Competitors

CBS Radio and AOL Radio are combining operations. XM, a former partner with AOL will no longer be included in the mix. Whether this is good or bad for XM is in the eye of the beholder, but perhaps the bigger issue is what CBS has indicated about their deal with AOL. Merger watchers should take note of the following points made in the press releases:

1. CBS Radio has indicated that streaming radio is a “HIGH-GROWTH” field.
2. Partnering with AOL has provided CBS the ability to reach goals in streaming content.
3. CBS has spent years building out their content streaming operations.
4. CBS Radio feels that the deal will instantly make them the on-line leader in streaming audio content.
5. A combined AOL/CBS operation affords CBS a greater ability to scale (CBS termed it a vastly improved ability to scale).
6. The deal gives CBS “massive” exposure for their brand.

The streaming radio business has seen $1.6 billion in revenues in 2007. Ironically, this event demonstrates that there is crossover in the audio entertainment market and that consumers are indeed listening to music in many differing ways. While Sirius and XM struggle to gain merger approval, CBS and AOL have come together to form what they term as a leadership position with massive distribution abilities.

Position - Long Sirius, XM. No Position AOL, CBS.

The Apple iPhone is an impressive device to say the least. Users have enjoyed a myriad of capabilities with the iPhone which has blurred the line between telephones, and entertainment devices. Now, Apple has announced that the iPhone will be capable of interacting with Microsoft Exchange.

Worldwide marketing chief Phil Schiller stated, “The iPhone can now work directly with the Exchange server…this enables corporate e-mail, contacts and calendars.”

This new announcement by Apple means that users can more seamlessly integrate their work life with their phone, and they can get a great playlist of music to boot. Devices with capabilities such as the iPohone will become more commonplace over the coming year. These devices are far more than phones. They offer audio entertainment and other benefits to consumers as well.

VIA - Reuters

No Position Apple

In a story that highlights the competitive landscape for listeners ears, and how terrestrial radio can compete on more than a local scale, we see a new battle-front form. Inside Radio reported today an interesting tidbit that foreshadows the future of the audio entertainment landscape, or at least one aspect of it.

We have all heard the “terrestrial radio is about localism”. The mantra has been preached time and time again, but while the “local” chant is being spoken, terrestrial radio is also seeing massive growth on the Internet, which carries national, if not global implications.

New York City recently saw Emmis’s smooth jazz station CD 101.9 switch formats, and move their programming to an HD channel in the market. HD, without broad penetration, means that many New york listeners will be without smooth jazz unless they have an HD receiver. CBS, to counter the move began advertising a Los Angeles smooth Jazz station (KTWV) on their stable of New York stations.

The ads entice listeners to get their fill of smooth jazz via an Internet feed. The fact of the matter is that on line listening is an ever increasing segment for consumers. Radio stations that tout localism are now marketing well beyond the reach that they used to. The fact that this move is being advertised and promoted points to a shift in the competitive landscape that did not exist 5 years ago, and will only grow in the coming years.

In this case, terrestrial radio is marketing against terrestrial radio. In the future, it is not out of the question that terrestrial radio will use the Internet to broaden their business base. Will these moves be a shift away from “localism”? Only time will tell. Already many stations cater to a national feel with only bumpers and advertisements being dedicated to the local market.

No position CBS, No Position Emmis

Slacker Internet Radio is getting busy. The Internet radio service began shipping units last week, and now they have some great videos on line that demonstrate all that Slacker has to offer. So, what exactly is Slacker? Check out this video for an explanation, then check out their Radio, Software Player, Portable, and Premium Radio videos. One video even mentions terrestrial and satellite radio…HMMMM.

[ via SlackerActive ]

While Ibiqity’s FCC filings in the proposed merger between Sirius and XM indicate that they do not see themselves at the point of being viable competition for satellite radio yet, their feelings discussed in a National Association of Broadcasters board meeting paint a different picture. That’s sometimes how things are though.

