Radio Is Doomed - Tear Down the Broadcast Towers

My most striking realization since getting my iPhone (love it, thanks for asking) is that radio is doomed. Pandora is a wonder, creating my own radio station, live and on the fly without need for a broadcast tower. CBS is streaming all its stations over the cell network but when I told my wife this she kept asking, “Why would I want to listen to a CBS station?” That’s not the point, I huffed; we don’t need broadcast towers. OK, she said, but I still don’t want to listen to CBS stations. So count that as two strikes against radio. Digital radio? Heh. Satellite radio? I’m paying for it and I want Howard on my iPhone.

And then there’s TV. Comscore just said that Americans watched 12 billion videos in May, up 45 percent over last year. Say that again: 12 billion. It’s a mass medium, still: the mass of niches comes to life.

Some more video stats: Google has a 35 percent market share. Fox is a very distant second with 6.4 percent. Huli debuts at 10th place with 0.7 percent, but I’ll bet it will rise quickly. More:

* Nearly 142 million U.S. Internet users watched an average of 85 videos per viewer in May. Google sites also attracted the most viewers (83.8 million), who watched an average of 50 videos per person.
* 74 percent of the total U.S. Internet audience viewed online video.
* The average online video viewer watched 228 minutes of video.
* 82.2 million viewers watched 4.1 billion videos on YouTube.com (50.4 videos per viewer).
* The duration of the average online video was 2.7 minutes.

Comments

[the little guy:]

"where there's smoke there's fire" and when the smoke clears, accountability?, we can only hope...
Remember how hard the buggy-whip manufactures tried to stop the automobile...

2008 Jul 15 08:06 AM

[Dr Phil:]

Not so fast. The quality on the iPhone radio is tinny at best. I thought I would use it and drop my XM, but the sound is not up to par. More like AM in the 60's.

2008 Jul 15 08:19 AM

[User 226507:]

Family Guy is fun to watch at seefamilyguy.com

2008 Jul 15 08:21 AM

[Rosenblum:]

Absolutely fascinating. And what is 'seeking alpha"?

2008 Jul 15 08:23 AM

[Duude:]

Why would anyone listen to a guy that would pay money to listen to a low-brow broadcast like Howard Stern?

2008 Jul 15 08:55 AM

[bluesmoke:]

All I know is other than talk radio, terrestrial radio has definitely lost its way.

2008 Jul 15 09:03 AM

[philf:]

DUUUDE- "low brow broadcast like howard stern?". you are kidding right? let me guess, you are a oxycotin induced limbaugh fan? any way you slice it, terrestrial radio is on the way out. even talk radio is worthless with the way the commercials chop up an otherwise decent Adam Corolla show. advertising in its current state is old news. hello DVR & satelite radio!!!

2008 Jul 15 09:45 AM

[Gregg:]

The other killer coming soon - internet in the car. If we could get a constant signal in the car and could then tune to internet based radio. Shut out the lights, AM/FM. The only thing they'll have left is a few special local programs and things like Limbaugh.
The NAB needs to take the money and energy to improving their own product - not lobbying against the tidal wave of Sat Radio and other technologies.

It's over Johnny!

2008 Jul 15 09:54 AM

[ir_danno22:]

I spend more time channel surfing the air waves in my car trying to find some decent tunes for the drive around Northern Cali. Traversing from Solano county to the Bay Area and even down to Monterey Bay pretty much yields various radio stations with the same 10 minutes of commercials and very little music or decent talk radio. I'm waiting for the better Sat Radio deals after the merger. Better content, less carp whatever your listening pleasures are.

Internet radio... not bad if you're at home and don't mind the quality. I could imagine internet radio sites in programmable settings (when parked) on in-car radios as a means to navigate to your desired music choice as you drive. df
www.island985.com/main... (listen live)

2008 Jul 15 10:56 AM

[VMx:]

Less carp indeed...

2008 Jul 15 11:29 AM

[Joe F.:]

Pandora won't last as a free or commercial free entitiy for you to have access to.

You'll either have to pay for it or listen to comnmercials. Not bad if it's a radio station you like I guess.

