Have You Noticed It's Costly To Run A Bunch Of Satellites? XM Has...
from the ain't-so-easy dept
From the very beginning of satellite radio, I was skeptical of its potential. While I admit I was wrong about the number of people it would appeal to, my bigger issue was with the cost structure of the business. Launching and maintaining satellite is extremely expensive. Just ask anyone who worked on Iridium or Teledesic. Even if you can sign up a lot of users, the capital costs are tremendous. If the costs of getting those subscribers is high, then it's a definite recipe for trouble. So far, Sirius and XM have been able to keep kicking, mainly through a ton of investment money and the promise of future potential profits -- stacked up against continued losses. It looks like a few are finally doing the math on all of this and realizing that the satellite radio business, as much as some people like it, may not be sustainable. XM posted wider than expected losses today, blaming higher than expected customer acquisition fees -- suggesting that, for all the good press, not as many people as expected have been rushing to sign up. Also, one of the company's directors resigned, citing a "crisis on the horizon," which is anything but inspiring.
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SatRadio
Hundreds of channels means nothing in a world of the personalized channel.
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WTF???
Mike was wrong about something?
wrong?
My world is ending...
(this is a joke...)
MjM
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other issues..
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sat. radio is probably a suburban phenomenom
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No Subject Given
The expenses associated with marketing (and growing) a fixed-cost-amortization business are large. Witness CPA trends for cellular cos.
The initial capital investments associated with building the infrastructure for a fixed-cost-amortization business are large. Witness Iridium, Teledesic.
The maintenance expense associated with a fixed-cost-amortization business is small. Witness all of the above.
XMSR's broadcast and Operations costs are 10% of their op ex -- roughly $10M a quarter, versus $100M of marketing expense.
Read their 10-Q -- it is fascinating.
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Too many limitations
The reason was limitations. After the first year I'd be spending more than $10 a month in service fees. So for that I could buy (at extra cost) a home Sirius receiver which I could add to my same account for either no fee or a small added monthly fee, right? Wrong... add another receiver, and see a big jump in monthly service fees, despite the fact I would never use both receivers at the same time. Also, people who have sat radio have told me it cuts out at times due to interference. If there were a buffering capability that allowed a way to minimize noticable disruptions and also allow repeating a song, pausing, etc. the service would be more attractive. XM I think had talked about adding TiVo-like features to a sat receiver and the RIAA freaked. I'd rather not buy into another 'piracy' fight. And if I were a fan of a talk show like Stern I'd expect the ability to record it for later playback at a time that is convenient for me.
Lacking convenience, I'll stick to the 6-disc CD changer in the car, and almost limitless MP3 playback at home/work. This Spring a more convenient iPod adapter will be available for my car, at which time I'll have gigabytes of MP3s for easy playback in the car too.
Pay more than $100 a year for radio in the car that I can't control in any way except change channels, and can't enjoy anywhere except in the car? Phhht! How last century. If XM and Sirius want to grow their subscriber bases enough to stay in business, they need to make their services far more attractive, not limit their usefulness and convenience.
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Re: SatRadio
We moved beyond podcasting years ago. It was called streaming.. remember?
That said, if Sirius got a cool little portable receiver like XM has, I'd go Sirius in a heartbeat. No interest in XM.
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Lets talk about sound quality also
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crap
Maybe XM and Sirrius should think about buying the iPod, build in a Satellite music reciever to it and a capability to download and purchase the music on it threw the iPod.
I think I deserve a free iPod for this!!
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Re: crap
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Or maybe they really did get...
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Re: Too many limitations
Sirius DOES have buffering capabilities, I drive through downtown Detroit every dat under bridges and deep in the city around all the tall buildings, rarely does it ever cut out at all.
Also Sirius has a portable player called the S50 that comes with an FM modulator for your car and a full color display.
The only limitation is people not doing the research on satellite radio before they make absurd assumptions.
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Re: SatRadio
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No Subject Given
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Re: crap
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Re: Too many limitations
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Re: Too many limitations
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don't knock till you try
Podcasting? Right. Sorry, that was enjoyable for about 13 minutes in 1997.
