What’s Next For The Sirius XM iPhone App?
The Sirius XM iPhone application has been released. Early success brought the app towards the top for the iTunes downloaded ranking, and since, the app has dipped to the #26 position. The initial wave of downloads has already happened, and now we should be able to gauge just how popular the app is going forward. That being said, what is next for the app?
Let’s start with the obvious. If the app were to include Howard Stern, there would be an instant rush to download it once again. Like him or not, Stern is a draw for subscribers. Whether Stern will be on the app any time soon is yet to be seen, but one would think that some resolution will arrive soon.
The not so obvious has nothing to do with content. How do you increase the value of the iTunes app for consumers? One interesting answer could come out as early as this Fall with some new hardware. Rather than the launch of several new radios, the big news could well be the launch of some accessories that help to integrate the iPhone and iPod Touch with satellite radio.
No, I am not referring to an Apple device that includes a satellite radio chip. What I am referring to is a car dock, home dock, and perhaps even a “boombox” that could house a satellite radio chip. In effect, the iPhone and iPod Touch are receiving their feed through the Sirius XM Internet Radio side of the business. While this is good, not all channels are available on the Internet feed. What if a dock could serve as a method for iPod’s and iPhones to access the satellite feed?
The iPod Touch uses WiFi which allows a consumer in a WiFi hot spot to listen to Sirius XM. Take your iPod Touch to your car, and you no longer have access to the service. However, what if you have a car dock that allows you to now gain access to the satellite feed, while charging your device?
Logistically speaking, there is nothing to stop such capabilities from happening and having them happen in a short time-frame. The company has two components to consider. The software, and the hardware in order to make this speculation a reality.
From a software perspective, all that is required is updating the app to carry the ability to work on both an Internet feed as well as a software feed. In theory, the app could be instructed to seek a satellite feed when docked. This would give the consumer a larger cross section of Sirius XM content that is not available on the Internet feed. When undocked, the device would work on the Internet feed.
From the hardware side, all that is required is a dock that can house the satellite radio chips, and of course a satellite radio antenna that will send the information to through those chipsets. A few years ago, XM satellite radio developed a line of products based on the Passport. The XM Passport was a small chip that was inserted into devices that were “XM Ready” The subscription was tied to the chip. An XM subscriber could have an “XM Ready” audio receiver on his home entertainment system, a second receiver on his boat that was “XM Ready”, and the one subscription would tie to his Passport chip. This allowed the consumer to take his subscription with him.
If Sirius XM were to develop a line of accessories that utilized such a chip, an iPhone user could literally have access to the satellite feed wherever he goes. A car dock with a chip slot, a home dock with a chip slot, and a boombox similarly equipped could all be potential satellite radio havens for a single chip. The potential in the OEM channel would be further off, but there is no reason it couldn’t happen.
From the company perspective, they would get subscribers to upgrade to a level of service that includes the Internet as well as the satellite feeds. This would boost revenue, and the company gets to decrease hardware costs substantially because the development of the user interface is done by Apple. Building a simple dock is far less expensive than developing a satellite radio. From a consumer perspective, a satellite radio subscription has more value now because one subscription can be taken from place to place.
I would expect that by the end of Summer Sirius XM will be announcing their new hardware. rather than several new radios being the featured products, I anticipate accessories to be the hot topic of discussion. I would anticipate an apple compatible line consisting of car docks, home docks, boomboxes, tabletop radios, and perhaps even a set of headphones to be part of the overall package.
To be clear, I do not see satellite radio abandoning retail radio manufacture and distribution. There is still a need for non-Apple satellite radios, and the company would be foolish to not meet that need. What I do anticipate is a more trimmed down and modest line of satellite radio offerings coupled with some neat Apple docks. If the company does this, it will be interesting to see the download rate of the Sirius XM app on iTunes.
Position: Long Sirius XM – No Position Apple
Have you heard of anything in the works or is this a wishlist?
I disagree with the approach that you are suggesting. The SQ of the satellite stream is mediocre at best. It is good for use in the car but that’s about it.
The best approach, in my opinion, is a single subscription with premium internet, associated with a single radio, kept in the car. Sirius and it’s suppliers should be developing devices that run off of the Wi-Fi Stream. It should be built into DVD players (like Pandora is), tabletop internet radios (like Grace), inexpensive dedicated handheld and tabletop devices. Those with unlimited cell data plans shoould be able to get it on there Iphone, Blackberry, Windows Mobile and Symbian device. If a multitude of devices were available it would be worth $6.99-8.99 for the premium internet service.
Is ANYONE telling Sirius this? Are they listening? It seems that it takes them FOREVER to act on what their die hard base is screaming for. I’ve read and written about SO many good ideas here at Sirius Buzz. Including the above article. I HOPE to God Mel and the gang are listening.
