Sunday, June 15, 2008

XM versus Sirius

An excellent commentary on satellite radio in the US (XM-Sirius merger) and observations on new technologies by Bob Leftsetz.

Let’s just limit our discussion to the car. That’s where radio is king. Sure, people listen at home, but the real money, the main activity, is in the automobile, where you’re a captive audience.

Now radio has been threatened not so much by the CD or the iPod, but by the cell phone. A great number of people are not listening to music in the car at all. They’ll only stop talking and start listening when what’s coming out of the speakers is more interesting than the blather coming out of their hand-set. As for the CD…that’s passe. As for the iPod, it never plays anything you don’t know. And you want to hear what you don’t know, you want to be exposed to new things, it’s human nature.

[…] But satellite radio. It’s in all new cars. Has been in most for years. The key is to get people to tune in, to pay for it.


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