Pomposity of Sirius

"Audio Graphics has done a good job in going through some of the "pomposity" of satellite radio's public relations campaign and, as we all know, found quite a few holes in what they're saying. At AMS, we've been trying to get our industry to push back for years. 2006 could be the turning point." --Ed Seeger

A Sirius Attack on Radio Industry and XM?
April 3, 2006
Audio Graphics Many justifiable accolades have been given to the publicity department at Sirius Satellite Radio, especially in its handling of Howard Stern's debut, but this time it's gone too far.

First you'll have to read the publicity release linked below to understand the points mentioned here. The dribble that's been put out today may signal an act of desperation more than one of pride. It's an attack on the radio industry and XM Satellite Radio, done with pomposity.

There's no doubt Sirius should be proud of its star. Howard Stern is as important to its success as its satellites overhead. But the descriptions of where this company is at, relative to the reality of the industry, aren't supported by verifiable fact. All claims are superlatives. Here are examples of a few statements from that press release (and coming from just the first two paragraphs!), which may leave you wondering where these people are coming from:
"It turns out Sirius is now the 'Big Dog' of satellite radio leaving XM
in the dust." (XM just announced 6.5 million subscribers.)

"Not only are subscribers jumping aboard in waves, but
corporate advertisers are also storming the gates of Sirius."

"Although this trend is obviously crushing their only satellite
competitor XM, terrestrial radio stations are also taking a huge
hit in lost advertising revenue thanks to the success of Sirius."

Wayne Perry, President of SiCap Industries, is quoted in paragraph three. It is a glowing report that has Mr. Perry tripping over himself with niceties. One statement of his shows the lengths of satisfaction reached: "Barely six months ago, SiCap Industries was spending 100% of their radio budget on local terrestrial stations in mid to large markets over twenty percent of the country. Today SiCap is spending 40% of their radio budget on Sirius..."

These sentences are immediately followed by this - presumably from Sirius: "Commercial spots on Sirius appear to be welcomed by listeners who have come to expect at least some advertising, and that’s where the Sirius traffic department plays it smart. Commercial space on Sirius is limited, and the company is choosy when it comes to contracting potential advertisers." Here's a bet. Call Sirius. Tell them you want to drop $50,000 on an ad campaign for swiss cheese, talcum powder, or old Coke bottles. Odds are you'll be placed in their chosen advertiser group.

There's no lack of - uh - testosterone at Sirius, nor is there any lack in its ability for creative writing. But statements like those found on this press release are the kind that should make any competitor react. In this case, broadcasters should respond with a conjoined effort to let Mr. Perry take 100% of his advertising dollars to Sirius, and see if there are enough people in the audience to keep him happy.

4 million people subscribe to Sirius. Do the math: With over 100 channels available, how many persons are tuning into any single channel at a given time? How many persons are Sirius subscribers, in say Cleveland, Ohio, out of the 1 million+ in its ADI?

Howard Stern is the big draw. However, it's still accurate to say that every other channel is building its audience. Even Howard isn't impressed with numbers of "fans" who followed him to Sirius. (See next story.)

We're still dealing with individual-channel audience numbers that couldn't possibly be better than those of a small (or at best) medium market radio station. If they were, Sirius would be plastering the numbers out in multiple press releases. Also, all of these Sirius channels have their audiences geographically stretched across the nation; so the "potential" advertiser pool is limited to those with a national distribution system.

In the past the Sirius PR department earned a reputation for bravado. Today, it's also showing a knack for BS. Broadcasters need to shove back by showing Mr. Perry and his product the door.