Satellite radio is a premium product for a niche audience. Plenty of listeners (myself included) do not listen to the radio, not because of the commercials or the annoying DJ banter, but because their particular musical tastes are not covered by the five conglomerates that operate most major American radio stations. This is the reason for the surprise success of the digital music channels offered first by DirecTV and now dish network and digital cable systems.
The no-commercials model is also the concept behind HBO and Showtime, so there is some precedent for charging users instead of sponsors for entertainment.
Narrowcasting can be very profitable if you hit on a product that only a few people want but that they want badly enough to pay for it. It's not just music; there's a substantial market for live out-of-market sports broadcasts as well. So while we might question their pricing, I don't think that the mere concept of fee-based radio is inherently bad.
-hd
Slashdot Mirror
Satellite radio is a premium product for a niche audience. Plenty of listeners (myself included) do not listen to the radio, not because of the commercials or the annoying DJ banter, but because their particular musical tastes are not covered by the five conglomerates that operate most major American radio stations. This is the reason for the surprise success of the digital music channels offered first by DirecTV and now dish network and digital cable systems. The no-commercials model is also the concept behind HBO and Showtime, so there is some precedent for charging users instead of sponsors for entertainment. Narrowcasting can be very profitable if you hit on a product that only a few people want but that they want badly enough to pay for it. It's not just music; there's a substantial market for live out-of-market sports broadcasts as well. So while we might question their pricing, I don't think that the mere concept of fee-based radio is inherently bad. -hd