In a recent interview with senior writer Jon Birger at Fortune, Martine Rothblatt, the entrepreneur who founded Sirius back in 1990 had a lot to say about the current state of the satellite radio industry, most importantly, that the entire business model has become dated.
Martine is concerned about the “huge growth in terrestrial alternatives” and thinks that “As we move from third-generation to fourth-generation cellular, there’s going to be ever more bandwidth available to distribute content totally via terrestrial cellular infrastructure. And that will leave fewer and fewer unique market attributes to satellite radio.”
Although she doesn’t cite specifics she certainly seems to be talking about the some of the big competition from the likes of Slacker, Pandora, and iTunes which are now becoming common alternatives. Rothblatt seems to cast serous doubts that satellite can compete with not only free services but free services that offer more stations and a greater ability to personalize content.
Like it or not, its seems as thought you might want to pay attention to the kind of person who had the brains and vision to develop this kind of technology over 19 years ago when she says “Technologies have their ideal times and places, and in my opinion the better time for satellite radio was 10 years ago.”
This doesn’t mean that the end is near for Sirius XM but, I think it paints a clear picture that it’s time to evolve. No longer can Sirius XM limit themselves by their method of content delivery but instead, they will have to define themselves by the actual content they produce.
[ via Fortune ]