I saw it again in the radio trades today – a reference to higher awareness for HD radio in those markets with a pronounced HD2 programming and marketing effort.
But note this:
Awareness has almost nothing whatsoever to do with the potential success or lack thereof for HD radio.
Saying “well, folks need to be aware of it in order to buy it” is like saying you need to have a hand in order to buy a glove. Of course you do. But the existence of hands does not necessarily lead to the demand for gloves. In marketing this type of condition is called “necessary, but not sufficient.”
No one has ever bought anything simply because they were aware of it. They buy what they buy because they want it.
So when you see the trades report measures of awareness ask yourself these questions:
Why aren’t they reporting measures of demand?
Why aren’t they reporting measures of sales?
Maybe this little post will encourage them to do both.
Yet for some reason, that exact myth has led to the assumption that satellite radio is far more successful and far more popular than it actually is, especially when you compare the number of subscriptions to the amount of “awareness.” Every time I walk into my local Circuit City, I see the big XM display. But for some reason, I never buy.
I’m starting to believe what you say, Mark. The general public for the most part doesn’t need 100 channels of radio. Since they don’t need it for $12.95 a month, they probably also don’t need it for free. My cable TV bill is $60 a month, and I get 300 channels. But I only watch less than 10% of them. Even if I got all 300 for free, I’d still only watch about 25 channels. As you say, most people don’t want more variety.
Hence the reason why Howard Stern was worth every penny, George.
Your satellite radio analogy is a good one.
But George -
You watch 10% of the channels – but what if you couldn’t get the type of programming you wanted from broadcast TV? Would you continue to pay the premium for cable so you get the channels you love? I bet you would.
It’s not just a matter of variety – it’s a matter of variety containing what you want. Satellite fills a lot of specialized gaps for people, just as cable does for TV. Hence – for those who subscribe, it IS a good value.
–*Rob