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Transistor kills the radio star?

A guerra do satélite (EUA) versus rádio hertziana

Mel Karmazin, presidente da Sirius: «Arbitron says that XM and Sirius together represent 4 percent of the radio listening market. It's bizarre for me to think that anybody could think that in this whole area of audio entertainment there isn't plenty of competition, and new competition coming every day. Not only do we compete with all of the radio stations that exist, we also compete with all of the other alternatives that have come along since we've gotten our license. We currently compete with free [radio].

You're listening to this boring AM and FM radio that's around. And one day, you want satellite radio, or you buy a car that has satellite radio, and after a trial period you decide you don't want to have satellite radio, and then you go back to free. So when we compete with free, we're more apt to get a subscriber at $6.99 than at $12.95. So when you're a company that has lost all of this money, and we are continuing to lose money, the ability to reduce prices -- which is what we would like to do -- doesn't happen.»

fonte: «A conversation with Mel Karmazin, CEO of Sirius Satellite Radio», Chicago Tribune,

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