WiFi in the Car is no Longer a Pipe Dream
Over the years SiriusXM Satellite Radio has enjoyed a coast to coast footprint making the best in audio entertainment an easy decision for consumers. For about $15 per month subscribers have access to hundreds of channels including music, talk, sports, and news. For many passionate fans of the service it was a “no-brainer”. The service is not overly expensive and delivers real value.
Then the smartphone came and changed the audio entertainment landscape a bit. Services like Pandora, Slacker, Spotify, and iHeartRadio were now available in a mobile platform. Consumers that wanted to quickly became adept at connecting a cell phone to an audio entertainment system via an auxiliary input. The next step was wireless connectivity. It was an advance, but not yet a substantial one. It did make streaming content easier, but the dashboard was still dominated by terrestrial radio and SiriusXM. The Holy Grail would be a car that is its own WiFi connection. Well, 2013 looks to be the year where the WiFi car makes its boldest step yet. And this is not just for the luxury cars.
The 2013 Dodge Dart is being heavily advertised right now. Chrysler has made it known that this car, starting at about $16,000 has its own WiFi. Essentially the Dodge Dart creates its own 3G Hotspot that carries a range of 15o feet! For just $29.95 per month a consumer can now have a connected car, saving the cell phone for the functions it was originally designed for.
With a car being its own WiFi connection the ability for consumers to access great content from many providers is now a reality. Simply stated, the competition for the dashboard will be heating up. While it could be argued that this will have a negative impact on SiriusXM, it could also have positive attributes. Certainly the satellite radio provider will lose out to some competitors, but one key element that is on SiriusXM’s side is exclusive content… and tons of it at that.
It is the content that SiriusXM has that could be the difference between a consumer activating a Pandora app and simply streaming music, or activating a SiriusXM subscription and opening doors to sports, news, and talk that is unparalleled. One key for SiriusXM is to remain at the top of the food chain. The company has taken several steps to do just that. To remain on top the following critical aspects of the company need to be maintained, improved upon, or implemented:
- Keep exclusive content on board. SiriusXM has done a pretty good job of this, but that will get harder. As WiFi cars roll out competitors will now look beyond the dashboard and chase ways to grow themselves.
- Top notch customer service – When you are the only show in town you can actually afford to not have top notch service. When competitors arrive, and consumers have choices, you need to be at the top of your game. One angry customer can cancel quickly and the loyalty is gone.
- Expand the marketing for SiuriusXM Internet Radio – SiriusXM does have Internet radio. It has in the past been seen as a value added aspect of the business, but it is time to take things to the next level. SiriusXM Internet Radio has features like On Demand, where consumers can select great content and listen to it when they want. This was not available over satellite, but is an awesome feature on the Internet side of SiriusXM. SiriusXM can use the Internet capabilities to make the consumer experience much more unique and special.
- Launch Personalized Radio (Internally named MyControl) – SiriusXM personalized radio refines the consumer experience even more. This has potential to be a staple in setting satellite radio apart from everyone else. The sooner SiriusXM makes this step the more ready it can be for consumer acceptance as more and more WiFi cars roll off of the assembly line.
- Offer Up a sampler service – Yes, people that buy new cars get a free trial, but SiriusXM can up the ante by keeping a small sampler service available on the web based platform. Because it is web delivered there are fewer limitations and SiriusXM can actually insert advertising as it desires. This will allow users to sample sides of the service like On Demand and see that there is value in a SiriusXM subscription.
- Get great dashboard real estate – This is important. Last year when Toyota was at the New York Auto Show showing off Entune, the screen for audio entertainment and apps did not include SiriusXM, but instead Pandora and IHeartRadio. SiriusXM can not give up dashboard space that it has worked so hard to garner.
- Have Updated apps – SiriusXM needs real improvement here. The app on an iPhone 5 is not up to par. There is no longer a Blackberry app, and the new windows Phones that are being heavily marketed have no app at all. SiriusXM needs to be a leader here.
Beginning this year consumers will be faced with a choice of whether or not to pay about $30 per month to make their car a WiFi hotspot. There are many that will embrace this, but many that will not. If you want the hot-spot as well as SiriusXM you could be looking at $45 per month. That price-point could have budget conscience consumers really considering whether or not they want both. On one hand they could get a hotspot and pickup Pandora, AhA, Spotify, Slacker and more, while on the other they would get SiriusXM. Things could get quite interesting!
The biggest thing on SiriusXM’s side is that the company makes money and is already viable. That advantage is HUGE but, this is no time to rest on laurels.
I am not so sure how this will be received. On the one hand it sounds like a nice idea but I ask… why not just use your smartphone and skip owning two data connections where one is tied to the car and not moveable? FoxFi is available to download without the monthly charge to turn any phone into a hotspot. This is how I connect on the road and it works flawlessly. Generally your phone is with you in the car… so why own both data connections at an additional $30 per month?
The issue is dedicated service vs. non-dedicated service. The car Wifi is built to interface with the dashboard by design. I use FoxFi as well, but if I get a call, then I am screwed.
