|For satellite radio producers, it’s all about subscribers. Customer acquisition cost is the single largest expense facing these companies. As a new medium, satellite radio networks compete both with each other as well as free commercial radio. And, as a paid subscription service, customers expect higher quality information than they do from commercial radio.
The most significant growth area for satellite radio is in the car. While both leading satellite radio companies include dedicated traffic information channels, consumers are learning that their data is often no better, and in some instances worse, than commercial radio reports. In fact, there are only a few existing suppliers of aggregated public traffic data, and they supply both commercial and satellite radio with the exact same limited information.
Accurate-to-the-minute information from SpeedInfo changes the status quo and provides the quality and timeliness subscribers expect, with the low cost that producers require. SpeedInfo sensors collect traffic flow information for an entire metropolitan area continuously and this provides a more accurate evaluation criteria than identifying traffic incidents. SpeedInfo’s data service helps differentiate satellite radio content and justify the money spent on a subscription service.