Google Radio To Use Audio Ads – Internet in 5 Million Cars By 2015
It is a subject that has been in the news for quite some time, yet satellite radio fans and sites seem to ignore the news. In my experience one thing that no one should ever do is ignore Google. The company is a giant, has a bankroll bigger than many nations, and does not often fail at something they attempt to do. In news today it was speculated that the Google streaming music service will use audio ads.
MediaPost has been following the subject closely, and their latest information about audio ads for Google's Streaming to Android Smart Phones is yet another aspect of the service that makes it a potential to many audio entertainment services. MediaPost mentioned that a service like the one speculated for Google will compete not only with iTunes, but services such as Pandora. What audio entertainment fans should realize here is that Google does not tend to do things only part way. I would anticipate a full service offering that will compete with everything out there.
In addition to this news it is also being reported that Internet will be in 5 million cars by 2015. Analysts Frost and Sullivan note that, "Brought-in apps such as Internet radio are the latest developments in the automotive apps and services market. There is a gradual shift in the United States and Europe from embedded telematics to hybrid connected telematics in terms of allowing features to run from a smartphone inside the car. Within this hybrid connected space, vehicle manufacturers have enough traction to allow Internet radio apps to run inside the car from the smartphone and control it using vehicle Human Machine Interface (HMI)."
There are indeed challenges to such services gaining across the board integration, and even challenges of price points on cellular services for data plans, but the shift is already happening, and when a major player like Ford is taking the role of letting consumers decide, it is only a matter of time before others follow suit.
"Gen-Y'ers and technology usage trends in the United States and Europe are driving the use of mobile Internet on new generation smartphones and downloading apps from sites like Apple is becoming increasingly popular," says Frost & Sullivan's Global Programme Manager, Praveen Chandrasekar. "By using safe HMI to allow smartphones to be accessed inside the cabin, vehicle manufacturers are creating a superior brand image since consumers can continue to savour their digital experience inside the car." In Europe and the United States, Gen Y will continue to account for at least a quarter of the total population until 2030, but in South Asia, Gen Y will likely represent over 40 per cent of the population by 2030.
This market is not without its challenges though, with connectivity and driver distraction being the main problems. On the one hand, vehicle manufacturers are looking to offer connectivity and services using consumers' voice and data connection. On the other hand, telecom operators are objecting to this model and want vehicle manufacturers to put an additional security identity module (SIM) card with a dedicated voice and data plan to power services inside the car."
Many cars have already adopted iPod connectivity. There are even consumer solutions that allow consumers to utilize smart phones with the car through an auxillary input or USB slot. Personally I use the XM SkyDock. It is my preferred device because I can use Sirius XM, my iTunes library and even my cached Slacker stations all from an easy to control and navigate system. By this method there are already millions of cars on the road that are "capable" of Internet connectivity. The 5 million spoken of in the Frost and Sullivan report is the next phase in the process. Integration on a larger scale that truly connects the smart phone to the car. This is already happening with devices such as the SYNC system used in Ford vehicles.
As I have stated in the past, all existing media companies that deliver content to the car need to be developing strategies to deal with what will be a swift entrance into the OEM channel by other competing services. The time is here that the future of the OEM dashboard will change. It is no longer a question of if, it is a question of when. In the past I have written about the demographics that satellite radio appeals to compared to services like Pandora and Slacker. These services all need to figure out how too broaden their horizons and develop strategies to participate in the audio entertainment world of tomorrow. Satellite does indeed have some distinct advantages, but they are not advantages that are insurmountable by a big player that wants to enter the space. Through a smart phone anyone can deliver national or even global content without the expense of satellites.
I realize that this type of news may not rest easy with satellite radio fans. I also realize that satellite radio fans need to know these things. Three years ago I was not able to easily write an article from my phone. It required me tethering my Blackberry to my computer to act as a modem, and the speeds were cumbersome. Two years ago there were slight improvements. Today I can write and publish articles via my Android phone, and often do. Changes happen, and they are happening fast. If you are a satellite radio fan and felt no threat from Slacker or Pandora, the fact that Google is entering the space should wake you up.
[via prnewswire.com Report]
Position - Long Sirius XM Radio, No Position Google, Ford
Well Spencer, I had long suspected that you too have now gone over to the “dark side”. It has been evident with the recent shift in your posted headlines and stories. I was actually waiting for a major hitter story about Google or Apple possibly taking down Sirius with their future plans of expansion into the industry, and well…as expected, here it is. Designed, and timed, to knock down the long anticipated jump in SIRI stock price as we close in on the 2nd quarter official report. Oh sure…we all needed to hear NOW that in 2015 Google MIGHT become a player…and that soon EVERYONE will be competing with Sirius…and we all need to see and hear this TODAY. No need to write about all the positive achievements of SIRI, or the excellent short and long term growth prospects as a result of the company’s ever improving financial picture, or the dramatic surprise improvement in subscriber growth, churn, and auto sales. Instead, lets instill fear in SIRI investors so the SHORTS don’t get hurt too bad. Something is SIRIUSLY wrong here. And I REALLY AM and will remain… long SIRI.
I believe you are finally catching on to this “SHILL”. He’s nothing more than a front man for some hedge fund or M M wolf pack. Why do you think he change’s his pen name every 6 months. Why would anyone with sirious intentions post such a negative article on the eve of what is considered to be a very positive 2Q report. Just doen’t make sense does it.
I am simply reporting what is out there. Google Music is gaining traction every day in media circles. I am not going to ignore that.
1. I have written under two names. Tyler Savery and my REAL name, Spencer Osborne. I have been writing for five years, so a change every 6 months is FAR FROM ACCURATE.
