Emmis Communications CFO Patrick Walsh discussed what his company considered a "threat" to terrestrial radio, while speaking at the Noble Financial Conference in Charleston, SC yesterday. Walsh said he did not consider satellite radio to have a "measurable effect" and described it as a niche business.

Walsh said that Emmis views "the threat as being much more fragmentation from the iPod and Internet streaming and the fragmentation from media, whether it be YouTube or other media being delivered on the Internet just fragmenting peoples’ time," according to Radio Ink.

He continued, “Satellite radio doesn’t show up in our diaries very often. The people that utilize satellite radio often toggle between AM and FM and satellite radio, and it really hasn’t caused a measurable effect in our business yet. We reach hundreds of millions of people every day. Ninety-three percent of Americans listen to AM/FM radio every week. Satellite radio is a niche business focused on people willing to spend 13 dollars per month for the radio. Which for long-haul truckers or people who are advocates of a music format which may not reach a mass market – if you’re a passionate Blue Grass listener in New York City – it probably makes sense for you."

Walsh called the satcaster business model "challenging" and described the proposed XM-Sirius merger as an attempt to "with the government to solve a business model problem." He concluded that satellite radio "is competition but I don’t think it’s the principal competition for radio going forward."