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HOME
Pandora: The Death Knell of
Sirius XM?
By Mike Schuster - www.minyanville.com
With a few more tweaks, Internet radio will eliminate the need for
satellite subscriptions
Jan 08, 2010 2:20 pm -- Yesterday at the Consumer Electronics
Show, Ford (F) Chief Executive Alan Mulally unveiled a new vibrant
dashboard touchscreen featuring Microsoft's (MSFT) SYNC technology.
Rolling out later this year in Edge and Focus models, the SYNC API
will be able to communicate with iPhones (AAPL), BlackBerries (RIMM),
and Android (GOOG) smartphones, enabling drivers to control their
phones on the car's dashboard via Bluetooth and run a number of apps.
Chief among them: Twitter, turn-by-turn GPS navigation, Sync voice
command, and -- most notably -- Pandora's Internet radio.
Jokes about tweeting your imminent head-on collision aside, this is
yet another step toward the standard implementation of free Internet
radio in your car -- which has evolved from a pipe dream to an
inevitability since appearing on home computers. And as much as
hardcore Sirius XM (SIRI) fans and shareholders scoff at the notion,
$13-a-month subscriptions for unskippable content can't compare to
free, controllable, and infinitely more choices.
Enjoying Internet radio in your car used to be as simple as a hard
wire connected from your iPhone to the input jack. As long as you
maintain a 3G connection on AT&T (T) -- just be choosy about your
route -- you'd be able to listen to your station of choice through
your car's sound system. But as concern over driver distraction became
more prevalent due to the rise in text messaging and mobile Twitter
use, wireless connectivity triumphed over staring at a smartphone's
tiny screen. In-car wi-fi will be the next step in the coming years.
A partnership between Pandora and electronics manufacturer Pioneer
didn't hurt either. In the truest form of corporate synergy, a recent
deal was struck between the two companies without either side
exchanging a cent, according to statements made by Ted Cardenas,
director of marketing for Pioneer, to the Wall Street Journal. Both
companies believe customers are starting to see the versatility of
Pandora Radio.
In addition to Ford's presentation, the announcement of this
partnership has champions of Sirius XM on the rabid defense. But there
are still enough hiccups in Pandora's service to keep Sirius XM safe
for now.
The Pioneer system showcased at CES is a bank-buster at a whopping
$1,200 -- not exactly an entry-level price to entice the curious.
While Pandora is ad-supported, the free version of the app only allows
a certain number of song skips per 24-hour period, thus limiting the
total control you have over browsing new music, and puts it on an even
keel with satellite. But Sirius XM offers many more options in talk,
news, and comedy stations than what Pandora currently provides.
And if using the aforementioned AT&T, you're never guaranteed a signal
decent enough for quality play.
But the writing is on the wall: Ultimately, satellite radio can't
compete with the rise and increasing versatility of Internet radio.
Sirius XM has dropped from being a hot commodity to a penny stock
after declaring bankruptcy, and spent the last year introducing new
and higher fees to its customers, causing the total number of
subscribers to dip for the first time since 2001. While Sirius XM
hovers above 18 million customers, Pandora has over 40 million users.
Sirius XM may offer hundreds of stations, but a Pandora playlist
conforms to any song in your collection. And if your company hinges on
the whims of one shock jock, that's a glaring flaw.
The $1,200 Pioneer stereo probably won't herald a meteoric rise in
Internet radio, but it does signal the beginning of the end to
satellite. It may take years, but the unlimited variety and better
control over your music will undoubtedly win out.
Until then, there's always the iPod.
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