Sirius XM SkyDock Already Getting Misrepresented
We can deal with speculation, and what we know. The issue comes when people begin to speculate without first gaining and understanding of what is known. In an article today, Motley Fools Rick Munarriz penned a piece which takes the SkyDock into a direction that was never intended. Munarriz makes the assumption that the goal of the SkyDock is to make the iPhone a “portable” satellite radio receiver. This is not at all the case. What the SkyDock does is make the iPhone a satellite receiver when docked into a car and/or home dock.
In order to better understand the hardware we need to step back and understand the big picture. In fairness to the Motley Fool, they do not follow the intricacies of the sector like some of the sites dedicated to satellite radio. The FCC filings show the purpose and functionality of the SkyDock.
– Sirius XM Radio offers 5 core services. Sirius Satellite Radio, XM Satellite Radio, Sirius Internet Radio, XM Internet Radio, Sirius XM Internet Radio (iPhone app).
– Sirius XM develops an iPhone app which allows users to subscriber to Sirius XM Internet Radio. The user can stream an INTERNET feed over their iPhone or iPod Touch. If the user is a satellite radio subscriber they simply need to add the Internet service to their account. Satellite Radio can not be received by an iPhone until the SkyDock is released.
– Subscribers to the app are not necessarily subscribers to the satellite service. It is possible to have an Internet service only.
– The SkyDock will allow the iPhone to act as a satellite radio user interface for XM Satellite radio when it is docked. Simply stated, and undocked iPhone will get the Sirius XM Internet radio feed, and a docked iPhone will get the XM Satellite Radio feed.
– The intent of the SkyDock is not to turn the iPhone into a “portable” satellite radio. It is to make a docked iPhone a satellite radio.
There will have to be some tweaks and upgrades to the Sirius XM iPhone app in order to make the system work, but the company has plenty of time to deal with that, and updating an app is not rocket science. Hopefully Sirius XM’s press releases next week on the new hardware will do a good job of outlining the functionality and intent of the hardware so as to avoid further confusion in the press as well as with consumers.
We are all well aware that the iPhone app was not a huge boost to new subscribers. However, the app was successful in getting existing subscribers to upgrade their accounts to include the Sirius XM Internet Radio portion of the service. SkyDock should viewed as another opportunity for the company to get into the mobile media marketplace. What we now know is that the iPhone in a dock will stream the satellite radio feed. This bodes well on expenses, because royalties on the satellite feed are less than the Internet feed. iPhone users docking their units will essentially switch the device to satellite fed content, thus saving money.
Sirius XM is scheduled to announce their new hardware next Wednesday.
Position – Long Sirius XM, No Position Apple
In addition…Its reasonable to expect that all Satelite Available channels would be available. In other words, Howard, MLB, etc.
One thing that hasn’t been mentioned, or at least I haven’t noticed if it has, is that it appears this new docking station will also allow iPhone users to play music from their device through the car stereo without having to use one of the ineffective means currently available.
I agree James, which is why all the freaking out over Howard not being on the app was unnecessary. Using the SkyDock solves Howard’s “contractual issues” for not being on the iPhone in a creative and probably more cost-effective way.
Sign me up for two–one for my wife’s car and one for the house. I’ll have satellite radio everywhere I need it. Plus, helps me charge my iPhone since I never remember to do it.
Does anyone know about the charges for this: 1) If an existing subscriber, who now pays $2.99/month extra for iPhone internet feed decides to dock the iPhone, will the new dock be considered an “extra radio) with a fee of $6.99 month? Does the person pay $2.99 plus $6.99 or just $6.99. Also, what if the person paying $2.99 wants to dock their iPhone and just get the internet feed (so as only to pay $2.99), can they do that or do they have to get only the satellite feed on the new docking station?
Steve,
I can tell you that the SkyDock is treated as a separate SatRad receiver and with that comes a separate subscriber fee.
The $2.99 fee is for anyone who wishes to add internet access to an existing SatRad subscription.
The SkyDock is no different than any other radio in the Sirius-XM lineup.
Boo Boo, your comments are regular mainstream accurate stuff today… Kudos!
Are you sure that Howard Stern will be available on this new device? I thought you had to have a subscription to Sirius to get his show. Is his show available on XM?
Yes, Howard Stern is available on XM with the Best of Sirius package.
man, i can’t believe that you actually go and read what motley sh!t say, i quit reading their garbage long time ago, they have one purpose and one purpose only it is to put down siri. that’s just to make themselves look like they know what they’re doing. i even suggested to them one time to change their name to motley retard. but i don’t think they listened to me. well, they might do that by next week. on their web site they want you to subscribe to something for $199.00 fee. so they can tell you about a stock that might double in the next 3 to 5 years. .well, hell looo ..siri went from .05 to .70 so 0.70/0.05 X 100 =1400% that’s 1400% increase if you invested $100. @ .05 the proceeds would be $1400.
