XM to Put Ads on Some Music Channels
By Ed Oswald | Published March 8, 2006, 3:04 PM
Thanks to a newly negotiated settlement, XM Satellite Radio will no longer be able to claim its music channels are completely commercial free. Four of its channels, programmed by media giant Clear Channel Communications, will now include advertising as part of the deal.
Commercials are not completely foreign to XM -- it does run ads during breaks on its talk radio stations, as does Sirius. However, the addition of commercials to music stations is an anathema to a policy instituted by the company two years ago.
XM and Clear Channel first butted heads over the commercial-free requirement in the beginning of 2004, when the satellite radio service decided to remove all ads from its music programming. Clear Channel disagreed, forcing the two sides to enter arbitration on allowing the media conglomerate to add its own commercials.
Arbitrators ruled in favor of Clear Channel, opening the door for advertising. The commercials would appear on a current hits channel, a past hits pop channel, an easy listening and a country music station.
XM did not comment directly on the development, only saying it was pleased with the agreement and Clear Channel's programming.
Commercial-free music has become a stalwart feature of satellite radio, so XM's loss at the bargaining table could be a blow to the company. However, the advertising does not start immediately, meaning the network has time to add new channels to offset those run by Clear Channel.
XM plans to launch four new channels in the near future, keeping its position as the commercial free music leader. XM would have 69 stations without advertising, compared to 68 from competitor Sirius.
XM currently has some six million subscribers, and has seen rapid growth over the past year. Many financial analysts say this growing base could prove lucrative if the company would relax its advertising policies in the future.
About the article, at the end, where they list channel numbers.
Sirius is adding several new channels in a couple weeks, too. I wonder if they factored that in. They're mostly talk and news, and they're adding a Playboy channel for free (XM charges extra for theirs).
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|Sounds like a real value to me! Sign me up quick before i drink my coffee and my brain turns on.
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|I've been a Sirius Subscriber for almost 18 months, I just got XM last month (their baseball coverage is really nice) in my opinion...
Sirius blows XM's music selection away, i much prefer the selection of music on Sirius, The channels are better organized, and the music itself is better.
XM definately has the advantage in equipment, Sirius has no true portable player, they have several that let you record content and play it back later, but none that you can go walking around with and listen to live music, The XM MyFi works very well when out and about.
Except to listen to some of last years World Series, i have not turned on my FM radio in a year and a half, I'd rather have them stay Commercial free, but thats not a dealkiller for me, i think Satellite is well worth the $24/month that i pay for both services.
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|Excellent post and good information. I was considering satellite radio as soon as I figure out how to get an iPod wired into my car (I think there is an iBus interface for it) so I have almost limitless tunes...this gives me an objective opinion with which to shop.
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|listened to my MP3 player on the way in this morning...over the car stereo speakers.
I found something similar here that should work just fine for iPODs:
http://mp3playeraccessor...-FM-Transmitters_4.html (~$38 USD)
Plug it into your cigarette adapter, plug it into your iPOD, and turn on your radio. :)
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|Cool, that looks very feasible.
Unfortunately, I am a glutton for punishment so I happened onto this:
http://www.mp3car.com/vb...p;highlight=project+e46
I have the same car so it should be simple right? I used to be a nuclear engineer but tearing apart my car scares me more than a reactor room fire (ok, well not really but it does scare me). It does look cool though.
with the PC, it will do: Navigation, movies, mp3, calendar (ok not while i am driving), wi-fi, satellite and it can enable the steering wheel buttons (ibus) for volume/track control.
On the other hand, I could trash my car and it may not work...
Nevermind...back to the FM transmitter idea.
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|I use FM Transmitters for my XM, my Sirius and my portable MP3 CD player in my car, its a very good alternative to having a hardwired unit, just make sure you buy a transmitter with a wide selection of frequencies, both my XM and Sirus can select any frequency to transmit at, but i bought a cheap one for my mp3 cd player, and it can only broadcast on 89.1, 89.3, 89.5 and 89.7, if a very strong local station broadcasts on any of those, i have problems with my mp3 cd player. but if you get one that has a broad range, you can always find a free frequency (the fm transmitters on both the sirius and xm are nice and powerful, i can have my Satellite radio turned on in the car and still listen on any FM radio in my apartment, this was great during the NFL Playoffs when we lost power and i coulnt watch the games, i just started the car, turned on the Satellite radio and listened in the house on my walkman)
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|Yeah, that looks a bit involved. I've got no problems rigging up subwoofers and head-units, but when we get into basically destrying the interior of the vehicle, I get a bit wary.
