Satellite Radio still not a threat, but holds down Terrestrial's advertising growth

PricewaterhouseCoopers released it’s Global Entertainment and Media Outlook, and interestingly enough they didn’t feel that Satellite Radio is a big threat to Terrestrial Radio’s advertising share, based on the fact that satellite only has minimal advertising right now. Big Radio’s advertising share fell to 63.3% last year from 68.4% in 2000, so they’re losing out somewhere (PwC says to local cable).

They did point out that Sirius Satellite Radio and XM Satellite Radio could hold down terrestrial radio?s advertising growth. If advertising does take off on Satellite Radio, it’ll be with national advertisers (duh) which interestingly enough represents about 20% of Terrestrial?s business.

PwC is forecasting satellite radio subscribers to be 20.5 million strong by 2009.