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Publication: European Stars and Stripes Sunday, November 27, 1994

You are currently viewing page 13 of: European Stars and Stripes Sunday, November 27, 1994

   European Stars and Stripes (Newspaper) - November 27, 1994, Darmstadt, Hesse                                Sunday november 27, 1994 Money matters the stars and stripes Page 13 satellites May signal by Peter Passell new York times imagine dozens of channels of cd Quality music of every conceivable genre plus dozens More offering talking books and foreign language services All at the touch of a car radio Button. Imagine that the Crystal Clear signal would be Avail Able anywhere in North America broadcast direct froma satellite. If cd radio inc. Or any of the three other Compa Nies designing the systems have their Way such signals May Start beaming earthward As Early As 1998. With the Federal communications commission poised to set aside frequencies in december for what is formally known As satellite digital audio radio service the immediate question is whether Earth bound competitors will have the political muscle to slow its commercialization. The powerful National association of broadcasters has lobbied the acc to delay the Kickoff of satellite radio until conventional radio broadcasters have a Chance to introduce digital technology to their own sys tems.  /., "  " Long term though the More important question May be whether the satellite pioneers will have the marketing skill and financial staying Power to change the face of radio the Way Cable has changed television. Despite periodic predictions of its imminent demise Ordinary advertising supported radio has weathered decades of new competitors from television to compact discs. ,./,.", a a  r indeed in the 1990s, radio has thrived with revenues up substantially and station licenses trading near re Cord highs. But the medium has limitations that Davi Margolese the chief executive of cd radio said he s x Patel late broadcasters can stuff dozens of channels of cd Quality interference resistant programming into a narrow band of frequencies. A s. V  x v n v thinks offer a opening for those focusing on the Market Foron the Road entertainment. An Ordinary analog radio signal is never As clean As the source of the music and is vulnerable to interference from weather geography and tall buildings but by starting from scratch with digital technology satellite broadcasters can stuff dozens of channels of cd Quality interference resistant programming into a narrow band of frequencies. Even if earthbound broadcasters eventually convert thousands of transmitters for simulcasting in digital signals from transmission towers will always have limited Range. A. Vav. By contrast Margolese noted broadcasts from satellites can provide seamless coverage across the continent. What s More the signal can easily be scrambled offering the option of commercial free radio supported by subscription. And the Antenna required to pick up the signal is just a disk 1% inches in diameter an easy addition to a car truck or boat in 1990, cd radio a Startup company lacking deep pocket backers asked the acc for permission to offer satellite based service. Since then three other Compa Nies have joined the bandwagon bilingual Bergen s sprint by Solange de Santi Swall Street journal Candice Bergen s television and Campaign for sprint Canada is running into some crossed signals in Quebec. Response to the commercials for discount Long Dis Tance service which feature a 1-800 number to order is lagging that in English speaking Canada according to executives at sprint Canada and Grey advertising in Toronto who Are in the process of figuring out Why. We re having a closer look at the Quebec Market says Malcolm Mackenzie an account executive at Grey. Vav to. The . S sprint corp., which is based in Kansas City mo., owns 25 percent of sprint Canada s Parent Call net enterprises inc. Last july Bergen who Speaks French filmed two sets of ads for sprint s the most worldwide service called la Maxi phone in French so what s the problem although Many Quebec residents can get the . Networks they tend to watch made in Quebec shows and therefore weren t As exposed to sprint s . Campaign says sprint Canada vice president David american Mobile radio which is largely owned by at to and Hughes communications. Digital satellite broadcasting which is financed by a diverse group of investors including the Long distance phone company Clear Tel. Primo sphere which is backed by two Rock music  of terrestrial radio licenses make no secret of their wish to hold satellite broadcasting at Bay. The Industry was forced to absorb 2,000 new stations that were licensed in the 1980s and is now wrestling with the Prospect of gearing up for digital broadcasting. At the very least the association said the pc should delay Standard setting for satellites until its members can prepare for the digital age. Why give the satellites a leg up asked Doug wills a spokesman for the  promoters Are Quick to answer. For one thing they would not be the first to offer a Superior medium to compete with analog radio. Many Cable television systems offer commercial free digital Quality music channels for a surcharge on their monthly Cable Bills. And the two digital broadcast satellite television services that have just opened for business Are throwing in 30 channels of digital music As part of the Basic subscription. ,. More to the Point perhaps satellite based radio i unlikely to be a serious competitor for terrestrial radio in the foreseeable future. A study commissioned by cd radio Points out that roughly 80 percent of the radio broadcasters revenues now come from local advertisers advertising that cannot be captured by a purely National medium like satellite radio. Nor will satellites Beable to offer the local news weather and traffic that Are the Backbone of radio s Appeal Over tapes and compact discs. " / a also Bergen s popular show Murphy Brown in t a hit in Quebec where it s dubbed into French. The voice Quebec viewers associate with Candice Ber Genison t that of Candice Bergen. When they hear the actress s natural voice it seems unreal. For us it was an englishwoman speaking  s not a Star at All in Quebec says Luc Merineau a senior copywriter at la Groupe Bop a Montreal a Agency Urey advertising is based in Toronto but says its Montreal office wrote the copy for the French commercials. " by by by i y a. Overall sprint Canada says it has reached its goal of200,000 new customers this year. But for next year according to Hagan the company is preparing new Crea Tive execution in English and French. Mutual new York a weekly investing com Putes giving to High Low and last Nav forthe week wry me net change from the previous week s Tost Nav. All quotations supplied by the National association of securities dealers inc.,reflect net asset values at which securities could have been sold. High Low list Chagal Mutual  Man Bop Sec Ostkamp. 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