Radio Broadcasting Companies Competition

There seems to be a major competition going on between the radio broadcasting companies. Something that has shown us the last fifteen years of the internet is that any new means of media transmission does not eliminate the old ways.

E-books have been around for some time and there still are huge libraries around the world selling books. Even Amazon, one of the most popular book vendors in the US, sells physical books. Barnes & Nobles too, although they stopped selling e-books because they didn't consider it a profitable business.

So, classic radio broadcasting shall remain for a while. At the most it can evolve into digital radio. This new service, right now offered by XM and Sirius, lets the user receive tons of audio transmissions into their cars or homes for a monthly fee. In the case of XM, it uses three geostationary satellites (that means that they are traveling in orbit around the Earth at 36,000 kilometers of height), while Sirius uses three satellites in geosynchronous orbit.

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This market has become very important. XM annual revenue is, approximately, US$ 560 million and has 6 million subscribers; while Sirius has annual revenue of almost US$243 million and a subscriber base that surpasses the 4 million. What started as a small enterprise at the beginning of this century will become a multibillion industry by the end of the decade.

That doesn't mean that internet radio broadcasting will disappear either. There are different kind of uses for different kind of broadcasters and listeners, and each one of them will find advantages and disadvantages with each type of them. Specially considering free online radio broadcasting.

What about Beta and VHS? They did disappear with the coming of DVD's, didn't they? Even your classical walkman has been replaced with an army of mp3 players from different brands. That's true, but those are the physical objects in which the media is stored. Classic radio, web radio and digital radio are different because they are means to transmit the media, not to store it.

The conclusion about all of this is that online free radio broadcasting is not necessarily better than radio broadcasts. Although it offers many advantages, it's evolving, using new ways of transmission. In the end it's you, the consumer, who benefits from all these competition. But consider that internet radio broadcasting won't go away, and if you haven't tried it, you should give it a shot. You may find yourself surprised.

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Which Radio Broadcasting Companies Shall Win?

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