Sirius and XM join forces: iPod integration made easy?
Satellite radio powerhouses Sirius and XM said this week they hope to tie the knot and merge into a single mammoth provider, a move which could simplify integration of the radio service in iPods sometime down the line.
Although many had dismissed the possibility of the deal ever taking place due to anti-monopoly laws, the once-bitter enemies agreed Monday to bury the hatchet and join together, forming a single corporation that would effectively go unchallenged in its corner of the radio universe. The rough value of the partnership would amount to some $13 billion.
The pact is a "merger of equals" where neither company intends to erase the other, a spokesperson said. In addition to an equal level of top brass, which sees Sirius Radio's Mel Karmazin take the CEO helm while Gary Parsons of XM assumes the chairman role, both firms expect much (if not all) of their existing content to remain in one piece.
Channel selection should balloon thanks to the merger. Moreover, hardware development should enter the fast lane as satellite receiver makers whittle down the number of separate chipsets they have to make, the firms claimed.
Tellingly, Sirius and XM agreed in the announcement that their primary rivals weren't each other, but instead other formats. The announcement specifically called out the threats from "iPods and mobile phone streaming," reflecting the increased pressure to compete with not just radios, but with the digital music players that replace them.
The news resurrects the possibility of iPod integration with satellite radio, an idea previously killed off by Apple CEO Steve Jobs. The Apple frontman shelved the idea after negotiations with Sirius chief Karmazin failed to impress, saying that a lack of interesting content was a key obstacle -- an obstacle now at least partly removed by a near doubling of channels.
Hardware implications could also benefit the iPod maker, allowing it to target more listeners should it ever build in a satellite radio tuner. Apple is certainly no stranger to the concept and was caught trademarking the possibility of satellite music streaming in its enigmatic "Mobile Me" application.
Regardless of Apple's inclinations, the company will have to sit tight before it can act on the new radio alliance: an approval of the Sirius/XM merger by the FCC and shareholders isn't anticipated until the end of 2007.
Although many had dismissed the possibility of the deal ever taking place due to anti-monopoly laws, the once-bitter enemies agreed Monday to bury the hatchet and join together, forming a single corporation that would effectively go unchallenged in its corner of the radio universe. The rough value of the partnership would amount to some $13 billion.
The pact is a "merger of equals" where neither company intends to erase the other, a spokesperson said. In addition to an equal level of top brass, which sees Sirius Radio's Mel Karmazin take the CEO helm while Gary Parsons of XM assumes the chairman role, both firms expect much (if not all) of their existing content to remain in one piece.
Channel selection should balloon thanks to the merger. Moreover, hardware development should enter the fast lane as satellite receiver makers whittle down the number of separate chipsets they have to make, the firms claimed.
Tellingly, Sirius and XM agreed in the announcement that their primary rivals weren't each other, but instead other formats. The announcement specifically called out the threats from "iPods and mobile phone streaming," reflecting the increased pressure to compete with not just radios, but with the digital music players that replace them.
The news resurrects the possibility of iPod integration with satellite radio, an idea previously killed off by Apple CEO Steve Jobs. The Apple frontman shelved the idea after negotiations with Sirius chief Karmazin failed to impress, saying that a lack of interesting content was a key obstacle -- an obstacle now at least partly removed by a near doubling of channels.
Hardware implications could also benefit the iPod maker, allowing it to target more listeners should it ever build in a satellite radio tuner. Apple is certainly no stranger to the concept and was caught trademarking the possibility of satellite music streaming in its enigmatic "Mobile Me" application.
Regardless of Apple's inclinations, the company will have to sit tight before it can act on the new radio alliance: an approval of the Sirius/XM merger by the FCC and shareholders isn't anticipated until the end of 2007.
Comments
Also it's pretty good news Sirius and XM are together now...universal things are always good.
Of course the other note is that much of Sirius and XM's content is not unique to the iPod; likely a majority of their music programming, leaving niche music and the talk content assuming it isn't also podcast. This overlap means that Sirius/XM produced content is essentially all they have to bring to the table, which is likely what Steve recognizes and is uninterested in.
I would love satellite radio on my iPod...as long as it is cheap that is.
