|
Boomers, Meet Satellite Radio
By Marcy Barack and Donna J. Childress, March-April 2003
The familiar medium of radio has a new twist.
|
Satellite radio is another advance in music technology that may strike a chord with older generations.
Radio's version of cable TV, satellite radio offers dedicated streams of Americana, folk music, reggae, jazz, decade-specific channels, b-sides, and more. "The advent of these radio stations that have 100 shows that are specialized really does point to the diversification" of the market, says Courtney Proffitt, executive director of the Association for Independent Music.
It also allows consumers to sample tunes old and new. Because the digital signal identifies who is playing and the track name, satellite radio raises consumers' awareness of new music and may lead to further market fragmentation, says Matt Kleinschmit, senior research manager for market research firm Ipsos-Reid.
"The primary target of satellite radio so far is the baby boomers," says Kleinschmit. The medium is aimed at people who are affluent and spend a lot of time in their cars, he says. Setup costs start at $200, and monthly subscription fees are required. Satellite radio may also be more popular with boomers because radio is a familiar, comfortable medium and does not require learning a new process, as file sharing does, says Kleinschmit.
|
