Thursday, March 12, 2009
As new car sales dwindle, and satellite radio growth falters, new subscription sources must be uncovered. If people aren't going into their cars, perhaps they are going into their pockets. Sirius hopes so and thus it's time to reach prospective customers on their most useful device, their phone. "By streaming its music, sports and talk channels to users of the iPhone and iPod Touch, Sirius can give its existing subscribers another way to access content and let new customers sign up without buying new radios, CEO Mel Karmazin said."
In today's economy, it's all about the price point. And while the article doesn't specify, Sirius needs to be aware that they are competing with other radio type applications on these devices as well. Content exclusivity may matter, but only for so much. That is the lesson learned from the automobile side of this business. Still the appeal of getting out of market games on a phone may be appealing. I also think that Sirius may expand its distribution by bundling its services with Direct TV.
The world exists outside the auto and Sirius is recognizing that they need to be everywhere.
Posted by Andy Hunn