Will Connected Cars Bring About the End of SiriusXM Satellite Radio? (Motley Fool Article)

evan152

Registered User
#1
When Sirius and XM first launched as separate companies, satellite radio offered people a vastly superior selection of content to the smattering of terrestrial stations offered in each market.

That continued as the companies merged into SiriusXM (NASDAQ: SIRI ) . Now, the vastly expanding number of digital music services and podcasts coupled with the increasing availability on in-vehicle Wi-Fi may make the service unnecessary and irrelevant.
A brief history of satellite radioWhen Sirius and XM began signing up customers in 2002, the Internet was a very different place, as was the music business. People were still buying music primarily in physical formats and Apple's (NASDAQ: AAPL ) iTunes store did not even open its virtual doors until 2003.

In the early days of satellite radio, the iPod -- and its ability to store thousands of songs -- was a competitor, but few cars had elegant ways to allow for using the Apple device or any other MP3 player easily. With Pandora (NYSE: P ) not launching as a mobile product until 2008 and Spotify not entering the U.S. market until 2011, satellite radio was really only taking on terrestrial radio for most of its early years.

That gave Sirius and XM, and later SiriusXM after their 2008 merger, many years of being able to lure in customers by offering more diverse music channels with no commercials along with a variety of talk and news programming the could not be found even in huge markets like New York City or Los Angeles. Satellite was also able to offer major talk radio draws, including Howard Stern and Opie & Anthony, an uncensored broadcast home with fewer commercial interruptions and no fear of the Federal Communications Commission fining them.

At a time when consumer choice was largely dictated by where they lived, satellite radio was an excellent value proposition. Now, however, the market has changed and the Internet has essentially put every song ever recorded in the hands of anyone with a Wi-Fi connection. It can also be argued that there is more good talk radio being produced in podcast form than there is on local, national, or satellite radio.

SiriusXM has an advantage since it's now built into most new vehicles, making it very use to use for customers. But that's an edge that looks to be evaporating as more cars offer easy integration with smartphones and complete vehicle connectivity looks to be coming.

The coming of in-car connectivityBy 2020 nearly all cars will be connected to the Internet, according to a report from Gartner, ComputerWorld reported. At that time, roughly five years from now "about 150 million vehicles will be connected via Wi-Fi, and 60% to 75% of them will be capable of consuming, creating and sharing Web-based data," the report states.

"To facilitate that kind of shift, connected-vehicle leaders in automotive organizations need to partner with existing ecosystems like Android Auto or Apple CarPlay that can simplify access to and integration of general mobile applications into the vehicle," Gartner analyst Thilo Koslowski said in the report.

That appears to be happening and another firm, ABI Research, predicted that Apple's iOS in the Car would power about half of them with the bulk of the rest of them going to MirrorLink, which already works with Samsung's (NASDAQOTH: SSNLF ) popular smartphones and tablets. So, basically, connected cars are not only coming, but half of them will integrate with the wildly popular iOS and another 40% or so will use software familiar to another swatch of people.

It's hard to see a place for satellite radioConnected cars take away many of the reasons why people subscribed to satellite radio in the first place. Music services like Pandora and Apple's iTunes Radio offer an essentially infinite amount of personally customized radio stations, while Spotify and other similar services puts huge libraries of music in front of people on an on-demand basis.

Satellite still has a few signature talk personalities including Stern along with Opie (but not Anthony who now hosts a subscription-based video/audio show available online), but there are literally hundreds of comedians and other personalities offering high-quality podcasts for free. I followed Stern to satellite, enjoy Opie's new show with comedian Jim Norton, and listen to much of the talk lineup on SiriusXM's "Mad Dog Sports Radio," including flagship host Chris "Mad Dog" Russo. But my podcast inbox is clogged with new episodes of "Nerdist," Bill Simmons' "B.S. Report," and the Motley Fool's own podcasts among others -- more than I have time to listen to and more than enough to replace the time I spend listening to SiriusXM while driving.

Some will argue that sports content is a difference-maker for satellite, but it's becoming increasingly easier to find local broadcasts of out-of-market games over the Internet. I still need satellite radio for one of the teams I follow -- the New York Rangers -- as my Connecticut home falls in the Boston Bruins market. But it's easy enough to listen to the games over the Internet with the only remaining hurdle being car connectivity (not a problem in my case as I have unlimited streaming data over Sprint and even my 2010 Hyundai has multiple ports for connecting my phone).


SiriusXM still has some exclusive content, and subscriptions start at $5.99 for limited service but generally cost at least $14.99 a month, so they may still makes sense for those on a limited data plan with their phones. But only until in-vehicle Internet connections become the norm.

It's hard to not see satellite radio as the solution to a problem that soon will no longer exist.




/QUOTE]

Hers the original article: http://www.fool.com/investing/gener...cted-cars-bring-about-the-end-of-siriusx.aspx
 

Ballbuster1

Cute I am.
Wackbag Staff
#2
I've thought this for a while. The options are getting
better and easier all the time. I use pandora in our
shop for music during the workday now.

You can tailor it to what you want to hear and even
if you go the free route the commercials are a minute
long every once in a while. Way less than regular radio
and you can spend less than SXM to go commercial free
if you really want to.

I wouldn't be surprised to see satrad start to fade away
in a few years.
 

ruckstande

Posts mostly from the shitter.
Donator
#3
I have too many options. Pandora, Slacker (which is great), and Music Choice depending on your cable provider. Fuck satellite and it's djs. Sirius radio programming is terrible and repetitive.
 

