Joined: May 2008
The problems with internet radio
The problem with any internet based radio being competion with satellite radio are many, I have said them many times over the years. First WiFi is no where close to being able to be a viable solution to having a constant connection when commuting and lets face it that is where most listen to radio period. The reason is the cost, it is well known that when the companies backed out of the deals with the cities to help foot the bill for making WiFi available through out the cities that killed the chance for WiFi to be a reasonable platform for internet radio. One would have to ask why would the companies back out. Well they said it themselves it was not worth the cost and there was no way they were ever going to recoup the cost. Next broad band, yes it is more reliable but still not as reliable as satellite not to mention the cost to carry it. Which is the thing that always comes up, the cost. The Iphone while may add a few more subcribers to SIRIXM, it wont add that many. Why well that is simple, the cost. Why do you think Mel has not raised the price of a subscription in so many years. because the masses are only willing to pay so much for radio. That is also why internet radio will never be anymore of a competition to satellite radio then terrestrial. Lets face it I have been saying it for years because that is how long it has been out that internet radio has been saying it, "that it is already hard for them to stay in bussiness with the royalty rates where they are at but if they go up anymore then it will make it impossible". Well what has happen since then, thats right they are going up. So what will their solution to this be, as said by myself and now others they start to charge for it, or they add even more advertising (more then the commercials on terrestial radio), or go out of business. Lets also not forget the cost of putting internet into the cars in the first place. Well who is going to pay for that, sure the OEMs may foot the bill for the higher end cars but not for the types of cars (the ones for the masses) that SIRIXM are currently putting satellite radios in. Now lets get into the content how many of you are really going to carry around 3 or 4 different devices to get everything one device gives you. It is being proven that more people do not want to pay 3 or 4 bills even for 3 or 4 different things (hence why so many companies are doing bundeling).
I have said this all before long ago. Here is a shorter read for those that dont want to read the above.