Jacobs Media is traditionally known as an organization that caters to mostly to terrestrial radio. They do however tackle other things as well, including some interesting data that became part of the fodder during the merger process of Sirius and XM Satellite Radio. Recently Jacob's conducted a survey of more than 26,000 rock radio listeners from around the country, and one of the results was very interesting.
In their data, Internet radio provider Pandora is King of the online listening hill. Now before I get bashed away for daring to write about Pandora on a satellite radio site, let me clarify my stance. Pandora is a service that has many subscribers. While some may feel that it is dead or dying, the facts prove otherwise. To ignore it because it is "competition" is a fools exercise.
Fred Jacobs states, "As I have pointed out over the past several days, Pandora demands our thought and attention, just as MTV did in the ‘80s, and satellite radio did in recent years. Radio does not exist in a vacuum. In simpler times, it really may have been about WLS versus WCFL. Today, broadcasters need to grasp the broader realities of media consumption and consumer needs and wants in an environment of seemingly infinite options." I could not have stated it better myself.
So what did the survey tell us, and how should satellite radio react?
Of those who listen to Internet radio, 37% tune in Pandora. That represents a continued growth for Pandora, not an eroding market share. This is important to Sirius XM because Sirius XM also offers an Internet Radio service, and as more and more of America get smart phones, the services for radio on those phones will all be competing for listeners.
The article and survey are interesting and compelling. Many people seem to enjoy Pandora more than terrestrial radio, and their overall satisfaction for the service is high. If you are invested in satellite radio, set aside your undying loyalty for Sirius XM for just long enough to read the Jacobs media details and understand it. You are much more informed by understanding the media landscape than ignoring it or pretending that it will fade away and die. There are lessons in this survey for Sirius XM as well.
[via Jaco Blog]
Position - Long Sirius XM