It's almost not worth posting about retail sales anymore. It's just badnews over and over again. NPD Group's September 2007 data shows satellite radio retail sales fell 30% when compared year-over-year.
The sad part is that last year was actually an easy comparison. In September 2006, year-over-year retail sales were down 16% from 2005. So that just throws salt on the wound for an additional 30% decline last month.
The Quick Glance:
- Sirius September 2007 Retail Sales:
Down 25% YoY - XM September 2007 Retail Sales:
Down 38% YoY
Marketshare:
- Sirius September '07 Retail Marketshare: 65%
- XM September '07 Retail Marketshare: 35%
It's the same story again: Sirius pummels XM in terms of retail sales. Only this time, Sirius really pummeled, as XM has reached its lowest point in retail marketshare for the entire year. But there shouldn't champaign popping over in the McGraw Hill building, because being the big fish in a shrinking pond this isn't cause for celebration.
Something really needs to be done to reinvigorate retail. I know, I know, OEM is the future, but that doesn't mean that retail needs to be ignored.
After seeing continued landslide in July's NPD data, I mentioned that three obstacles lie in the way of retail sales growth: Installation, Perceived Complexity, and Value Proposition. These obstacles still exist, and there needs to be a concerted effort to bring satellite radio retail sales out of its doldrums. Because to just sit and watch this decline continue is simply ridiculous.
neither company has come out with a WOW retail offering in over 2 years. That time frame counts the Inno / Stiletto. Both radios are cool, and function well.
But with Apple coming out with one WOW item after another...
And cell phones getting cooler by the month...
and there is the SAME OLE crap radios out...
why would anyone run out and get a sat radio at retail.
The stilletto 2 is a smaller Stiletto.
The XpressRC is a COLOR screen...whooppee!
Let's get radios that all have memory card slots so Mp3s can be played through them. Make all radios portable, get that done somehow.
time was, XM was KILLING Sirius in WOW items revelaed time & time again.
Merge or no merge, introduce and get some KILLER satellite radios out now.
I think the issue is that people who already have satrad are the ones the buy the most units.... I must have 10 different XM units, Roady, Roady2, Skyfi, SkyFi2, XMPCR, INNO, yadda yadda. Now that I have the INNO i wont be buying anything for years....
They need to get the people to want the service, the unit is just a means to get the service. I wouldn care if my radio looked like a dog turd as long as it had good sound and delivered the content. I know I am probably in the minority regarding this. No, I dont have an ipod nor do I want one.
another problem for XM in retail is the fact there are too many radios that all do the same thing and look the same more or less.
They have the RoadyXT, Xpress & XpressEZ. aside from number of lines of display...same radio...creates confusion and a sense of whatever.
Then there is the SkyFi2 (HUGE in size), SkyFi3 (HUGE OVERALL).
The Helix & Inno & Pink Inno, what is what...consumer has no idea that they are same thing.
which is better they all ask?
Nexus - here today, liquidated tomorrow.
Sportscaster - what was that?
At least Sirius streamlines their offerings.
want a PNP 3 line display - Starmate 4
5 Line display - Sportster 4 & now Sportster 5
Portable? - Stiletto
want a starter Sirius? - InV and now InV2
That is it, aside from the relic radios in the past that have been officially discontinued.
XM - stop the confusion for the consumer and STREANLINE the offerings!
The Apple has been releasing WOW products? With the exception of the iPod Touch, I think iPods lag behind the rest of the industry as far as innovation goes. Apple has advertising and a consumer image that apple is always ahead of the curve.
XM and Sirius could improve retail significantly by offering some free trial service and getting rid of the activation fee. Have it included, not via rebate.
XM and Sirius would make great xmas gifts, but who wants to give someone a gift with an attached burden? I would give a handful of friends XM except I'm not buying them a unit, paying the activation fee, and paying for 3 months of service. Even if I get the ExpressEZ, that's $100 out of pocket and I'd have to ask the recipient if I could have the rebate form. I don't like my friends that much.
Package all new XM/Sirius radios with a card for free Activation and three months of service.
By the way, I like the MicroSD slot idea. Portable? NO so much, I like my PnP, wouldn't be interested in the added cost of portability.
I agree with the free activation and free month(s) of service idea.
That should be all year round, not just a holidays idea.
also, even though it lasted only a month, I thought that Sirius giving $50 back when the consumer got the Sirius radio professionally installed was a great idea.
A La Carte radios should help retail in a year or so after the merger. I still believe sat radio has to follow the razor and razor blade model. Give away the razor to sell the blades. Give away the radios with a locked in subscription.
How many millions of free cellphones are out there with locked in subscriptions? Cellphones followed the razor/razorblade model perfectly.
The sales will be better after the merger because no one wants to commit right now until they know whats doing.
It should come as no surprise to anyone that more OEM penetration will result in fewer retail sales. Since I have a Helix, I have the luxury of using the device in my car, at the beach or docked at home. But permanent, fixed installations in cars, numbering in the hundreds of thousands, will surely put a dent in retail stand alone units. Not only are you talking about buying a second unit, but paying for a second subscription just for out-of-car use. Most consumers are not going to sign on for that.
As the years go by, this will become even MORE pronounced, unless SatRad partners with Apple or something.