Watch for a merged SAT RAD to offer all of this. Access to down loads) indeed, using free downloads to enhance certain subscription tiers; and also allowing for pandora type access on certain channels that users set for themselves.

In addition you'll get all the sat radio tier you subscribe to. You'll get a constant signal - nationwide. And it will scale to different hardware and platforms.

That is the niche you want to be in.

2008 Jul 15 11:49 AM

[Frunkis!:]

Terrestrial Radio is unlistenable garbage. But boy do they have lobbiest. They screwed XM and SIRI over with delaying tactics and will kill the best thing that ever happened for the listening public: uncensored, commercial free airing that I am MORE then willing to pay for because it is exactly what I want! You can keep your reruns of constant vacationing Howard "hoo hoo" Stern by the way. I'll stick to the real working men of "Shock" humor XM's Opie and Anthony (with 'lil Jimmy Norton). Free Speech...yeah ya gotta pay for it now folks!

2008 Jul 15 01:03 PM

[BerkeleyBob:]

Part of the hold-up on the Sirius merger is the lobbying influence of RIAA and NAB (terrestial radio). The former long ago exacted a very favorable royalty (none) deal; RIAA has been heavy handed in collecting from sattelite and internet radio as well as file sharing teenagers. I subscribe to Sirius, and donate to local college radio and the local NPR. Both are superior in content and free of commercials and lowest common demoninator programming. Terrestial radio is a failing format. We do need to compensate artists equitably, however.

2008 Jul 15 01:11 PM

[Ida Queen:]

You gotta be kidding....and tell me, how long are those batteries going to last while you listen to streaming radio all day?

Or do you like that tether to your 12v outlet? And how long is that cord...you know, for when you're at the beach or in the park?

2008 Jul 15 02:32 PM

[Jim1:]

It occurs to me that this could also be the beginning of the end for horrible tripe like B Spears et al. If listener choice is blown open by new technology and Terrestrial Radio is no longer in control of what gets played, perhaps some GOOD music might actually make it's way back into society. I suppose MTV will still be churning out the crapola, but who watches MTV?

2008 Jul 15 03:19 PM

[notsosmart:]

its all in what you want to hear ,when & how.what will give you the best option @ a reasonable price.it will sort out quickly once the reg radio lobbyists are out of the picture.

2008 Jul 15 03:36 PM

[Gruntmore:]

Disagree... the internet will kill radio like television killed reading... Think. Look at your heartland logic, there are still ga-zillions of folks who can't afford anything internet but are fully able to plunk down $5 for a portable radio and batteries. If anything will kill our modern mediums, it will be the digital age of HD when we regulate our analogs right out of the hands of the common man. So glad to see our demographical research never extends below the poverty line.

2008 Jul 15 03:58 PM

[novistor:]

What's wrong mith a little carp anyway?

2008 Jul 15 05:23 PM

[ITS A SIRIU...:]

First, there was AM radio. Then FM was supposed to kill off AM. Then 8 tracks would be the end of radio, then Cassettes, CD players, digital music, Sat Rad and the I-Phone, which will kill everything. Wait till you get your I-Phone Bill. I hope there are no surprises! Sat Radio merger will kill terrestrial radio?
I do not believe this is the end of terrestrial radio. It will have its listeners. Besides, it will be the content that is transmitted or streamed or .....whatever....that will be successful rather than the type of vehicle that will be used to deliver it. Your Pizza Hut delivery man still brings you your pizza regardless of what type of car he is driving. Content is King BABY!!!!

Siri share holder 100,000 shares

XM share holders 10,000 shares

2008 Jul 15 05:25 PM

[novistor:]

Lets all cut through the carp here, and everybody just admit that all they want is for the quick spike to happen and we all sell sell sell and everybody lives happily ever after - regardless what happens to satellite radio.

2008 Jul 15 05:33 PM

[boston 1:]

novistor that sounds like the wind I hear.

