Way back in mid-April, we did a series of blogs about satellite radio, culminating in a plea to terrestrial radio broadcasters to dump their XM and Sirius stock. The premise was that satellite is truly out to destabilize and destroy our business, so why would terrestrial broadcasters invest in these companies?
Well, it certainly wasn't due to our blog, but the reality is that since the first of the year, both XM and Sirius stock prices have plummeted. On April 13th, Sirius closed at $5.32, while XM finished up at $23.31.
And here's more data. It turns out Father's Day was not the big opportunity that the satellite companies anticipated. Inside Radio reports that there was "next-to-no-growth" from last year, despite Father's Day campaigns. This is consistent with the conclusions from our Technology Poll we conducted this past February. Our conclusion was that the "Stern exodus" was about over by the time our survey was being taken.
While terrestrial radio struggles with how it's going to pay for and develop new content, all the while fighting perceptions that it is "old media," the entire satellite model is clearly being questioned by Wall Street.
POST SCRIPT: According to results from the Top 10 markets in Arbitron's Winter '06 survey, satellite radio mentions make up about 3% of diary mentions. Thus, nearly 97% of Arbitron diaries to not show any satellite radio listening.