http://www.markevanstech.com/2006/11/27/can-satellite-radio-survive-the-ipod/ A Canadian Take on the Web Sat, 30 Aug 2008 06:26:52 +0000 http://wordpress.org/?v=2.6 http://www.markevanstech.com/2006/11/27/can-satellite-radio-survive-the-ipod/#comment-2098 Anonymous Tue, 28 Nov 2006 04:05:57 +0000 http://markevanstech.com/?p=1935#comment-2098 The point which I did not make very effectively was that you can often sell services as a lower-cost substitute for products requiring an up-front investment. Also some people don't want iPods and some people don't have the required equipment, such as a computer, to make full use of an iPod. This may not be a great business. And it may not be a mass-market business, at least in the U.S. and Canada. I would not bet the farm on it. But I would consider it as one of several new approaches satellite broadcasters can experiment with in an attempt to discover profitable niches which they can grow. Trying to discover a profitable niche makes a lot more sense than what the satellite radio companies are currently trying to do, which is to be the mass-market huge-content variety music option, a business which has been unable to make a profit since XM launched five years ago and now looks like it is getting tougher because of disruption by the iPod. Larry is correct that a low-priced iPod accounts for a few months of satellite radio service. (US$79 for a new iPod Shuffle compares to about six months of basic XM radio at US$13 per month.) The deduction I would draw is that the satellite service's price may have to fall, reversing a recent trend of price hikes. Financial risk is rising. Re-orienting the satellites to another region where the monthly service option is more appealing and where an up-front iPod purchase is less appealing may be the right course of action. Mike www.OnDisruption.com The point which I did not make very effectively was that you can often sell services as a lower-cost substitute for products requiring an up-front investment.
Also some people don't want iPods and some people don't have the required equipment, such as a computer, to make full use of an iPod.
This may not be a great business. And it may not be a mass-market business, at least in the U.S. and Canada. I would not bet the farm on it.
But I would consider it as one of several new approaches satellite broadcasters can experiment with in an attempt to discover profitable niches which they can grow.
Trying to discover a profitable niche makes a lot more sense than what the satellite radio companies are currently trying to do, which is to be the mass-market huge-content variety music option, a business which has been unable to make a profit since XM launched five years ago and now looks like it is getting tougher because of disruption by the iPod.
Larry is correct that a low-priced iPod accounts for a few months of satellite radio service. (US$79 for a new iPod Shuffle compares to about six months of basic XM radio at US$13 per month.)
The deduction I would draw is that the satellite service's price may have to fall, reversing a recent trend of price hikes. Financial risk is rising.
Re-orienting the satellites to another region where the monthly service option is more appealing and where an up-front iPod purchase is less appealing may be the right course of action.
Mike
http://www.OnDisruption.com

]]> http://www.markevanstech.com/2006/11/27/can-satellite-radio-survive-the-ipod/#comment-2097 Larry Borsato Mon, 27 Nov 2006 18:49:46 +0000 http://markevanstech.com/?p=1935#comment-2097 Seriously Mark, who can't afford an iPod. They're selling for as little as $50 in some places. That's a mere couple of months of XM fees. Seriously Mark, who can't afford an iPod. They're selling for as little as $50 in some places. That's a mere couple of months of XM fees.

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