2008 Jul 15 09:14 PM

[where ya been?:]

my head hurts

the internet killed print years ago, no one caught on yet.

newspapers and magazine are an investment nightmare.

should we talk about VIDEO? music? the net makes things cheap. no plastic cd's, tapes or records. no paper, no ink, no shipping. no huge radio towers, nothing. just everyone connected together sharing information.

things go away when something better comes around, 8-tracks were great but you dont see them in new cars.

broadcast radio is dead, again no one noticed yet.

and please oh please get off the iphone thing. its a cute package for the masses to feel like they arent part of the masses but they never get all the bugs out and its still a generation behind. but again, no one notices.

2008 Jul 15 09:17 PM

[skaizun:]

Yes! By all means, let's tear down all the broadcast towers, so that when some future terrorist strike blocks or destroys satellite signals (you know it's only a matter of time before someone figures out a way to do it, regardless of so-called electronic shielding), there will be no way to let the American (or world) people know about it via any emergency broadcast system. You'll note that I didn't say it would be a "bad" turn of events!

And the author is 100% correct that we absolutely need the likes of "Howard [Stern]" on the airwaves! "Yell" radio (does anyone truly consider it "talk" anymore?) is an absolute essential to any advanced civilization! (that was rolled-my-eyes-skyward sarcasm, in case anyone missed it)

Oh, and, may I add, VERY subtle advertising disguised as an article!

2008 Jul 16 10:44 AM

[Baby Gorilla:]

Testicle radio had already killed itself prior to sattelite, Howard moving to Sat radio just put the nail in the coffin. Prior to getting Sirius in 2005 I had already stopped listening to that crap (except for Howard when he was still on reg radio). Repetitive music, retarded DJ's, followed by endless commercials. Who has the patience to listen to yelling car ads over and over?

I just wish the FCC would quit bending over to the NAB lobbyists and approve the dang merger already. Longest merger EVER and it's not even over a product that is "necessary"! Oil companies, utilities, airlines.......all these mergers go through in weeks, maybe months. Were talking about entertainment and it's taking YEARS to get an approval. Wonderfull government we have isn't it?

2008 Jul 16 12:25 PM

[Baby Gorilla:]

Duude:

you should give Howard a listen sometime. Much of the time it's actually an intelligent show. Yes, some will consider parts of the show "obsene", "gross", "low brow", whatever. However, I find that most people who express disdain or hate for Stern have never listened to his show. In fact most non-listeners are forming their opinion from what they hear from friends/co-workers/who... when i first met my wife she found that I was a Stern show fan and couldn't believe that someone "like me" (somewhat successfull, straight living, non-sex offender) would listen to such filth. She had never heard the show, just based her opinion off of rumors. Guess what? She listens now too. Interestingly enough, I have found that the core of the Sternshow fans are actually in the higher class of society. Stern is a person who comes off as 100% honest and open no matter what the consequences. He says some of the stuff we are all thinking but would never dare to say. That is why I find his show refreshing.

2008 Jul 16 12:40 PM

[User 150813:]

on the iPhone...does anyone wonder if sirius or xm will get wise and try partnering with Apple so we can listen to streaming sirius through our wonderful new iPhone like CBS Radio? I agree Pandoro and CBS streaming radio on my iPhone rocks!!!! If you don't know what I'm talking about then you better ask somebody!!

2008 Jul 16 03:41 PM

[BoutiqueMusic:]

I pay for Sirius and I will continue to pay for Sirius. If it goes away, I will listen to my Pod. Terrestrial radio is just a few of the same songs over and over mixed in with a ton of commercials. I switched because I grew tired of hearing the same songs over and over for 20 years.

And to all of you Howard bashers out there, change the channel and quit your whining! How do you know what he is all about if you don't listen? You sound like people who move next to an airport and complain about the noise.

2008 Jul 16 05:31 PM

[muley101:]

After the SIRI and XMSR merger is done, look for a strong partnership between Apple and (XS). That will be the final nail in terrestrial radio's coffin.

