Stern's Move To Satellite Radio example essay topic

Satellite Radio: Will Howard Stern's move make us change the way we think about radio? Howard Stern's plan to move to satellite radio in January 2006 marks a major turning point for the radio industry. Not only has Stern brought the possibility of subscribing to satellite radio into the minds of the millions in his audience, he has also gotten more people to start thinking and talking about what really distinguishes satellite radio from traditional radio. Satellite radio was first authorized by the Federal Communication Commission (FCC) in 1997, seven years after initial applications. The delay in approval was in part the result of protests by the National Association of Broadcasters which charged that the service threatened 'traditional American values of community cohesion and local identity. ' Ironically, as these charges were being made, traditional radio was becoming nationalized through use of more national programming and industry consolidation under Clear Channel Communications and Infinity Broadcasting.

The FCC dealt with these issues by restricting satellite radio to only national programming. Essentially this rule minimizes competition with traditional radio stations that only reach local markets and get the majority of their revenue from local advertisers. Despite there currently being very few small, independent, local broadcasters to protect, this remains the most significant regulation on satellite radio. [1] Today there are two main players in the satellite radio business: Sirius and XM. Though Sirius signed Stern, XM is currently the leader in terms of subscribers. Both companies have neared bankruptcy at various points in their short history, and both have yet to make a profit.

By signing Stern for $500 million over five years, Sirius must gain at least one million subscribers to pay this commitment. [2] Clearly satellite radio has a long way to go, but with steady growth and high-profile contracts (not only with radio personalities, but with car companies who now install satellite radio equipment in all new cars), the future remains wide open. Satellite radio is subscription-based, commercial-free, and largely unregulated. This last point appears to be the main draw for Stern. Since the infamous Super Bowl incident this year, there have been calls for significantly expanding FCC indecency regulations on public broadcasts. Currently there is talk in Congress about increasing penalties for indecency from $27,500 to $500,000 per violation and holding performers personally liable.

[3] Stern is notorious for receiving indecency violations. By switching to satellite radio, Stern declared the ability to 'bring my fans my show my way. ' [4] Traditional radio retains several advantages that are unavailable to satellite radio. Traditional radio was granted free use of the airwaves in 1927 by the federal government and has the right to play music without paying royalties to performers. In exchange, the FCC has the right to restrict the content of the radio broadcasts.

Despite these content regulations that seem to be a flagrant violation of the First Amendment right to free speech, these restrictions are permitted and have steadily expanded throughout the twentieth century. Alternatively, satellite radio companies paid almost $200 million for their airwaves and pay more royalties for music, but there are no content limitations. [5] Two significant questions are introduced by Stern's move to satellite radio. Will the FCC attempt to regulate satellite radio as its audience grows? And if not, will the single advantage of free content be enough to move satellite radio to the forefront of the radio industry?

Under its current regulatory status, satellite radio will remain free of content restrictions due to its subscriber-only structure. This regulatory status can be compared to that of HBO, or even the Playboy Channel, on cable television. With such a comparison, it seems that satellite radio has a completely unlimited ability to dictate content and include material that would be deemed indecent or obscene on traditional radio. As such, Stern is not the only one making the switch. The popular radio show 'Opie and Anthony' is now broadcast on XM after the hosts were fired by Infinity for indecency. Also, Eminem will launch a new radio channel on Sirius this month.

What seems to be a safe haven for radio artists at the moment may not stay that way forever. Due to the tremendous momentum behind promoters of indecency laws, a carry-over of this movement to both cable television and satellite radio is possible. The fact that the federal government attempted to impose decency restrictions on the Internet [6], combined with the heightened FCC restrictions and enforcement as of late, indicate that such regulations may be proposed for all dimensions of media and broadcasting. At the very least, satellite radio providers may feel enough heat from regulators that they self-regulate the content of their broadcasts to eliminate extreme incidents that would bring so much attention as to over-emphasize the level of 'indecent' programming on their broadcasts and lead to a call for regulation. Alternatively, the ability to broadcast unrestricted radio shows is one of the most significant advantages of satellite radio.

[7] By offering Howard Stern, Opie & Anthony, and Eminem, among others, XM and Sirius are making it known that they are a viable alternative both for fans of these performers and for those interested in truly free-speech radio programming. The public demand for 'free' (as in beer) traditional radio versus that for 'free' (unrestricted) satellite programming will ultimately determine the success of XM and Sirius. Howard Stern is the self-proclaimed 'King of all Media' due to his success with radio, books, television, and movies, but whether his kingdom will extend to satellite radio is yet to be seen. Free speech is one of the key rights Americans have, but this right has always been in some degree of conflict with decency laws. The progressively stringent restrictions on the content of traditional radio have gotten so extreme in the past few years that, perhaps, finally they have gone too far. Listeners will soon wake up to the reality that what they want to hear in the morning has moved and in order to maintain their rights they must move too.

If this is the case and audiences truly value 'free listening,' satellite radio will mark the end of traditional radio as we know it. [1] web web sirius/ [3] see [2] [4] web web sw 1006 stern. html? partner = rss [6] Telecommunications Act of 1996 SS 507 [7] Being commercial-free and having a wider selection of programming in many areas are also deemed to be significant advantages of satellite radio.