I don't mean to come off as a know it all, so let me preface this with the fact that I've worked in broadcast media from a lowly DJ to a manager since I was 18, looking at this EXTREMELY conservatively, counting the DJ's only...
They have 184 channels. Some of those are jock free. Some others have high profile hosts that will make a lot. Let's throw out those high profile folks and not even consider them. Let's say they get to a point where they have DJs at only 110 of the 184 channels. And let's say it's just one DJ all day. If they pay them $30k, by the time you add benefits the total comes to $5.5 million, annually.
And that would be the rate for inexperienced or troubled talent.
Those 110 jocks are not going to be alone in their endeavor. They will need engineers and they will need managers. A manager can't really handle more than five disperate formats at a time, and that's stretching it. Someone will also have to program the music, which is done with programs like Selector that require individual licenses for each user. That runs at about $3k a pop. BMI wants their cut. ASCAP too. Also, it would be impossible to get that many on air folks and engineers and not have them vote to join AFTRA and NABET. Then their salaries double.
And then there's the satellite system which costs more than the rest combined and requires a considerable amount of maintenance.
Keeping those finances in mind, the whole point of satellite is to compete with what people percieve crappy commercial radio. By the way, no commercials for the Howard Stern Show from now on, he's listener supported. So you have a bunch of low wage jocks competing decently with small town radio and getting beat in the urban markets.
A real capsulation of this situation hit home when Stern was on the Today show leading Katie through the Sirius studios. "Oh look, there's Tony Orlando! That's why this is great, how long has it been since you heard him? Commercial radio doesn't play him anymore! Hey, there's INXS!" A two hit wonder and a formerly hip band that turned to reality TV to get some juice.
Stern is the franchise. Industry folks say he needs a 20 percent subscribership of his current listeners just to pay for himself.
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I think the Apocalypse is happening all around us. We go on eating desserts and watching TV. I know I do. I wish we were more capable of sustained passion and sustained resistance. We should be screaming and what we do is gossip. -Lydia Millet
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