The Jacobs Media survey on satellite radio that was released this month included the observation that satellite radio’s “dirty little secret” is that subscription rates have been supported through free subscriptions and packaged offerings, so that subscribers who received the service as a gift or as part of a larger purchase seem less inclined to renew the service when it is due.
Is this really that surprising? Naturally, the NAB and several radio trades jumped on this item like it was a revolutionary concept. Think about it: what makes something have a value to us? If we pay our own money for something, we will likely take better care of it or be more inclined to use it than if we get something as a gift. Why is this any different? I am not surprised to hear this dirty little secret.
What if the tables were turned? What if a survey asked people who were given an HD Radio receiver if they use the HR Radio receiver more than another media device? I know it’s not exactly the same argument, but I think you see my point. I’m sure the results of my survey would show that HD Radio has a dirty little secret too. I also doubt that those touting the sat radio secret would tout the HD Radio secret in the same way.