Here comes “expanded distribution”

From Forrester Research:

Video on-demand (VOD) users and Netflix subscribers actually buy more DVDs than the average consumer. Even including VOD users who say they have decreased their DVD buys, the net effect of VOD on DVD sales is negligible. Since expanded distribution makes more money for studios with minimal cannibalization, it’s time to consider day-and-date parity for VOD and DVD movie releases.

The key section: “expanded distribution makes more money…with minimal cannibalization.”

If you apply this conclusion to radio, then it suggests the more places your content can be found in, the better off (and more profitable) you’ll be.

That goes for your station, but it also goes for satellite radio – which increasingly will be more about radio and less about “satellite.” Recently I heard a promo on public radio for AOL Broadband “featuring XM.”

Not “XM satellite radio” or “XM satellite” or “XM radio.” Just “XM.”

When you subtract the satellite (and even the radio) from satellite radio you also subtract the need to buy a newfangled radio. And that opens the market wide to existing channels already present in every home.

Are you ready?

You’d better be. Because the model’s about to change.

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