Game On

Where do we go from here?

2006-12-09T20:33:00.000-08:00

The world of audio is experiencing a radical transformation right now. There has been a massive explosion of opportunity in not only the music market, but the broadcasting and media market as well. Thanks to the infiltration of computers into every aspect of daily life, consumer electronics and audio products are submitting to the digital revolution. Satellite radio, born of the digital era is looking to challenge the world of free radio and become the premiere choice in audio programming of consumers around the world. The main concept of satellite radio is differentiation. The objective is to discover how satellite can differentiate itself from the digital jungle that has taken over the audio world. There is no doubt that the trend of business is going in the direction of consumer-oriented and personal service, so companies must face issues of product personalization as well. The radio industry has taken an ambiguous turn for the future, as more consumers are starting to give up on terrestrial radio and the commercial storm that has plagued it. With mp3 player sales increasing exponentially every day, and with emerging technologies such as podcasts, and user generated content like YouTube, the corporate world of broadcasting is slowly dying.

A unique selling proposition being utilized by terrestrial radio is the concept of personal service. Despite the wide variety and nationwide coverage that Satellite offers, terrestrial still has a leg up in that it provides local, city specific programming that is capable of being simulcast nationwide. True, terrestrial does play an inordinate amount of commercials sometimes, but the truth remains that it is a free service available to virtually anyone. Neither XM nor Sirius can claim this.

It has become the objective of XM and Sirius to position its services as a luxury product to those who seek premium services and innovative technologies. An example of this high-end mentality is the recent integration of satellite into premium automobiles. Porsche, Acura and even Bentley motors have now agreed to include XM in its vehicles as part of the standard package. Whereas, auto manufacturers like Volkswagon, BMW, Scion and Nissan are catering more towards the mp3 world and iPod connectivity. Some of the world’s largest manufacturers like GM have created strategic, long-term partnerships with satellite radio, and major airlines such as AirTran Airways are also now incorporating the satellite experience into its in-flight entertainment. Locking people into the satellite service is becoming more successful than simply offering it as a convenience. By providing an environment in which you can’t escape satellite radio, XM and Sirius have been able to gain massive market share and increase user trials.

Integration is a crucial aspect of the digital world. Why? Because the digital world was designed to be integrated. The same computer that runs your powerpoints is capable of running an entire radio station out of the basement of some guy’s house. The same software that lets you cram tens of thousands of CDs into something the size of a 3x5 card has the capability of communicating with a website to broadcast user generated content to the world. Mp3 music management software is now in satellite radios, satellite radios are now in GPS devices and GPS devices are now in cell phones. Digital communication is just a language capable of completing an infinite amount of tasks, simultaneously. Radio and mobile DJ’s alike praise the latest digital music management software because of its organizational ability, convenience, size and portability. When you rely on a machine that can learn virtually any function of existing electronics, the possibilities are endless. The electronics industry is rapidly creating a widespread digital fusion that has given rise to all-in-one products and multipurpose gadgets.

Integration is not only important in the product category, it is equally vital in the service department as well. In addition to being included in automobiles and airliners across the nation, satellite service is now being combined with other services such as GPS and cell phone service. The synergy created by joining such powerful devices as GPS, cell phones, and satellite radio is enormous. All are dependent upon the same functions, and utilized the same technical concepts in order to provide useful resources. If a device can communicate with a satellite, then it can perform multiple tasks such as pinpoint user location, transmit audio and receive audio. Cingular Wireless recently realized this and now offers 25 XM channels through the Cingular service, which can be streamed directly through a cell phone and listened to by using special headphones. Bushnell, a GPS device company now offers GPS units with streaming XM. What is the advantage to having such all-in-ones? The advantage is synergy. For example, XM provides a special traffic service that can by synchronized with a Bushnell GPS device. Together, they provide instantaneous, customized traffic reports with alternative routes based on data provided by the GPS unit. These digital electronics are starting to show exactly how technology can become a highly-efficient workhorse for mankind.

Yet another form of integration is the marriage of traditional and new, or terrestrial and satellite. In 2006, XM successfully achieved one of the biggest business stunts ever conceived in the world of radio. The satellite giant actually merged with terrestrial radio to provide a simulcast of programming content to both XM subscribers and terrestrial radio listeners. Opie and Anthony successfully bridged the canyon between satellite and terrestrial formats by simulcasting their show on both XM and CBS broadcasting stations each morning during drive time. In a move that hugely benefited satellite’s main competitor, XM provided a major advertising opportunity to CBS terrestrial intravenously through its own premium programming. XM demonstrated to the satellite world that it is actually better to live in harmony with the enemy than to ignore it, which is as shocking as it is perplexing.

Apart from integration, the way satellite radio has uniquely positioned itself for the fierce competition of the future is by signing promising talent and acquiring exclusive broadcasting coverage rights of events like football, NASCAR, and baseball. XM has signed shock jocks Opie and Anthony long-term, and Sirius has followed with its signing of Howard Stern. On a daily basis, new talent like Oprah and The Who are granted their own channels on satellite, and thus making the service even more attractive to skeptics and potential customers. Expansion is the number one priority of the satellite industry, in order to keep up with established mediums such as terrestrial and mp3’s.

Satellite continues to expand content-wise as well as geographically and demographically. XM and Sirius both started within the United States, but are now successfully broadcasting throughout Canada. XM and Sirius look to expand globally and stomp their weak competition, while appealing to new and unsought demographics at the same time. Adding specialized channels that appeal to niche populations, like the Catholic channel on XM, and focusing sales promotions on new target markets such as college students has become the adventurous new goal of satellite radio. With new players entering the market recently, including Canada Satellite Radio and WorldSpace – worldwide satellite radio, the satellite industry is becoming increasingly competitive on many fronts of the audio and music industries. Radio technology also continues to evolve into new ideas such as High Definition (HD) radio, forcing satellite to raise the bar even higher in order to attract and retain customers. HD radio offers sound quality equal to satellite, and programming that comes directly from the “hometown.” HD radio is even offered commercial free in some cities, providing a free alternative to satellite programming. Satellite has somewhat of an advantage, however, in that it does not require the purchase of a $400 receiver, it has more offered content, it is commercial free and all channels are broadcast nationwide, not just some.

