From Radio and Records.COM
Car-based iPods Threaten Terrestrial And Satellite Radio Listening
Competition for in-car radio listeners just got stiffer as Apple Computer has closed a deal with Ford, GM and Mazda to put iPod docks in their new vehicles.
Apple's new agreement with the car manufacturers means that by 2007, up to 70% of U.S. autos will have seamless iPod integration. GM sees potential in using the iPod as a marketing tool to attract younger consumers, and sales of iPods are expected to double by 2009. Sirius has made deals with Ford and Toyota in the past, but the proliferation of in-car iPods could create some serious competition between satellite radio and Apple.
While more in-car entertainment options takes away from both terrestrial and satellite radio, Jim Cramer of Real Money Radio says Sirius, in particular, is depending on the automobile industry for much of its growth business and could face a real challenge if new car buyers consider their personal iPod, which can hold the equivalent of thousands of CDs, sufficient for their in-car listening.
In Q1 2006, Sirius added 225,343 net subscribers from its automotive original equipment manufacturing channel, which is a 109% increase over the net OEM subscriber additions for Q1 2005.
What do you think, do we need to worry?
Car-based iPods Threaten Terrestrial And Satellite Radio Listening
Competition for in-car radio listeners just got stiffer as Apple Computer has closed a deal with Ford, GM and Mazda to put iPod docks in their new vehicles.
Apple's new agreement with the car manufacturers means that by 2007, up to 70% of U.S. autos will have seamless iPod integration. GM sees potential in using the iPod as a marketing tool to attract younger consumers, and sales of iPods are expected to double by 2009. Sirius has made deals with Ford and Toyota in the past, but the proliferation of in-car iPods could create some serious competition between satellite radio and Apple.
While more in-car entertainment options takes away from both terrestrial and satellite radio, Jim Cramer of Real Money Radio says Sirius, in particular, is depending on the automobile industry for much of its growth business and could face a real challenge if new car buyers consider their personal iPod, which can hold the equivalent of thousands of CDs, sufficient for their in-car listening.
In Q1 2006, Sirius added 225,343 net subscribers from its automotive original equipment manufacturing channel, which is a 109% increase over the net OEM subscriber additions for Q1 2005.
What do you think, do we need to worry?