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	<title>CUT THROUGH THE NOISE &#187; Martha Stewart</title>
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		<title>Re: the Merger</title>
		<link>http://outlandosmusic.com/blog/2008/03/31/why-satellite-radio-wont-succeed/</link>
		<comments>http://outlandosmusic.com/blog/2008/03/31/why-satellite-radio-wont-succeed/#comments</comments>
		<pubDate>Mon, 31 Mar 2008 21:45:57 +0000</pubDate>
		<dc:creator>Kate Bradley</dc:creator>
				<category><![CDATA[CUT THROUGH THE NOISE]]></category>
		<category><![CDATA[KATE BRADLEY]]></category>
		<category><![CDATA[OUTLANDOS MUSIC]]></category>
		<category><![CDATA[Bob Lefsetz]]></category>
		<category><![CDATA[Fans]]></category>
		<category><![CDATA[Martha Stewart]]></category>
		<category><![CDATA[Starbucks]]></category>
		<category><![CDATA[The Loft]]></category>
		<category><![CDATA[XM]]></category>
		<category><![CDATA[XM Kids]]></category>

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		<description><![CDATA[First and foremost, does anyone really care? Is anyone even listening to radio anymore, let alone satellite radio? Even XM fanatic Bob Lefsetz questions satellite&#8217;s viability: &#8230; if you pony up, you find out you&#8217;re in the wilderness, not a member of any club, not one of any size, and that freaks you out and [...]]]></description>
			<content:encoded><![CDATA[<p><span style="font-size: small; font-family: Arial;">First and foremost, does anyone really care? Is anyone even listening to radio anymore, let alone satellite radio? Even XM fanatic Bob Lefsetz <a href="http://lefsetz.com/wordpress/index.php/archives/2008/03/25/xmsirius-3/" target="_blank"><span style="color: #ff6600;">questions</span></a> satellite&#8217;s viability:</span></p>
<p><span style="font-size: small; font-family: Arial;"><em>&#8230; if you pony up, you find out you&#8217;re in the wilderness, not a member of any club, not one of any size, and that freaks you out and you abandon your subscription.</em></span></p>
<p><span style="font-size: small; font-family: Arial;">He&#8217;s right. And he&#8217;s not alone. And XM and Sirius only have themselves to thank.</span></p>
<p><span style="font-size: small; font-family: Arial;">Throughout both companies&#8217; histories, as marketing efforts focused on the &#8220;big&#8221; names, i.e., Major League Baseball, The NHL, the NFL, Opie and Anthony, Howard Stern, Oprah, Martha Stewart, Starbucks, Ellen DeGeneres, Tyra Banks, etc, what was weird and wonderful about satellite radio began to fade.</span></p>
<p><span style="font-size: small; font-family: Arial;">Having <a href="http://outlandosmusic.com/about" target="_blank"><span style="color: #ff6600;">been</span></a> been on the inside at XM, I witnessed it firsthand. And for a little while there we (the programmers) <em>believed</em>.</span></p>
<p><span style="font-size: small; font-family: Arial;">We believed in the true art of radio, the craft, the connection between great music and fans and the curator behind the scenes &#8212; a veritable magic of sorts, as those of <a href="http://outlandosmusic.com/about" target="_blank"><span style="color: #ff6600;">you</span></a> who came up through 70s radio knew all too well.</span></p>
<p><span style="font-size: small; font-family: Arial;">XM Cofounder <a href="http://www.xm411.com/phpbb/viewtopic.php?p=634315&amp;highlight=&amp;sid=f427172f4158fdbe8aeab3a4e12d7cf1" target="_blank"><span style="color: #ff6600;">Lon Levin</span></a> knew this. Certainly, <a href="http://leeabrams.blogspot.com/2008/03/last-blog-for-awhile.html" target="_blank"><span style="font-size: small; color: #ff6600; font-family: Arial;">former</span></a><span style="color: #ff6600;"> </span>Programming Senior VP and Chief Creative Officer <a href="http://en.wikipedia.org/wiki/Lee_Abrams" target="_blank"><span style="color: #ff6600;">Lee Abrams</span></a><span style="font-size: small; font-family: Arial;"> </span><span style="font-size: small; font-family: Arial;">knew this.</span></span></p>
<p><span style="font-size: small; font-family: Arial;">Their vision, in the beginning, was all about celebrating that magic. And it was, truly, a beautiful thing.</span></p>
<p><span style="font-size: small; font-family: Arial;">But then former CEO <a href="http://en.wikipedia.org/wiki/Hugh_Panero" target="_blank"><span style="color: #ff6600;">Hugh Panero</span></a> brought in the <a href="http://lefsetz.com/wordpress/index.php/archives/2006/05/17/the-xm-lawsuit/" target="_blank"><span style="color: #ff6600;">new guard</span></a>: Programming Executive VP <a href="http://xmradio.mediaroom.com/index.php?s=press_kit&amp;item=38" target="_blank"><span style="color: #ff6600;">Eric Logan </span></a>and <a href="http://www.linkedin.com/in/jonzellner" target="_blank"><span style="color: #ff6600;">John Zellner</span></a>, terrestrial radio&#8217;s <a href="http://en.wikipedia.org/wiki/CBS_Radio" target="_blank"><span style="color: #ff6600;">Infinity</span></a></span><span style="color: #ff6600;"> </span><span style="font-size: small; font-family: Arial;">kings&#8230; not exactly purveyors of Abrams&#8217; wondrous, contagious irreverence, the driving force behind XM&#8217;s once-upon-a-time magic.</span></p>