Probably for good reason.
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|true dat.
My first one was the same wya, only in the 80s. It sucked because we have about 3 stations in that range around her. Worked great in the garage, though.. *cough* *cough*
I wonder if all that carbon monoxide had any *cough* adverse affects on me. *cough*
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|FM transmitters suck, every driven under the lights in a local highway? How about drive by a 7-11 one night, and it interferes with the signal.
Not to mention the more populated a city becomes, its tough to find a completely clean radio station, that isn't eventually used.. 88.1, .3, .5, .7, 107.1, etc.. I have been up and down the dial, haven't found a good signal yet.
I have a Kenwood head unit, they make add-ons for their head units. My Sirius has a pass-thru, for external devices like iPods', that's the way to go. P
Depending on your cars configuration, your attenae could be in the back or the front of the car, even the cars electronics will interfere with the radio reception, I have tried multiple devices, on multiple stations.. interfacing your head unit isn't that difficult IF you get the right brand.. Kenwood does the job for me.
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|Just get a Honda Element..they are much bigger on the inside and they have a plug right next to the cigarrette lighter that hooks right into the stereo system with a little shelf for MP3 players (which the upgraded model comes with a subwoofer on the floor of the center console...sweet).
Now on the story: first of all, there is a reason people pay for commercial-free radio. Secondly, how is it that an arbitrator could side with ClearChannel? It is XM's business model not to have commercials so if ClearChannel does not want to participate then tough. The business world can be so bizarre...
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|Huh... Minneapolis muist be a hick town. Never had a problem with my transmitter. Only time I've had to change frequencies is when I go out of town.
I admit it's not a perfect solution, but for those without a line-in jack on their head-unit, it's very passable.
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|there is something better known as WORLDSPACE
and it is ad free too
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|I have XM for almost 2 years also. I've had Sirrius for 4 months also before I went back to XM. Now, I'm considering going back to regular radio. Not because of this new 4 channels deal. It's because the XM DJ's are just playing crap on radio now. XM radio was way better back then when they had DJ's who have taste in music.
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|not to mention, the DJ's like the sound of their own voice..that's what bothers me. I would rather listen to adds, then some dimwit that is abusing the english language, or talking about his b****es and ho's all the time.. Enough allready, play the music and shut up.
If I wanted talk radio, I would listen to CNN.
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|I paid for 2 years right before XM raised above $10/month. I wasn't planning on renewing at anything over $10 before this--and now I won't even consider it.
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|IF XM becomes FM then I will cancel. I just called them and told them this. They recored my call to forward to the correct department, so we will see what happens. The first ad I hear on one of my music cannels I will so cancel and start listening to CD/MP3's.
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|It was only a matter of time. You'll start to see more and more commercials on other channels. No big deal. You pay for cable, YET you still have to watch those pesky commericals. You'll get use to it.
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|I don't have XM or Sirius however if I paid for Satellite radio it better not have ads.
How dumb.
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|Ouch, just lost another customer, XM. Good luck with that, XM, see you in Chapter 11!
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|Sirius isn't commercial free either. Its rediculous to assume ALL channels are AD-Free. Some channels, like comdedy, actually needs a little break every now and then..
No big deal.
Music channels however, ARE commercial free, but the problem these days, is the damn DJ's just won't shut the hell up.
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|I might agree with that, except that--give an inch, they'll take a mile. This will begin small but end up doing the same thing 'FM' radio did. Fine if it were free, but I'm not paying for it.
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|Looks like I'm going all-internet radio, all the time.
Thank God my Car Stereo can play MP3's.
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|MP3's rule.. again, Kenwood makes a music keg (hold's many MP3), although the iPod is better.. because you can change music at the head unit OR the iPod..
