OPINION & EDITORIAL
Tuned out: Merger spells end of radio
Looking for a print version?
Simply choose ‘Print’ on your computer and a printer-friendly document will be generated.
Also by Sean Kittridge:
- Tragedy can't be solved with ribbons (February 20, 2008)
- Hybrid SUVs drive U.S. into hypocrisy (February 6, 2008)
- Drug incarceration rates real buzz kill (December 11, 2007)
- Stressed out? Current testing schedule unnecessary burden (November 28, 2007)
- Lady Justice turns blind eye (October 30, 2007)
Related Stories:
- RIAA casts off logic amid sinking sales (March 27, 2007)
- No room for racism (November 23, 2004)
- WSUM should seek independence (February 21, 2002)
- Good morning, Milwaukee (November 17, 2004)
- Endorsement: County Board District 5 (April 1, 2002)
by Sean Kittridge
Wednesday, March 26, 2008
The Buggles were wrong. In 1981, the fortunately short-fused British band hit the world’s eyes and ears with “Video Killed the Radio Star,” the first music video played on what Mark Knopfler called “the MTV.” We are still recovering.
Although their warning felt prophetic — a good synth line will do that — the radio star thrived in the new environment. Just look at what “Thriller” did for Vincent Price’s career. But MTV no longer seems to stand for “music television,” as videos now take a back seat to reality shows about Diddy’s business ventures and wealthy kids with relationship problems. Meanwhile, internal and external pressures placed upon the radio industry are crushing the future for a seemingly archaic medium.
The Department of Justice announced Monday that a possible merger between XM and Sirius satellite radio, two major players in the communications business, posed no threat to the competitiveness of the industry. In doing so, the DOJ delivered a haymaker blow to an already anemic product. At a moment when cars can now be fitted with iPod attachments and the Internet can stream popular programming, the radio industry should not be working to divide its audience between free, local radio and paid satellite broadcasts.
While Norman Rockwell paintings are filled with images of families gathering around the radio for entertainment, few people today rely on the AM/FM dial for their news or laughs. The radio has become the medium of convenience, more comfortable than silence but less fulfilling than the television or Internet. But satellite radio is thought to be to radio what cable is to basic television. By offering commercial-free programs and American heroes like Howard Stern, they hoped to turn the radio industry into a more competitive market. It’s the free market at work, but increased competition doesn’t provide any spark if you’re selling an inferior product — and in the eyes of many, the radio is just that.
The negative effects of the satellite radio push are most obvious in the Don Imus story. Mr. Imus is your typical blowhard, big talking, hide-behind-the-mic shock jock. Last year, when his clouded ego allowed him to make unfortunate statements regarding the Rutgers women’s basketball team, most people assumed it was the final ride for his roller-coaster career. But Mr. Imus, a basic radio version of Sirius’ Howard Stern, was too big a market draw to simply be left without a job, and although CBS radio fired him, ABC was quick to pick up the pieces and glue them back into a wildly successful, bigoted mess. This idea of competition has forced the radio industry to disregard ethics and standards, which, Rush Limbaugh aside, had long been the appeal of a medium featuring NPR, Casey Kasem and the remarkably bland Garrison Keillor.
In the ruling, the DOJ says companies such as Apple provide sufficient competition to deem the merger no major threat. But Apple is the exact reason the radio industry cannot afford a merger between XM and Sirius. As separate entities, they beat up on each other for the same piece of the market, but as a conglomerate, they possess a virtual monopoly. Apple already dismantled the idea of the album, offering single songs for download over iTunes, and the iPod appears to be the greatest advancement in music technology since Marconi stuck an antenna in a box.
Of course Apple represents competition; they’re busy infiltrating every market possible. Between phones, computers and music players, it’s not hard to envision a day when we’re all eating Apples.
Fortunately, there are still several hurdles left before the merger between the two satellite companies can be finalized. The FCC, sworn protectors of Janet Jackson’s chest, need to approve the move, and it would seem strange for an organization which oversees communication networks to support a such a merger. However, no matter what the outcome, the idea of two media giants attempting to help their bottom line by running their industry into the ground is a bit disheartening.
It’s not TV but radio that will kill the radio star.
Sean Kittridge (kittridge@wisc.edu) is a sophomore majoring in journalism.
Mud Shark (March 26, 2008 @ 6:21am):
Ummm....excuse me son, but have you ever in your life heard Don Imus' show?
Saying that he is a '...a basic radio version of Sirius Howard Stern...' is like saying Friends is a broadcast television version of The Sopranos. Imus is about as shocking and edgy as a bowl of vanilla pudding (which I might add, is about all he can likely digest at his age).
Also, other than what you have seen on TV, or heard from other sources, (rather than doing the research yourself) how is Imus "...too big a market draw..."? Have you EVER seen a New York ratings book showing you Imus' 1.8 ratings share?
I'm not even going to get into your statement that Imus is now 'wildly successful".
If that is the level of fact checking that they teach you at school, then I can clearly blame Wisconsin for the media tag line "...________(fill in name of the news org) is reporting that..."
As far as the rest of your article, cassette tapes...CD's...MTV...FCC...Ipod...these are all things that would "destroy radio" in the past, and yet it has always survived. If you had offered some new compelling reason that Satellite Radio would be the final nail in the coffin, I would be willing to overlook the rest of the junk. Alas....no
Party too hard at Spring Break?
