Emmis’ Walsh: “Satellite Radio Hasn’t Caused A Measurable Effect Yet”
Speaking Monday at the Noble Financial Conference in Charleston, SC, Emmis Communications CFO Patrick Walsh was asked about the threat to terrestrial radio from satellite radio. Walsh responded, “We at Emmis have viewed 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.
“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.
“But I think they’re still challenged. It’s a challenging business model to launch a billion-dollar asset in space and try to build up a mass-market audience quickly. And with 15 million subs it’s tough, which is why they’re trying to get the merger done. In large measure they’re trying to work with the government to solve a business model problem.
“So, it’s not one that keeps us up at night. What we’re working on is trying to offer compelling programming in a multi-platform environment to grow our business. (Satellite radio) is competition but I don’t think it’s the principal competition for radio going forward.”
