XM Satellite Radio (NASDAQ:XMSR) has pulled another big-time star into its orbit. Bob Dylan will turn deejay for the satellite radio provider, interspersing music that he picks with commentary and interviews, in an hourlong weekly show launching in March 2006. (If XM's most recent commercial is any indication, maybe he can help Snoop Dogg get his bling back from David Bowie.)
For decades, Dylan has had a reputation for having a very private personality, but lately he's been getting out quite a bit more. A few years back he was all about Limited's (NYSE:LTD) Victoria's Secret, crooning for the company's commercials for lacy unmentionables. Last summer, Starbucks (NASDAQ:SBUX) nabbed an exclusive deal to sell a Dylan CD called Bob Dylan: Live at the Gaslight 1962.
However, Dylan's newfound gregariousness isn't really the point here. XM's deal to get him on the lineup is yet another example of how far this Motley Fool Rule Breakers recommendation and its rival Sirius (NASDAQ:SIRI) will go for listeners. The heat is definitely on, with buzz mounting about Howard Stern's imminent move to Sirius, and what that will mean for the rivalry between the two companies. (Here's an article about one Fool who chose Sirius for Stern.)
Of course, it also shows the troubles facing radio lately -- I recently wrote about the pretty dreary-sounding replacements that Viacom's (NYSE:VIA) Infinity Broadcasting chose for Stern. Given some of the high-profile personalities who have recently found their way to satellite services, one wonders whether the stars are making it clear which sort of radio they'd rather promote. Viva la revolution.
In the long run, this kind of competition clearly gives investors something to be concerned about: how far each company will go, and how much it will spend, to sign big names. It's a big reason why so many investors are leery of putting their dollars into satellite radio, despite its undeniable status as a disruptive technology and promising consumer product. Right now, satellite radio's innovation curve definitely includes a going-for-the-jugular focus to woo subscribers.
The satrad listening public is the biggest winner at this point in the game, given the talent that's pooling at both satellite radio providers. Will investors win as well? I guess we'll find out a little further down the highway.
Tune in to further Foolishness:
- You guessed it -- the music biz grumbled again recently.
- Traditional radio concerns hope digital radio can save the day.
- Can Clear Channel get hipper?
XM Satellite Radio is a Motley Fool Rule Breakers recommendation. To find out what other stocks the Rule Breakers team has identified as high-growth first movers in emerging industries, clickhere for a 30-day free trial.
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Alyce Lomax owns shares of Starbucks but of none of the other companies mentioned. The Motley Fool has a disclosure policy.