Not only this, but what about a Pandora/Slacker like feature? I’ve written about this so many times that I’ve got blisters on me fingers! Seriously. Doing so would immediately REMOVE the internet threat off the table. In one fell swoop, Sirius would be DOMINATE radio in the car, at home and on the ipod, iphone and cell. BAM. Game over. Slacker who? Pandora what?
Anyway….there are SO many other things they can do and add. NOW is the time to act. It’s nice seeing some print ads finally. Maybe they don’t have it in their budget for a nationwide tv campaign just yet….but what about creating a VIRAL video? Come on. They’ve got some GREAT comedians working for them. Jamie Foxx. Jim Bruer. Can’t someone come up with a kick ass, take no prisoners, in your face FUNNY video and post it??? They’ve already got the youtube account…which is nice. But lets get those creative juices flowing! This is WAR. If we don’t do something memorable now. If we don’t strike while the iron is hot….then Pandora and Slacker will. Make no mistake. They are fighting for their survival, with the recent royalty ruling. But out of desperation springs creativity. Sirius can’t afford to take a holier than thou attitude. Have they seen the share price recently? Avoiding BK and refinancing the debt is all well and good….but it doesn’t remove the stank of uncertainty. Neither does waiting for the good news to come out in dribs and drabs. I like the recent news….but we need BOLD action.
If Sirius does this mixed in with the steady flow of good news, we can hit this one out of the park. Wall Street will have to wake up and take notice, and we can finally BLAST thru this bullshit weight that has kept us down for waay too long.
I am sure Sirius is working hard. But there are some GREAT ideas being talked about here. People are PASSIONATE about Sat Radio. From that passion comes a creative fountain of good ideas. It would behoove(I like that word!) Mel and the gang to pay attention. They just might LEARN something. 🙂
U da Man Friggan!
On Point Boyyyy!
If only they’d HEAR Ya !!
Nice article Tyler. Let’s hope there is something in he pipeline…. would it hurt them to leak a little info? 🙂
friggin, you brought up a point that many have and Charles has been hammering on for quite some time. I’d invite you inside to today’s daily stock thread (Thurs). Possible answer there.
The issue with a car dock housing a satellite chip set would of course be the reception. Anyone who uses the Inno or XMP3 portable in a car dock could atttest to the reception difficulties when you get outside the range of a terrestrial signal.
Dixon…..
These docks would require an antenna in a similar way that current car docks have an antenna. Self install is pretty easy, and I even see many simply put the antenna on their dash
I LIKE the idea of an ipod/iphone base with the sat chip inside. The more I think about, and the more Sirius makes inroads into the smartphone market, the more I feel Sirius should move away from portable sat radio production.
A product like the iphone/ipod dock with sat chip inside would be amazing. It could charge your ipod/iphone while at the same time giving your ipod/iphone a sat connection. It could work in cars as well as at home. Perhaps the base could also come in battery options so that you could sit in a park with your ipod docked and listen to sat radio. Very cool.
friggen…..
Sitting in the park and listening could perhaps be facilitated by headphones similar to those that come with a stiletto.
Tyler
Have previously read a similar article. However, you go into much greater detail. This would really change the way we listen to satrad. when my contract on my blackberry is up…I plan on getting an Iphone…If any of these come to pass…It would seal the deal. Nice work!
Tyler, again great info & insight. It seems Sirius Xm is behind the curve on some of these ideas presented. The only saving grace would be their great content. Even if they come forward with these ideas on the later than sooner scenerio they still have the content. Don,t get me wrong, I would like to see them be more proactive, but even if they are somewhat late to the game, in the long run their content is the cream that will help them rise to the top. This is just one of many reasons to be long on Sirius Xm (not always easy to do,but we know it’s here to stay and in the long run they’ll get it right).
Good points about extra accessories.
The iphone app itself could use a few aesthetic touches – for example, larger print for who/what’s playing. You’re able to fill the screen with the channel logo, but the print of what song/artist is playing is so small it is virtually impossible to read, especially in the car. Sounds backwards to me.
And is it me (or the network?) Some channels come in clearer than others on 3G – BB King’s Bluesville, for example comes in loud and clear all the time, no matter where I’m at, but Underground Garage sounds like it’s being broadcast from the bottom of a well in most locations. Anyone else have that experience?
Good article.
They really need to overhaul the interface on the sirius website for listening.
Simple idea – make the web portal so we could listen to Howard 100 thru the safari browser!!! No app needed.
Many more things to be done but this should be an easy one.
Tyler…you have seen the future
Good article Tyler!
SiriusXM needs to act instead or re-act. With eveything that has happened to this stock in the last year they are still way behind the curve.
If they could get these ideas into products, we would all be much happier.
vaporgold
Sirius-Xm does not… and should not rely so much on Howard Stern for future growth at this point. They could be cultivating better, more compelling content than Stern by now. I believe they already have some better channels, but foolishly let the “Stern hoopla” overshadow it. I think it’s a mistake.