Satcaster Advertising On The Rise
April 17, 2006

As XM and Sirius continue to evolve, it looks as if commercials will become more and more prevalent on the satcasters' stations. Already, XM has altered its slogan of "100% commercial-free music" to having the "most commercial-free music channels." Last month it was revealed that ads would be placed on Clear Channel-controlled XM stations as part of the companies' agreements.

Gartner Research analyst Laura Behrens told Business Week that she expects that the satcasters' programming will likely resemble traditional, terrestrial radio within the next five to ten years. "Eventually, [both satellite and terrestrial radio] are going to get more similar as they evolve." Since neither company has turned a profit yet, Forrester Research analyst Ted Schadler says that both "have to be looking for all revenue sources, and ads are one of them."

XM SVP of Sales and Marketing D. Scott Karnedy tells Business Week, "Advertisers were concerned about mass. When we broke through six million subscribers, we saw that as a tipping point [with advertisers]." In 2005, XM tripled the amount of ad agencies it was involved with as ad revenues have skyrocketed in the past two years, reaching $20 million last year. Karnedy says that XM "can't keep up with the demand." The company expects to up its amount of ads on its talk channels in the near future.

As for Sirius, ad sales grew to $6.1 million last year. The satcaster is also considering increasing the spotload on Howard Stern's show from six minutes per hour up to nine, reports Business Week.

Stanford Financial Group analyst Fred Moran tells Business Week that he predicts both satcasters will bring in 10 percent of their sales revenue via advertising by 2011. Sirius predicts they will reach that amount in the next few years, though advertising only makes up under one percent of their current sales.

Breaking News
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
March 15, 2017
Radio One Houston Names DJ Riddler MD & On-Air Talent/Mixer For KROI (92.1 Radio Now)
iHeartMedia Names Mark Fuhrman Area President in Pittsburgh/West Virginia Region
REAL 103.9/Las Vegas Names Roxy Romeo APD/MD
iHeartMedia Washington, D.C. Debuts Cherry Blossom Radio
KBEB/Sacramento Names Bryan "B-Dub" Washington PD
iHeartMedia Portland Debuts The New 103.7 The Legend
March 14, 2017
The iHeartRadio Music Festival Returns to Vegas This September
KMGA (99.5 Magic FM) Adds Bryan Simmons as PD/PM Drive, Doug Durocher as AM Co-Host
Veteran Music Exec and Producer Tommy LiPuma Passes Away
Magic 92.5 Turns 20 With An All-Star Birthday Bash
March 13, 2017
Alpha Media Portland Names Sean Demery PD At KINK FM
Music News
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
Lorde's Melodrama Arrives June 16
U2 Announce 30th Anniversary Joshua Tree Box Set
Ed Sheeran Announces Massive North American Tour
Quick Hits: Halsey, Charli XCX

Sam Milkman, EVP
Coleman Insights

FMQB Member Login

Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!