The satellite radio market has recently slowed down in subscriptions and sales. Similar to mining, where the initial quantity of a resource is always easier to get than the last, there has been a plateau of revenue for XM and Sirius because they have already skimmed the market for easily convinced, affluent, risk-taking consumers. The next batch of customers will only come with increased marketing and sales promotion costs. Therefore, the marketing objective of satellite has become an effort to solicit potential customers who are not overly impressed with the benefits of satellite radio already. New technology in portability has helped satellite in this area, but improving one-on-one relationships with customers and improving the viability, pricing and operational capability of satellite radio is what the industry must focus on the most. Consumers markets, like the college-aged demographic expect their electronics to fully complement their individual personalities. This being said, it is in the best interest of the satellite industry to continue personalizing its products and services similar to the way mp3 players have. Personal selling is not the only thing necessary for future prosperity, though; sales promotions are just as vital. Sales promotions have been instrumental for XM and Sirius in obtaining new customers. XM’s provides free trials of its service on every AirTran airplanes, and earlier this year gave every AirTran passenger a free satellite receiver with proof of ticket purchase in hopes of increasing subscriptions. Sirius just completed a two-day, free trial period in October, in which the world was offered free access to Sirius satellite radio through the internet for two full days. Though it was a promotion for Howard Stern, Sirius is already reaping the increased sales benefits overall. Going into the holiday season, both XM and Sirius are confident that sales will increase significantly as a direct result of their promotional efforts.

In summary, the concepts of integration, collaboration, global expansion and mass customization are what will guide the future possibilities of satellite radio. The direction of business is headed towards personal interaction, and both XM and Sirius are lacking in the relationship department. By making a comprehensive assessment of the potential satellite market, XM, Sirius and other satellite providers can increase sales through a general pull strategy. By getting into the life of their consumers, satellite providers can learn a lot about the demands mass populations have for the radio industry. Studies of consumers’ daily life, likes, dislikes and preferences can provide the essential information needed to modify satellite service according to its consumers. Providers can also figure out which formats and stations are most popular among the different target markets and create content accordingly. Advertising and sales promotions for satellite should follow the same direction. Altogether, with an innovative product, solid service, and a profound understanding of the consumer’s wants and needs, satellite will be propelled past its competition into a prosperous future.

Ever consider marrying your sister?...didn’t think so.

2006-12-02T19:04:00.000-08:00

In the past week it has been rumored that Sirius CEO Mel Karmazin has leaked certain hints of a possible XM/Sirius merger. Right now, these two companies dominate the satellite world and are very successful as competitors. However, if they were to combine forces it would create a complete monopoly over the industry. As I see it, like brother and sister, there would be no way these two could get along and play nice.

At this point, not much good can come from a satellite radio merger. As seen in the past when moguls join, it’s like two single people moving into a house together; everything goes into the same pot and most assets are assimilated into one collection. Unique corporate identity is lost, and the result is less-than-satisfied customers. In the case of XM and Sirius, the unique programming of each provider will be severely compromised if a merger of this magnitude were to occur. It could detrimentally “wipe out the sounds that enticed some people to subscribe in the first place” as the New York Daily News puts it.

XM claims that the merger is just a rumor, and Sirius claims that it is just “one of those ideas you kick around.” The possible merger question came about as a result of both XM and Sirius losing significant stock value recently, and having increasingly pessimistic holiday sales predictions. If both companies do join, I can’t see them gaining any monumental benefits, but I do see them sacrificing valuable quality.

This also presents the question of, why does everything have to be under the same company anyway? Monopolies are detrimental to a capitalistic society like the United States, decreasing competition and giving consumers no other choice. The merge would indeed decrease operating costs for each company, but the fact remains that a merger between XM and Sirius is a horrible idea on many fronts. That’s why I think it’s safe to assume that this fantastic idea is indeed a rumor, and should remain just that.

Digital Fusion – All in ones reign supreme.

2006-11-30T20:45:00.000-08:00

If you try and think of all the services offered today via satellite, you probably can’t count them on one hand. Cell phones, GPS, Satellite Radio, Television, Automobile tracking devices, Weather, even pictures of your house from space! The possibilities of integrating all these functions and services are now apparent, and becoming quite lucrative.

If there’s one thing that’s true today, computers perform a lot of functions that used to require massive amounts of bulky equipment to execute in the past. Thanks to digital, many electronics now multitask and complete functions virtually, allowing for comprehensive integration. Two new satellite products have just been introduced the market that promise to integrate digital satellite services in a truly unique and marketable way. The Raymarine SR100 Sirius Satellite weather receiver and the Bushnell ONIX400CR GPS/XM handheld are the latest innovations combining multiple digital powers into one convenient package.

GPS has been the easiest convenience to integrate with electronics, because it can be manipulated in so many useful ways. It’s installed into nearly all new cell phones as part of a 911 locating system, and can be found in most new automobiles and satellite radio receivers. Bushnell, a GPS device manufacturer realized this opportunity and decided to include an XM receiver chip in its newest device. What makes Bushnell’s product so cool is that it’s capable of synchronizing GPS capability with XMTraffic and XMWeather. This means that if you’re jamming to XM on the way to work in the morning, your radio will alert you of any delays, accidents, inclement weather or complications ahead, and suggest an alternate route for you to take based on your current position. Raymarine's E-Series Navigation Displays is the first to integrate with SIRIUS Satellite Radio's Marine Weather Service to show advanced, animated weather forecasts for boaters.

The concept of the digital revolution feeding off of itself is creating major possibilities for today and the future. It will be tricky trying to embrace this rapidly growing industry, and even a little bit scary. However, at least the kinds of services these toys now offer somewhat justify their outrageous price tags.

Your complimentary in flight magazine and satellite radio.

2006-11-18T12:23:00.000-08:00

In a bold, yet unprecedented move, AirTran Airways recently announced it will be giving every single one of its passengers a voucher for a free Roady 2 XM satellite radio receiver. That’s right; every single passenger gets one just for flying. According to Orbitcast, the vouchers for the free RoadyXT radios will begin on flights starting today, and continue throughout the holiday season or until flight attendants have given them all away.

In a stunt that mimics Oprah’s car giveaway some years ago, XM and AirTran have teamed up to execute quite possibly the greatest hardware promotion yet. Now, of course the radio is free, but the subscription service isn’t. This is a strategy that Gillette figured out a long time ago with its “free razor on your 18^th birthday” promotion idea. Gillette incurs the minuscule cost of giving you a free razor, and expects in return to make hundreds off your purchase of replacement blades. Similarly, XM is incurring the minimal cost of giving away a receiver, in hopes that it’ll reap unbelievable profits from new subscribers.

Interestingly enough, AirTran already offers complimentary in-flight XM Satellitite radio service at every seat on their airplanes. With a regular set of headphones, passengers can enjoy the blissful, commercial-free satellite radio experience that so many have come to love. Not only does this provide a 170+ channel alternative to the traditional 7 channel in-flight radio, it is a major promotional tool for XM. All passengers receive a free XM radio trial that lasts the entire length of the flight, and it is as simple as plugging in your headphones.

