In yet another development that could impact terrestrial radio's place in the entertainment hierarchy, Motorola is about to go live with iRadio. It's a new subscription music service designed to compete with satellite radio (they're looking at $7-10 a month), set to provide more than 400 channels of programming over cell phones. And they're already developing a blue tooth adapter so that users can connect and play their cell phones over car speakers (just like iTrip for iPods).
The New Media focus groups we conducted late last year for Arbitron indicated that cell phone entertainment is already a very big deal among 18-34 year-olds. Now we've got a company that has traditionally just manufactured hardware getting into the "content" business.
Terrestrial's unique value - simple, cheap, traditional, easy - is being challenged once again. It is not enough to be free - we have to be good.