Katz's Mary Beth Garber Puts Sirius XM Claims in 'Proper Perspective'
May 10, 2011 at 11:35 AM (PT)
KATZ RADIO GROUP EVP/Radio Analysis and Insights MARY BETH GARBER has taken issue with comments made by SIRIUS XM CEO MEL KARMAZIN during a recent quarterly report to analysts, reporters. She asserts that KARMAZIN "invented some numbers pertaining to listenership of radio, Internet and SIRIUS XM."
Among the distorted SIRIUS XM claims, GARBER notes that:
* Satellite radio isn’t commercial-free, it has virtually no local content and at $10 to $15 per month or more for a subscription, it certainly isn’t free.
* In the 10 years since its launch it has worked its way up to being owned by… 10.6% of the Adults 18+ in the USA.
* If 30% penetration is considered "critical mass" for technology products, it has a very, very long way to go to be considered a mass medium. Today, it is irrelevant in that category.
* It reports 20.5 million "subscribers" (includes unsold autos and cancelled subscriptions for 18 months after they cancel). Only about 85% are "self-pay" (or, real).
* Only 9.5% of Adults 18+ in the U.S. listened to any satellite radio in the past week and only 1.2% plan to acquire one in the coming year.
Radio reaches 93.4% of Adults 18+ in the USA every week. Radio connects to listeners locally, on many platforms, and then connects those listeners to advertisers. We can document the amount of time radio’s listeners’ spend with radio on all its platforms. Let’s see if MEL will document the total number of hours spent listening to satellite radio.