New York, NY -- (ReleaseWire) -- 11/12/2012 --If one trend has shown itself to be ever growing, it’s the demand for customized media content offering. Long are past the times when families sat to listen to the latest episode of Little House On The Prairie or 24. Nowadays, Video On Demand is all the rage.
The Radio equivalent seems to be served by a large array of HD Radio Channels. The benefit for listeners is clear. Content is widely available for all interests and a variety of cultural channels are now available.
Mix HD Radio with the On Demand model, add some location based tuning and you get a perfectly tweaked advertising channels for local businesses and even the larger ones looking to offer geographically relevant ads.
HD and Satellite Radio are nothing new. But a change in model is definitely needed. Monthly subscriptions are a tough sell to users. Industry Pioneer Sirius XM (NASAQ: SIRI) is doing well if you look at the last 4 years.
Going from as low as $0.10 cents to the recent high of $2.97, one can easily see the potential in the industry when glaring at the 2970% return. The opportunity lies in finding the new player in the industry that will upset the balance. The underdog that will challenge the current model.
Much like Apple did with the smartphone industry and the effect it had on the Wireless Networks Modus Operandi, a new player in the industry with a different model could very well reap the rewards of becoming the New Apple of HD Radio.
Anyone familiar with the Razor & Blade Marketing Model can attest to its success. Gillette sells Razors for a loss and then makes up for it largely on the sales of Blades. Wireless Networks subsidize phone costs to lock customers into yearly contracts. Creating Loss Leaders (in these examples the razor and the subsidized phone) creates a new opportunity that is the sale of Blades or yearly contracts.
One such player could be Ludwig Enterprises (PINKSHEETS: LUDG). Ludwig innovates in several ways. First it uses an advertiser-based approach to its revenue strategy. Users receive subsidized GPS enabled Radio Receivers. Ludwig in turn resells time slots to advertisers looking to reach local and niche demographics.
Ludwig Enterprises aims to create tens of culturally relevant channels aimed at several niche demographics. Typically undeserved by the radios, these communities usually retain their media consumption habits and often look for similar programming to what they were used to.
Ludwig Enterprises (PINKSHEETS: LUDG) is launching the first nationwide World radio network in the U.S. The One™ radio is bringing HD quality digital audio to a vast audience of diverse ages and origins, whose interests go unsatisfied by today’s domestic programming. The One™ radio is reaching out to a $1.5T marketplace, an audience that is almost completely ignored. The segment of listeners born abroad is over 30M alone, which invites for an exciting programming and a new frontier for advertisers.
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Alexander K. Neumann
Editor @ Wall Street Report
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