With thanks to the team of Phil Myers, Craig Stull (Pragmatic Marketing) and David Meerman Scott (Web Ink Now), I'm looking for "Resonators" everywhere I go.  And no, "Resonators" are not some new cool gadget, but rather, as defined by the aforementioned authors in their soon to be released book, Tuned In, they are products or services that so perfectly solve problems for buyers that they practically sell themselves. (Full disclosure,  I've had a sneak peek at some of the concepts in this great new book, and I am presenting my take on what their book means for leaders in a webinar, entitled: Tuned In Leadership, next Friday, June 13.)

An article in the Wall Street Journal last week entitled "Slowdown Generates Static for XM, Sirius," outlined the challenges that these two (planning to be one) satellite radio companies are having in generating the much needed growth in subscriptions, given a slowing economy and especially, slowing automobile production and purchases (a key source of new subscriptions for both).  Now that the companies appear to be moving towards gaining the final OK to merge, they are running into their next hurdle, trying to solve the riddle of profitability by delivering premium content and commercial free music to customers willing to pay.  Both organizations have purportedly invested heavily in adding celebrities (e.g. Howard Stern) and major sporting events (NFL, MLB, NASCAR etc.) in an attempt to lure enough subscribers and advertisers and eventually generate profits.

According to the article in the Wall Street Journal, the combined subscriber count for both companies is in the neighborhood of 17.9 million…adding a net total of 3.7 million last year.  The article contrasts this with 21 million Ipods sold last year and the fact that 54 million people tune in to internet radio every week.  Of course, many more people tune into traditional terrestrial radio—in spite of the mundane and redundant programming and the mindless and endless commercials (this author's opinion).

I have been a subscriber to satellite radio almost since its inception…first XM and now Sirius.  I have a subscription in my car, and I have a portable unit that I use in other cars, on my boat or in a boom box when I'm working in the yard.  I drive a fair amount, and I love the constant access to CNBC, other news channels and some great talk shows.  I also appreciate the opportunity to tune in to commercial free jazz content on the ride home after a day training, teaching or working with a client.   I am almost as passionate about my satellite radio as I am about my family's growing number of Apple computers and related products, but I worry a lot about the survival chances for this incredible medium.

I reviewed the afore-mentioned article in a management class of working professionals last week, and the discussion and key points might be germane to the teams at XM/Sirius.  In this northwest suburban Chicago class of 15, I was the only subscriber, and while several had heard the names of the companies, there was little perception of  what satellite radio is all about.  Overall, the class struggled to describe why anyone would pay for radio, although most agreed that the commercial free aspect was nice.  After discussing the features and benefits (and pricing model), a few offered that they might pay for Howard Stern or some sports, but overall didn't find the concept of satellite radio solving any real problem or didn't find it exciting and unique enough to place it into the "must have" category.  Truthfully, I even let some of my passion for the offering filter through and in spite of this, the reaction to the concept of paying for radio (even premium and commercial free radio) was that it is not doing anything to solve a problem that anyone could identify, although it sounded like a nice luxury.   Clearly, satellite radio was not a Resonator with this audience.

The bottom-line for now:

As stated, I'm a big fan.  I would be sad to lose my Sirius radio.  (It's playing in my office right now as I'm typing this.)  However, I've long suspected that this medium has bigger problems than the scrutiny they are receiving over the prospect of merging.  The companies (in my opinion) have failed to do what other companies and products like Apple and the Ipod do so well…to create something that is so compelling, that solves such vexing problems or creates such an incredible experience, that large number of buyers cannot live without it.  Sirius's new Stiletto 2 combines the best of a portable, Ipod-like device with the ability to play MP3 files, but still total subscriber numbers remain low.

If I'm XM/Sirius, I would be losing more sleep over why people aren't knocking down the proverbial doors to take advantage of their quality offerings.  I hope they make it, but if my class is representative of a large part of the potential subscriber base, satellite radio either doesn't resonate, or the companies have failed to communicate the value in a way that resonates.  I hope that the management teams are Tuning In.