It’s becoming apparent that satellite radio is being forced to become more and more creative with its solicitations lately. As the audio market becomes more saturated every day with mp3 players, new satellite providers and HD radio, the competition is becoming fierce. Not to mention, XM and Sirius’ main efforts now are to attract the very niche, yet populous crowd of people who don’t have much interest in satellite or personal audio in general. As the holidays approach, there will be a major opportunity to increase subscriptions for satellite, and judging by this promotional event it looks like XM is thoroughly prepared.

New Players in Satellite Radio

2006-11-16T19:54:00.000-08:00

Satellite beware! There’s a new satellite radio startup company sneaking up on the industry from behind lately, called Canada Satellite Radio (CSR). CSR is one of two satellite radio providers in Canada that started service over a year ago. CSR is the provider of XM Canada, and the other Canadian provider is Sirius Canada, the direct competitor of XM. CSR’s mission statement is that it is “seeking to become the market leader in providing subscription-based satellite radio entertainment to the Canadian market.” Though it is still too early to tell, this mission could become somewhat of a losing battle real fast. CSR recently reported that it lost $102.7-million in its first fiscal year. Executives at Canada Satellite Radio attribute the $100 million loss to massive startup costs including the launch of a satellite, marketing costs and satellite receiver sales promotions.

What’s notable is that if CSR does eventually gain it’s footing, it could potentially become the third leading satellite provider in the world. Considering XM Canada is provided in partnership through CSR, the Canadian company at least has some solid training wheels to help get it going. Comparatively, XM reported 76,242 total subscribers after its first fiscal quarter in business. CSR has recently reported gaining over 120,000 subscribers within its first year. Considering the satellite radio market is slowing down, as providers try to scrape up every last subscriber they can, CSR isn’t really doing that poor of a job (subscription wise).

I would just like to point out that, regardless of the financials it’s nice to start seeing some diversity within the satellite world. Granted, there are extreme startup costs, as CSR has shown, only two companies (XM and Sirius) orchestrate the satellite radio world right now. Increased competition in general, will mean slower-rising prices, and better quality service. It feels as if currently, the world is being taken advantage of by only having two major satellite radio companies. WorldSpace, a startup “international” satellite radio company in the eastern part of the world has also entered the industry, but shows little promise as it continues to lose around $30 million each quarter.

Most businesses aren’t as risky as satellite radio. For instance, typical businesses aren’t required to launch multi-million dollar satellites into orbit just to get started. However, money is made where the risk is high, which makes the entire satellite radio concept such a big gamble. In fact, so far neither XM nor Sirius has broken even after being in operation for about five years now. This only shows what’s in store for CSR down the road, so I hope they’re prepared.

As for me, I think I’ll stick to opening up a small pizza shop.

Can Satellite Say "Jackpot?"

2006-11-10T17:18:00.000-08:00

A recent report by Bridge Ratings, extensively outlined the purchase rates and demand of satellite radio. Among other things, it numerically showed who the most promising consumer is in satellite’s future. So who is it?…drum roll please….College Students! That’s right, us college students are crazy about satellite and are proving it with our wallets (and our parents wallets) as the holiday season approaches.

If we can learn anything from generation Y, it’s that we hate commercials and want them to suffer a slow, miserable extinction. One way of doing that is by turning off terrestrial radio and blowing $400 on an iPod. The second way to avoid advertisements in our (music) life, now more apparent than before, is by purchasing a satellite radio receiver. It’s not certain whether Sirius and XM include the college-aged demographic as a “heavy user” when marketing, but they better start focusing more resources on them. The numbers have spoken, and they are telling the satellite industry there is a huge, untapped pool of potential subscribers among America’s higher-ed institutions.

Looking for alternatives, or even complements to the portable mp3 player, it is not surprising that the majority of satellite-curious college students are looking to buy portable receivers (57%), with Sirius subscriptions (60%). Sirius, being the preferred service provider is somewhat surprising, considering XM has more actual subscribers. However, this is congruent with Sirius’ latest pushes to increase sales. Sirius has been advertising like crazy on college football, and college watched sports. It includes certain college-aged programming like Howard Stern, and generally appeals to the college demographic by providing tons of commercial free music. As Orbitcast points out, Sirius has an advantage in awareness for college kids, mainly led by Stern.

Who knows how many college-aged generation Yers there are? And many of them have lots of mommy and daddy’s money to spend on luxury gifts like portable satellite radio receivers. Even if their parents aren’t loaded, the holidays are a comin’ and satellite radio is on a lot of gift lists. Bridge reports that “Follow-up interviews with this demographic show that the lure of the forthcoming holiday season has instigated new interest as the possibility of receiving satellite radio systems - especially portable ones - as gifts this year is a reality.” Well satellite, all I have to say is, DON’T SCREW THIS ONE UP.

Dead Air

2006-11-08T19:44:00.000-08:00

So, it’s been two weeks since I emailed both Sirius and XM satellite radio about certain concerns I had with their service, specifically their websites. I was concerned that neither XM nor Sirius really strived to connect with their customers on an intimate level. I was right, and now I have proof that both companies could cares less. So, I figured I would let the two in on a little secret: In the world of relationship marketing, it would be most beneficial for companies to rise above the standard, typical, boring e-newsletter and start to really show concern for their hard-paying customers. Technology has evolved from the days of automated emails and websites with cool colors and no features. So why do multi-million dollar companies insist on lethargically sticking to primitive media. Both XM and Sirius act like the e-newsletter is this revolutionary solution to customer satisfaction, when in reality…it’s pretty lame. Not to mention, there’s no “what’s new” feature on either website…so I never know.

How do XM and Sirius choose to keep me informed with new innovations and products? The e-newsletter, wow good job guys. How does XM respond to my comments about their communications being just as good as dead air? They respond with even more dead air and don’t even email me back. How does Sirus respond to my comments? They send me the exact email I scrutinized them for in my previous post; three lines of superficial concern and then three pages worth of promotions and ads. Same old, same old, guys. Your satellite technology seems to be in touch with the 21^st century, when can I expect your PR department to join?

Let me put it this way. Each day I wake up and am bombarded by flashy corporations trying to get my attention. In fact, one of those corporations is Apple, a direct competitor of satellite radio. Consumers’ attention these days is worth gold, and lots of it. That’s why when companies finally do succeed in getting a consumer’s attention, they usually treat it with the utmost care in order to encourage repeat business. In reality, XM and Sirius’ care for, and response to the customer is just as robotic as its digital broadcasts.

Satellite synergy….it’s only the beginning.

