From a new Forrester report:
Satellite radio subscribers love its ad-free, high-variety programming. One in six households already plans to get satellite radio, and one in three households could be convinced to subscribe. Prospective customers’ wish list is dominated by lower service fees and cheaper devices — not exclusive content. Of those who plan to buy, one in five will opt for Sirius Satellite Radio, but two-thirds are still undecided.
The first statistic is most interesting: One in six households already plans to get satellite radio. The “could be convinced” stat is wishful thinking at this stage.
The note that consumers want lower service fees and cheaper devices should surprise no one since this is ALWAYS the excuse consumers use for not buying something they don’t really want. Obviously – lower prices mean more subscribers. There’s no news there.
The analyst’s note that “exclusive content” is not the driver is exactly wrong. It is impossible for a survey to convey what “exclusive content” would be and the generic term “exclusive content” is completely meaningless. Yet, as the Howard Stern move proves, exclusive content is exactly the magnet needed to draw listeners to a service WORTH paying for – even at prices that aren’t “cheaper”.
Now, all “exclusive” content is not created equal.
And very little of it is called Howard Stern.
One big reason why two-thirds of consumers are undecided is that the satellite services have – until recently – emphasized their similarities rather than their differences. That, my friends, is changing.
In any event, I’m impressed by Forrester’s “one in six” statistic but befuddled by their utterly wrong read of the data otherwise.