Also it's pretty good news Sirius and XM are together now...universal things are always good.
There is a reason they are merging.
Launching satellites is expensive and and they have pretty much reached the crescendo of people who are willing to pay 12.95 per month or $142 per year for subscriptions.
Why would Apple get involved in this market and technology space?
Everything in this story that has anything to do with Apple is the writer's own speculation and commentary.
Nothing to see here, folks. Move along.
Sirius may merge with XM. That's news.
Everything in this story that has anything to do with Apple is the writer's own speculation and commentary.
Nothing to see here, folks. Move along.
Well, the satellite radio companies are going to have to convince American regulators that the merger will not create a monopoly. They are going to drag the iPod into every discussion as "competition" because they will need to show that they still will face serious competition. (sorry about the pun)
I don't really see much overlap, but it is probably going to keep the iPod in the news with satellite radio for a year or two. Somehow, some people are going to see this as evidence that the iPod will soon have satellite radio capabilities. Just you watch...
-Clive
Who uses that???
What's wrong with FM??
And... if I understand correctly... it's not even free???
What the (&^%& is that good for???
Who uses that???
What's wrong with FM??
And... if I understand correctly... it's not even free???
Sound quality and variety of programming. And XM and Sirus are commerical free. That is why the charge a monthly subscription. But I'm not willing to pay $12 bucks a month for a radio service.
Sound quality and variety of programming. And XM and Sirus are commerical free. That is why the charge a monthly subscription. But I'm not willing to pay $12 bucks a month for a radio service.
Hmmm, if I want no commercials and sound quality I listen to a CD or iTunes (connected to stereo). I just cannot believe anyone would actually pay for this??
Me, I should've dropped Sirius when they wasted all that money to get Howard Stern. The amount of money these companies have both thrown at content I'd never listen to is absurd. Satellite radio is great if you travel much: news, talk, weather, traffic, sports and more without having to search for a new station every 50-100 miles.
Would an iPod with built in satellite radio be appealing? Hmmm ... I don't know. I don't know much about the current portable ones, but I doubt they work well inside without an external antenna. In my experience, the antennas are somewhat omnidirectional, but you still need fairly consistent line of sight with the satellite. I have no idea how well they work to say go running with them, you'd probably have to wear an antenna on the top of your head. If Sirius and XM merge and they get to the point where the hardware is the same, I'd probably just get a car stereo with it built in.
Apple doesn't need any special integration with the iPod - both XM and Sirius can work through a regular web browser, which the iPhone, and soon the iPod, has.
I don't know about XM, but at least for Sirius, most of the live (non-music) content is not available over the Internet. Without the live content, it's really pointless to integrate satellite radio and the iPod, IMHO anyhow.
Apple doesn't need any special integration with the iPod - both XM and Sirius can work through a regular web browser, which the iPhone, and soon the iPod, has.
I have to say for 2007-2008, this is insane. You're talking about streaming Internet Radio to the iPhone. The amount of data charges you'd have to pay Cingular would be astronomical.
What the (&^%& is that good for???
Who uses that???
What's wrong with FM??
And... if I understand correctly... it's not even free???
1. FM Radio in Australia and SouthEastAsia, to me, is rubbish, content-wise
2. Bloody ads in FM Radio
3. Reception is ass. This is the main reason Steve Jobs *hates* FM Radio
4. Dumbass competitions and people calling up and all that rubbish
5. Do you know for Foxtel (CableTV) in Australia, what my favourite station was?
Tuning in to their "radio-only" channels for some chatter-free, ad-free stations.
They had a bloody good Lounge Music channel. Just leave it on while chillin or doing some work.
A 3rd party will make it an add-on...
I think that's the go. I have no experience with Satellite Radio, just Satellite and CableTV -- their "radio" channels (streaming music through your Satellite/CableTV connection... through the TV).
I venture that if Sirius and XM content have, on the music side, chatter-free channels that include music flavours such as http://di.fm [be sure to scroll all the way down, it's expanded a lot from just dance music], then I think that would be cool, alongside the "talking" channels that people like.
In which case a 3rd party dongle for Sirius/XM + FM combo thingy would be appealing to a certain group of people. Hey, if it sells more iPods, what the hell, go for it. 8)