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ftm Radio Page - November 16, 2012

The Audience Wants More New And Less Old
Gangnam Style Audience shifts can arrive abruptly or move slowly, like the sands of time. These are not times when broadcasters can easily tolerate the gradualist approach. Pressure is on programmers – and the marketing geniuses – to move the needle. Sometimes it takes a new dance step.

 

Distribution still king with pay services
But money does all the talking

Subscription-based satellite radio for the European audience has been dismissed as a pipe dream for years. Some investors have been warm to the idea, hoping to develop a package as attractive as satellite radio operator Sirius in North America. Plans have always stalled under the weight of the dissuasive arguments starting with the cost of multiple language programming and ending with consumer resistance to pay radio.

Still, satellite radio has many friends. French regulator CSA awarded the L-band broadcasting concession to Toulouse, France-based Onde Numérique. Founder and CEO Franz Cantarano said service will begin late in 2013 on the web, offering 64 channels including the audio service of Euronews, several channels from public broadcaster Radio France, a few French commercial stations and 50 exclusive channels all available without ads. (See more on satellite radio here)

Eventually, terrestrial repeaters will augment the satellite and web distribution. Lagardère Active subsidiary Metta signed an agreement with Onde Numérique last year to contribute programming and marketing. Mr. Cantarano also said he’s looking for €10 million either from an IPO or investors.

Madrid, Spain-based Ondas Media still plans a pan-European subscription satellite radio service. The company bowed out of the contest for the French L-band concession in May. While Onde Numérique will be using SES/Astra satellites, Ondas Media wants to launch its own. It has agreements with RTL Group and Saudi Arabian media house Rotana for programming and significant investment from automotive electronics manufacturer Delphi, currently part of General Motors.

Decade-old Sirius Satellite Radio in the United States is still the model for entrepreneurs looking to bring satellite radio to Europe and attract investor’s money. And it just might become a competitor. Last month long-serving CEO Mel Karmazin was forced out by significant investor John Malone, principal of Liberty Media, who is taking over the company. Malone is considered the king of broadcast distribution and Liberty Media has significant satellite coverage in Europe. (JMH)

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