David Eduardo wrote:
"D Peter Maus" wrote in message
news
David Eduardo wrote:
What is being missed is tha tthe model, at launch, of XM was to have 6
minutes of commercials on all channels. After about 28 months, they
changed this and the music channels were made commercial free.
I remember when they made the change. I can't believe that when the
subscriber base is significant enough, and the measurements have been
refined, that there won't be a reversal of the policy, though.
Personally, I do not think so. they severed all ties with the content
providers they had who were to be compensated with sales rights on a
percentage of inventory. I was programming 5 of the XM channels, Aguila,
Caricia, Caliente, Tejano and Vibra from launch to the January when they
made the change, and we had over 25 people working on the 5 channels. I
think they poisoned the well when they did that.
Interesting point. I can't help but think, though, especially with
Karmazin across the street, and his multiple revenue stream mentality,
that when the base gets large enough to be attractive, that advertising
based revenue streams won't appear. It would be nice if it didn't. But I
can't see the corner offices letting that happen. It just makes no
business sense to leave that kind of money on the table. Especially,
with Wall Street looking over everyone's shoulder.