When you mention XM Satellite (formerly American Mobile Satellite) and Sirius (formerly CD Radio), just don't mention them in the same room as Execs from Clear Channel.
Why?
Because as Clear Channel went on a buying spree of other radio stations, swelling up from just under 50 stations to more than 1,200 stations, it took a pass on the two satellite licenses that the US Government made available.
Guess who snapped them up?
Yep, you guessed it. XM Satellite and Sirius.
It's been pretty much downhill for Clear Channel ever since.
Why did Clear Channel who had plenty of money, pass up the opportunity to hold claim to one of the only two satellite positions available.
While one can only speculate, we do have enough evidence to suggest what happened.
Clear Channel (and Viacom for that matter) were so caught up in their present success (at that time), that it blinded them to the changing landscape and emerging opportunities in satellite radio.
Their narrow focus to optimize the companies success by owning more radio stations, has lead to suboptimization of its profits.
In all of the boardrooms in Clear Channel, they must of forgot to engage in "futuring" to anticipate market shifts and trend changes.
Value quickly began migrating from AM/FM to satellite and like running East to set a sunset, Clear Channel found itself heavily invested in the wrong direction.
What has this cost Clear Channel?
The cost has been in the BILLIONS of dollars as one negative effect jumpstarted so many that they are too numerous to name.
Talk about unintended consequences.
GEESH!
So my question for you is a simple one.
What success are you having today that is possibly blinding you to changes in your market and industry?
Let me hear from you.
What's your feedback on the Clear Channel challenge and your thoughts on what it takes balance today's business with building the business of the future as new opportunities emerge.