Also the screen on your phone is tiny whereas the screen on the dashboard is huge and large enough for you to not be too distracted by looking down at your phone. The convenience is also safer for the driver. I think it’s a great Idea if they just roll the payment into your car payment.
Fox-Fi by the way has been snubbed out on most carriers and will not work on new generation Android phones.
Hmmm… do I want to pay $30 for free content, or $15 for exclusive content? Still seems like a “no brainer” to me.
You’d be paying $30 for the internet, not just “free” music. I think it important to note.
I don’t think so. People with smart phones already have the internet in their car. There can not be too many people who don’t have a smart phone who would also be willing to shell out $30 for internet in their car. They can’t afford it.
KP…..
These services are far more than just music apps. This could get into movie times, dinner reservations, gas station finders, gas price lists, weather, sports scores, local interests, social media, etc.
While I agree that smartphones can be connected, this is a new step and new dynamic. By example, If I am using my smartphone to navigate and get a call it is not always an easy thing to do. I oft speak on the phone with the radio still on, but at a lower volume. When I connect my phone and use that for music a call interrupts the service.
When I bought my ipad i bought one with just Wifi and not 3G. My thought process was that if I need to surf on my ipad i can simply turn on the hotspot on my phone. Problem is that if I get a call I am screwed. I now wish that I bought a 3G ipad and paid verizon the extra $10 per month.
This is a feature that i think was ill conceived. Unless this can boast a much better reception than my smartphone hotspot..or seperate wifi hotspot available for years..why have another bill that is attached to a car? I can get a CLEAR hotspot device that I wont be hooked to the car to use it…I just dont get how this is a big deal, unless you are 65 years old and dont know any better….
I spend half my time in areas with no cellular service. I need satellite internet access for my devices. I am hoping this is the answer. I need to use my paypal credit card reader and access business emails and texts while working in these non cellular areas.
Sirius has coverage all through the country, there is no such thing with WiFi
I dont see it as a threat to siriusxm at all…though they need to stay on their toes….theres only so much you can do while your driving, before you end up in a serious accident…and like you said content is king….plus siri can offer other services alot cheaper than the $30/mth…
Ever try streaming and/or listening and watching videos on 3G??? Can you say “Buffering”, Zzzzzzzzzzzzzzzzzzzzzzzzzzz
3G? That’s like buying yesterday’s technology. Also let’s not forget, in Pandora’s case, one would be paying the monthly access fee for the privilege of listening to commercials. Unless of course, one was willing to pay an ADDITIONAL fee for the company’s commercial-free version.
Although Siri’s overall content is an important key to it’s success, it’s offering of commercial-free music is of equal importance, in my opinion.
Does the $29.95 monthly fee include unlimited data or is the data usage capped? My guess is there is a 2GB cap.
Lorna….
3G is still widely used. Further, the more people that switch to 4G the more less of a bandwidth crunch 3G has. You would propbably be surprised at how many phone calls on your own phone use 3G instead of 4G.
Regarding commercials.
I lump commercials, station bumpers and DJ chatter into the same category. If more music is what you want then Pandora likely plays more music per hour than does SiriusXM. SiriusXM has been brilliant about convincing people that the service is commercial free whilst they have a bunch of bumpers and segments like “DVD on Demand” (basically an ad about what movies are popular on DVD right now).
If you want interruption free music, look other places than SiriusXM. Slacker, Pandora, Slacker Premium and Pandora one all play more music.
Whether or not 3G is still prevalent or not is beside the point. I’ve had both 3G & 4G and the difference is like night and day.
Your point of the more people use 4G, it will free up 3G is akin to saying the more people use iPhones for their music the more record players will available.
You may view DJ banter and bumpers the same as commercials, but I do not. Not even close, huge annoyance difference.
I don’t see any difference. There are a few DJ’s out there far more annoying than a commercial. But, I am a wierdo who likes quality targeted advertising that turns me onto new products/services.
Charles…
You may not see a difference and, as you say, you like commercials. If indeed that is the case, allow me to introduce you to a medium you’ll probably love… terrestrial radio. Apparently the old adage, “everything that goes around, comes around” is true.
The icing on the cake is terrestrial comes with no monthly subscription charge, no data usage fees and plenty of your valued commercial interruptions. Surely, a few of them are bound to target your interests.
I don’t necessarily like commercials, but I do like quality highly targeted advertising. My point was more that there are definitely DJs worse than a good commercial or tactful product placement.
If I enjoyed terrestrial radio, I probably wouldn’t have created Siriusbuzz 😉
BTW, complaints about DJ chatter have been hot topics here for years. People start threads in the forums just to complain about how certain DJs ruin entire channels for people.
Charles, Some people will never be happy and will always find stuff to moan about. Most people actually like the interaction with a dj, always have always will….
I am really interested in this, but there is no info about it on the Sirius website. where do i go to get more info about it
I just called Sirius XM Customer Care and the emphatically told me that WiFi is NOT available through the XM Sirius radio equipment. Period. There is the chance that they didn’t understand my question, even though they had me clarify it three times, getting it wrong the first two.