Filed under: Analysis / Opinion, iPhone, App Store
Computerworld: Will Apple kill satellite radio?
ComputerWorld has an interesting item this morning by Mike Elgan. It speculates about new features in the anticipated iPhone coming this summer, including an FM transmitter to send iPhone audio to a car radio. It's also thought that the new 3.0 software will enable stereo bluetooth streaming to a car suitably equipped.There's no doubt that these features might convince many to either skip satellite radio, or to not renew current contracts.
All that is bad news for Sirius/XM, but the newly merged companies have done plenty to shoot themselves. Many subscribers think the merger was badly done, and many favorite channels were killed with no notice. As an XM subscriber I experienced that first hand when no heads up was given to customers about massive channel changes until the day of the switch last fall. For a communications company, that's pretty poor communications.
With an iPhone that can stream stereo Bluetooth, services like Pandora, LastFM, AOL Radio, and Simplify Media become more mobile in the car. I'd have to think twice about renewing XM or Sirius. Although new car sales are in the dumper, a great many new vehicles are delivered with iPod adapters, giving even more impetus for users to take their own music with them rather than to be stuck with a costly, and seemingly diminishing satellite radio service.
The whole theory behind Sirius/XM was to get radio worth paying for. To a degree, the iPhone and iPod have changed that equation, because you can take your favorite music with you, either your own or music from the new streaming music services. But getting the music into your car audio system was a chore if you weren't pre-wired for it. If indeed Apple makes the integration of the iPhone into the car easier, I think satellite radio will have to re-think its business plan, a plan that is already in tatters.
How about you? Do you subscribe to Sirius/XM now? Has the economy changed your plans? Would new options to get iPhone audio on your car make you think again about that costly subscription plan?
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Reader Comments (Page 5 of 5)
Curtis said 10:04PM on 4-07-2009
I've already replaced my Sirius subscription (after 3 years) with my iPhone.
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r0b said 12:10AM on 4-08-2009
I've been a long time XM subscriber, I can tell you what I listened to all the time: XM150, The Virus, the 70's and the 80's. Thats it.
Now with the merger, I picked up the best of Sirius package, and my radio hasn't changed off Channel 100. (Howard).
Adding features into a great phone on a shitty carrier (in my area) won't kill my subscription to Sirius/XM.
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adam said 1:05AM on 4-08-2009
I canceled my sat rad sub because it was obvious Sirius stopped caring about customers. I followed the official sirius forums and the news waiting for them to post the line up changes and then it just happened with no warning. I didn't renew my sub for that simple reason.
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Pepijn Bruienne said 9:08AM on 4-08-2009
We started out with 3 receivers on Christmas day 2003. What I've noticed since the merger is that SIRIXM has made no efforts to work on actual customer retention, in fact they have worked on the exact opposite. I am now down to just one Sirius receiver while my wife has XM that came with her car and we both agree there are a number of major problems impacting our enjoyment of either service:
- Killed off supposed "overlapping" programming on the fly, without notice and without offering real alternatives.
- Found a loophole to circumvent the government-mandated subscription fee freeze by charging for previously free Internet streaming.
- DRAMATICALLY increased the quantity of commercials and "happy DJ talk" on the music channels. This is a big one and doesn't seem to get as much discussion but for a *paid* service that is advertised as offering commercial-free music this is pretty unforgiveable. I understand that the talk can't be 100% commercial-free and that they got into tangles with Clear Channel who supply a chunk of their music programming which meant they were pretty much forced into inserting ads into the music but seriously folks, you can't charge us $12.95/mo at that point. Drop it to $9.95/mo or more to the point, give us that a-la-carte you spoke so favorably of during FCC/DOJ procedures. I'd gladly pay $1 or $2 per channel for the few I listen to.
As for the iPhone/iPod threat, ever since upgrading to a 3G iPhone I have found myself no longer listening to Sirius music channels in my car. Instead I created Pandora stations for the Sirius music channels I used to listen to. Upside: no commercials, no talk and 100% home-to-work-to-home coverage. Some people complain that their 3G coverage is much worse than satellite but for me in the metro Detroit area I have more dropouts with satellite radio with things like driving under an overpass than with AT&T's 3G. I would get rid of Sirius altogether but I still enjoy listen to Howard on my morning commute. Yet, I am starting to think that I could satisfy my need for talk radio in the morning by loading a few podcasts of shows I missed during the previous day onto my iPhone. That's $12.95+ I can put towards my $30 unlimited data subscription.
I think Sirius/XM is in serious trouble.
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btc2 said 9:10AM on 4-08-2009
PocketTunes on my Palm Centro made me abandon my plans to buy XM, plain and simple. What's the point?
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arieslizardking said 9:32AM on 4-08-2009
Bababooey! Bababooey! Hey now! I've been a Sirius subscriber since 2005 when Howard Stern made his announcement. My opinion of Sirius XM in "these times" hasn't changed... I plan on being with them for as long as possible! So much better than FM radio and so much easier than having to connect my iPhone to the car, launch an app, etc... Long live Sirius XM and the Howard Stern Revolution! :)
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Colin said 9:11PM on 4-08-2009
You can also check out Stitcher Radio for iPhone. Stream all your favorite audio podcast, radio programs and more on-demand. www.stitcher.com
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JG said 11:41PM on 4-08-2009
This is a pretty absurd theory.
Satellite radio is HD quality audio. Streaming over a 3G connection in a fast moving vehicle? Please.
Secondly, why would FM transmission or bluetooth audio convince anyone to switch? One is a horrible way to transmit with extremely poor results and the other is completely unproven in the consumer market.
I've come to expect a little more from TUAW articles than this.
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Jeff said 6:13PM on 4-09-2009
Two words: Howard Stern. Really, that and the sports program are what keeps me renewing my satellite radio.
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lens42 said 12:48PM on 4-15-2009
Yes
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