XM Satellite Radio President and (interim) CEO Nate Davis has given Reuters some interesting details on what's to come in XM's future from a business strategy standpoint.
The company plans to introduce new portable radios next year and expects car buyers to account for more than 65% of new subscribers by the end of 2007, Davis told Reuters in an interview.
"Our strategy will be that we need to partner with more people (such as) portable navigation devices and cell phone providers," Davis told Reuters late Friday. "Sirius is not the center of my world if there is not a merger."
This is great news because being integrated into everything is what will help mass market adoption. Remember, people don't buy radios. And if satellite radio is one of those "hidden treasures" where you need to experience it to fall in-love with it, then integration is key. GPS devices are flying off the shelves, we should be riding that wave. So just to read that one statement from Davis gets the thumbs up... now, how it's executed is a different matter.
But wait, there's more... on the inevitable topic of the Sirius-XM merger, Davis had this to say:
"This is not a slam dunk merger," Davis said. "This is one of those that will be controversial. But we think on the merits, it will be approved in the end."
(Hey, at least he's being realistic about it.)
"Bill Gates ... has now come back to push the Zune media player," Davis told Reuters. "Apple and Clear Channel are partnering on HD Radio products for the holidays, and now the iPod has gone into the cell phone business. The market is getting more and more audio entertainment, and we are just one."
Nice to show different companies "crossing over" into the audio/media market. It's all blending together now. I only wish more references were being made to over-the-air audio on mobile phones, but hey, you never know which snippets Reuters chose to run with.
But forgetting about the merger for a bit, Davis touched upon OEM and the ramping up of installations...
Davis said XM expects more than 65 percent of its gross subscriber additions to come from OEM by the end of 2007, compared to the 50 percent range at the beginning of the year.
"We are in the middle of a ramp right now -- we just started some of the manufacturers this year," he said. "By the time we get to the end of the year, there will be a lot more manufacturers' cars with satellite radios in them."
[Reuters]
Good to hear - I have the Helix, which is an amazing device -- always room for improvement, but this was a great jump from the MyFi (which is still a great unit).
I love the inno myself, but its starting to feel dated in comparison to the new XpressRC.
Maybe we'll see another iphone lookalike?
(I hope its an interoperable too)
Please hook up with google and make the first cell phone with satellite radio. I would much prefer to here my satellite radio off my phone then to have to mess with down loading a bunch of music from the internet. Beside I could get npr all the time then!!!
"Our strategy will be that we need to partner with more people (such as) portable navigation devices and cell phone providers," Davis told Reuters late Friday. "
That is really good to read Ryan. I am of the firm belief that the the distribution strategy for Satellite radio content has to be
1. cars
2. internet
3. cellphones
Cellphones will make iPod will go the way of the Walkman in my opinion since its just a distribution device. Remember the Walkman sold over 100 million units in its day just like the iPod has done. Where is the Walkman now?
One thing we do know with radio Ryan is that media history doesn't change. Radio is an outdoor media. Approximately 70% of radio listening is done in the car. Thats why OEM is so important. Approximately 5% of radio listening is done in portable mode. This goes all the way back back to transistor radios to Walkmans to Discman.
So you have about 75% of radio listening done outside the home. So cars are of extreme importance, internet is next, and 3rd portable devices. The fact that there are about as many US cell phone subscribers out there as cars on the road - 230 million for each, makes the cellphone the obvious target for portable devices.
I disagree with the internet falling ahead of cell phone or portables. People didn't use the FM radio on walkmans because FM radio stinks. But with a service people want, they will use the "radio" function. I take my MyFi to the beach, BBQ's, tailgating, everywhere I might want music.
On the internet you have so many free forms of entertainment that you're limited in the fees you can charge for that service.
GPS, mp3, cell phones, etc, offer a piggyback situation where fuill fledged subscribers can be picked up. As a current subscriber, I know my wife is waiting for the Audiovox GPS units with XM built in and if I could find a cellphone that receives XM I would buy it in a second instead of bringing my PnP everywhere I go.
CalgoldenBear - History shows that 5% of radio listening is done in portable mode. Boomboxes at the beach, BBQ's and tailgating included. I doubt cell phones will move the portable radio listening percentages a lot but it could certainly move it.
2006 Internet radio listenership - 30 million listeners per week. I'm sure the number is higher now its been growing so fast. Of course it pales in comparison to the number of people that listen to radio in their cars which is well over 200 million.
http://www.fmqb.com/Article.asp?id=338947
Curious about the new portables but I agree with iband...I still love the MyFi and the Helix was a huge jump. I only bought the Helix because a friend of mine pretty much gave it to me for nothing. These devices have to be amazing to get anyone interested. Or it could be portable/cell phone which could change everything.
The Inno was great until they disabled the FM modulator in non-car cradle mode. It really limited the usefuless. Also I love the record function of the Inno. I recently went on a trip and brought my antenna and listened to both live and recorded xm shows. Did you know Satellite Radio is verboten on Southwest Airlines? Why is that?
No Merger + New Radios = HAPPY!
Jimmy on Leno tonight!
Unless these new radios are guaranteed to work with the post merger system, getting channels from both services. I'm going to stick with what I have.
IMO.. merger or not.. XM will have some darned pretty fancy stuff comming out... they have to have "plan B" for when the merger is not allowed/
I love my Inno and would be very happy to buy an updated version, but am I the only one that sees Davis' quote as saying "portable NAVIGATION devices" rather than "portable radios"? Granted, it may be a unified device, but I don't see a definite indication we will get a new Inno.
I know this is off topic but I just figured out who Anonymous Coward is! Just needed to share that...