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|MP3s are allright. FLAC or APE is better, but try playing those on an iPOD.
*sigh*
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|quote:
March 07, 2006
By Sven Philipp
Sirius Satellite Radio may soon be able to claim that it is the only satcaster with 100% commercial-free music channels.
An arbitration panel has ruled that XM Satellite Radio will have to introduce advertising on some of its commercial-free music channels. The ruling resolves a legal dispute with Clear Channel, who made a 1998 investment in the satcaster, gaining control over four of XM’s music channels, which now represent 2.5 percent of the satcaster's 160-channel subscription radio menu.
As an early investor in XM, Clear Channel has owned the right to program four music channels, but both companies have disagreed on the right to include commercials on those channels. In a statement given to Billboard Radio Monitor, XM spokesperson Nathaniel Brown confirmed that an arbitration panel has ruled that “Clear Channel is entitled to include commercials on the music programming it provides XM.”
Over the next few months, as ads launch on those four Clear Channel-controlled channels, XM will add four new commercial-free music channels, in an attempt to offset the change and ensure that subscribers will see no reduction in the total number of commercial-free music channels. “We are firmly committed to maintaining commercial-free all the music channels XM itself creates,” Brown added.
The investment deal between Clear Channel and XM was made in 1998, before XM made its music channels commercial-free.
The satcaster has not confirmed what kind of music programming these new music channels will offer. However, XM has already added two new commercial-free music channels, Big Tracks (classic rock) and XM-chill (ambient, electronica and downtempo rock), which both launched on March
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|Well, it has been my decision not to pay for things that are free. Radio being one of them, water is another. (the stuff falls from the sky folks, and you pay for it?) But AW, this is exactly like cable TV now, and no one complains any longer. It doesnt really include me because I dont pay for cable either. I wonder if the majority of people know that TV stations are broadcast for free? They are even broadcast in High Definition for free!
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|I love people like you that claim they are "buying" things that are free.
First of all, where do you consider FREE the same as producing it? Someone has to bottle the water, ship the water, filter the water, and advertise the water, same with radio. They have to be able to deliver the frequency (which requires equipment) and advertise the radio (which is not free), so your assumption is screwed, or maybe your upbringing was lacking, but the radio IS free, the delivery and presentation is NOT.
Second, you are contributing to a BETTEr radio and water supply. where is the harm in investing in something you ALREADY use? Its not a bad idea to give a little now and then, you cheap skate.
Third, This stuff didn't fall from the sky 100 years ago, SOMEONE came up with the idea, and maybe years ago, there was a simple way to deliver it, but since technology changes, so must the devices used to get it to you, THAT's what you are paying for.
So don't get all high and mighty that you are paying for these services. You want to drink tap water, don't let the sulfides, florides, and impurities stop you, cancer is right behind it, or maybe you don't care about your health. I do. I pay a dollar for bottled water, so what? Its pure, its clean, and its filtered. My health is AT least that much.
The really spectactular part is, you will drink beer, smoke cigarettes, and pay for naked women.. NOW THOSE should be free... but your twisted morals are mal-adjusted, and you don't think about that, now do you?
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|You're assuming he drinks bottled water. He mentioned it falls from the sky, perhaps he has a rain-catcher from which he collects all of his drinking water.
Still doesn't negate the fact that radio is ad-supported, and thus, not technically free, as you pointed out, but I needed something to argue about.
My co-workers are a bit too conciliatory today.
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|You don't pay for water, eh? Do you get it from a well, or a rain barrel? Or do you just not realize that mommy and daddy have to pay the local water utility for safe, clean drinking water and sewage processing and system upkeep?
