Final answer:
It is true that satellite radio has taken profits and audiences away from traditional radio by offering a global reach, subscription-based services with specialized content, and freedom from certain regulations.
Step-by-step explanation:
It is true that satellite radio has had a significant impact on shifting profits and audiences away from traditional radio. Satellite radio's emergence, led by providers like XM and Sirius, offered an unprecedented level of programming choices and clarity of signal by broadcasting from space. This technology, unlike traditional radio, isn't limited by geographical boundaries, allowing for a global reach to listeners who are united by similar interests rather than their physical location.
In addition to offering variety, satellite radio has changed the media landscape by providing subscription-based services, which include many specialized offerings, and coverage of remote areas. Furthermore, it's considered generally exempt from the FCC regulations that govern terrestrial radio stations, allowing for more freedom in programming content. Popular radio personalities, like Howard Stern, transitioned to satellite radio, seeking this creative freedom away from the oversight and fines imposed by public airwaves.
Traditional radio has seen a decline in its role as a primary medium for news dissemination, particularly among younger demographics, with more people turning to the internet and other digital platforms. Despite this, traditional radio still holds relevance in certain contexts, such as local elections where it can make a localized impact. In summary, while traditional radio has not become completely obsolete, its role in the media industry has undoubtedly been affected by the rise of satellite radio and other digital media platforms.