O&A / XM apology

[WMR]

As to your question, generally, however: Yes, satellite radio can tell how many radios are tuned to a particular station at a particular time and utilize that data in making programming decisions.

As far as O&A on XM are concerned, however, that is a more or less moot point b/c their success on XM was judged on unique surcharge subscriptions.

Stern, on the other hand, was expected--and was HUGELY successful--at creating new Sirius subscriptions since Sirius does not employ the a la carte surcharge business marketing model.

[Yachtzee]

Howard's take on this today was that if they had any ratings they wouldn't have been suspended and/or fired, just like Imus when his big name sponsors started jumping ship(this was my initial take on it as well).

That's a cop-out IMO, and Howard should watch his behind, because if the merger goes through and Karmazin leaves for greener pastures, it could be that same XM crew suspending O & A running the show. That's the way a lot of these mergers work. You give the power to one chief when the merger starts and the other chief gets to take over when he leaves.

If O & A were being suspended or fired over ratings, it should be stated as such. If it's an issue of what they said, then 1) Howard should sac up and stand by his principles, and 2) XM knew what they were getting into and in fact marketed O & A's channel as one in which anything could happen.

If it's a matter of losing sponsors, shows lose sponsors over controversy all the time, but then controversy generates ratings and other sponsors step in to replace them. Howard has lost a few sponsors in his day.

I think what bugs me about this is that XM has promotes itself one way and then over time reality turns out to be different. It started out as "commercial free" music, but now part-owner Clear Channel has been able to sneak commercial stations into the mix. They promote "The Virus" as an edgy station in which anything can happen and for which parental blocking is available, yet O & A get suspended over something that, honestly, I don't think was as bad as XM made it out to be. I didn't necessarily get XM for O & A, I got it for baseball, but I can see how you start to feel like, as an XM subscriber, you've been sold a bill of goods. My concern is that Karmazin and Clear Channel will start making us pay extra to hear MLB baseball after the merger goes through.

[Yachtzee]

As to your question, generally, however: Yes, satellite radio can tell how many radios are tuned to a particular station at a particular time and utilize that data in making programming decisions.

As far as O&A on XM are concerned, however, that is a more or less moot point b/c their success on XM was judged on unique surcharge subscriptions.

Stern, on the other hand, was expected--and was HUGELY successful--at creating new Sirius subscriptions since Sirius does not employ the a la carte surcharge business marketing model.

I'm not following you. You don't purchase O & A's channel as an "a la carte" channel with an additional surcharge. You just get it. I paid the basic subscription price and had "The Virus."

[WMR]

XM really is evil, IMO. Allowing Clear Channel any sort of ownership stake is just wrong.

I think that if the merger goes through you'll see satellite radio move to an a la carte pricing structure for "premium" services such as Stern, NFL, NBA, and MLB.

[WMR]

I'm not following you. You don't purchase O & A's channel as an "a la carte" channel with an additional surcharge. You just get it. I paid the basic subscription price and had "The Virus."

Oh did they change that? I was told a while back that O&A cost like an additional 2 bucks a month.

[WMR]

I think it's definitely a cop-out, but a cop-out on the part of XM management, not Stern. I think Stern is right on. If they had huge ratings in their terrestrial markets no way in hell would they have been fired, IMO.

[WMR]

But I agree with you, this is an absolutely HORRIBLE precedent to be establishing for satellite radio.

[Yachtzee]

Oh did they change that? I was told a while back that O&A cost like an additional 2 bucks a month.

I think they had a separate "adult" channel that charged an additional surcharge of $2 a month. That was not the O & A channel, but a different channel which was supposed to be more of a "Playboy"-like channel. I don't know if they still offer that channel anymore since they redid channel lineup a while back, but I've never paid a surcharge to get the "High Voltage/Virus" channel on which O & A aired.

