Clear Channel's New Plan For Satellite Radio: Make It Worse
from the bring-them-down-to-your-level dept
Clear Channel and other terrestrial radio broadcasters have been complaining about satellite radio for some time now, and trying all sorts of measures to compete -- anything but actually improving their product. Clear Channel's got a new plan to fight XM, by forcing it to play commercials on the four channels it programs for the satellite provider (a story originally broken a few days ago by Orbitcast). XM eliminated ads from its music channels in early 2004, but Clear Channel objected, and an arbitration panel ruled that it could resume running ads on the channels it supplied to XM. What's slightly curious is that the move comes as Clear Channel is reducing the amount of ads it plays on its own broadcast stations. The revenues the ads generate from running on 4 of XM's 160 channels, which reach just 6 million or so people at this point, can't be that great -- so it looks like once again, Clear Channel and its terrestrial cronies are doing everything they can -- except actually improving their own product and business models -- to fight off satellite radio.