When XM Radio and Sirius radio decided to merge a few years ago, it was most likely the only survival strategy left for long-term viability of both companies. Satellite radio subscriptions were not growing at a pace needed for consistent growth, and having a unified front to partner with automakers for satellite radio in new cars was becoming all-important. Fast forward to 2010, and smartphones are taking over from standard cellphones. Herein lies a huge problem for Sirius moving forward: competing with internet radio that's personalized and on-demand.If you own an iPhone or Google-powered Android phone, the amount of customized radio-type listening services is almost limitless. For iPhone and Android, the ever-popular Pandora becomes your own radio station with only the artists you like. Download the Stitcher app for Android or iPhone and you have popular radio programs (Fox Radio, CNN, more) and podcasts available at any time. Even though Sirius has apps for its satellite radio service on popular smartphone platforms, will customers pay for it with so many other options only a download away?
Clear Channel sold out its inventory of mobile ads recently, and mobile ads are generating as much revenue as ads from PC-based internet radio listening. Although SIRI shares have almost doubled from the year-ago period, they are still under $1 as of today.
Except for a few notable exceptions like Howard Stern and Martha Stewart, almost all programming from Sirius can be replaced by smartphone apps, and often for free or next to free. A simple input jack on any car stereo (OEM or not) and your smartphone becomes your personal, custom radio station. Will Sirius have an answer for that? Mobile broadband may have started taking over from satellite-based radio by that time.
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Reader Comments (Page 1 of 1)
7-21-2010 @ 4:28PM
barry said...
Hi, You failed to mention that Pandora is $1,300.00 for the initial connection. That may be lfor a lifetime but a Sirius Subscription at 12.00 per mo. for one year = $144.00(plus incentives) also add nine additional years and then you catch up to your initial out of pocket loss of $1,300. for your Pandora connection.
7-21-2010 @ 4:40PM
Matt said...
I not aware that pandora charges for its services, but the only content they really have is music. I have sirius for more then music. Actually, I rarely listen to music at all. Mostly, I listen to CNBC, Bloomberg, the comedy channels, and Howard Stern. Which, by the way Pandora does not have and also you can't get Pandora in your car unless you have a hook up with your cell phone. Why anyone thinks Pandora is a threat to Sirius is beyond me. That's like saying Hulu is a threat to Cable television, Hulu has limited content and is only accessible from a computer, where as I go home and have over 300 channels.
7-21-2010 @ 4:44PM
djmycool said...
plus the wirless internet around the country is horrible it wont be till around 3 years till its gets better and thats only in big cities plus no NFL,NBA just plain music no DJs with internet radio,,,regular radio is better than those wirless app junk
7-21-2010 @ 4:45PM
ALDO said...
no body is paying any attencion to the adds
Pandora Radio, , Slacker Radio,
it wont be long beffore the add revenue will go to 0 dollars
on this guys and be out of business, they have no contents.
7-21-2010 @ 6:09PM
Sheldon L said...
Sirius will be overtaken by internet radio. It is a question of when, not if.
Any advantage that satellite radio currently has will be eroded over time. It's a certainty. What makes it certain is that there is strong motivation and tremendous resources powering that motivation to do exactly that.
7-21-2010 @ 6:46PM
James said...
Sirius XM is only about $15 per month for the best content available (NFL, MLB, NBA, Golf, Soccer, Hockey, Howard, Martha, Comedy, News, commercial free music, you name it).
to listen to Pandora in your car will cost you the price of a smart phone, and a $80 per month data plan. Also note that most cell phone carriers are eliminating their unlimited data plans, so this cost will increase even higher.
Most importantly....How many grandmas can go out to pandoras website, configure it, then download apps in an iphone, then plug it into their car so how, and hope they have consistent coverage. Not many.
With Sirius XM, you start your engine and turn on the radio's power switch.
No Comparison
7-22-2010 @ 1:17AM
anonymous said...
names like martha stewart, howard stern etc will never work for free. and pandora with its ad based revenue will never be able to write a check to the likes of those hosts. pandora has its place as a cheap radio flea market. whereas sirius is loaded with money making content that people are willing to pay for.
7-22-2010 @ 6:08AM
MyKisa said...
...lots more info on talkstream than on mainstream TV news...I like my Iphone internet radio
7-22-2010 @ 12:32PM
Daryl said...
Cell phone data charges are like $60 a month and are increasing capped as to how much data you can use. That's getting expensive to hear low quality internet audio. Not to mention that high speed data coverage is spotty around the country. Oh and lets not forget that this increases the drain on your cell phone's battery. Oh and just try to use Internet radio while driving! Not much better then texting while driving.
Pandora is great for listening on a computer but if you want commercial free and better quality audio you have to pay Pandora $36 for the year. Not bad really but the viraty of programing is in no way close to Sirius.
Really bad article basically to try and dampen a SIRI rally today by putting out a old idea about internet radio taking over Sirius. It may some many years in the future or it may not. Right now it not happening.
7-22-2010 @ 11:00AM
Alex said...
SIRIUS Is available on all the good smartphones. You have to remember, you wont get any kind of content SIRIUS has anywhere else. Pandora and Slacker wont be able to compete. Yes, you can customize your own radio station, but you wont have a true radio feel with DJs, Radio programs, news & talk, plus sports. With Liberty Media owning 40% of SIRIUS XM. It wont be going anywhere.