Originally posted by Surfacing171
Actually, 13.6 Million a month is not that much. I bet those companies have HUGE overhead, not to mention all the money it took to actually get those satellites in the sky.
I've wondererd if possibly one satellite radio company will prevail over another, or if they can co-exist in the same market?
taken from a news article from Dec 29th ...
"Sirius has said it expects to have 200,000 subs by year's end. It will provide its 2003 subscriber numbers and 2004 forecast next week. The company has a deal with BMW, which last week said it will roll out Sirius as a factory option on its new 5 Series sedan with a one-year prepaid subscription.
XM, based in the Washington, D.C., area, is allied with GM. It has said it's on track to have 1.2 million subs by year end --- up from 347,000 a year ago. XM launched its service about a year before Sirius. "
just off the subscription numbers alone, it looks like anyone who wanted satellite radio already chose XM. it's going to be hard for Sirius to close that kind of a gap already created.
granted that Sirius launched one year after XM, but i feel they do not have the right people running their R&D. XM has the delphi unit that allows the user to bring XM to the car, into the house, and on the beach without having to pay for multiple subscriptions. one year later, Sirius has their portable unit available to the market. it's a little late which makes me think that they just copied XM's idea and never had it on the chart until the Delphi hit the shelf.
XM is also affiliated with Alpine, Pioneer, and Sony ... which are some important name in mobile and home electronics.
Sirius is affiliated with Panasonic, Kenwood, Audiovox, and Clarion. Those names aren't to be taken lightly, but the mfgs. who support XM have a larger distribution base than the ones who support Sirius.
not all is lost for Sirius. They have a contract with Ford, who seems to be making a rebound after a horrible start to the new millenium. if the subscription numbers continue to "grow" at this pace though, look for an increase in subscription fees.
cliff notes ...
having the #1 global and us car mfg support you (GM)
+
high distribution base (exclusive at WalMart) and support (Sony, Alpine, Pioneer)
+
lower subscription costs (& now w/ no ads, which used to be a Sirius selling point)
=
success.
there's definately room for both companies. the american public needs to realize that satellite radio is just like paying for cable tv. i own an XM tuner, but i'm pulling for Sirius. competition will bring the best out of both companies.