2006-11-02T20:37:00.000-08:00

For those of you who thought you’d never see the day…it’s finally here. If you are amazed at how a personal computer can fit into a shirt pocket, or a camera can be shoved inside a cell phone, then this will also boggle your mind. As if cell phones didn’t serve enough functions already, now they serve one more…a satellite radio receiver. I guess it was only a matter of time with this one though. I mean, we have two, portable satellite based technologies that serve the same functions – to receive audio/radio frequencies. Why have two separate components, when we can have one, compact unit? Well, it didn’t take XM and Cingular long to figure that one out.

Yesterday, XM broke news to its customers, newsletter subscribers and the world that it would be entering an exclusive partnership with Cingular wireless to offer customers the option of streaming satellite programming on their cell phones. In a press release sent via email to subscribers and newsletter recipients, XM stated that the new agreement provides Cingular customers with the option of receiving 25 XM channels on their cell phone for only $8.99/month. That’s right; you can eliminate the need for XM hardware and listen for $4 less than the full subscription rate. However, don’t be fooled by fancy-pants Mr. Marketing.

As it stands, this offer is a complete rip-off. Customers only get 25 channels for ¾ of the full subscription cost. That’s approximately 1/8 of the available XM channels for what should cost 1/8 of the full subscription cost ($12.95). By my calculations, this service should cost $2, not $9. Not to mention, XM will be selecting which channels you get to hear and don’t get to hear (something they scam people with through their online service too), and the sound quality will probably be less than optimal on a cell phone. XM should make it part of the deal that it can use Cingular’s transmitters, satellites and relay towers to increase XM reception and coverage, considering Cingular has “the fewest dropped calls.” Otherwise, I don’t think XM will really gain anything from this partnership.

I realize it’s still in the introductory stage, but this idea needs to be refined just a tad before going full steam. For now, the XM/Cingular package is just a load of digital garbage.

-thanks to gizmodo for the image!

Satellite Now Standard

2006-11-01T14:20:00.000-08:00

Recently, XM and Sirius have been seizing car manufacturers in their tire tracks to sign exclusive partnership contracts. Satellite radio providers have realized the massive potential in auto manufacturer partnerships, and are wedding themselves to as many as possible. The car is one of the most common, if not the most popular place for listening to the radio, and it presents major potential to any radio programmer. Since satellite radio has reached a plateau of subscriptions, it has become increasingly difficult for XM and Sirius to figure out how they can enlist more customers. Making satellite radio standard in vehicles is a start. Making satellite radio, a premium radio service, a standard in premium automobiles is pure genius.

Starting in 2007 is when you’re really going to see the change. Most agreements are for luxury cars to be introduced this year. The combination of satellite radio and high-end cars creates a harmonious synergy that screams high-class, and reeks of profits. It seems as if they were destined to be together. The idea stems from the same psychological influence on people that makes consumers pay $40 for ripped jeans. The mentality of, “Regular radio is for the average Joe and his average car. I am not the average Joe and my car isn’t average either. Therefore, I demand premium radio.” There’s also a bit of practicality to it, in that more financially secure people do not need commercials, they can afford to pay for radio that cuts ads, and they like playing with expensive toys like Porches and satellite radio. It’s really a perfect match.

XM started its search for auto partnerships with Acura. The car company announced it’s collaboration with XM in early September. Now XM has signed an exclusive contract with Porsche, stating XM is the sole provider of satellite radio for Porshce for the “long-term.” Closely following right behind was Sirius’ announcement of its own automotive partnership. However, Sirius kind of outdid XM on this one. Sirius, starting in 2007 will be the exclusive provider of satellite radio to BENTLEY!!! Though, I don’t know how successful satellite is with Bentley owners, they seem a little too upscale, even for satellite’s taste. Just in case, Sirius is also signed up with Volkswagon and Audi. Nonetheless, I’m starting to really see some innovative and creative business sense emerge from satellite.

Time to Step it Up

2006-10-26T20:00:00.000-07:00

So every week I am challenged with the task of finding new and cutting edge stories about satellite radio to comment on. However, every week it seems to be such a struggle to find information about what is going on behind the scenes at XM, Sirius and the satellite world in general. I blame much of this on both XM and Sirius for having deplorable customer and media relations section on their websites. I don’t think XM or Sirius even have a “press” or “news” section, and if they do good luck finding it. Each service offers a newsletter (XM / Sirius), but in my humble opinion they are just gimmicks to steal your email address. The majority of “news” that you receive in the newsletter is just promotions for new satellite hardware, and there is minimal content related to future programming and satellite events. The newsletter is simply a weak attempt at creating an exclusive connection with listeners, and it’s time to raise the bar to 2006 standards.

In a market that is headed towards building customer and interpersonal relationships, I would think that either of the two satellite giants would have already considered more effective methods of disseminating information about their product and service. What business doesn’t have a “recent news” page, or easily noticeable press section of their website? Blogs are built upon consumer feedback about fresh content from a company or source. High-traffic blogs have proven to persuade companies in far greater ways than focus groups and customer satisfaction surveys ever had. But when that fresh content is not available for the masses to even analyze, how great of a loss is that to the company? I can honestly say that I find more information about XM and Sirius on Orbitcast, than I do on the actual company websites.

I would like to see the satellite world step up its game and get with the program. Satellite is new, it is promising and it has potential. The satellite world needs to be hyped a lot more than has been, and new information about the service/product should be everywhere.

Bottom line, the industry needs to give people something to talk about, something to fuel the buzz with, and it has failed to really do so lately. In order to truly win this audio battle, the industry needs to secure people’s confident investment in satellite technology and divert them from the competition. In order to do this, XM and Sirius need to approach the market on a new level.

It’s simple, really. Stop riding the money train, XM and Sirius and start telling me what I want and what I need to hear.

Relationship Radio

2006-10-23T22:02:00.000-07:00

I think it is finally time to give a compliment to the satellite radio world. Specifically I want to recognize XM for at least trying to give me my money’s worth this week. Listening to my favorite station, Lucy on XM I am constantly entertained by the creativity XM exerts. As every radio station knows, the FCC requires that you identify the station at some point throughout each hour. However, just because the FCC mandates something, doesn’t mean you can’t have some fun doing it. Most stations do some type of fancy audio production that makes their station sound cool, and listeners don’t even realize they just heard a station ID. Satellite radio content is not regulated by the FCC, however, XM still makes an effort to connect with the listener on a personal level through channel ID’s each hour.

