Ford SYNC, HD Radio and the state of competition - Orbitcast

Ford SYNC, HD Radio and the state of competition

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Ford SYNCYesterday I had the pleasure of getting a hands-on look at the upcoming Ford SYNC handsfree in-vehicle operating system. I walked in with the full intentions of gathering enough ammo to rip apart the spawn of the Ford/Microsoft partnership, only to walk away completely impressed.

Here's the quick breakdown: unlike Chrysler's MyGIG or GM's OnStar, which embed the functionality of a Digital Audio Player and a cellphone, respectively, into the vehicle - Ford opted to make your existing devices seamlessly integrated into your vehicle instead. So they partnered with Microsoft to create the software platform for which to do this. And that's the main thing to understand, this isn't hardware, this is software - complete with firmware updates for when new devices come out.

But instead of describing to you the functions of what the Ford SYNC does, I'd rather give my overall impression of how this is a groundbreaking system is. So watch the video from Autoblog below which demonstrates the Ford SYNC's capabilities far better than I can describe them.

Now here's the killer: Ford is making SYNC available as a factory-installed option for just over $300. And for the top-end trim levels, like the Focus SES, it'll be a standard feature. That's right... standard.

So if you have an iPod, or Zune (ha!), you can now control it easily while you drive. If you have a cellphone that supports a service like mSpot, or a phone that supports Pandora, you can now listen to them in your car... easily.

"If I was Sirius or XM, I'd be pretty worried right now," a Ford rep told me. "Why would I subscribe when I already get this stuff on my phone or on my iPod?" (This was before he realized I wrote about the satellite radio industry... which evoked a wide-eyed look - followed by the press-speak equivalent of 'hamina-hamina-hamina' - when I told him.)

To add insult to injury, Ford announced this morning that HD Radio receivers will now available as a dealer-installed option nationally throughout almost all 2008 model Ford, Lincoln and Mercury vehicles. Great, thanks Ford.

Now you can't blame them for giving consumers more audio options. It's what the consumers are demanding now... so they're forced to respond. "Exclusive" partnerships be damned, Ford's job is move vehicles, not keep the warm-and-fuzzies going with the folks at the 1221.

So what does this mean for the "state of competition"?

The main argument by merger opponents is that live content cannot be heard in a nationwide format other than with satellite radio. When you point out that services like mSpot, which broadcasts hundreds of channels to over 1 million subscribers nationwide, the argument is usually "yeah well, that's on the cellphone, I can't hear that in my car!" It's usually argued that any solution to integrate mobile audio into the vehicle is years away. That HD Radio won't be adopted on a mass market scale for years. That connecting your iPod to your vehicle is little different than using a cassette adapter.

But Ford SYNC is coming out this fall. And it'll be standard on the top trim levels (which constitute about 40% of Ford's sales). And this will have a ripple-effect throughout all the other auto manufacturers as the platform is licensed to GM, Honda and Toyota (this is Microsoft we're talking about... though as Dave Zatz point out to me last night, there is no Microsoft logo when you boot up).

And if I was working at XM or Sirius, I'd be looking this and shaking my head. Because those OEM subscriber numbers are going to take a turn for the worst as soon as this hits the streets. But nah, that's not competition...

17 Comments

I'm surprised MS lets the iPod work on it!

The Justice Department and FCC need to consider this and that technology is moving so fast. Competition is there.. the merger should be approved.

OEM is the future...retail doesn't matter...that strategy looks less like a winner after this.

Anyway, where were the OEMs (specifically Ford) the last few years? Did consumers just now figure out that they want lots of audio options? If they had implemented SDARS as aggressively as it appears they are other options, maybe Sirius and XM wouldn't be hanging on for dear life...

(Yeah, I know; overspending, blah, blah, etc.)

I woulldnt say this is a death kneel, (and i know no one has said that yet) but, this is a major blow to XM and Sirius. Sirius was just now starting to get entrenched in the OEM's and now this. For years and years Sirius worked hard to get Ford to come around to the idea of Satellite Radio, and it seems just like overnight they have turned their back on this great technology. Its staggering to me that this option will be happening so soon, whereas the integration of Sat Radio took years.

RADIO

Radio my friends will always thrive. 8 Tracks were supposed to kill radio. Cassettes were supposed to kill radio. CDs were supposed to kill radio. MTV was supposed to kill radio. ("Video Killed the Radio Star"). iPods are supposed to kill radio. From its inception radio was supposed to be defeated.

Name one person in this country that doesn't listen to radio in some form - terrestrial, satellite or internet. Its all radio. Radio is more popular today than anytime in its history. Radio will always thrive. Radio is growing. Never underestimate the power of radio. It is one of the purest forms of media ever invented.