I have/had the AGT sporster too. It fits well in a tight spot. Got that one for re-newing my sub.
I am waiting on StackPointer's view. All other comments are meaningless. I want his spin on XM ass whooping by Sirius.
>>> I am waiting on StackPointer's view. All other comments are meaningless. I want his spin on XM ass whooping by Sirius.
There is no news on the NPD data; XM listeners are getting theirs factory installed, while SIRI is trying to slog it out in retail.
But if you want to see an Ass Whooping, I recommend you look at the following:
http://www.orbitcast.com/archives/top-10-channels-on-satellite-radio.html
'cause Sirius has Stern, and that's all they've got.
I agree with NWX and NorCal, there hasn't exactly been a lot of new products to jump for joy about.
I also believe that the fence sitters are still sitting on the fence waiting for the merger outcome.
Obviously, OEM is the future, but I believe the second biggest market will be the integrated units on cell phones/GPS/PDA's.
The newer "portables" have such an issue with the fm modulator being weak ( I know the whole FCC fight) but gosh it is almost umbearable to try and get through the commute with trying to get the darn attenna adjusted or switching channels. I know most folks can get the direct connection but again this doesn't make things so easy for the average mom and pop wanting to dabble in the Sat Radio experience. I will be getting a hard wired box with a compatible head in the near future but in the mean time very very frustating. And sirius giving away free radios to subsribers doesn't really help I have 4. You can keep them. Promote this to the newbies.
>>>> Obviously, OEM is the future, but I believe the second biggest market will be the integrated units on cell phones/GPS/PDA's.
Unless XM/SIRI can figure out how to do something about battery life and indoor reception, it is hard to see a cellphone manufacturer rolling the dice by putting a SDARS chipset in their phone.
StackPointer: Unless XM/SIRI can figure out how to do something about battery life and indoor reception, it is hard to see a cellphone manufacturer rolling the dice by putting a SDARS chipset in their phone.>>
Try Alltell for starters.
Alltel has a very limited subset of XM's service available via Alltel bandwidth.
That's not "integration" of a satellite radio receiver into a cellphone.
Right, the same applies for AT&T and Sprint. The mobile offerings are just a limited "taste" of what the full service provides. Unfortunately, no one wants to pay a monthly fee for a crippled service.
Indoor reception is what kills the portable market. Be it integrated into cellphones, or just to boost Inno/Stiletto sales. The experience is no where near that of the iPod - which simply does what it does, and does what the user expects.
That whole "value proposition" thing is a killer at retail. People inevitably will ask themselves "why the hell should I pay for radio when I already have an iPod with XX number of songs on it?"
The problem is that tens of thousands of people have invested a whole lot of time in sorting, organizing, ripping (and let's face it, "stealing") the music that's on their iPod. They don't want to let that go. The effort needed to build a significant collection has, to a certain degree, created an emotional connection with the device. It's an easier upgrade path to go from an iPod to an iPhone, than it is to go from an iPod to someone else controlling the playlist.
Portables are a tough market to break into. But even the GPS market has shown that in-vehicle retail can boom if there's the desire. The difference though is that GPS is EASY TO INSTALL. Put a suction-cup on your window, plug it in, and start driving. Satellite on the otherhand, is ANYTHING BUT easy.
Installation, Perceived Complexity, and Value Proposition.
"Installation, Perceived Complexity, and Value Proposition."
Content Content Content. Put Howard Stern's show on a cellphone and people will buy that cellphone.
"Installation, Perceived Complexity, and Value Proposition."
Content Content Content. Put Howard Stern's show on a cellphone and people will buy that cellphone.
It's BOTH!
Sirius and XM have a serious problem with their FM modulator!!!!!!!! If you talk with anyone that works at Sirius they will tell you that retail sales started going down hill when Sirius and XM was forced to weaken their FM modulators. I had recently bought a new sportster and the reception is absolutely terrible, I ended up going back to the old bigger and bulkier one just because it has the better FM modulator. Very disappointing and I now understand why people are not buying these anymore. I do not understand why these two companies were forced to weaken their FM modulators when my DVD player works great located under the passenger seat, why does it work great from such a far distance?? Because it has a very strong FM modulator! How come the FCC did not force the companies that make DVD payers to weaken their FM modulators???. I recently bought a new Lexus and had Sirius installed and will always keep one portable Sportster so that I can move it back and forth between my other car, office, house and to my boat. I could not imagine not having Satellite radio.
StackPointer: Alltel has a very limited subset of XM's service available via Alltel bandwidth.
That's not "integration" of a satellite radio receiver into a cellphone.
I said "for starters."
Johnnymack,
Do a factory restore/ default on your radio then go to this website:
http://fmchannel.sirius.com/
I did the above this morning and the difference is great. I can actually listen to the Sirius again during the morning commute.
Some great points were made here and this topic means more than the goofy Howard vs. O&A. I just want SatRad to grow for the better and be around for a long time. I have issues with the merger and concerns that it might not be a good thing. But I do want Sat.Rad to grow.
Like Ryan said....alot of people love their I-Pods since they program them and they dont have to install it like SatRad (which really is not that hard). Paying for activation then service, for me it's fine but alot of people can't stand doing that.
I'm just stating the obvious but I hope things work out long term.