[Yachtzee]

I think it's definitely a cop-out, but a cop-out on the part of XM management, not Stern. I think Stern is right on. If they had huge ratings in their terrestrial markets no way in hell would they have been fired, IMO.

Has there been any word as to whether they've been suspended from their Free FM gig? At this point, I thought it was only XM that had suspended them. They actually do the Free FM portion of their show in a different studio, which is then simulcast on XM. When that show ends, they walk over to the XM studios to continue the show for a few more hours. XM has stopped simulcasting the Free FM show and obviously isn't doing the XM portion of the show. However, 92.3 was still advertising the O & A show in the afternoons. If terrestrial radio ratings were the problem, why dump them on satellite and keep them on terrestrial radio? That makes about as much sense as Chewbacca being a wookiee who is from the planet Kashyyk, but choosing to live on the planet Endor with a bunch of Ewoks.

[WMR]

Okay, well, hmm, maybe they abandoned that pricing structure for O&A b/f you came aboard b/c I'm pretty sure it was like that, at least for awhile.

Now that I think about it, maybe they abandoned that once O&A went back to simulcasting on Free FM. In fact, I think I have the chronology right now: they couldn't generate enough cash for XM via the subscription method, so they removed that, but XM couldn't justify paying them a salary under their "one charge" method, so the solution was to simulcast on Free FM and XM and remove the a la carte charge for their program. That sounds right.

[WMR]

Has there been any word as to whether they've been suspended from their Free FM gig? At this point, I thought it was only XM that had suspended them. They actually do the Free FM portion of their show in a different studio, which is then simulcast on XM. When that show ends, they walk over to the XM studios to continue the show for a few more hours. XM has stopped simulcasting the Free FM show and obviously isn't doing the XM portion of the show. However, 92.3 was still advertising the O & A show in the afternoons. If terrestrial radio ratings were the problem, why dump them on satellite and keep them on terrestrial radio? That makes about as much sense as Chewbacca being a wookiee who is from the planet Kashyyk, but choosing to live on the planet Endor with a bunch of Ewoks.

I don't know, Yachtzee and that's a good question.

Have you seen their ratings for Free FM, though? They were historically bad in several markets.

[Chip R]

Thanks for the explanation.

[Yachtzee]

Okay, well, hmm, maybe they abandoned that pricing structure for O&A b/f you came aboard b/c I'm pretty sure it was like that, at least for awhile.

Now that I think about it, maybe they abandoned that once O&A went back to simulcasting on Free FM. In fact, I think I have the chronology right now: they couldn't generate enough cash for XM via the subscription method, so they removed that, but XM couldn't justify paying them a salary under their "one charge" method, so the solution was to simulcast on Free FM and XM and remove the a la carte charge for their program. That sounds right.

Nope. I signed on the XM well before O & A went with the Free FM show. They were on one channel, the pay channel was a separate channel entirely. They jumped at the Free FM gig because the Free FM folks were desperate after David Lee Roth tanked and they threw a ton of cash at O & A to cover that slot and they were able to work something out with XM. Of course some markets like Cleveland wanted O & A, but already had another show in that slot (Rover's Morning Glory), so they air O & A in the afternoons. I don't know where you're getting your info from, but it sounds like a lot of revisionist history.

The fact is, there are plenty of people who like Stern, but there are plenty of people who like O & A too. Trying to spin it as a problem where no one is listening to O & A sounds like Howard Stern being spiteful.

[WMR]

The recent ratings report says otherwise.

If anyone who has had XM from the start could chime in as to whether or not O&A were ever an extra surcharge, I'd really appreciate it, b/c I could swear I heard that from a source that I viewed as credible.

I think also a large part of this kow-towing is that XM doesn't want to risk rocking the boat for this merger b/c if the merger doesn't go through, one of these companies is likely to go bankrupt, and right now XM is beginning to lag. I'm truly just trying to analyze the situation here, not trash O&A or take "Stern's side" or anything.

[WMR]

Thanks for the explanation.

No prob!