20051206

Traditional Radio Squeezed Out




The radio industry could find itself at the kids' table in the media banquet hall, as new technology threatens the business, advertising executives said this week at the Reuters Media and Advertising Summit.

Satellite radio, digital music players and the Internet are slowly encroaching on traditional radio's stronghold on local entertainment and advertising. Plus, radio ads themselves are less memorable and creative, these executives said.

"Radio is at the center of a perfect storm of technological threats," said David Verklin, chief executive of media buying agency Carat Americas. "It has to reinvent itself."

He noted that Apple Computer Inc.'s iPod and other music players like it have given listeners the ability to listen to what they want when they want.

Satellite radio services such as XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. are offering more channels, many commercial free, for a monthly subscription.

Finally, the third threat he saw was over-commercialization. "To some listeners, radio is a little bit of content in a sea of ads."

I can definitely vouch for the sea of ads. There are only a few radio stations playing contnet I'm listening to, and they have more ads than song sometimes. I definitely listen to a lot more mp3's these days.

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