There's a reason that folks listen to the pros - they are better. Where else can i get sports, bbc, and 4 varieties of live NPR?
The detractors of the consumer value proposition of satellite radio should try it before they rag on it. You sound old and GOP, not like early adopters of technology.
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Re: don't knock till you try
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Re: don't knock till you try
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Why should we pay for radio?
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Re: SatRadio
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No Subject Given
What I do love about XM is the fact that I can always get my favorite station, no matter how far I drive; the fact that news, traffic, and weather are always available; and the fact that no matter what genre I (or my passengers) might want to listen to, it's there. My dad just picked up a Roady and plans to use it in the car, at home, and on the boat - and couldn't be happier.
What dismays me is the fact that when you buy a new car, several manufacturers only offer one or the other - not a choice. My new Jeep will only offer Sirius - and I can't replace the head unit lest I lost several vehicle features that use it - and so I will listen to it for my free year, and if I can't figure out how to get XM on it (there may be an aftermarket solution that wires right into it), I may wind up staying with Sirius.
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Re: Why should we pay for radio?
I'm rather enjoying spending a little over $10 a month for 60+ channels of commercial free music, unedited talk content, the BBC, several varieties of NPR, NFL and NBA games live with the choice of which team's announcer I want to listen to, &c. Plus most of the channels are streamed over the internet. And regardless of whether I'm traveling, at home, commuting or out at the cabin 50 miles from the nearest FM station all my favorite channels are available to me.
For less than $200 I bought a unit that works in both the house and in the car, buffers up to an hour of audio with a rewind, fastforward, pause feature, alerts for favorite artists or songs playing on different channels, alerts for favorite sports teams games and scores, and a builtin FM transmitter.
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Re: Too many limitations
However you cant listen to live broadcasting unless its plugged into the home dock. They need to work on something that isnt the size of an EKG machine and has lively portability or they wont be around for long. XM has the mp3/live broadcast units coming out in March. Sirius, who who howie and that gravely voiced faggot beware....Opie and Anthony and XM will always win in the end.
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Re: Too many limitations
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Re: crap
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Re: Too many limitations
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Re: Too many limitations
"right? Wrong... add another receiver, and see a big jump in monthly service fees, despite the fact I would never use both receivers at the same time."
Hrm. I pay an extra $6 for my extra receivers. I have an Alpine unit in my car and a Kenwood unit in my office. My girlfriend has a unit in her car too. Not really a big jump in service fees overall.
"Also, people who have sat radio have told me it cuts out at times due to interference."
Yeah, usually because of overpasses or streets that have thick trees on both sides. But I spend a lot of time outside of urban areas and it's *amazing* to have. Sirius is fantastic to have on long drives & camping trips.
"If there were a buffering capability that allowed a way to minimize noticable disruptions and also allow repeating a song, pausing, etc. the service would be more attractive. And if I were a fan of a talk show like Stern I'd expect the ability to record it for later playback at a time that is convenient for me."
You can do all of those with the Sirius S50.
"Pay more than $100 a year for radio in the car that I can't control in any way except change channels, and can't enjoy anywhere except in the car?"
I enjoy mine outside of the car. To have that many channels of ad-free music, it's well worth it. The playlists on Sirius are great. I hear more new bands on Sirius than anywhere else.
"subscriber bases enough to stay in business, they need to make their services far more attractive, not limit their usefulness and convenience."
They're not limiting them. Maybe one day the price will drop a bit, but come on, don't be such a cheap bastard. If you want to save a whopping $12/mo (which you'll probably blow at Starbucks anyway) and deal with mp3s and standard RIAA-infested FCC mandated radio, go ahead. But millions of us have gone the other way, and we like our Sirius units.
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Re: SatRadio
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Re: Why should we pay for radio?
Then have fun listening to whatever Clear Channel feeds you. Ads & all.
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XM
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Re: SatRadio
Please feel free to contact me if you have one that you think has merit.
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Re: Re: SatRadio
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