing more space with personal user interface.
The timing seem wrong for Satrad...now there is so much to choose from that it (Satrad) is getting lost in the mix.
You hit alot of things that are great ideas Ryan, I agree with them all. Would love to have internet radio and why not FM/AM? I still hear 101o Wins and WFAN and tune into FM now and then.
Maybe they should partner up with an advertising firm and hook up with Myspace or Youtube to have some cross promotion (I thought I once heard of a rumored Myspace channel?)
I love the face that XM/Sirius do there own thing but it's not working out, so maybe they should get more involved in pop culture and GET THE RECIEVERS IN THE HANDS OF THE CUSTOMERS! They can't lose anymore $$$$ than they have already.
I believe (like others here) that SatRad is a top level form of audio entertainment, but valid concerns of future growth are now becoming a reality and there is plenty of time to not only play catch up to all forms of entertainment but possibly one day be a dominant player.
Posted by: prozac | April 3, 2007 7:50 AM
Ok -- Here's a crazy idea! Let's make satellite and terrestrial radio cousins!
Through our modern technology, we could allow large and small terrestrial stations to have their moment of fame on satrad.
Allow terrestrial broadcasters to reach millions of paid subs by linking a live feed to satellite radio.
For example, a huge, ground-breaking event is ocurring in k-TOWN on radio station KKB 103. Station KKB phones in to SIRIX, gets the sat. uplink permission and broadcast to the satrad masses.
Why would terrestrial radio want to do this? Because they get publicity! And perhaps another means of revenue sharing could be incorporated into this model.
It would help to alleviate the tenstions between paid and free radio by creating a partnership between them.
It would allow large metropolitan city stations to socialize with the national radio audience... Satrad will become a national radio hub, in a sense. THEN make SATRAD free and ad-revenue driven, once the buzz is out.
Further drive SATRAD into the very social fabric of the country.
Posted by: Zach | April 3, 2007 10:18 AM
Heres what they do...
Get Stern/Playboy/maybe even Jim breur to go on a college campus tour. Spread the word to the collge kids they are the best target. I am sure young students would love to see some playmates and comedians on campus.
Make it possible to Download content straight to the device, maybe even though the website account using wifi or something. Content like Audio Books or Language help files that teach you various languages. (Eventually create a marketplace for users to download on demand and get charged)
Create a channel that supports upcoming and underground artist. An american Idol like station where individuals could create there own tracks and upload them to a database that would shuffle through. They could even be charged to have this special account. Could do a voting thing with the xm/Sirius users to give good artist a chance to rise to the top. Could SIRIUS/XM even get rights to these people?!?
Posted by: dave | April 3, 2007 12:45 PM
Regarding "getting social", check out this user account on last.fm:
http://www.last.fm/user/siriusoctane
There are also accounts for select other Sirius channels. A simple perl script updates the now-playing information. I'm using last.fm's database of listening habits to make requests for Sirius channels, with some success in getting tracks played (being able to sound like a consultant helps...).
If anybody who has an XMPCR lying around wants to do similar things, you can contact me through my last.fm account
http://www.last.fm/user/leviramsey
Posted by: leviramsey ? | April 4, 2007 12:27 PM
Sirius radios now under 50 bucks. I'm rooting for them to go free with longterm subscriptions the way cellphone companies do it
http://shop.sirius.com/edealinv/servlet/ExecMacro?nurl=control/StoreHome.vm&ctl_nbr=2640&cid=MAL070326
Posted by: MUSCLE13 ? | April 4, 2007 8:36 PM