WhiteSites Blog

iphone spells the end for SIRI and XMSR

Posted on Sep 19, 2007 by Paul White

If you compare Satelite Radio to other technologies, its suprizing that it has made it for as long as it has.  My honest opinion, these stock's entire value is based on hype, and speculation.  Neither company turns a profit.

A few technologies threaten its customer base. 

IPOD / MP3 players. 

Users now more than ever want to hear what they want to hear and when they want to hear it.  Users can get their music off Itunes or a number of other services, including ones that are free and not exactly legal.  Most 20 something yuppies carry them.

Internet Radio

This is how the marjority of computer people and IT professionals get their music.  With over 10,000 internet Radio Stations, there is a wide selection to choose from, and in all languages and genres.  All you need is an internet connections.  Since most cell phones also have internet connections, these portable devices can tap into the internet radio while on the go.  If you subscribe to a unlimited data plan.  Like Tzones from Tmobile.  Then it doesn't even use up minutes to listen to internet radio on your phone. 

Local Radio

Even though in recent years this format has struggled to keep up, it still plays a huge part of users listening needs.  Most would agree that the programming on local radio has improved to keep up with competition.

Why Satelite Radio will fail.

If we have learned one thing in the past couple years, its that advertsing dollars are going online.  Companies like Google, YouTube, MySpace, make this evident.  With internet based Advertisers you know when people are looking at your site and where they are from.  These are not nelson ratings. These are real people, and real statistics.  Satelite Radio has no way of tracking when people are listening, where they are from, or what station.  This makes advertisers wonder if they are just wasting their money.  Satelite Radio also suffers because its not a practical to get local advertisers ( small businesses ) which are the bread and butter of Local Radio's Revenue. 

Where is this going?

Lets take a look at the evolution of personal technology.
Wrist Watch ---- > Cell Phone ----- > Cell Phone with Camera ------> Cell phone with Camera and Internet and Email ----- > Apple I phone. 
Apple has sold over 1 million Iphones in less than 6 months. 
Iphone can get Internet Radio.
So where do you think the future of mobile entertainment is going?
Think about when Internet Television makes it to cell phones.
Then Cable Operators will be the next on the chopping block

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