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|i get mine from a well that is powered by solar panels so i get mine free
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|As usual, you failed to read the original post and understand it, and went off to make yourself look ignorant...again. I never said I was buying it, I said I wasn’t. Now, for some facts. My water does come from a well; it’s also a special drilled 160foot deep well capable of producing about 40 Gallons per minute which I use with a geo-thermal unit to heat and air condition my house. Welcome to the future. Maybe you don’t know how a well works, but a 160foot deep well means that when water falls from the sky it goes through 160 feet of earth to be filtered, about the equivalent of putting water through reverse osmosis 2-3 times. Its city water that is purified human waste and runoff from over fertilized city lawns and salty roads. I'm glad you can feel safer that bottled water is going to keep you from getting cancer but, it shows your ignorance of believing the hype that advertising companies feed fools like you. The majority of bottled water is city water, run through a carbon filter about 5 times...nothing special. Reverse osmosis is a good system, about as good as a well. Now paying for something that is free, EG radio...or cable TV...its free to me and you know that’s what I was referring to. Of course advertising companies are paying for it. But why pay for something the advertising companies are paying for, and then you the consumer are paying for as well? It’s only making someone’s pockets fatter. I pay for my phone, my electricity etc, but I don’t get an advertisement every time I make a phone call or turn on a light switch...or when I go to get a drink from my tap. The problem I have with it is paying for something, when there is a free alternative. Why pay for satellite radio with advertisements when its broadcast for free with advertisements. Why pay for cable TV with advertisements when its broadcast for free with advertisements? Because advertising companies spend billions (the billions you give them) to think of new ways to make you, Joe Consumer believe that you are receiving a luxury item by paying just a little bit more for it. Look around, its everywhere from radio to bottled water…you can pay 50 cents for a gallon of Wal-Mart water, or $1 for Nestle Ice Mountain, or $2 for 16 ounces Fiji mountain spring water…just pay a little bit more…for luxury and the image that goes with it…so you can show to your friends…look, I’m so rich I can drink water from Fiji.
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|you abviously don't understand the situation. CC is forceing them to put ads on XM. Sirius is going to be doing this with more stations as well.
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|Kind of stupid isn't it you think if you pay for somthing like this your wouldn't have to deal with ads. might as well keep listening to the free radio stations at least you get local ads.
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|what you don't get with local radio is content, selection, and good signal. i have at least 10 xm channels i listen to regularly. on regular radio i can't even get 10 channels clearly at one time, much less 10 good channels. what you are saying is like why get cable, i can get broadcast for free... that argument is almost identical, i'll bet all the people complaining about sat. radio use cable and don't even think twice about it.
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|Give the customer the opportunity to pay for programming/music without commercials...then add commercials. It sounds like a bait and switch to me. We get to pay to listen to commercials (true it is not too much different than cable, but at least you get what you expect).
Vote with your wallet folks.
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|Sounds exactly like bait and switch. Got me to pay for it. Now very likely to get me to stop.
There's my vote. :)
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|Um.. so this could apply to Google in the future, right? Bait and switch.. This is what I am talking about..
Hey Google radio.. hmm.. it could happen.
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|Gah!!
You are infuriating. And I know you do it just to infuiriate me! (That's one of the reasons it's so damn infuriating!)
THEY HAVEN'T DONE ANYTHING!!!
Yes, XM is pulling a Bait n' Switch. But claiming this is what Google is going to do "Just 'Cuz" is driving me mad.
Literally.
I'm losing my hair because of you.
I hope you're happy.
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|rijp: Close but not exactly the same. It would be the same thing if Google launched a paid version of its search that was touted as ad-free. Then later once it had built up a subscriber base, it began to include advertising in some of the searches on its paid add-free service. That is what is happening here.
I do sense some animosity towards google in your posts. Perhaps you were beaten up by a bully who went on to be a google executive or something. Go ahead and let it out. If you bottle these things up they can really get you down. Just trying to help - and like PC_Rat, my office is way too friendly today.
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|*ahem*
The name, Sir, is PC_Tool. Please try not to confuse me with the rodent with a similar name.
It's not like I go around calling you Grim, noe do I? ;P
Oh, and for the record, they are always friendly, just not always argumentative. They can be both, ya know. 'Tis why I used the word conciliatory. Well, that, and for the Monty Python reference, of course. ;)
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|oops...sorry got you mixed up with another poster here (its not like was on the page in front of my face you know...ok, well maybe it was).
And I do appreciate your restraint in not calling me Grim.
The folks I work with are normally friendly but sometimes it can get a little tense, so of course I do my best to help and stir the pot when I can. One does one's best after all.