Anonymous (March 26, 2008 @ 7:01am):
it's not just their bottom line they are protecting. both of them have been losing money for years - i actually don't believe that either of them have ever made money. if you are really arguing for free market then understand this - the free market can't support two seperate satellite radio companies so they are merging...
Anonymous (March 26, 2008 @ 9:28am):
Sat radio represents just 5% of the market. If terrestrial radio can't compete...then so be it. It's called capitalism my friend. Get used to it...in a couple of years when you leave the fantasy world of academia you'll learn all about it.
Dave Nonyabusiness (March 26, 2008 @ 11:20am):
I must disagree with your perspective on this matter. At the risk of seeming cruel I think your assessment of the situation is shallow in content, lacking fact, incorrectly places blame, and is generally not well thought out. Stop acting like a sophomore and do your research. The first point of your argument that I disagree with is that XM & Sirius are two major players in the communications business. First off both companies broadcast over most of North America, Sirius had at last count 8,321,785 subscribers, XM has around 8,600,000. That tells me that combined they would have far less than 20 million listeners in the US & Canada. I think terrestrial radio reaches that many in just the major U.S. cities alone. Hardly a threat if you ask me. The U.S. population is roughly 303,713,504 so do the math for yourself.
When you say the radio industry should not be working to divide its audience between free, local radio and paid satellite broadcasts I have to ask why not? Television has been doing this for decades and people choose which medium to receive it through. I think you are focusing too much on the medium and not the product. People will always choose free if it provides them with what they want. If there is a real problem I think that terrestrial radio is failing to live up to its potential. This leads us to another point you make that increased competition doesnt provide any spark if youre selling an inferior product. That is a ridicules argument if competition doesnt do it then you are dead as a viable business. Its not that terrestrial radio is inferior; its just not providing what the listeners want. Digital radio (not satellite) is very high quality but high quality commercials wont draw loyal listeners.
You go on to talk about the negative effects of the Satellite radio push and use extreme examples like Imus. There are far more people like him on Terrestrial radio than on XM or Sirius so I fail to understand this example. Also you fail to explore the positive aspects of Satellite radio. With the merger Sirius will probably offer programming bundles that allow subscribers to pick & choose their programming. This benefits the consumer by lowering subscription fees and providing only the stations that you want. I sure wish I had this option with TV but no one asks that question. Also Satellite radio offers coast to coast coverage and reception in rural areas where traditional radio stations dont cover. Sirius as a company is innovative, offering more than just radio stations. They offer limited rear seat television broadcasts geared towards children and are coming out with Satellite navigation with great features. I am 100 percent sure that competition improves the product we call entertainment. You go on to cast blame at Apple saying that they are the exact reason the radio industry cannot afford a merger. Again you are completely wrong because it is the radio broadcasters that have for years served us the same slop and we always said thank you sir may I have some more because we didnt have options. Is this what you want? They have caused the predicament that they are in by failing to have any visionary leadership.
Your last sentence sums up your flawed assessment when you state the idea of two media giants attempting to help their bottom line by running the industry into the ground is a bit disheartening. This is so inaccurate. Where should I start? Well first off I would not consider two companies that have limited numbers of subscribers and have never made a profit Industry giants. Secondly you fail to realize that their industry is entertainment and not just radio. Dont be so short sighted. In coming years when WiMAX finally takes off people will be streaming music & movies to handsets and if Sirius fails to execute like terrestrial radio has they will be in the same predicament. Are you trying to suggest that we should stop all innovation in the entertainment industry because the traditional broadcasters fail to keep up with the times? The world is changing around us so either embrace the new forms of media or sit next to you radio and listen to NPR & Casey Kasem. But dont blame the wrong people for things you dont understand. If you wrote this editorial for a class you are taking then you should have considered not waiting until the night before it is due to start it.
Sheep says baaaah!
Anonymous (March 26, 2008 @ 12:28pm):
Right. Radio killed the radio star? What is killing terrestrial radio is the crappy programming.
Anonymous (March 26, 2008 @ 2:52pm):
"However, no matter what the outcome, the idea of two media giants attempting to help their bottom line by running their industry into the ground is a bit disheartening."
What kind of double-speak is this? How is running one's industry into the ground going to help their bottom line? This is complete nonsense. They are merging because they think it will help them make more money, which is the measure of how well their industry is doing.
"In the ruling, the DOJ says companies such as Apple provide sufficient competition to deem the merger no major threat."
Threat? Companies make money by attracting customers who voluntarily buy their products. This is called trade. Trade is not a threat!
"But Apple is the exact reason the radio industry cannot afford a merger between XM and Sirius."
It's not up to you or the FTC to decide how the radio industry should conduct their business. If you don't like the merger, convince your friends to support their services or start your own radio station.
Anonymous (March 26, 2008 @ 6:14pm):
Local Radio will ALWAYS be around. Period.
And another comment... Your article seems like one hell of a troll attempt.
Add a comment
We welcome your thoughts, but please keep your feedback thoughtful, on-topic and respectful. Offensive language, personal attacks, or irrelevant comments may be deleted.
Login...
Not registered? Sign up now.
It's quick, free, and the email address you provide will not be sold or solicited.
