Friday, March 10, 2006

XM to carry ads on some channels

XM satellite radio announced it will carry ads on four channels programmed by Clear Channel (which owns a piece of XM). The move may be necessary because of the company's heavy losses (competitor Sirius is bleeding even more heavily), but I wonder how much the move might hurt the image of satellite radio as an ad-free zone (although the vast majority of channels will still have no ads).

At one time, one of the advantages of movie theatres over TV was the lack of ads. The movie business threw away that edge, but it took decades before they did so. Satellite radio seems to be moving much more quickly in the same direction.

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