It could be 3-years before you get Sirius and XM in a new car
Wednesday, March 26, 2008 at 4:34 PM

UPDATE: I just want to point out that the AP story has been updated to be somewhat less misleading. Previously it read "More Choice in Satellite Radio Years Off" but now the article, written by Christopher S. Rugaber, reads: "'A La Carte' Satellite Radio a Year Away."
Also, there's a bit of confusion surrounding the timing. Understand that the "3 years" cited here is based off of Barrington Research's estimates for OEM radios (due to the lag time that automakers tend to require) that does not mean Retail radios will suffer the same slowness in getting to market. Sirius and XM have said, from the beginning, that the A La Carte receivers will be available to customers within one-year after the merger is complete. I just wanted to make sure this was clear.
Following the merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., it could take up to three years before new cars would feature both services in "a la carte" packages.
That's the prediction of media analyst Jim Goss at Barrington Research, who told the Associated Press that automakers require lead times of several years to update dashboards with
new products. As a result, cars with interoperable radios likely wouldn't be on
dealer lots for up to three years.
That's not to say that both Sirius and XM won't be providing "best of" programming (see: will my radio still work?), which essentially is simulcasting of certain content from one service to another. We don't know exactly what big-name programming will be available yet - those content agreements all need to be worked out once the deal is finalized.
Still, analysts seem to think that few current subscribers will pony up for the new receivers.
Perhaps
5% to 10% of current subscribers "might go through the
trouble" of buying new radios for the "a la carte" option, Stifel
Nicolaus analyst Kit Spring wrote in a recent note to clients.
So here's a question:
Since most of you are current Sirius or XM subscribers - would you buy a new receiver when the "a la carte" enable radios come out?

UPDATE: I just want to point out that the AP story has been updated to be somewhat less misleading. Previously it read "More Choice in Satellite Radio Years Off" but now the article, written by Christopher S. Rugaber, reads: "'A La Carte' Satellite Radio a Year Away."
Also, there's a bit of confusion surrounding the timing. Understand that the "3 years" cited here is based off of Barrington Research's estimates for OEM radios (due to the lag time that automakers tend to require) that does not mean Retail radios will suffer the same slowness in getting to market. Sirius and XM have said, from the beginning, that the A La Carte receivers will be available to customers within one-year after the merger is complete. I just wanted to make sure this was clear.
Following the merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., it could take up to three years before new cars would feature both services in "a la carte" packages.
That's the prediction of media analyst Jim Goss at Barrington Research, who told the Associated Press that automakers require lead times of several years to update dashboards with new products. As a result, cars with interoperable radios likely wouldn't be on dealer lots for up to three years.
That's not to say that both Sirius and XM won't be providing "best of" programming (see: will my radio still work?), which essentially is simulcasting of certain content from one service to another. We don't know exactly what big-name programming will be available yet - those content agreements all need to be worked out once the deal is finalized.
Still, analysts seem to think that few current subscribers will pony up for the new receivers.
Perhaps 5% to 10% of current subscribers "might go through the trouble" of buying new radios for the "a la carte" option, Stifel Nicolaus analyst Kit Spring wrote in a recent note to clients.
So here's a question:Since most of you are current Sirius or XM subscribers - would you buy a new receiver when the "a la carte" enable radios come out?










