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Sirius in Negotiations With Apple
An anonymous reader writes "Sirius Satellite Radio Chief Executive Mel Karmazin announced that his company is in talks with Apple about bringing satellite radio to the iPod. Karmazin met with Steve Jobs Monday and he says the technology is the easy part. The hard part is negotiating just how they will split the profit from equipment and monthly subscriptions." We've covered this before, but now it seems they are getting "more Sirius," or something.
From TFA:
said the company has "had discussions with everyone," including makers of cell phones, digital music players and other devices.
It wasn't just Apple, its just a generalized thing
The CRTC has not approved services like Sirius and XM in Canada yet, but expect to have either or both here soon. It's basically high quality digital, (largely) commercial-free, subscription-based radio programming.
I don't know that there's any technical reason why you couldn't receive satellite radio in Canada, but neither company will sell it to you. Likewise, if you're an American passing through Canada there's no reason why your satellite radio wouldn't work. I guess that reception in Europe and elsewhere would depend on how they have their satellites positioned and what kind of orbits they are in.
~Someday, I hope to be an aspiring author.
Yes there are...
And while they have all of this content, they only got it by dramatically overpaying for it. XM has, to their credit, refused to play that game. Meanwhile, Sirius has been ignoring certain less sexy aspects that drives growth in this medium.
Sirius is losing the car partnership race. Folks that buy new cars have something like a 30-50% conversion rate for whatever ships in the cars. That is becoming, increasingly, XM. Their new deal with Hyundai is going to probably bring in more subscribers than Stern ever would, but it didn't cost half a billion.
Sirius is also seen as losing the hardware race. They don't have the resources to make desirable hardware. XM isn't doing the best here, either, but they're doing better than Sirius.
Lastly, Sirius cannot afford to launch another sat, and they need to. They're going to burn a lot of money keeping a repeater network going. XM has the resources to continue lofting birds, and saving money from having less of a ground presence - and eventually, having the sat bandwidth to offer new services.
The fact is that Sirius is acting a lot like a dot.com company. They're betting that they get a lot more subscribers before they burn through the cash - and I think that's a bet that they're going to lose.
Sirius will be calling for a secondary stock offering soon. I'm sure that Stern is going to be just thrilled when his huge deal suddenly is worth a whole lot less. That will be the beginning-of-the-end event for Sirius.
jh