Search »

XM Adds Commercials to Music Channels

Though XM Satellite Radio already airs commercials on its talk-show channels, beginning this May, listeners will have to endure commercials by Clear Channel Communications on certain music channels like contemporary hits station KISS and country music station Nashville, Business Week reports. The addition of the ads resolves a dispute concerning Clear Channel’s demands that XM run ads on its Clear Channel stations.

“We are committed to maintaining commercial-free all music channels we program,” said an XM spokesperson. XM has replaced its “100 percent commercial-free music” marketing slogan with “most commercial-free music channels.”

Satellite radio’s more creative approaches to engaging consumers - like text capabilities on in-car radios that display the company’s contact info - attract advertisers looking for national reach.

Also, as the competition between terrestrial and satellite radio heats up, XM and Sirius may need to rely more on commercials, forming advertising and programming mixes more comparable to those of traditional radio. “Eventually, [both satellite and terrestrial radio] are going to get more similar as they evolve,” said Gartner Research analyst Laura Behrens.