Unexpected findings about Satellite Radio
While Sirius is proudly spinning numbers of subscribers and XM join them in boasting the expected growth and uptake of Satellite Radio, American Media Services has found that the ‘Howard Stern Factor’ is Overrated. In fact, their findings will be fairly shocking to the Satellite Radio industry.
Despite recent media attention
about shock jock Howard Stern’s widely publicized transfer to satellite radio,
a nationwide survey indicates a large majority of Americans (86 percent) are
not likely to consider the purchase of satellite radio in the future because
of his move.
Broken down further, 69 percent of those responding said they were “not at
all likely” to consider purchasing satellite, and 17 percent said they were
“not very likely” to after Stern’s move. The respondents’ negative reaction
to the Stern question was even stronger than another question that asked their
likelihood of paying for satellite service.
In that question, respondents were first told that satellite radio usage
requires the purchase of equipment and a monthly fee, then were asked if they
were likely to purchase satellite radio over the next year. Eighty-two
percent said such a purchase was unlikely, with 64 percent saying they were
“not at all likely,” and 18 percent responding “not very likely.” Eighty-
eight percent of those surveyed responded that they are not subscribers of
satellite radio.
The survey also revealed that almost two-thirds of those surveyed — 64 percent — responded that they are listening to radio more, or about the same amount of time, as they were five years ago.
The AMS survey was a random digital dial telephone survey of 1,008 American adults that was conducted by Roper OmniTel, the weekly omnibus survey of GfK NOP of Princeton, N.J. The survey was conducted over the weekends of January 13-15, 2006, and January 20-22, 2006. A random sample of this size reflects American opinion within plus or minus three percentage points.
Additional Stern-related findings indicated that only 12 percent of respondents were likely to consider purchasing satellite radio to listen to Stern. Of those respondents, most fell into the 18-34 age group, and men outnumbered women two to one. Outside of that age group, the respondents’ likelihood of purchasing satellite because of Stern fell off sharply.
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