[opendtv] News: iPods On Wheels Could Cut Into Demand For Satellite Radio
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 9 Sep 2005 09:15:36 -0400
http://www.radioink.com/headlineentry.asp?hid=130401&pt=inkheadlines
IPods On Wheels Could Cut Into Demand For Satellite Radio
As reported by Reuters, Apple Computer this week outlined plans to
expand its iPod music players into cars, raising concerns that the
move could cut into the growing demand for satellite radio.
Apple, which already cut a deal with BMW, announced it's teamed with
Acura, Audi, Honda and Volkswagen to integrate iPod products into
their car stereos for 2006 model lines. They expect more than five
million vehicles will ship with iPod support in the US next year.
As for industry reaction to Apple's plan, XM doesn't think iPod in
autos is threat.
"These are two very different offerings, both of which have been
embraced by millions of consumers," said XM spokesman Chance
Patterson.
"XM is unique because we have hundreds of programmers delivering
millions of songs plus live news, live sports and talk directly to
subscribers," Patterson added.
Sirius Satellite Radio, meanwhile, declined to comment.
"If the iPod feature is cheaper and allows you to download music you
already own, some car buyers might decide they're not going to take
satellite radio," said Gordon Wangers, CEO of AMCI, a
California-based auto marketing consulting company.
"It could be a slight threat to satellite radio but I would expect
they'll coexist," commented Kit Spring, an analyst with Stifel
Nicolaus and Co., noting that listening to a radio is a more passive
activity than using an iPod and that radio has live content.
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