Wednesday, November 23, 2005

Digital satellite radios take on iPods covers a recent report from JupiterResearch that finds the "US digital satellite radio market will surge from its current installed base of 12 million units to 55 million units in 2010."

Michael Gartenberg at JupiterResearch said, "Transportable devices will lead the installed base mix with sales being driven by wide device selection and lower price points. However, in-vehicle interest has been strong. Twenty-three per cent of online consumers we surveyed demonstrated a strong interest in the service, but overall only six per cent of online consumers have satellite radio."

Jupiter predicts that "transportable devices comprising both plug & play and handheld units" will make up 60 percent of sales in 2010. According to the report, XM Satellite and Sirius "need to move beyond the car and integrate satellite radio into other devices in order to spur growth." One area pointed out by Jupiter is mobile phones, which can take "advantage of fast wireless networks to offer existing internet streaming services to current and new customers."

David Schatsky at Jupiter Research added, "The signing of big deals such as Howard Stern and Major League Baseball has raised the stakes for XM Satellite and Sirius, even beyond the initial capital outlays for satellites and subsidised hardware. The primary challenges for Sirius and XM are price and competition with other portable media players and music services, such as iPods and iTunes respectively."

Personally, I think the high subscription rates for satellite radio are an issue, especially when compared to the costs for music streaming on cell phones...