American cyclist Lance Armstrong has battled and won on many fronts in recent years. He has conquered cancer. He has bested the hilly French terrain to the tune of six Tour de France victories. He has toppled the fickle fashion accessory space with his charity's signature yellow Livestrong bracelets. Now Armstrong is out to champion the digital airwaves of satellite radio.
Lance Armstrong's Live Strong Radio debuted last night on Sirius Satellite Radio (NASDAQ:SIRI). He isn't the only star athlete on the service -- extreme sport legends like Tony Hawk and Jonny Moseley are also regulars on Sirius' Faction (Channel 28 for those knob-turning at home), waxing nostalgic while spinning tunes from an alternative rock playlist.
But that's just one of the more than 100 channels on Sirius. Two weeks ago, when I wrote about the dramatic impact that Howard Stern will have on Sirius when he arrives next year, I had a few folks write me about Stern and how his "potty mouth" will actually drive potential subscribers away. That's -- insert FCC-approved expletive here -- ludicrous. For starters, Stern was perhaps the main reason that I personally chose Sirius over XM (NASDAQ:XMSR) when deciding which satellite radio service to go with last year. Does Stern muddy up the brand by working blue? I don't think so. More than 10 million listeners don't tune in just to hear the verbal acrobatics of a randy performer on an ever-tightening leash. I have never come across a more refreshing celebrity interviewer than Stern. If you don't see it that way, that's even better.
That's because like Armstrong and Stern and Eminem (co-producer of Sirius' Shade 45 channel), all of the big names and even more of the former big names are migrating to satellite radio. And one cat will keep you away? That's like someone complaining that they don't want go to Baskin-Robbins because they don't like rocky road.
XM is all over this too, of course. With Snoop Dogg, Bob Edwards, and Opie & Anthony, XM is also taking advantage of its national stage in landing popular performers. Traditional radio listeners are about to discover that they have erected a tollbooth at the fork in the road. Just as Clear Channel's (NYSE:CCU) ratings have dropped precipitously at its radio stations where Stern was pulled, the popularity of satellite radio has skyrocketed. XM and Sirius signed up more than 1.1 million new subscribers during the last three months of 2004.
While radio station heavies like Clear Channel and Viacom (NYSE:VIA) have turned to technology to improve their product -- because you can't sell advertising if no one is listening -- they face an uphill battle in offering the wide range of specialized content at a local level that XM and Sirius deliver nationally.
Uphill battle? That's just the kind of environment in which Armstrong thrives. Too bad for the FM and AM bands that he's already streaming with the enemy.
For more on the fight between traditional and satellite radio, check out:
Longtime Fool contributor Rick Munarriz thinks it's cool that Sirius broadcasts The Motley Fool Radio Show four times over the weekend. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
