Clear Channel Radio's Total Traffic Network has inked a multi-year deal with BMW to provide traffic data to navigation systems offered in select 2007 BMW models, including the X5, M5, M6 and the 3, 5 and 6 Series models.
BMW's nav system, equipped with Clear Channel's traffic service, will become available as early as mid-September, and Total Traffic Network's data will be included with no monthly fees. This makes BMW of North America the first US auto manufacturer to offer real-time traffic as a standard service on navigation-equipped vehicles.
In my opinion deals like this pose a signficant threat to the satellite radio industry. Extended satellite services like XM NavTraffic and SIRIUS Traffic (and others like the upcoming XM ParkingLink) are flagship products that introduce consumers - especially luxury-oriented ones - to the core satellite radio offering. As nav systems become more ubiquitous in vehicles, consumers will be attracted to services that extend the capabilities of these systems. When presented with the choice between free and a pay service, it doesn't take a genius to figure out which one they'll go for.
This also marks the second time that BMW has opted to include a terrestrial radio backed technology - being the first automaker to include HD Radio as an option (albeit, an expensive one). And don't forget that they spearheaded the iPod integration option as well.
The question remains as to whether the service is even worthwhile, considering that Clear Channel's Total Traffic Network uses its own network of reporters, traffic cameras, helicopters and airplanes to provide traffic updates (as opposed to XM and SIRIUS who both use NAVTEQ). But with more than 125 metropolitan markets covered - versus XM's 44 markets and SIRIUS' 30 markets - the numbers comparison by itself isn't very positive.
UPDATE: Apparently the Total Traffic Network covers 125 markets in three countries (US-of-A, Mexico and... New Zealand). As for the number of US markets specifically it's the same as XM: 44.
[via FMQB]
I reserve the right to be skeptical of the service and its viability in fringe areas of the major metro areas. The one thing XM and Sirius have going for them in the telematics world is signal strength and coverage. I have a hard enough time with the MSN Direct service, which functions similar to the TTN, using a data subcarrier to transmit information and data to MSN Direct watches.
Now admittedly, a car is orders of magnitude larger in size than a wristwatch, and has a much better antenna and can have an amplifier to improve the signal, but there are still plenty of holes and static spots in metro area suburbs that I would imagine the effectiveness of such a traffic service working over an FM signal is significantly reduced, since the data is less likely to be received in a timely manner.
But I would count this as a ding to Sirius though. Here's BMW, already in the Sirius camp for satellite radio, and here's Sirius, with a similar traffic data service, and BMW opts to go with Clear Channel over Sirius. What's up with that?!
This is just one more nick off of XM and Sirius' armor. More to come I'm sure.
Doesnt BMW install Sirius exclusively? A nick off XM, not so much if thats true. Sirius, sure.