Something I find funny
Has anyone noticed that the people that say, people are nuts for investing in satellite radio, that we are speculating to much, and it has no future. Yet they are the first ones to jumb on the band wagan about how internet radio will replace satellite radio. Excuse me, but is internet radio even exist as a viable business yet. If I recall most of them were saying the new royalty increases would make it impossible for them to stay in busuness. That is the first problem they are dealing with now. Not to mention how to keep a signal in a moving car. I mean wouldn't it be wise to at least figure out these basic problems before they start to use it as a reasonable replacement, to satellite radio. At least then the big question can be looked at which is who pays for the cost to put internet into cars. Hell they cant even find companies anymore to replace the ones that pulled out of the original deals, to help cities pay for WiFi being put all over the big cities (their excuses were that the cost was to great for the return). Now I am not saying that internet radio in cars will not happen on a wide scale. What I am saying is it is still way to early to be saying it will replace anything at this point.
That is a very good point, I've never really stopped to think about it that way.
The infrastructure is no where close to being where it would need to be for the rollout of internet in cars. We can't even get major cities to agree to it, and you want to get coverage out along the highways?
I just don't get the business model, what is the incentive for a company to lay down all this infrastructure to create wireless hotspots, and offer free access to the public. Where do they get the cut without charging for access? How does the internet radio station make money without charging an additional subscription or going advertisement based.
And the million dollar question is, if they are going to charge a subscription. What content are they going to provide to compete with satellite who offers major sports coverage, major celebrities, or to compete with terrestrial radio which is already local (and therefore arguably more relevant to many consumers) and more content rich?
I'm not too familiar with the listening options for internet radio, but don't at least some of them run into the same iPod problem of variety? If you are programming your own station around a band you like, or picking multiple artists, don't you run into the issue of no new content, no variety, just what you "know and love"? That's not internet radio, that's internet mp3 collection.
What are they gonna do when the radio locks up or gets a virus? You're right. Its a technology that is not ready. Satrad is the best broadcast technology now and for at least the next few years. People with the latest computerized phones are complaining of glitches and buggy operation. These faults are inherent in that technology for the time being. Satrad works much better than the internet for the purpose of broadcasting audio entertainment.
Here is my problem with the argument:
WiFi is only going to help Satellie Radio as well.
If WiFi is enabled, Sirius/XM will no longer have to place terrestrial repeaters in high population areas, like they are now. Instead, they add in a wifi connection to the SatRad, and they are able to access the wifi for continued coverage in large cities where Satellite reception may be poor.
Also, NAB has gotten the FCC to rule that Sirius/XM cannot broadcast local content via terrestrial repeaters. Can they regulate what is broadcast via WiFi?
Newman, that still falls into what I am saying, about internet radio being able to compete enough to put satellite radio out of business. That even by the time they work all this crap out, satellite radio will already be past that point, where they will be worring about radio in the US or radio period, for that matter, as their only revenue steam. My point being is if people can speculate about the future of internet radio, then I can speculate about the future of satellite radio. That that far in the future anything can happen. Lets face it, what exactly is the difference between terrestrial and internet besides the fact is is going to be much more expensive to run internet with the RIAA constantly coming after more and more revenue per song. Internet will have more commercials then terrestrial, that is a undisputable fact. I would like to first see how internet radio competes with itself before it takes on satellite. lets face it internet is going to be fighting with itself and put each other out of business before it can take on satellite. So in closing, as you said bring on the WiFi, in the end it will only, end up helping satellite radio more then it will hurt it. "CONTENT IS KING" , always was, and always will be.