2008 Jul 16 10:35 PM

[JayThomas:]

You forget, not everyone can afford the $299 entry price plus $120 per month for their precious iPhone. Radio is free, and alot of people still look to radio to become more familiar with new songs and to find something new. Sure, there's people out there that like their niche music, and it's great that the iPod (and satellite radio for that matter) gives them what they want. But 95% of americans don't fit in that category, they listen to radio every week. So, while you may not find something you like on the radio, remember, few people hold that same belief.

2008 Jul 16 11:14 PM

[PROTECT AND...:]

sirius will pop.................ta... will sign off soon

2008 Jul 17 10:46 AM

[Sirius Fan:]

JayThomas, you left out the $175 price tag to cancel the contract with their current provider to switch to AT&T. In my case, getting an iPhone would cost me $650.

Reminds me of an Offspring song..."I'm not a trendy a$$#ole..."

Sirius will be king!

2008 Jul 17 11:18 AM

[PROTECT AND...:]

I heard tate is back from her vacation trip to NC does anyone know if thats true?

2008 Jul 17 01:05 PM

[RReagan:]

Can we get on with this already? Sirius should get out of this insane merger and go it alone now! They don't need XM's debt, they don't need the FCC, they need to hook up with the IPOD and every other devise out there in technology land, and they don't need to share the spectrum or anything else they own, and it would be nice to see Sirius and XM survive and wipe out regular radio. This way, the corrupt polititions get nothing. It would be a victory for Sirius and hopefully for XM to in the long run. As for the stock prices, they were higher years ago before the merger was announced, and with some help from other technologies, they will get back to those higher levels again.

2008 Jul 17 01:13 PM

[Superlegs6:]

How does an alternative source make it automatically a monopoly?? Don't think AM radio in comparison to FM or SSB or Long Wave is a "legal" monoply by definition! Or TV or cable versus radio! Or the print press versus radio versus TV versus cable versus the Internet! Collectively, they are just alternative means of spreading the word = communications!!

But at one time in our history we had pocket sized radios that only received FM radio or only received AM radio!! And nobody was raising this kind of interference!! Or maybe they were, but without the Internet, nobody knew, therefore nobody cared!!!

Just goes to show how illogical bureaucrats are! And you can translate the word "illogical" into stupid! Because after all this BS, it really appears that satellite radio is as doomed as any other common broadcast medium is when compared to the Internet!!

Ever herad the terms "technological immigrants" and "technological natives"?? Well that describes folks born before and after 1980! Just wish the "natives" would get a little more restless and by the power of their votes set the "immigrants" in FCC free!

Are contact lenses a legal monoply when compared to conventional eyeglasses? And if so, what the hell is laser surgery??

Then, please tell me what value the FCC adds for the tax dollars they suck down! We would all do well to take their budget and contribute it to the Defense Department!

This whole tragedy reminds me of Shakespeare's play "Much to do about nothing"!!!

Have a nice day!

2008 Jul 17 05:10 PM

[oregonduck:]

Adelstein says yes--we are over the hump!!!

2008 Jul 17 07:08 PM

[cos1000:]

oregonduck.....a little brief on the details, and as we all know the devil is definitely in the details Adelstein is spouting out for the "Yes" vote. Might as well take my first born too! Granted it sets a limit for the deal to get done and puts tremendous pressure on Tate to do the right thing in aligning herself with her Republican Members, but short of that, Adelstein's concessions should be a deal breaker for me as an investor.

2008 Jul 17 07:55 PM

[cos1000:]

Just to add a little more. Adelstein is quoting Marky's, Democratic Rep. from MA, 6 year freeze on pricing and 25 % Spectrum set aside. Along with a few other details not yet revealed, in addition to what is already in circulation.

2008 Jul 17 08:16 PM

[ITS A SIRIU...:]

Humm......I don't think the world will collapse if a terrorist attack happens and it can't be broadcast via the satellite emergence broadcast system. You must be against the merger!!!

2008 Jul 17 10:32 PM

[ITS A SIRIU...:]

Sorry, I misread your post!! HE HE! Embarrassed!!

2008 Jul 17 10:35 PM

[shure46:]

how does adelstein expect siri to hold pricing for 6 years in this era of inflation ???????

2008 Jul 17 11:12 PM