It seems as if XM went and personified each of its music channels to match the personalities of the people who generally listen to the channel. For example, XM recognized there is an interest in alternative rock, it created an alternative rock channel named “Lucy,” and assigned it a personality that reflects the lifestyle of an alternative rock listener. The channel’s personality comes out between song sets, incorporating little comedic tidbits that identify the channel. The listener is fed humor and stories that he/she would appreciate, and is able to connect with the service he/she is paying for on a more personal level.

One of the phrases often used for a channel ID is, “Lucy, alternative rock hits from when you were an employee at a lonely rental store dreaming about making big-time movies, all the way until you were the manager of a lonely rental store dreaming about making big-time movies.” What I think is even more hilarious is that XM creates phony wars between the listeners of its own channels. For instance, another XM channel with content similar to Lucy is the XM channel, Fred. XM cleverly created a fake rivalry between Lucy and Fred listeners by airing promotions like, “Lucy. It’s like Fred, without all the STD’s” in between songs. There’s also another promo that runs on Lucy mocking senders of pyramid scheme and Nigerian scam emails, urging them to send more information to Fred@xmradio.com. The promos seem to never repeat and always keep me anticipating the next one. It makes me feel like Lucy knows me, it connects with me the customer, and it makes me feel even better about the service I’m receiving. This is a goal any business would love to achieve, and I believe XM already has.

It is all just proof that with a little bit of creativity, it is possible to survive in a world without commercials. Which is supposedly the definition of satellite, pay-for-service radio.

A Touchdown for Sirius

2006-10-21T20:33:00.000-07:00

So I was ingesting my weekly dose of college football, watching the Notre Dame / UCLA game when my fanatic attention was caught by Sirius Satellite radio. In a movie trailer fashion, Sirius hyped its upcoming free trial period that will take place online October 25-26. The first commercial to air in the game, the spot focused around the Howard Stern show and how “he left regular radio” and “millions followed him.” The spot ends with the call to action, “find out why” followed by information on how to listen this week. As the game progressed, the frequency of the ad only seemed to increase, creating more anticipation in my mind. In fact, I intentionally watched the ad more than once to get the dates of the free trial, because the commercial flashed them up so fast. I don’t know if that was Sirius’ intention, but the reach of the ad increased as a result.

During his years of terrestrial radio, I admit I listened to Howard every now and then. Never did I imagine, though, that people would go out and buy satellite radio gear and Sirius subscriptions just to follow the king of all media in his crusade against the FCC. Sirius claims that millions did. Whether they did or not is irrelevant. What is important to note is that all those curious about Howard Stern or satellite radio in general now have the opportunity to experience them for free.

This is huge. Though I already have XM, you can bet that I will be experiencing a free trial of Howard Stern on October 25^th. It probably won’t be that great of a show, but I’m going to do it anyway. I have to say, in addition to showing the ad numerous times throughout the game, they also sponsored the entire football game, prompting the announcers to mention “This game is brought to you by Sirius Satellite radio” between every commercial set and first down. Sirius already airs college football games every Saturday as part of its unique programming, though, ironically that aspect was not advertised once throughout the game. If the commercial didn’t drive Sirius into your mind, the announcers talking about it every five minutes did. And just to put the icing on the cake, the entire Notre Dame coaching staff sported the Sirius satellite radio logo on their headsets the entire game.

Sirius really demonstrated a strong ability to integrate media and marketing messages in this stunt. Usinig television spots, announcers, coaching staff and their own unique coverage of collegiate football, the radio company created a synergy of communication. Football is an opportune time to advertise Sirius’ website and to get people thinking about the product, because there is a lot of down time throughout the game like during the half-time show and segues in and out of commercials.

Two of the biggest aspects of Sirius, college football and Howard stern were promoted simultaneously during this game, and will surely be one thing that sticks in viewers’ minds after the game. In fact, after I finish this blog, I’m heading to Sirius’ website to check this whole thing out. Their aggressive efforts today really made me want to find out more about their product. Good job Sirius.

By the way, Notre Dame won 21-17. Go Irish!

XM, Sirius, Apple…wait! Apple?

2006-10-21T12:57:00.000-07:00

Despite the huge success of the Apple iPod, the mp3 player market still struggles with the competition of the music alternative, satellite radio. However, in some cases the old saying “If you can’t beat ‘em, join ‘em” provides healthy and often lucrative advice. I believe future integration of the two digital worlds will be the prosperous solution to the mp3/satellite battle.

Satellite radio and mp3 players are like in-laws at Thanksgiving dinner; they’re from two different worlds and all they do is compare themselves to each other. There are definitely advantages to both formats, however, the idea of combining the two just hasn’t taken off yet. Well, leave it to Apple to take an undeveloped idea and market the bananas out of it. Reading an Apple press release one day about the integration of the iPod, iTunes 7 and movie content, the idea of combining satellite radio with the iPod immediately entered my head. True, XM has already tried this concept by including an mp3 player in their new portable receivers, but they haven’t been able to do it like Apple potentially could. If there’s one thing Steve Jobs and the Apple gang know how to do, it’s creating effective guerilla and buzz marketing campaigns. Why else would the majority of Americans pay $400 to walk around with white things sticking out of their ears?

It only makes sense. It only makes logical sense that Apple or any mp3 manufacturer try to partner with the satellite world, integrating the most successful companies into one solid product/service. I would recommend Apple join forces with XM satellite radio. This would be huge for both companies, combining the leading satellite provider with the leading mp3 manufacturer. XM is looking to expand its subscription base, and Apple is looking to incorporate the next biggest thing into its iPod. Having the entire audio world at your fingertips is very exciting and enticing. With the click of a mousewheel, you could get music, movies, and even satellite radio. Putting receivers in iPods, or even offering iTunes in XM’s portable units will no doubt increase the ubiquity of iPods and XM users.

Merging may be a lucrative and cool concept, but I like risk and adventure a tad more. I say it’s a no brainer that Apple should have a quick chat with XM or Sirius to discuss future possibilites. However, what would be even more exciting?...Apple Satellite. If Apple really wants to step up its game and become an unprecedented authority in audio, it needs to take a risk. Judging by the success of iTunes, I see Apple Satellite Radio being a revolutionary and viable option for the company. Knowing Apple, its satellite service would cost customers less than XM or Sirius, it would offer more content than either XM or Sirius, and it would introduce the world to satellite radio overnight. Very cool.

Thinking outside of the alarm clock.

2006-10-14T20:10:00.000-07:00

Nationwide and around the world, terrestrial radio stations are starting to acknowledge their fears of satellite radio. Satellite is so versatile, offering much more content than regular or HD radio, which can be accessed nationwide with crystal clear reception. With XM and Sirius being such strong forces, one might wonder which direction satellite must take in order to not sink to the bottom of the media ocean.

