While it has been quite some time since I have been in a movie theater, the remembrance of sitting in a seat waiting for the show to begin is something that sticks with me for the simple reason that (1) when going to a theater with general admission I would generally get there sufficiently early such that I would be able to get a seat that didn’t put me in a spot where the sightlines were less-than ideal (e.g., off to the side or in a row near to the screen that would require an uncomfortable neck torque for a not-inconsiderable amount of time) and (2) theaters, which make more money off of concessions (i.e., pre-pandemic, theater chains made about 50% on the price of a ticket and 80% on the concessions, so if you want to know why that bucket of popcorn takes a bucket of cash to buy, there it is), decided that given the captive audience, selling ads to play before the trailers was a lucrative move.
You might imagine that because you are paying to see something specific (i.e., the movie) you would not be subjected to watching something that the proprietor is making money on. To be sure, for years pre-movie there would be the cartoon of the hotdog, beverage and popcorn box strutting across the screen encouraging you to go get a snack, but it got to the point that you were encouraged to do everything from joining the Army to buying car insurance. And while those ads tended to be well produced, there are even those sold locally to plastic surgeons and car dealers that appear to have been shot and produced by someone’s Uncle Gus.
According to SiriusXM, “SiriusXM is unique because we stay true to the artists and their music by broadcasting 100% commercial-free music. So, unlike traditional radio, all of our original music channels have no commercials – ever!” However, elsewhere it acknowledges, “While all of our music channels are 100% commercial free, subscribers may hear commercials on some of the Sports, Talk and News channels.” That verb may, expressing possibility, is a bit of a dodge. What’s more, while the music channels are without commercials in the sense of things that are promoting the goods and services of a third party, there are more than a few interruptions on the music channels trying to get you to listen to the Billy Joel Channel or a special, limited-duration channel from some performer that you’d prefer Novocain-free dental work rather than listening to. What SiriusXM is doing is trying to keep you within its sphere so that it is going to make money from subscription renewals. Realize that they have built out an infrastructure (e.g., satellites, office buildings) that needs to be maintained, to say nothing of the contract with Howard Stern that is said to be worth as much as $100-million a year through 2025. You need a lot of subscribers to support that kind of outgo.
On February 22, Spotify conducted its “Stream On” event, which it describes as how it “is continuing to go all in on the limitless power of audio—the opportunity and the potential it represents for Spotify, creators, and fans everywhere around the world.