OilyJillFart

Well-Lubed Member
#4
I've thought this for a while. The options are getting
better and easier all the time. I use pandora in our
shop for music during the workday now.

You can tailor it to what you want to hear and even
if you go the free route the commercials are a minute
long every once in a while. Way less than regular radio
and you can spend less than SXM to go commercial free
if you really want to.

I wouldn't be surprised to see satrad start to fade away
in a few years.
I wonder if they have money set aside for new satellites.. I think the current ones had a 15 year life expectancy..
 

TomC

uppity neobarb
#5
people been saying this for years, but cell phone data plans have got worse not better, the next new thing has to come out to put the nail the the coffin. Right now its to much work to hear Ants show over turning on the radio in the van.
 
#6
Will Tom Petty's Buried Treasure be available in these connected cars?
 

JoeyDVDZ

Well-Known Member
Donator
#7
I've been considering getting rid of SXM due to the sheer volume of free content available on my phone. If I had a BT connection to my car that streamed music as well as call audio, I would have by now. Opie with Norton isn't enough of an incentive to hold on to my SXM otherwise.

The only reason I keep SXM is because it's still more convenient to listen to it in the car compared to streaming from my phone to the aux port on my stereo.

I'm also considering ditching TACS, because it's even more inconvenient to listen, and frankly eight hours a week is pretty lame for $6.95 a month. At least with the $15 a month XM charges, I get a shit ton more content.
 

Mags

A.K.A. Chad
Donator
#8
I've been considering getting rid of SXM due to the sheer volume of free content available on my phone. If I had a BT connection to my car that streamed music as well as call audio, I would have by now. Opie with Norton isn't enough of an incentive to hold on to my SXM otherwise.

The only reason I keep SXM is because it's still more convenient to listen to it in the car compared to streaming from my phone to the aux port on my stereo.

I'm also considering ditching TACS, because it's even more inconvenient to listen, and frankly eight hours a week is pretty lame for $6.95 a month. At least with the $15 a month XM charges, I get a shit ton more content.
You can get O&J on Audible for $60 a yeah. The only downside is nothing is live. It's like listening to a podcast.
 

weeniewawa

it's a man, baby!!!
#9
I would imagine some conglomerate of all the truck manufacturers will get together to pick up whats left of SXM and offer it as an added install in the trucks as they are the only ones who really need the service.

all of you with your 4g connections need to leave the city limits once in a while and see what is available out there. nothing
 
#10
all of you with your 4g connections need to leave the city limits once in a while and see what is available out there. nothing
Yeah, I spend a lot of time on the road, most of it is interstate which is pretty reliable but even within various cities there are spots that are just not reliable enough for live streaming. Meanwhile this supposedly out of date satellite service that I've had for ten years works flawlessly.
 

Frankie_b

Talk softly and drive a big tank!
#11
So Cadillac are going to murder sxm?

Mafioso drive Cadillacs, right?
 

mrfarstucker

Registered User
#12
... If I had a BT connection to my car that streamed music as well as call audio, I would have by now. ...

The only reason I keep SXM is because it's still more convenient to listen to it in the car compared to streaming from my phone to the aux port on my stereo. ...
I don't know how you feel about sticking stuff to your dashboard, but I've been using this for the past year, and it has worked out well. (I only use it for music, but it supposedly handles calls, too.) http://www.amazon.com/dp/B009NLTW60/?tag=wackbagcom-20
 

Ballbuster1

Cute I am.
Wackbag Staff
#13
I would imagine some conglomerate of all the truck manufacturers will get together to pick up whats left of SXM and offer it as an added install in the trucks as they are the only ones who really need the service.

all of you with your 4g connections need to leave the city limits once in a while and see what is available out there. nothing
I understand that. I've had XM for 10 years now
and love it when traveling but the options are getting
better and easier. SXM isn't going away next year but
they're not going to keep increasing subscriptions.

Even when I travel now I only use the XM in the
rental car when I used to use it more often. Now
I can download music and shows on my phone so
the XM sees limited useage.
 

TomC

uppity neobarb
#15
what do you do when the phone rings?
Do you unhook every thing, any one else in the can now out of luck?
 

ruckstande

Posts mostly from the shitter.
Donator
#16

JoeyDVDZ

Well-Known Member
Donator
#17
I don't know how you feel about sticking stuff to your dashboard, but I've been using this for the past year, and it has worked out well. (I only use it for music, but it supposedly handles calls, too.) http://www.amazon.com/dp/B009NLTW60/
I got this thing. http://www.thinkgeek.com/product/1c34/
Only downside it didn't come with any cables. At least the one I bought on Groupon didn't.
I have this for my bike. Works well. I have BT in my car though, and it's a pain in the ass to reach over to this thing to answer the phone. (In my car, not on my bike.)


http://www.newegg.com/Product/Product.aspx?Item=9SIA1PK18A3771
 
#18
what do you do when the phone rings?
Do you unhook every thing, any one else in the can now out of luck?
I have an aftermarket head unit with bluetooth in my truck (Pioneer). When a call comes through, the audio you are listening to is muted and I hear my ringtone play through the speakers. If I answer at the head unit then the call plays through the speakers. If people are in my truck and don't want them to listen to the call you answer the call at the phone like you normally would.

The headunit also has an input for bluetooth audio that works pretty well too for playing anything off the phone. Some older phones that do bluetooth calls may not do bluetooth audio though, my Iphone4 didn't.
 
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