Mark Ramsey, President of hear2.0, The Audio Entertainment Strategy Company, provides an extensive overview and much insight into the future of terrestrial and satellite radio. Specifically Mark explains how traditional radio is affected by alternatives such as iPod’s and satellite radio, and how the consumer market is rapidly changing its demands and expectations for audio content. Mark starts the presentation by explaining that generally, the radio industry is at the mercy of those who possess the following expectations: free content, controllable content, dynamic and fresh content, commercial-free content. Mark shows that mp3 players and newer, alternative audio technologies now meet all these expectations and have promising potential as shown by the high recent sales of iPods/mp3 players. This poses a major threat to the radio industry in general, leaving more than just terrestrial in a panic.

Satellite has somewhat of a major competitive advantage over terrestrial because it is commercial free, or at least the music is, and because it has a vast selection of content. However, Mark stresses that satellite does not provide the content control mp3 players do. He also highlights that satellite is at a disadvantage because it is not localized, a feature many enjoy. He admits that what satellite does offer is entertainment value. With such powerful talent as Howard Stern (Sirius) and Opie & Anthony (XM), satellite provides a highly marketable incentive over traditional and HD radio.

Things like price, feasibility and operating ease were also major factors in deciding to go digital, satellite or traditional. Most people surveyed by Mark stated that they would get an mp3 player or satellite if it were easy to use and/or free. Mark decided to consult the famous digital media and marketing guru, Seth Godin about the future of radio. Seth responded by saying, “It’s a challenge to build non-radio links to listeners. How do I deliver multimedia to local users, which can give me a headstart over satellite and online.”

Keeping with Mark’s Statement of “People don’t buy radios, they buy what’s on the radio,” it is clear that satellite radio needs to continue providing specialized and unique content in order to remain a major competitor in radio. If people are willing to buy the entire satellite package just to hear Howard Stern, then the focus of the industry needs to become quality over quantity in order to gain customers. People like free content, and they don’t like fixing things that aren’t broken. Regular radio is still free, easy, and ubiquitous, and has satisfied for decades. Satellite is $12.99 a month, requires special setup and has been reaching a subscription plateau recently. For as much discussion as there is about “radio being dead,” it has certainly taken the forefront of business and consumer minds recently, proving it is here to stay.

Satellite Sellouts

2006-10-14T16:54:00.000-07:00

Satellite radio customers may realize that there are more and more advertisements being aired lately. However, it is not an illusion nor a coincidence that this is happening. In fact, satellite radio companies like XM and Sirius are now starting to be invited to radio up-fronts by prospective advertisers everywhere. Upfronts are meetings with advertising clients in which the advertiser can buy media from the provider (i.e. XM) on the spot. In a growing trend, more terrestrial advertisers are starting to budget money for satellite and internet radio. Pfizer, Geico, Procter & Gamble, Walgreens and Home Depot have all noticed expressed profound interest in satellite and online radio advertising lately.

This may not be news to satellite subscribers, though. Sirius and XM already cram underwriting into every crevice and break they can on shows like Howard Stern and Opie and Anthony. XM's advertising sales have exceeded $30 million to date, and that's up from the $20 million in all of 2005. "We’re anticipating a much higher sellout than last year, similar to traditional networks' 30 to 40 percent," said D. Scott Karnedy, Senior VP of Sales/Marketing solutions for XM. Some advertisers are spending as much as 10 percent of their radio budget on Internet and satellite radio, an increase from 5 percent last year. It’s a shame that this is happening, considering the whole concept of satellite radio is being commercial-free. Promotional advertisements do not belong in satellite radio, and they only compromise the integrity of the program provider and the participating artists. It is ridiculous that XM and Sirius are starting to get away with this. However, once again it all comes down to money and greed, as the music industry is still not satisfied with its billion dollar annual profits. They just have to have more, and they will get it by any means necessary.

The idea of satellite radio advertising is both frustrating and ironic. Customers have actually sued Sirius for its overzealous attitude towards advertising on a “commercial-free” medium. Indeed it may be satellites’ social responsibility to not act in such a selfish matter, but consumers are just hurting themselves. Just like cable television, satellite radio will eventually become one big advertisement that consumers will pay outrageous rates to hear and see. How does this make sense? It doesn’t.

Basically, it comes down to the fact that the satellite radio industry has consumers by the throat. Consumers are often put in the position of either “paying higher subscription rates” to eliminate the need for advertising, or let advertisers slowly infiltrate content like a virus in order to “keep prices down.” Since we live in such a capitalist world, the almighty dollar usually has the final say in these decisions. Most consumers are willing to allow a couple ads to be aired, versus having to pay an increased rate. The idea of rates soaring because advertising is not present is a major industry bluff, but nonetheless advertising always wins. It is a perfect example of how powerful marketing can be.

Ultimately, the best marketing defense is a good offense. While satellite radio increases its advertising placements, terrestrial radio is cutting back in order to maintain fierce competition. If satellite is not careful, terrestrial radio giants like Free FM and HD radio will steal their market share slowly but surely.

The Odd Couple

2006-10-08T00:10:00.000-07:00

This past Wednesday, October 4^th marked a major milestone in the satellite radio world. It represented the two-year anniversary of shock jock radio show hosts Opie and Anthony being on XM satellite radio. The O&A show was the first major radio program to make the switch from terrestrial to satellite so successfully. Opie and Anthony created high demand for XM radio as soon as they started broadcasting, and have built an empire in the digital radio world. Opie and Anthony showed to the world that satellite was possible, and that FCC regulations no longer had a stronghold on explicit content. Sirius soon followed in XM’s steps by forming a strategic contract with the “King of all Media,” Howard Stern. Thus showing that the future path of radio will be much like the path television has already taken. People will be more and more willing to pay for premium, unregulated content if available, and will revert to free broadcasts on a limited basis in the future.

What’s significant about XM and Opie and Anthony’s situation is that the two have successfully integrated competing worlds on a massive level. XM satellite radio has released its pride and joy, Opie and Anthony, to the terrestrial world indefinitely. Somehow, some way XM has figured out how to get people to pay satellite subscription prices for a program that is now simulcast on FM radio (CBS) for free. This concept may seem ludicrous at first, but so far CBS radio and XM have not reported any dilemmas or losses directly related to the collaboration.

Could the archenemy of terrestrial radio be the very thing that rescues it from obsolescence? There is much talk of radio “being dead,” however, XM has figured out how to increase terrestrial ratings while maintaining its own customers at the same time. This was made possible by creating a strategic synergy between the two communications giants. Logically, it makes no sense. Logistically, it is even worse of a nightmare. However, economically it is beyond genius. XM has built enormous brand equity with not only O&A, but itself. XM has converted this brand equity into money by teaming with CBS, and CBS has converted XM’s success into its own fortune. What was previously inconceivable has now happened. Two highly competitive adversaries have made harmonious peace, and as a team their potential is ridiculously promising.

