The Opie and Anthony Puzzle

Here’s a lesson on how to pay your bills but squash your potential all in one fell swoop:

So XM Satellite Radio is, to my surprise, charging a PREMIUM if listeners want to hear Opie & Anthony.

As John Bradley points out in a reply to my previous post, this may be financially responsible thinking but it’s certainly far from a good idea.

XM refuses to acknowledge the reality that superstar talent is the only reason HUGE numbers of people will sign up for the service at ANY cost. Charging EXTRA for this is like selling shoes and charging extra for laces.

So now they charge an EXTRA $2 per month – on top of the $10 per month they’re already charging. Meanwhile, for anyone who doesn’t know O&A, they never ever will since they now have to pay a premium for something they’ve never heard of.

This is a scheme to introduce prior O&A fans to XM. Nothing more. And that’s foolish, since it creates no leverage among XM’s EXISTING base of members – most of whom don’t know O&A. Nor does it create an easy path for non-fans to become accustomed to these guys since XM is essentially expecting non-fans to pony up extra cash without ever having sampled the show.

Financially prudent. Strategically flawed.

XM should have considered this an INVESTMENT, not an expense.

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