Basically, it’s a dock with the satellite radio chip in it?
Hopefully, Sirius Xm puts both satellite radio chips in it, because it would be pointless to own if you had only Sirius and has to subscribe to the Best of Xm (No Baseball!!!)
This is great. I like the idea.
Not just because now I can get Howard, NASCAR and some other channels but now I can easily put the dock in other car, house or office without having to purchase another stand alone radio.
I “always” have my iPhone with me. Im not going to carry my Sirius radio around with me.
Also 3G Cell service is not reliable enough for use in a car streaming Sirius to the car.
Now my only question is if Sirius will treat the “dock” as another subscription?
If so I think the Dock’s monthly additional fee should include (for no additional cost) the internet feed for the iPhone.
Rant about Internet stream vs Satellite:
I do get rather annoyed about people saying “Satellite Radio will not last because of the iPhone / cellular data and streaming music” what most people don’t realize is the amount of infrastructure that is required for a cell / wifi based system. Can any cell provider give 100% coverage across the country with enough bandwidth (both at the cell tower and providers servers) to handle the load? There is no “scale” problem with Satellite service, you can have a billion radios and they will all work!
Does anyone suggest that I sell my ford stock for a nice profit and put it in sirius? The anxiety is setting in.
Bottom line this is great news that Sirius Xm is showing innovation and making their product more & more available into the main stream. More recognition day by day and also one of the best performing stocks during the worst reccesion in modern times. Whats that say for Sirius Xm as we recover and the merger synergies kick in?!! Better get on board the train is starting to leave the station.
I hate to burst your bubble but Sirius-XM will be in the tank shortly.
They still have yet to address the HORRIBLE quality of their hardware. The have a grand total of ONE receiver that can receiver both Sirius & XM.
The new SkyDock will be typical of the type of hardware product Sirius puts out, complete JUNK.
I’ve had the same after market reciever for 4 years and have had no problems. We bought a used hnda civic for my daughter that has a kenwood Sirius radio that has to be about 6 years old and still works great. But your point of having one reciever that can combine both Sirius & Xm, I can’t argue.
Neal,
I’m glad your hardware is working.
I’ve had 3 radios die just short of a year.
2 Stilettos and 1 Clarion boom box.
I’m glad that Sirius-XM is on better financial footing but I can’t help but think that they will do something to blow it again, big time.
They have already proven they are run by a management team that can’t get out of its own way.
They always manage to find a way to snatch defeat from the jaws of victory.
I’m too aggravated by how Sirius-XM is managed to invest a dime in a single share of the stock. I just don’t believe they are managed well.
Does anyone think that the naked short selling and stock manipulation is beginning to end?
When you look at products, the quality of them really depends on the manufacture. I agree Sirius Xm needs to have a new manufacture, and they do. Direct Electronics was junk and weren’t they the ones who produced the Stilleto 10/100 and 2?
Directed was a distributor, not a manufacturer. They were nothing more than a middleman.
ok, who made the Sirius hardware? Aren’t they changing?
What a cluster-F!! What, did they take lessons from Microsoft on how to market and distribute a product (see Vista). How about one satellite feed, and one internet feed that carries the exact same channel line up/content and then give users ala carte if they like. But this two platform, ‘Best of ‘ multi-flavoered offerings is just dumb. Now we have another flavor, the Skydock. The Skydock is the dumbest thing in a long line of dumb decisions that has been made since the merger. There is no need to require unnecessary hardware (as shown by another unnamed app in the App Store). Why the unnecessary hardware when they can make the feed available via an app? Seriously?
I’m not sure of what the experience was before the merger was for Sirius users, but XM was great!! They had great content, and great hardware, and there was no extra cost for the internet feed.
I agree with the last statement on XM being great. All channels were available via internet before, nearly certain of that, and just try to call customer service. I think company needs leadership to make it a business not scorecard on a spreadsheet for investors. Yes, I understand profit, but do things right and profit will follow. Todays businesses try to create profit.
I’m no expert but I currently have satellite radio and I cannot be convinced that the added cost internet service will be worth it. Reason for that is my cell service, for which the internet will be based, is far more “spotty” then is my satellite service. Only on few occassions usually between mountains do I have issue with satellite reception. Cell is another story. I would get an iPhone if I didn’t need to sign-up for their(AT&T)awful internet service. Therefor I would be asked to add $30 a month for less channels. No bargain nor do I think it would drive iPhone customers to the service. Best of luck SiriusXM.