Sirius XM and iPhone: OS 3.0
Back on March 17th, Apple announced the new Apple OS 3.0 for the iPhone. This upgrade to the operating system which adds over 100 features will be available for iPhone users absolutely free. First generation iPhones will not be able to receive every single feature but, they will receive most of them while the newer 3G iPhones will get all the new features. It should also be noted that users of the iPod Touch, which also uses the same operating system, will be able to purchase the update for a mere $9.95. There is no official release date yet, other than “Summer of this year.” As we already know, during the 2008 Q4 conference call, Sirius XM officially announced that they would be coming out with an iPhone application sometime during Q2. What does this new OS 3.0 mean for Sirius XM?
1. Subscription Abilities directly through the iStore – With the 3.0 update, Apple has given app producers the ability to add in a subscription service directly into the app. Let’s say that someone downloaded the Sirius XM iPhone app, but did not have a subscription. Utilizing the new subscription API, they could request payment right there through the iStore, process the payment immediately, and start the subscription instantaneously. Not too shabby.
2. Stereo over Bluetooth – With current phones, you can talk on your phone over Bluetooth, but you cannot listen to music unless you buy accessories (that are not technically compatible with the iPhone) or hack the phone. OS 3.0 adds in a functionality that I thought Apple was crazy for not adding before. Now, you will be able to listen to all of your music in stereo quality over your wireless Bluetooth headset… which makes it much more convenient to listen to your new Sirius XM subscription.
3. In-application Commerce – This feature is not a new one, but has been advanced in OS 3.0 and gives Sirius XM the opportunity to provide information regarding the music they are playing and place a “Buy It Now” button, allowing users to instantly purchase the song or track they are listening to through the iTunes store, providing an additional revenue source for Sirius XM.
4. New media player – OS 3.0 has a wonderful feature allowing the phone and application to automatically detect what type of connection you have to the internet, and customize the stream based on that connection. If you have a 3G connection, the stream can be adjusted to play optimally for 3G. If you are on an Edge connection, the stream can be adjusted to play optimally for Edge. This allows Sirius XM to provide the absolute best quality of radio available depending the type of connection.
5. Subscription Calendars – The possibility of actually developing a “community” throughout the Sirius XM music network is significantly expanded through the availability of the new calendar support. Sirius XM could develop calendars for each individual channel. Through the subscription service (no charge to subscribe to calendars), your iPhone calendar will automatically be updated on a daily basis with the shows that are on your favorite channel. This feature could be used to update you when one of your favorite shows is coming on or when a special event is happening. Alerting people to their favorite shows could definitely keep them coming back for more.
Here are some interesting numbers from the Apple presentation linked above:
- 80: The number of countries the iPhone is available in.
- 76: The number of countries the iStore is available in.
- 17 million: The number of iPhones sold through year end 2008
- 30 million: The number of iPod Touch’s sold through year end 2008
- 800 million: The number of app downloads through year end 2008
In summary, the OS 3.0 update has the capabilities of significantly expanding the possibilities for the Sirius XM iPhone application. Time will only tell what Sirius XM will do with those possibilities. As the numbers above indicate, the iPhone app has the potential to draw a huge number of subscribers and we all know that once they start listening, they will never stop.
[Thanks SiriusBuzz Forum! ]
Position: Long Sirius XM, no position AAPL
Wondering if integrating the subscription service with the iStore could allow for a pay-as-you-go type service for online listeners. Maybe charge a couple of bucks for a few hours of access?
What is nice about listening to Sirius over the IPone versus thru a satrad receiver is that you can be in an office deep inside a building and still get the cell phone signal whereas the satrad signal would not penetrate. While Apple has sold over one million IPhone’s worldwide I don’t know how many were in the US and Canada. Nevertheless, it must be a significant number that can easily translate into a lot of new subs. With car docking stations it will add to the overall funtionality of the IPhone.
I have not yet embraced the Apple concept yet, but my children have and are always raving about how everything works together with no fuss at all. While the costs are higher the functionality of the Apple ‘system’ is impressive. The only hangup I have is lack of specific software titles in the Apple format, but I expect that this will get better as Apple makes deeper penetration into former all PC territory.
All great points, but I’m not going to hold my breath waiting for SXM to utilize all the functionality in IPhone OS 1.0 let alone IPhone OS 3.0. They seem to be about 5 years behind in creative marketing ideas. Maybe they think that 5 year wait to get OEM radios new functionality applies to all technology? I guess someone tell Mel they can move off dial up now. (spoken like a frustrated long)
Newman
Great article! 47 Million Iphone/Ipod touch worldwide. The sky is the limit, as long as the marketing dept can pull their collective heads out of their asses!!!!!
StillSirius.. good point
vapogold
Not a chance in the world that Sirius will get this right.
Not even so much as a timetable for release.
When it is released, it will be a colossal cluster phuk.
It will be typical of Sirius, poorly designed and poorly implemented and over-priced.
Tim
Iphone update by Apple is listed as sometime this summer. So it doesnt make sense to have a more exact timetable other than 2qtr as stated in CC. As far as poorly designed..maybe…poorly implemented, again..maybe…over-priced, not a chance since Sirius has publicly stated a FREE app for the Iphone!!
But by all means, cont to bash away…Since you are entitled to your opinion.
They have a marketing department?
Yep, they spend all their time telling everyone what a genius Mel Karamazin is.
I doubt there is anyone at Sirius-XM who knows how to spell marketing let alone actually do it.
For the record, Symbian is the dominant OS for the mobile phone market.
iPhone is a distant runner up.
Strictly based on numbers, a Symbian app should happen before an iPhone app.
http://telecompk.net/wp-conten.....s-2008.jpg
Symbian drops from 07 to 08 while the iPhone grew. I am sure those numbers are even stronger in 09. Not to mention iPhone users are more likely private users who are the type that would run Sirius XM while the majority of Symbian are corporate company business phones that people will be much less apt to run entertainment apps on.
Well, that didn’t take long for iPhone to overtake Symbian; http://www.sitepoint.com/blogs.....ymbian-os/
Tyler, Great article & info. It’s showing that in just a few years to come satellites will be just one of many ways to recieve Sirius Xm content. Because of the always changing tech thats coming out this will be a company that came out as “Satellite Radio” but later will be looked at more & more for its content. The identity of Sirius Xm will not be as associated as a satellite based company but as a complex network providing great content. Which of course will be a huge boon to Sirius Xm but if it proves to be a huge success I would imagine other media giants will then be able to start up a formadable competetive format to get market share. But that being said I think that this company very well (if they get moving on the tech side) could be one hellava stock over the foreseeble future. It seems their biggest battle is within their own controll. Getting ahead or at least in line to taking advantage of the new and ever changing tech formats.
**shakes head**
Doesn’t anyone read the bylines? Tyler is not the only person who writes on this site…
Newman… Good article!
vapor
Newman
I gave you credit!!! Thats all that you need!hahahaha
My take on this is simple. I believe that Apple and SXM are working together closer than most people believe. There is money to be made on this application for both parties, not just subs for SXM. There is more in this, Apple will very much benefit as well. Perhaps the SXM “scheme” that you are talking about needs the new OS 3.0 to properly work. That is why Mel is talking Q2 because they are essentially done with their work but Apple has some things to iron out, testing to be done, so Mel can’t give a date.
Its that simple.
Boy or boy SXM sure has a lot of exciting potential. We have done rather well in an otherwise terrible economy. SXM is making headway even as auto sales are down. The “stars are aligned” for future prospects!!!