I feel like I'm stuck in a game of "Family Business" and all the mob families are putting my stocks on the wall to be crushed by the competitive pressures in the audio entertainment market.


By the Buggles...... "Ford Sync killed the SatRad radio star. In my mind and in my car, we can't rewind we've gone to far"

"By the Buggles...... "Ford Sync killed the SatRad radio star. In my mind and in my car, we can't rewind we've gone to far"

Wasn't it one of the best videos ever? The first ever video on MTV.

http://www.youtube.com/watch?v=6LB6Q_oycfQ

Oh to be a kid again like you Satradio kids!!!! Enjoy it. I loved it!

here ya go XM and Sirius.. this is exactly what I have complained about but NO one Has picked up on it...

Satelite radio's "Exclusive" content is exclusing to one sat rad or the other... NFL or MLB is free to make a deal with anyone else... Say Microsoft and pipe the Audio content right in to cars.

All exclusive content deals MUST BE EXCLUSIVE AUDIO provider deals.

> XM will be owned by Sirius If this merger passes Stackpointer is just pissed because XM lost the battle between the 2

Actually, in the end we end up losing a choice. That's how that battle ends. Their may be some immediate gains in some areas but I think ultimately competing services wins out over mergers and acquisitions.

Even considering the mistakes both XM and Sirius have made, more satellite platforms are better than one. Speaking of that, where the hell is my Slacker portable? There must be some pissed investors right about now....

Muscle13, actually that as't rey the point of the song. Radio made music great no matter what the artist looked like (ie Christopher Cross) where as the video helped the artists that had the look popular.

ford took longer with hd radio then with satellite. for some reason,which is odd based on ford being one of the primary investors in Ibiquity...

I dont see hd as much of a threat in the near term as it will be (local) .but the sync device is a slick feature which will most likely open the door to other paid services for the auto oems

If i was a car company i would be looking every where to generate new cash on a revenue sharing deal with other content compaines that are willing to pay.

Im thinking the cell phones are the biggest threat going forward as far as devices go and a couple of the network owners likes rogers may just understand what it takes to compete in todays audio markets

I dont get it...I dont see much of a threat. Radio is still radio. Who the hell wantes to drive around listening to repeat music all day. Real fun when your in traffic......Also dont they make shit like this already? In car mp3 players and such.

See if you can burn sports and news to a cd and listen to that. Or download some stern and opie. Even stand up comedy.

Just 3 more months left and youll see the merged company grab this industry by the balls for the next year

-Upgraded systems (more memory, better receptiion, two services)
-08 car deals (new customers and new hype)
-innovation along the lines of software developement (should take the ideas of pandora and slacker
-More integration of products (cellphones, airlines, hotels, gaming systems)
-Possible deals with big company's and government. (like xm has attempted just recently)
-Sirius backseat will prob make some improvements by year end.

Synch = BORING!!!! Oh my God! All I want is Sirius Radio period. I don't want all that crap. If I was looking to buy a new Ford with an OEM product that didn't include Sirius Radio I WOULD NOT BUY IT. Thre is no better content that exists on radio. Sirius has the best radio on radio and the future is bright.

ITS Shitty Radios for Shitty Cars, Its a match made in Heaven!

I Just got my '08 Explorer EB and it came with Sync. The interface is very slick and recognizes voice really well. It integrates and copies my phone book from my cell phone (via bluetooth) in addition I can play My MP3 Player and switch the options all with voice commands. It automatically mutes your audio when on a telephone call and starts it back up when you hang up. If you are on your MP3 Player it pauses the music and resumes where you left off.

It took me a little while to understand how the Sync responds, but once I did I was hooked. I found it easy to control with my steering wheel controls. I have not given up my Satellite Radio - you can't get live events and news, etc. with your IPod. The Sync allows me to use voice commands to switch back and forth between sources, play specific artists, tracks or albums all while keeping your eyes on the road.

Bottom line - This is not a threat to satellite radio for consumers like me who travel a lot and don't want to change stations on the radio. Sync just makes it easier to control all the options I have in the vehicle.

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The pace of technology is outrageous. I bought a DNX8120 last year which is about the most advanced in-dash radio there is and I am already hearing quantum advances. Of course Kenwood could just update the firmware to respond to voice commands; interface to the car via the OBD-ii connector using USB to show MPG etc.; show nearby AM/FM radio stations with genre, etc. using the Garmin nav info, and XM could add more data channels via the GXM 30, vehicle recalls; updated vehicle maintenance information along with all of the data available on the MSN direct which by the way doesn't have the same coverage as XM.

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