<p><span style="font-size: small; font-family: Arial;">Across many of the music channels, playlists were slashed and it seemed that XM was becoming a virtual mirror of terrestrial radio, just without commercials. Except, suddenly, there <a href="http://www.businessweek.com/technology/content/apr2006/tc20060413_150389.htm" target="_blank"><span style="color: #ff6600;">were</span></a> commercials. Zoikes.</span><span style="color: #ff6600;"> </span></p>
<p><span style="font-size: small; font-family: Arial;">And still today, the channels that are most interesting, most human (XM Kids, X Country, Liquid Metal, Fungus, The Rhyme, Fine-Tuning, The Joint, The Loft, etc.) chug on but go virtually unnoticed. What&#8217;s worse is that the talented curators behind them remain grossly overworked and, sadly, underpaid. But that&#8217;s another story&#8230;</span></p>
<p><span style="font-size: small; font-family: Arial;">The fact is, collectively, XM and Sirius have a point: our other content options are numerous and in many cases better. So why would we keep paying for a service that&#8217;s become not all that different then terrestrial radio, which we can get for free? Good question. And I&#8217;d love to say that <a href="http://en.wikipedia.org/wiki/Mel_Karmazin" target="_blank"><span style="color: #ff6600;">Mel Karmazin</span></a>&#8216;s gonna save the day. But it&#8217;s no secret that Mel&#8217;s a business guy, not a music guy. Certainly, he&#8217;s no Lee Abrams.</span></p>
<p><span style="font-size: small; font-family: Arial;">Yet, in theory, it could happen.</span></p>
<p><span style="font-size: small; font-family: Arial;">Maybe if instead of continuing to blindly throw marketing dollars at the anonymous masses, satellite radio got back to what it&#8217;s poised to do best: creating a haven for the &#8220;weird and wonderful&#8221; and thereby perpetuating the <a href="http://outlandosmusic.com/2008/02/04/open-letter-to-mcguiness/" target="_blank"><span style="color: #ff6600;">shared experience</span></a>, a.k.a., Lefsetz&#8217; membership to &#8220;the club.&#8221;</span></p>
<p><span style="font-size: small; font-family: Arial;">After all, the masses aren&#8217;t fans. And, I can&#8217;t say this enough, FANS are what you want. Fans <em>invest</em> in music. Fans <em>invest</em> in the club. Loyal, diehard, spread-the-buzz fans who, simply by virtue of their devotion, will sell your product for you. </span></p>
<p><span style="font-size: small; font-family: Arial;">And it just so happens that the most likely fans of things &#8220;weird and wonderful&#8221; are adults&#8230; age 35-65&#8230; 1/3 of the population&#8230; wielding $1 trillion in disposable income. Do I sound like a broken <a href="http://outlandosmusic.com/about/" target="_blank"><span style="color: #ff6600;">record</span></a>?</span></p>
<p><span style="font-size: small; font-family: Arial;">Music Industry Professor Jerry Del Colliano, in a recent Post <a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/03/21/AR2008032101038.html" target="_blank"><span style="color: #ff6600;">article</span></a>:</span></p>
<p><span style="font-size: small; font-family: Arial;"><em>Young customers don&#8217;t have the need that we older folks have to have someone knowledgeable about the music tell them what&#8217;s new. They have their social network to tell them what&#8217;s cool.</em></span></p>
<p><span style="font-size: small; font-family: Arial;">Damn straight. Earth to Mel!</span></p>
<p><span style="font-size: small; font-family: Arial;">So maybe if instead of trying to be everything to everyone, satellite radio embraced this rather sizable <a href="http://www.aarp.org/research/press-center/presscurrentnews/boometrics_studies_music.html" target="_blank"><span style="color: #ff6600;">niche</span></a> and got back to its roots of humans programming for humans, then maybe the magic would prevail and satellite radio would, at the very least, survive&#8230; or at the very best, emerge as our savior. Now that would be worth paying for.</span></p>
<p><span style="font-size: xx-small; font-family: Arial;">© Outlandos Music<sup><span style="font-size: xx-small; font-family: Arial;">TM</span></sup> 2008</span></p>
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