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|-I do sense some animosity towards google in your posts-
Only some? Wow, I need to clarify myself better, when it comes to Google.
Google is the bane of my existence. They suck worse than a white house intern. They could give me a free iPod, and I would exchange it for something else, because I don't know what advertising they have installed on it. Google is satan's spawn incarnate. They are pure evil. They suck so bad, they could suck a golf ball through 20' of garden hose...
I *LOATHE* google. They can take a long walk off a short pier..
Is that better?
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|PC you and I should start our own firm.. We will just argue all day.. haha.
I love picking fights with my co-workers.. I always bring up controversial stuff..
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|CABLE TV never claimed to be commercial free. They originally started by relaying big city ABC, NBC and CBS affiliates into outlying areas in the late 50's. National Educational TV (PBS) was born in 1970.
These were/are just broadcast signals; so there was no bait and switch. The same ads are seen over the rabbit ears too.
It's a different story; when the satellite networks promote their commercial free radio stations and then changed their minds later. CLEAR CHANNEL is largely responsible for the lousy programming on terrestrial AM/FM stations. They own almost 1500 of them.
Commercial feee premium channels like HBO and SHOWTIME arrived in the 80's. You pay monthly charges for these like XM and SIRIUS. They still aren't selling cars, beer or anything else except promoting their own programs. Prices are about the same too...
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|I'll be "Arguments", you can be "Abuse".
Who want's to take "Getting Hit on the Head Lessons"?
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|Well, at least you didn't include a haiku about it.
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|I sense you are bitter about *something*, but I just can't seem to put my finger on it....
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|Hey, XM....got an idea for ya...
Buy 4 iPods to run those stations and dump ClearChannel.
Otherwise, you just lost a customer.
I pay for XM because it does not have commercials. The second I hear one, I am dropping the service like a dead weight.
I'll go back to the airwaves before I pay to listen to 'em.
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|Agreed 100%, I'll drop it as soon as I start hearing them.
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|It was only a matter of time....
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|Exactly. Now if they can stop having to charge $10/mo, they might grow this thing.
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|gee, $10.00 equates to a drop in revenue, that would be counter productive, so it can't grow and make it free, now can it?
Its 10 bucks! You spend more than that on a beer fest with your buddies.. you people kill me with your moralities far out of whack.
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|grow=lareger user-base
Profit=more income
What they charge affects their market-share. But they could easily grow their market share by lowering their prices.
Get it?
Sheesh....
Or are you just being a big meanie again?
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|Well, if you have twice the listeners, you get to charge more for ads.
Did you seriously make this a morality issue? Where did you get your diploma from, Sears Driving School?
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|At least I have a diploma. I bet you didn't even make it past the third grade, little drummer boy.
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|Yes, but its 10 dollars. 33 cents a day. We arent' talking hundreds of dollars, its only 120 bucks a year. Give me a break.
People have their priorities on things, and its all wrong. They b**** about 10 dollars for something like this, and turn around and won't bat an eyelash for 3 dollars for damn pack of cigarettes, and that's causes permanent, long-term damage.. And they smoke 2 packs a day, do the math on that.
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|Yes, and some peope are complete idiots.
And yes, people have different priorities than you, imagine that.
Oh, and 3+3=6, for those who didn't want to do the math. (Still less than $10, btw) ;P
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|its only going to be like one station or 2 and there both pop stations, so its not that big of a deal. XM doesnt have a choise in the matter. XM is still as great.
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|Well, what do you expect? Clear Channel Communications IS one of the most evil corporations in the world.
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|Agreed!!! Glad I have Sirius.
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|i hear ya dude. my sister used to work for them!
Its all syndicated radio (as far as the free airwaves go). I prefer local based radio instead of this syndicated crap out of denver or something.
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|If I wanted to listen to ads I wouldn't pay for XM. Hey here's an idea an ad's only channel. There you go, keep your bloody ads off my subscription service.
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|Well that made up my mind for me, NEVER will I even consider XM now that I know Clear Channel has a part of it. I HATE CLEAR CHANNEL!
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|As do I... It was a shock for me to learn the other day that the President/CFO of Clear Channel sits on the board at XM...
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