Survey Questions "Stern Factor" In Sat Radio Growth
January 27, 2006 at 7:09 AM (PT)
A study commissioned by a radio station broker claims that the "HOWARD STERN Factor" is overrated and that few Americans expect to purchase satellite radio.
The nationwide survey commissioned by AMERICAN MEDIA SERVICES, the business of which relies on the continued health of terrestrial radio, indicates that a large majority of Americans (86%) are not likely to consider the purchase of satellite radio in the future because of STERN's move to SIRIUS. Broken down further, 69% of those responding said they were "not at all likely" to consider purchasing satellite, while 17% said they were "not very likely."
Local radio has a unique and unmatched place in the American community.
The negative reaction to the STERN question was even stronger than the responses to another question asking about the likelihood of respondents paying for satellite service. In that question, respondents were first told that satellite radio usage requires the purchase of equipment and a monthly fee. Then they were asked if they were likely to purchase satellite radio over the next year. 82% said such a purchase was unlikely, with 64% saying they were "not at all likely," and 18 percent responding "not very likely." 88% percent of those surveyed responded that they are not subscribers of satellite radio.
The survey also asked the 1,008 respondents what they liked best about conventional radio. 33% of them said "local traffic and weather information," while another 25% said they liked radio because "it's always available when you need it." 13% said they liked radio because it helped connect them to events taking place in their community, and 10% said they liked radio because they knew they could get vital information from radio in case of an emergency.
As to what consumers did not like about radio, 57% responded that "the amount of time for commercials" is the highest on their lists. "This survey has reinforced what we have known for several years, that local radio has a unique and unmatched place in the American community," said AMERICAN MEDIA SERVICES President/CEO ED SEEGER. "Other technologies are going to be there to compete, but radio has made some fundamental changes over the past couple of years, and I think the consumer knows that."
AMERICAN MEDIA SERVICES is a full-service radio brokerage, engineering and developmental engineering firm. Its developmental division is a leader in station upgrades.