Radio Must Concentrate on Local

Radio Must Concentrate on Local

April 12, 2006

"Jason Helfstein had it right when he told the Kagan Summit that radio should concentrate on local, local, local, and give us something you can't find anywhere else. See the article below from Radio & Records." --Ed Seeger

Last year CIBC World Markets Director and Research Analyst Jason Helfstein told Kagan Radio/TV Summit attendees that satellite radio is "a real business that is here to stay." He repeated that statement this afternoon, saying that XM and Sirius will likely see a combined 37 million subscribers in 2010. With 10.5 million subscribers already tuning to channels from XM and Sirius, the growth rate for each subscription radio provider has been faster than both the cable and satellite TV industries grew and just slightly behind that of Apple's I-Pod, Helfstein said. He was also quick to point out that HD Radio will not be terrestrial radio's end all, be all competitive challenge to satellite radio.

"HD is coming — but why will people care?," Helfstein argued, saying digital music programming alone won't reverse the tide for AM and FM broadcasters. "Radio has lost share for five straight quarters." Yet Helfstein says Clear Channel's "Less is More" inventory-reduction initiative "has clearly had an impact because fewer listeners left radio in 2005." He encouraged programmers to "go local and give us something you can't get elsewhere such as high school football games and community events. Radio must concentrate on local programming to remain relevant."