NAB BOARD MEETING EXCEPT

Bob Struble, president of iBiquity Digital Radio Corp., updated the Board on what he termed a “breakthrough year” for HD Radio in 2007. He noted that HD Radio receiver sales topped 330,000 in 2007, compared to 40,000 the previous year. He thanked NAB for its support of HD Radio and urged broadcasters to continue to expand promotional efforts to help boost consumer demand.

Caroline Beasley, chair of the HD Radio Technology Advancement Task Force, briefed the Board on efforts by the Task Force and the HD Radio Alliance to target auto manufacturers with positive HD Radio messages. The goal is to encourage carmakers to “fully equip” vehicles with an HD Radio.

Given the data presented, HD Radio saw growth of 825% in HD radio sales from 2006 to 2007, and now stands at 370,000 consumers. For Comparison, it Took XM six quarters to reach the same level of penetration and Sirius 9 quarters.

Interestingly, HD Radio has stated in FCC filings that the exclusive deals are prohibiting them from being included in the OEM channel. Sirius Buzz has pointed out that this is not the case, and that HD Radio is free to negotiate with OEM’s. It appears that is exactly what they intend to do with their statement that they will “encourage” auto makers to fully equip vehicles.

It is always interesting seeing how the “argument” changes depending on the audience that is listening.

Position - Long Sirius, Long XM

As those that have followed Slacker are aware, the new Slacker Portables have begun shipping. The Slacker portable allows an Internet radio to be taken mobile, thus combing customized radio stations on the Internet with MP3 player type portability.

Slacker has even introduced a video that gives new users and consumers considering this new service a good feel for what their Portable unit is all about and how it works. Looking at the video, it is clear that the user interface is consumer friendly. It has also been reported that over 90% of users are taking advantage of a cool feature which allows them to pre-install their personal preferences on the portable units so they are ready to go the moment they arrive at the doorstep.

[ via SlackerActive ]

Merger watchers and sector followers have likely noticed that when Ibiquity files a comment or speaks to the FCC, they take no official stance on the merger. This seems odd in that HD radio stations are terrestrial radio stations that have adopted a new digital format. Traditionally, most, if not all, terrestrial radio stations as well as the National Association of Broadcasters have come out strongly against the merger. So why does Ibiquity take a neutral stance?

They Want Something Out Of The Deal

Ibiquity wants two specific things to happen if the merger goes through. First they want a requirement that all SDARS receivers be equipped with HD Radio. Second they want all exclusive SDARS OEM deals to be undone. These are concessions that Ibiquity would not have a prayer of getting if the merger does not go through. Thus, the merger between Sirius and XM has a possibility of benefiting Ibiquity if it is passed with these two stipulations.

Inclusion Into SDARS Receivers

Satellite radio launched prior to HD Radio. Consumers have already bought SDARS receivers. Those that have done this are not likely to opt to have two PNP units installed in their cars. HD Radio has already seen the retail channel soften for such audio entertainment devices. They are in effect third to market (after XM and Sirius), where those that were most likely to adopt the service have already adopted satellite radio. This makes retailing of plug and play units more difficult. Had Ibiquity launched prior to satellite, the tables would have been turned, and it would be SDARS trying to play catch up.

Continue Reading »

Slacker is getting more active, and their highly anticipated portable units are scheduled to ship at the end of the month. Even without the portable units, Slacker is a great experience for music lovers, and now they are putting their subscribers to the test in search of their next Slacker DJ.

If you are a Slacker listener, it is not to late to submit your personally programmed station for consideration. Here is all you have to do:

1. Create your own personalized radio station on Slacker.com. Slacker will judge the winner based on overall listening experience, creativity in the station description, and original station photo or image.

2. Submit your station. You may enter as many custom stations as you like. Each station will be reviewed and judged separately.

3. Enter by February 13th to win! The grand prize winner will receive one of the world’s first Slacker Portable personal radio players and a backyard concert by MySpace Records artist, Sherwood. The winning station will also be featured in the Slacker spotlight section for a week for millions to listen to!