Preaching Portability

2006-10-06T18:31:00.000-07:00

Delphi recently introduced the third generation of its SkyFi satellite radio receiver to the world. The race for portability in the satellite radio industry is heated, as personal entertainment products like the iPod continue to present a competitive threat to companies like XM and Sirius radio. Greater battery life, more music variety and better features are all part of the marketing and sales mix. Whereas the iPod is strictly an mp3 player, other mp3 format players that include FM radios, longer battery life and in-line recording still remain second to the almighty Apple. However, Delphi and XM satellite radio have paired up to provide listeners with a competitive product, that will surely nudge the iPod off Christmas lists this year.

The Delphi SkyFi3 has many innovative features in it, making it their most compatible player yet. In addition to an FM transmitter that allows you to play XM radio through a car’s speakers, it also includes an auxillary jack to connect external audio sources (like an mp3 player) and play it through your car speakers. The new player has an extra large screen, and a thirty-second buffer feature that allows you to pause, rewind and replay live broadcasts. It’s almost like the TiVo of satellite radio with this feature, helping users to never miss a beat. Like previous receivers, it has a recording capability allowing it to record up to ten hours of XM programming for future listening. This is a feature that was under much scrutiny lately by the record industry for copyright infringement. Nonetheless XM won the battle and is now permitted to exploit the feature in its products.

The main innovation of this product, however, is that it has fused the digital worlds of mp3 and satellite. With the secure disk SD memory card expansion card slot, the new SkyFi3 allows users to theoretically store an unlimited amount of mp3’s on the device. If users become tired of satellite programming, a personal playlist is now only a click away. The entire system is plug-and-play, and requires very little effort to set up. Delphi even provides the setup guide online so you can see for yourself how easy and simple it is. Check it out! For added reassurance, there’s even a nifty chart on the Delphi website that compares the SkyFi3's features to Sirius’ players and services.

With any number of accessoriesthis product can quickly transform in minutes from a personal player, to car audio system, to home boombox. This is really the direction that the portable entertainment industry is going. Personal entertainment focuses now more than ever on universality, feasibility, variety, and customizability. Users want on-demand content that is personalized, but also want to hear new, different content when their personal collection gets stale. I personally have over 115 gigs of music on my hard drive….that’s almost a year of music. However, I actually get tired of my own music every now and then, and then want to hear someone else’s DJing abiliites. That's where the SkyFi3 comes in.Despite my hardest efforts to obtain every song in the world that I like, I have not been successful. Satellite radio often gap fills for what is missing in my personal collection, and often allows me to just let the music roll and not have to worry about selecting content to play. Having a player that combines the best of both worlds is a phenomenal idea to me, it just had to be refined a little more before I bought one. The SkyFi3 seems to have the solution to musical boredom, and will set the standard for similar products to come.

Some Sirius Ubiquity

2006-09-30T18:41:00.000-07:00

Satellite is really starting to become a medium that reaches all crevices of the Earth. Satellite technology has enabled us to receive crystal clear radio reception throughout the country, and across state borders. You can drive from New York to Los Angeles, to Canada and listen to the same radio station the entire trip. The only requirement is that you have a direct line of sight to the south sky (where all the satellites are). However, problems may arise with satellite reception if you are working in a cubicle, inside an office, deep within a steel encased building with no windows. Thankfully, XM and Sirius have thought ahead…kind of.

Both XM and Sirius Satellite radio stream their programming online for customers, though, XM is a little more ahead of the game than Sirius. XM currently offers its programming online for free to all physical radio subscribers. However, if you want to join the XM nation without buying all the hardware, and don’t mind listening to the radio strictly online, XM offers unlimited online listening for only $7.99 a month...not bad. Sirius offers its online package for the premium price of $12.95! That’s a little steep considering you will only have access to “over 75” of the 200 channels Sirius owns. Granted both companies limit their online programming (for undetermined reasons) to certain channels, but Sirius is charging the same rate to online listeners as it is customers who get full access programming through a satellite receiver. This just makes Sirius look dumb, and would piss me off if I were a customer. However, Sirius has traditionally been the leader in price gouging. It initially offered its service for $12.95 a month, while rival XM offered comparable programming for only $9.99. XM wised up though, and like the oil companies love to do, realized it could charge a lot more for its product without justification. Now XM charges the same exact rate ($12.95/month) for traditional programming as Sirius.

Online streaming should be an added bonus to buying a satellite product. XM has hinted at this by offering online streaming (though limited) for free to customers with an account already. Sirius continues to sit there with a confused look on its face, as always. The beauty of digital media is that it allows digital programming to be manipulated in many ways, such as simulcast for cheap. However, it’s almost sad that Sirius announced just this week it would start offering online streaming to Sirius-Canada customers. XM has always offered the same programming and services available in America to Canadian subscribers. And why not? It’s not especially hard to do. I know it’s cold up there, but there is in fact internet access in Canada, and it’s stupid to deny people the right to throw their wallets at you.

The RIAA and MPAA are starting to sound like broken records.

2006-09-29T19:58:00.000-07:00

Does it seem like the Recording Industry Association of America and the Motion Picture Association of America have nothing better to do these days? Anymore, it feels like this dynamic duo has tackled and sued just about every innovative technology related to the entertainment industry. Services such as Napster and Kazaa have taken harsh beatings from the RIAA for illegal downloading and copyright infringement, by allowing mass amounts of people to obtain music for free. However, the recording industry fails to realize that it brought this technological rebellion upon itself. People frustrated with years of market exploitation for CD’s and Movies are now seeking revenge on the industry, and copyright infringement is slowly becoming synonymous with justice.

The RIAA and MPAA push hard to restrict liberal copying and distribution of media because corporations see things like digital music and digital “burning” as detrimental to the entertainment industry’s survival. However, the truth is more related to the industry’s pure greed. Basically the money bags that record labels and recording artists receive aren’t heavy enough to anchor their new yachts. So in a seemingly endless battle, both the RIAA and MPAA have started suing everyone for monetary damages associated with copyright infringement…again.