2. I have NOTHING to do with any hedge fund, Investment Company, or anything other than writing about Sirius XM and the media sector.
3. The quarterly report is days away and not tomorrow. I will be reporting on the anticipated number in more detail on Monday.
4. I do not write to boost or take down anything. I report the news that is out there. Ignoring such news is foolish. Writing to “boost” or take down the stock is unethical.
The fact of the matter is that Google Music is anticipated to be reality within months.
Ah hooey! I’ve been following your articles for a long time. This is more than a coincidence. You can go back prior to just about any pre-announced positive quarterly report and you and your side kick Brandon Mathews inevitably have come out with an article that has a negative slant to it. So I’m not buyin what your sellin. I’m long and strong in siri and you can print all the BS you like, it’s not going to change my position.
And this not new info. or news worthy. This has been out for some time.
With all due respect you are leveling accusations that are not based in fact, but are simply outlandish. I am a fan of satellite radio, but I am not a pump site that paints a rosy picture all of the time. As for Brandon Matthews, he is no longer here for a reason.
Instead of blindly making assertions that I have some type of agenda, why not outline your case. You are the one accusing. Lay it out there. Pull up each quarterly call over the last 5 years and point out each article “positive” and “negative”. Present them here for all to read.
Ok lets just say your timing really sucks then.
O.k. then lets just say your timing really sucks.
Wow, how stupid that there are so many important people in the world who must do so many other things than drive and listen to music. Must have the Interfag in my car- we need a plague.
Kill The Messenger !!!
I agree with Eduardo! Internet radio is still not an option that is viable in cars. I use it on Hughes Net and then Hughes Net slows down because I have used up too much bandwidth for too long. I agree that delivery options are changing but the best option is and remains satellites. SIRI makes money the next two quarters and this stock goes meteoric.
And Sirius will be available in 70 million cars in 2015, will be in every cellphone and has no commercials with the music,
and does not charge per download.
“That service, reportedly coming as soon as November, will sell music online and notably stream PURCHASED music”
Muscle…..
Google’s exact plans are not known. Their new attorney notes a subscription model of $5 to $10 per month. This speculation is dealing with advertising. It is simply not known yet.
Sirius does have the advantage of being in more cars at this point…i agree. The same logic could be applied to terrestrial radio….it is in every car on the road, yet somehow every satellite radio fan thinks it is terrible, and is going away. Terrestrial is not going away, and the barriers to gaining entry to the car are getting smaller now if all an OEM has to do is allow devices to integrate.
Seems like Google is going to be a nice competitor to iTunes which is very much needed.
People have been talking intenet radio in the car since 1994. As opposed to you thoughts it is going musch much slower than anybody had hoped for.
To tell you the truth if the net makes it into 5 million cars by 2015 ( whch nobody knows whether it will) that is quite honestly a pathetiv number and something that has been predicted for over a decade now.
The internet in the car through a smartphone is not where the real issues is. The issue is whether it can ever be directly be in the dashboard without a smartphone the way terrestrial and sat are.
Man I should have proofread for spelling and grammar, but you get the point.
As opposed to you I believe this car integration is going so much slower than everyone in the industry predicted and that is truly bad news for internet radio.
“The same logic could be applied to terrestrial radio….it is in every car on the road, yet somehow every satellite radio fan thinks it is terrible, and is going away.”
What person in their right mind said terrestrial radio is going away? It has well over 200 million weekly listeners. That’s Sirius target audience and Sirius is taking share from terrestrial.
Honestly Spencer I am finding I have an opposing opinion with just about everything you write lately.
not sure why he is so down on Sirius lately
Not down on Sirius XM at all. I think they will have a good conference call with positives in most areas. I think they have some great prospects. I am simply pointing out that they can not rest on their laurels.
I would think that anyone invested in this company would want to know about how Sirius XM plans to deal with competitors such as these.
I love how reporting on positive news for other companies is equated to Spencer being “down on Sirius lately.”
If Pandora, Slacker, Apple, or Google do something new should we all just put our heads in the sand as SIRI investors?
Does anyone remember when Sirius and XM launched separate services the big debate about dropouts, commercial vs, commercial free between the 2 services.
Yet no where in this article do I see any concerns whatsoever about dropouts and commercials from wireless broadband services. As Jobs has said “dropouts happen with every wireless service”.
Even comparing writing an article using wireless broadband misses a huge point. That minimal use of data in no way compares to the amount of bandwidth needed to support transmission of music to millions of music listeners — and the cost of the wireless connection to those that desire that service. No wonder the wireless carriers don’t like the model suggested by Google — they are going to want more money if music starts sucking up their bandwidth.
Its not all positive for music over wireless. I’m still waiting to have a conversation in a vehicle moving over 20 miles without a dropout. And the I still enjoy commercial free music with someone else doing the programming over Sirius XM.
How much is the internet service itself going to cost ? For how much data ?
There is no way a large amount of people can use wireless internet via carriers now, without expecting massive buffering, slow downloads, and dropouts. Look at the carriers now adjusting the amount of data you can use. And people are trying to create ways to use wireless service more often.
Add to that paying for googles service, cost ?
You have to pay for music downloads through their service, cost ?
Mel is not as smart as you think he is. He is surrounded by idiots. Mel is a wheeler and dealer. Sirius needs to take the bull by the horns, which they do not. This is their space to lose. They will.
What would happen if Howard Stern went to Google in 4 months? With Googles ability to move audio ads and Howards audience, I wouldn’t be surprised if Google could come up with the best offer.
Howard has already said internet radio doesn’t have enough of a “live” feeling to doing the show, and not enough of a automotive backing right now. His best bet is to stay with Sirius