I just got back from the Starbucks I frequent here in New York City, and for the first time was given a free song as part of their massive iTunes giveaway.
Over the course of the past several months I've been watching this Starbucks and observing how their signage has been changing. First tip off to check for something was when Hear Music and XM Cafe "merged" (for lack of a better term)... I was curious to see what would change in-store. And indeed, the Starbucks XM Cafe logo began to pop up on some of the point of sale displays, but there definitely wasn't a major XM presence at all.
But when Apple and Starbucks announced their partnership, and the ability to buy songs you hear at Starbucks via WiFi, the signage changed instantly.
Now consumers see "Hear It. Love It. Download It." plastered everywhere. A slogan that sounds oddly similar to XM's slogan used for the Inno. iTunes is mentioned everywhere - not to mention on everyone's laptops in the store - and you know for sure that Apple and Starbucks are going full steam ahead.
XM, sadly, is no where to be seen. At least from what I could find. There's little chance of hoping on and riding the brand-recognition wave of being associated with Starbucks (and, let's admit it, a tertiary association with Apple).
Now, I'm not living in some satrad-fanboy delusion of grandeur here. Of course I understand that the iPod is far more ubiquitous than XM. The iPhone/iPod Touch sells to affluents. The same type of affluents that are willing to drop $4 on a Orange Mocha Frappuccino with Splenda and soy milk. And as such, Starbucks wants to relate deeper with this crowd of affluents, and increase the return rate (which is sick by the way: Starbucks pulls in 50 million customers a week, with the most loyal returning 18 times per month).
But I can't help but to think that there's a missed opportunity somewhere in there.
Sure, XM promoted Hear Music heavily within its own service - and even gave it a massive spotlight during XM's feature on The Apprentice (back when people actually watched that show) - but there was little being done to promote XM from Starbucks' side. At least from what I saw. Co-producing albums is one thing, but expanding the reach of XM just never seemed to be the focus of the deal.
The problem being that XM always wanted to be associated to Starbucks, but Starbucks didn't want to be associated with XM. Starbucks now wants to be associated with Apple. And they're not just associated, they're integrated.
I'm not sure if it's too late, but it sure is discouraging.
The problem rests squarely with the failed (rather, nonexistent) marketing plan put forth by XM's management. Had they had competent leadership in this area several years ago, XM might well have become more significantly involved with Starbucks to begin with. It was clear Starbucks was making a serious effort at becoming a player in the music field, yet, for some reason, XM's marketing department (assuming, of course, they even HAD a marketing department) never capitalized on it.
Marketing is about closing the deal, and XM simply never closed the deal.
Congrats on finally having an original thought. Orbitcast is little more than a shill for the sat radio companies, but I still RSS it because it's a convenient way to see what's going on. Imagine how surprised I was today to see you actually switch on your brain and think instead of just publishing another chart or press release spoon-fed to you by XM. For once you've got it right. I encourage you to continue thinking and posting original content instead of just republishing other people's links and PR drek.
Yikes!!
My Guess is XM is going away and Sirius is the brand that will be pushed.
I expect Apple will be involved with Sirius. I think Apple needs Sirius and Sirius needs Apple. wIFi is in some places Satellite is everywhere.
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What StackPointer said is so true. If XM had good Management the Merger would be the other way around.
(The problem rests squarely with the failed (rather, nonexistent) marketing plan put forth by XM's management. )
Reaperducer obviously hasn't been reading Orbitcast very long.
Reaperducer is an ass. Plain & simple.
back on point, this goes along with another huge player, Garmin, dropping XM for some reason.
XM really needs to get it together and start back with the integration with other brands.
Actually, SIRI's management has been worse -- they're only marketing effort to date has been to hire Howard Stern, which definitely added subscribers, but at a cost that can probably never be recovered. If one looks back to SIRI's prior management, the marketing failures are even worse than today. For example, Joe Clayton gave away two million dollars to a husband and wife in NorthEast Arkansas as part of a "marketing campaign". Did anyone even hear about it? There was the Pamela Anderson Car Wash. And significant expenditures to try and "pull" OEM installs which failed miserably.
XM's management has been superb in all areas other than marketing -- but you can't just rely on a superior product these days -- you have to sell it.
Huh? I agree w/Stack but where did you get that Apple needs Sirius? Are you fucking crazy? Sirius needs this merger or they're done. Apple will never partner with XM or Sirius. Never ever.
Apple will never partner with XM or Sirius. Never ever.
We will see about that. Apple is witrh HD and not everybody can get HD.
As far as Joe i think he did good running Sirius that had no radios to sell for 18 months.
Say what you want about Howard but were it not for him Sirius would have been gone long ago.
Sirius needs this merger or they're done
Sirius does not need the merger and that is because the FCC mandated the Interoperable radio.
Sirius saw to it that they had better content and market share of Sirius were people have a choice shows what would happen if all the millions of XM radios were turned on for Sirius at custiomer request.
That is why the merger XM knows they cannot compete with the radio the FCC mandated.
Reaproducer is David Rher.
Yo' .. Davy boy... look at what the Whole Foods CEO was doing on the Yahoo stock message board for Wild Oats. It aint cool and you will be exposed. Pretty quickly I might add.
