A recent report by Bridge Ratings has indicated that foot traffic is on the rise for satellite radio retailers. Great news, but the even bigger bit of info is the increasing interest coming from the college crowd.
So what's is causing the rising interest in this demographic?
Here's the data points: 57% of college-age shoppers would prefer a portable satellite radio, 27% would prefer in-car systems while an additional 16% have no preference at all. The question in my mind is: what's the definition of "portable" and "in-car" when the interviews are presented?
"Portable" satellite radios are sometimes used to describe "transportable" or "plug-and-play" units, while "in-car" can be considered an in-dash headunit. But for those outside of the biz, a "portable" could be an Inno/Stiletto style unit, while an "in-car" unit could be a plug-and-play (since that's where they're primarily used). I wish Bridge would clarify this, because it's an important differentiation.
Still the "on-the-go" versus the "in-car" preference could indicate several things. One being that Gen Y doesn't see being tied-down as an option. Why get a device if it's not going to be portable? Another consideration is that this age group may not have cars (campus life doesn't always require one). Or even that they consider in-vehicle listening to be a secondary function for music experience (personal listening being the leading). Hell, I listen to my iPod in the car, why wouldn't I want a portable satellite radio? The possibilities are endless.
In terms of interest, Sirius is kicking ass among college kids. Breaking down the age groups further shows that 18-19 year-olds favor Sirius (67%) to XM (33%), while 20-21 year-olds favor Sirius (52%) to XM (48%) by a much smaller margin.
This is interesting in itself. It shows that Sirius has a clear advantage in terms of awareness in this group, no doubt led by Stern. The different programming initiatives by each company most likely have a different effect on appealing to college-age consumers as well.
But what I don't understand is why the spread evens out so severly as they get older.
I think they're on top of that. Just today I noticed an XM ad on collegehumor.com
Artie...Artie.... Artie.
Hey Art,
Marry Dana already will you ?
Fuck tight ass Howard.... NO PRENUP.....
Yea, I think that it's a no brainer from here. Satellite almost completely looked over a huge market in this country, one that is not only wealthy, but willing to try new things like satellite radio. I think if XM and Sirius decided to exclusively market to college aged kids from here on out, their business would be comparable to what they're making now. Satellite's got to take the learship role, and the only real way is to battle the iPod and submerse itself in gen Y culture.
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