Lessons from the Satellite Radio Troubles: WSJ has a story on the troubles facing subscription satellite radio services Sirius and XM Satellite Radio: having trouble convincing people to pay $10 or more a month for radio.
“The industry is on the edge now,” says Jimmy Schaeffler, chief executive of the Carmel Group, a Monterey, Calif., research firm specializing in media and communications. Mr. Schaeffler likes satellite radio’s quality sound and wide variety of programming — and he is an XM subscriber. But “having a really good product isn’t enough. [The companies] have to generate consumer excitement for the product, and that depends on things like the economy, marketing, things that have nothing to do with technology.”
In a post on E-Media Tidbits, Steve Outing says there are lessons to be learned here: “This might be a cautionary tale for media websites now considering or moving to paid-content models. Beware: Internet users may well find similar but not-quite-as-good content for free that’s good enough. It won’t be easy for many Web publishers to get online users to pay up.”