Reaperducer,
I can tell you're from Rio Linda
Orbitcast is the main media outlet for satellite radio since the associated pukes don't pay much attention to day-to-day satellite radio happenings. Welcome to the alternative media.
now get outta here before i use my IP tracker on you.
>>> Sirius needs this merger or they're done
>>> Sirius does not need the merger and that is because the FCC mandated the Interoperable radio.
$100 to anyone who can make sense of this post.
Stack, the first line is a quote from pfreak's post, the rest is John's response. It's not clear, but that's my guess.
John, confirm this explanation, and we'll split the $100! LOL
>>> Sirius does not need the merger and that is because the FCC mandated the Interoperable radio.
$100 to anyone who can make sense of this post.
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Because that radio is a XM / Sirius Radio. You bought a Car with XM and wanted Sirius no problem it is also a Sirius radio. With more people choosing Sirius when they can all those people that had no choice because it came with the Car can call Sirius and they send down the firnware that makes the radio a Sirius radio. The same holds true for a Sirius radio getting XM. Some will want XM but more will want Sirius. XM cannot afford the loss of millions of subs.
Does that make it clear?
When a person understands this they see the merger in a different way.
F U Reaperducer.
While you lazily scroll through your RSS feeds this dude is writing up a storm everyday.
Back on topic before this moron derailed it....
Stackpoint is right. Marketing dropped the ball. Don't blame Hugh though, blame Dan Murphy and Steve Cook. Hugh was a great visionary but had trouble executing. Maybe XM grew too fast. Maybe he was distracted by the media frenzy. Whatever happened, it trickled down to the rest of the company.
That's why Nate was brought on board. To get things done. He brought a bunch of Nextel boys with him and they took over. Cook and Murphy were pushed aside and Marketing has spent over a year fixing the crimes of the past. You have to say they did a pretty good job.
Starbucks is still salvageable but XM has little leverage against Apple. They're lucky they got to keep the Starbucks logo for XM Cafe.
John, the reason we're so perplexed is that you're a fucking idiot. There is no firmware update that would allow XM or Sirius radios to work on the other system, you need to buy a new radio, none of which are on the market and none of which will be if there is no merger. The existing radios for both companies are incompatible. As for content, it's your opinion. If all the XM subs were so unhappy w/their service they'd either cancel or switch radio's now. I find Sirius's content to suck balls and they have way over spent for it. Without the merger Sirius will be belly up.
John you are a FUCKING IDIOT!
Mel did say the Ic's were done in 2004. So it makes sense that given the FCC mandate they are in the radios. Why would they risk a fine not doing what the FCC said they had to do?
They also said they spent $5 million doing it.
The FCC asked about the radios and Sirius and XM answered with we are in compiance.
It did not take all these years to develop the radios. Cost is not a factor because adding more to a chip is not a factor.
I would agree that i was a idiot if i thought they did not do what the FCC mandated.
I believe this is XM dropping the ball yet again. It's the only thing they're good at. I am beginning to thin Sirius has their crap much more together than Xm, even with the 700mil dollar burden. I'm starting to turn in favor of the merger, clean house at Xm. Wicky would be a good place to start.
Starbucks coffee is sold worldwide. iPODs are sold wordwide. iTunes are sold worldwide. That is why this alliance is happening, IMO.
XM is a US venture. The XM alliance is a great & important one to US and Canadian XM fans - but it is not as big as the Starbucks/Apple alliance.
>>> I would agree that i was a idiot if i thought they did not do what the FCC mandated.
The FCC did not mandate, according to XM/SIRI, the implementation of dual-capable receivers. They prototyped it, then said, "Okay, we've done our part, now if anyone believes it is commercially sensible to build it, we'll see". Nobody did, and nobody does.
The argument that there will be some new subscriber adds because they have "choice" is bull. [The vast majority of] people simply don't care whether it is XM or Sirius -- if they want satellite radio, they're going to take what's installed in the car. And the argument that they would prefer Sirius after listening to either/both for a while is pretty difficult to believe, given XM's clearly superior content in so many areas. People currently prefer Sirius at retail but this is obviously only due to brand recognition brought by Stern, which fades quarter by quarter. Retail, as we know, is dying, and OEM is where the action is.
People do care and that shows with market share were people have a choice.
The Chips were done in 2004 and Sirius was thinking merger as far back as 2002. (page 20 of the proxy statement)
The chips in the radios have been XRayed and more is in them than needed.
When it is in ic cost is not a factor.
The lawsuit Sirius won in 2000 forces both of them to make the radios.
It meant little at the time but it was in the lawsuit.
Sirius won from XM.
It makes you think Sirius thought merger was the only way from the start.
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Well now... bad week last week... how was weigh in? well.... I stayed exactly the same!!! yay!! i didnt gain I didnt lose. It was great. I'm very happy about that. So excited. The hair is helping i tell you. hehehe. I promise a pic eventually... however I've never had a hair cut where i needed to do anything besides blow dry & run... i dont use a round brush, i occassionally straighten when i feel like spending time. So Yesterday's first attempt at the hair didnt work out so great, to add to that it was...
“ Your skin… it’ s just, so… thin. How do you do it?”