Now the RIAA has found its next victim, satellite radio. Last week XM radio was sued by the RIAA under the "Copyright Modernization Act" for including a recording feature in its new Inno portable receivers. The feature allows XM customers to record music on any XM channel right to the receiver for free. The idea behind this feature is twofold; so customers can listen to their favorite songs repeatedly, and so customers can still listen to music in no-service “dead spots.” Customers cannot extract songs off the player unless they buy them, so copyright protection is virtually foolproof. To combat the RIAA’s nonsense, XM used a clever guerilla marketing campaign to inform customers of the legal issues being brought to the company, and to persuade customers to take action against the RIAA. XM urged customers to contact their representatives and tell them to reject any bill restricting the use of XM’s new Inno player. The power of pissed off people in numbers spoke loudly this time, because XM successfully defeated the RIAA in the suit.

It’s pretty lame and absurd, that the RIAA now insists on attacking everyone instead of just a few major offenders. XM charges its customers monthly rates in order to write fat royalty checks to the recording industry on a daily basis. On top of a monthly rate, it charges its customers again to pull content off its music players! My question is how much money do you want? Is this issue really about protection of art and original ideas anymore, or has it become strictly about the ca$h? The future of satellite is greatly dependent on its ability to compete with the mp3 market, and XM has answered this industry opportunity with valiance. The RIAA on the other hand, has become nothing but a bully in the free market.

Putting the O in Radio

2006-09-23T21:01:00.000-07:00

If you think she’s already done it all, you’re mistaken. Oprah’s taken her career to diverse levels throughout her life. From television talk show host to actress, to renowned book club leader, she has broadened her talents in monumental ways. Now it’s off to the modern medium of Satellite Radio for the gossip queen.

XM announced earlier this month that starting Monday, September 25^th, it will commence the much anticipated “Oprah & Friends” programming on Oprah’s new digital-quality radio channel. Though it is a major career move of the opinion leader, critics do not see consumers scrambling to XM stores and resellers to purchase radios and buy subscriptions. XM radio, under scrutiny for setting unreasonable budgets to sign new talent, hoped that securing Oprah and her massive loyal audience would throw another sail up on its vessel. “Oprah and Friends” adds one more unique edge to XM’s programming, joining such successes as “Opie and Anthony,” “Bob Edwards” and “The Who Channel.”

It seems that no matter what Oprah says or does her cult-like audience will follow with joy in a trance like state. This is exactly what XM is banking on! Historically, XM has held nothing back when going after the next piece of radio gold, and buying Oprah was mere chump change to the corporation. What was considered priceless to XM, was the immense goodwill that would follow the hire of the personality.

We’ve seen this situation before with Sirius’ decision to sign Howard Stern. Though it did not work out financially as well as Sirius predicted, XM seems to have the formula down to a science. XM’s signing Opie and Anthony was a major controversy, yet has yielded unforeseen revenue for the company. XM also signed Bob Edwards with tremendous confidence after he was let go by NPR, resulting in a vast immigration of his audience from terrestrial to satellite to catch the veteran’s new show.

XM knows how to pick prime opportunities, and its new hostess will undoubtedly provide massive returns for the future.

Time to Get Sirius, and Listen Religiously.

2006-09-21T18:02:00.000-07:00

Well, Sirius figured out how to do it. All God, all the time, 24 hours a day, 7 days a week, 365...with a special segment on Christmas. If you've ever actually been to a real mass, you would know that going to church on the TV is not the same by any means. Well now you can go to church via satellite. Sirius realized there was a potential satellite radio market within the Catholic community and jumped on it like the Sunday offering. Sirius' decision to add a Catholic channel came from strong demand among the religious community and a need to create any marketable edge against the mega corporation XM radio.

Sirius CEO, Mel Karmazin states, “"This partnership with the Archdiocese is a significant step forward in our development and mission to provide our listeners with the finest and most distinctive Christian programming in radio." Such an integration of technology with tradition is exactly what’s needed to help ease the church into the 21^st century.

The format of the station will be open and informal, inviting not only Catholics, but people of all religions to interact with the church through a modern day medium. The ultimate goal is to provide a home for religious radio listeners (pun intended), and those curious about the faith. There will even be a simulcast of Sunday Mass from St. Patrick’s Cathedral in New York City available to be heard nationally.

Unfortunately though brothers and sisters, you won’t be able to escape the weekly collection here, it’ll still cost you $12.95 a month for the service…And be careful, if you go too far on the Sirius dial, you’ll find yourself in confession on Sunday for listening to Howard Stern.

Roady Meets Radio

2006-09-15T21:20:00.000-07:00

Taking a small page out of Apple’s marketing book, XM Satellite Radio announced September 13^th that Acura will now install XM radios throughout its entire 2007 model year line. According to the release by Acura and XM, Acura “will now make XM standard equipment on all Acura models.” XM somewhat borrows this idea from Apple Computer, which currently offers an iPod connection in Audis, Volkswagens, Hondas and even Acuras. It is one thing to offer an optional product or service when selling a car, however, the game is intensified when manufacturers start fusing their products with other manufacturers’ products, and installing components standard.

Acura also agreed to exclusively offer XM’s NavTraffic feature in its new models, trying to achieve what companies like Lexus and GM already offer; seamless technology integration. This concept delivers consumers the convenience of having multiple in-dash computer displays, which function as numerous things including a radio, GPS unit and climate control. This new partnership can either make sales, for both companies, go in the right direction or the wrong one. It is almost inconsiderate to install a radio, which requires a monthly operating fee, standard into a car. However, being a higher end car in the sedan market, Acura must have great confidence in what it is doing and that XM will provide an incentive for its new 2007 model line. Likewise, XM will be looking to Acura to provide the catalyst it needs in order to break 8 million customers. Together the two corporations could either make history and set the standard, or drive consumers to start buying Toyotas with strictly AM/FM receivers.

Whatever happens, it’ll be neat to follow each company’s progress.

"The Move"

2006-09-10T21:37:00.000-07:00

So you’ve decided to make the move, are thinking about making the move or are just down right curious about the move. “The move,” of course, refers to the switching from terrestrial to satellite radio. It's a big step and only time will dictate the true possibilities of such an opportunistic medium. Throw the latest innovation of High Definition (HD) radio into the mix, and things really start to get interesting. Confused yet? Don’t be discouraged, the more information you digest about this technology, the more you will want to embrace and own it. A lot of people are either hesitant to enter the world of satellite because they are afraid of technology, or just don’t want to front the “start-up” costs of entering this elite communication world. I, however, have implanted my XM radio onto my hip, as I treat it more like a vital organ than a piece of electronic equipment. What I recommend, is that you allow your hesitations to succumb to the exciting new possibilities of satellite and HD radio, and begin to explore the world of crystal clear audio and commercial-free music. Not to sound too much like an advertisement for satellite radio, I’ll still inevitably pay thirteen bucks a month for the service whether you read this or not.

2006-08-30T05:45:00.000-07:00

Welcome to my post