Create It - Submit It - Win…Simple steps that fit the Slacker lifestyle

Slacker is indeed getting active, and while we love to cover Slacker here at Sirius Buzz, and will continue to follow developments. We have a huge announcement to make for Slacker fans. SlackerActive.com will be the place for Active Slackers to get the latest and greatest news surrounding Slacker. Join us on Slacker Active where you can “Go Ahead And Slack…We’ve Got You Covered”.

Sometimes when you are a start-up company things can go wrong. When this happens, it can seem as if the hole is so deep that you can not overcome the problems. With rave reviews about the Slacker service from sources such as the Wall Street Journal, Time, CNET and others, it seemed as if the Slacker concept was destined for greatness. However, the Slacker concept is not complete without the Portable media player and the satellite delivered content. That is why the release of the portable player this year was so important.

The Slacker Portable Player was recently reviewed by Walt Mossberg, and his opinion was not as rosy as previous reviews. Mossberg stated, “The two prototype Slacker units I tried, however, were hobbled by bugs and glitches that the company must expunge by the release date, which was originally slated to be this month. For instance, the players sometimes failed to wake up after going to sleep, requiring a reboot. The touch strip was unreliable. One player failed several times to connect to my account. Battery life is well below Slacker’s goal of 12 hours between charges. The company says it is aware of these problems, and pledges all will be fixed.”

Slacker should have learned a valuable lesson from XM’s Inno experience with Mossberg. Before giving something to Mossberg to review, you better make sure that all of the bells and whistles work, and that his experience with your product will be seamless. If your product is anything short of seamless, be prepared for the fallout.

In my opinion Slacker pressured themselves into trying to get a holiday delivery for their portable player, and would have been better served to perhaps announce their portable at the Consumer Electronics Show in Vegas, which is held in early January. As things stand now, the Slacker device will not ship by December 13th as originally promised, and instead will be delayed until January 31st, 2008.

All of that being said, I still am confident that these setbacks can not be overcome. CES is a big stage, and Slacker should give consideration to having a presence at the venue. The delays of shipment for those that ordered the product will not sit well with consumers, and the company should perhaps consider making things right for those consumers that wanted to give Slacker as a gift for the Holidays. Slacker should also consider partnering up with some key retailers to get support behind their product. A retailer such as Crutchfield would give consumers additional exposure to the product, and a place where consumer questions can be answered (as long as the staff is trained on the product).

The concept of Slacker has not changed, and I still feel that it is a compelling product that consumers will enjoy. The early technical glitches can be overcome, and at the end of the day, the combination of customizable radio and a portable player will be an attractive solution for consumers.

When contemplating the merger between Sirius and XM Satellite Radio, one needs to consider the competitive landscape. Merger proponents state that the audio entertainment landscape is robust, and that satellite radio competes with not only terrestrial radio, but i-Pods, MP3 players, cell phones with streaming content, as well as Internet radio.

Last evening the competitive landscape was outlined in the NFL game between the New England Patriots and the Philadelphia Eagles. Not on the football field, but in the commercials during the game.

There were the usual beer commercials and automobile commercials, but the commercials that I found most interesting were from Sirius and Apple, both vying for the ears of consumers. Sirius featured their new commercial where they illustrate how everything else falls short of what Sirius has to offer. The Apple commercial featured Mary J. Blige jamming and dancing while promoting the iPod and iTunes.

The commercials ran a few times each during the game, and clearly they were both trying to garner consumer attention, and therein lies a clear illustration of the competitive landscape in the audio entertainment arena. Advertising in a prime time NFL game where companies who want to sell content to consumers. Apple and Sirius were after the exact same audience, and both were compelled enough about getting the attention of consumers that their ads were featured more than once.

Both commercials are very well produced, and both get across a message in their own way. We have embedded the two ads below for readers to review themselves.

SIRIUS COMMERCIAL

APPLE COMMERCIAL

Position - Long Sirius, XM