Will Internet Radio, Music and Podcast Streaming Apps Lead to the Demise of SiriusXM?

[Scott2013]

With so many people cutting back on spending, I wouldn't be surprised if many people have dropped their subscriptions to SiriusXM to save some money. Many of us who drive newer vehicles with Bluetooth capability, depending on the make and model, can access apps like TuneIn, Dash Radio, LivexLive, Live365, iHeartRadio, Radio.com, radio.net, Pandora and Spotify to play through their car speakers very easily by pairing our phones with our cars. Even better, using such apps in conjunction with Android Auto and Apple CarPlay allows drivers to safely change stations or apps using voice activation. With so many free radio, music and podcast streaming apps available on our phones, that kind of begs the question, could these lead to the eventual demise of subscription satellite radio?

One thing that attracts many to SiriusXM is the wide variety of listening options by music genre, particularly if their local market lacks certain formats (for example, many smaller markets in the plain states like South Dakota or Nebraska don't have a hip-hop or urban contemporary station available to them over the air). While SiriusXM solves that problem easily, the large (that word would be an understatement) number of stations available for free on these apps could also fill that void. In fact, when you really think about it, you're going to be able to access much more stations on these apps than are available on satellite radio.

Something else that attracts many listeners to SiriusXM is the exclusive uncensored talk shows from the likes of Howard Stern and Jenny McCarthy. But Spotify has plenty of podcasts available with virtually the same brand of off-color humor and commentary. Dash Radio also has several talk radio stations to listen to. Both apps also have plenty of shows and podcasts that are more informational in nature, relating to such topics as current events, politics, religion, health/lifestyle, etc., as do the other aforementioned apps.

SiriusXM has audio simulcasts of CNN, HLN, Fox News, CNBC and MSNBC, but so does TuneIn for free. CNN, Fox News and MSNBC are also available to listen to on Radio.com. iHeartRadio has NBC News Radio complete with 24-hour news updates. LivexLive has audio replays of broadcasts of NBC News, CNBC and MSNBC programs such as NBC Nightly News, The Rachel Maddow Show and Nightly Business Report.

But now let's talk about what some of these apps lack compared to SiriusXM. Of the apps that I've mentioned, the only one that is truly commercial-free like the SiriusXM music channels is Dash Radio. However, TuneIn, LivexLive, Pandora and Spotify do have premium subscriptions for an extra fee so the commercials would be removed.

Another noticeable lack on the part of these streaming apps is sports coverage. On TuneIn, NCAA games, high school sports and NASCAR races are free to listen to on any local stations on the app that broadcast them, but MLB, NBA, NFL and NHL games are blacked out on streaming apps. SiriusXM, on the other hand, has channels dedicated entirely to MLB, NBA, NFL, NHL, NCAA, NASCAR, UFC and the PGA Tour.

My point is, I'm curious if anyone else thinks SiriusXM may eventually fade away because of the availability of these free Internet radio and music streaming apps as opposed to a service one would have to pay a monthly fee to keep. What are your thoughts?

 

[Kevin]

No, it will not because SiriusXM already has a streaming service for your smartphone. They are smart for not putting all their eggs in one basket.

 

[TheBigA]

I'm curious if anyone else thinks SiriusXM may eventually fade away because of the availability of these free Internet radio and music streaming apps as opposed to a service one would have to pay a monthly fee to keep. What are your thoughts?

Free internet radio is more likely to disappear, because of rising music royalties and diminishing ad rates. The music industry has been very vocal about shutting down all free streaming services, because they see getting music for free as bad for business.

2 Key Trends to Watch in Music Streaming | The Motley Fool

Meanwhile, SiriusXM just launched a brand new satellite, so they obviously believe they are in this for the long term:

SpaceX launches satellite for SiriusXM (msn.com)

 

[Scott2013]

Okay, so maybe I didn't think this through too well. Still, it's interesting that there are so many similar options out there for free. Lately, I personally have been getting more listening hours from those than I do from SiriusXM.
Full disclosure--I've been a DJ on a local Internet radio station just outside of Cleveland for close to two years now, so ever since I started that gig, I've been looking into those types of options more.

 

[CaliRadioFan]

SiriusXM bought Pandora last year, and they still may add IHeartRadio to their portfolio by the end of 2021. They aren't going anywhere.

 

[Kevin]

Free internet radio is more likely to disappear, because of rising music royalties and diminishing ad rates. The music industry has been very vocal about shutting down all free streaming services, because they see getting music for free as bad for business.

2 Key Trends to Watch in Music Streaming | The Motley Fool

Meanwhile, SiriusXM just launched a brand new satellite, so they obviously believe they are in this for the long term:

SpaceX launches satellite for SiriusXM (msn.com)

This royalty thing is truly a non-issue. The music industry can’t shut down free music streaming services and besides the music industry is getting free exposure and what about streaming from other countries. If it comes down to royal fees then the cell companies will just simply charge another tax on your monthly bill and call it a royalty tax just like the 911 tax we all are paying on our cellphone bills currently. Most people won’t even know it exists.

 

[Kelly A]

This royalty thing is truly a non-issue. The music industry can’t shut down free music streaming services and besides the music industry is getting free exposure and what about streaming from other countries. If it comes down to royal fees then the cell companies will just simply charge another tax on your monthly bill and call it a royalty tax just like the 911 tax we all are paying on our cellphone bills currently. Most people won’t even know it exists.

Huh? The music industry, Sound Exchange, ASCAP, and all their associated lawyers, can and have shut down many free streaming operations. Some stupidly-bold streamer's have tried fighting them, and have ended up on the losing end of massive lawsuits. Passing those escalating charges onto your customers, means you won't have paying customers for long. And no, we aren't talking about .02 per subscriber.

 

[gr8oldies]

We have Sirius XM in my wife's car, and I listen online. There still is no such thing as truly unlimited data, either you get charged more or throttled.

My wife likes SiriusXM in the car (she's a P1 for the Garth channel). She does not like the idea of fumbling with her phone to stream music, and especially, change stations. Having SiriusXM by satellite works just fine with her because it's a radio with extra channels.

 

[TheBigA]

If it comes down to royal fees then the cell companies will just simply charge another tax on your monthly bill and call it a royalty tax just like the 911 tax we all are paying on our cellphone bills currently. Most people won’t even know it exists.

That's actually been proposed, and the phone companies don't want to become a collection service for music companies.

 

[wadio]

She does not like the idea of fumbling with her phone to stream music, and especially, change stations.

Bingo!

"Radio" needs to be simple for people to use it. Management is shooting itself in the foot with all the proprietary apps causing needless complexity. Not to mention the annoyance of pre-roll ads including video ads which no one needs in a car!

Short term gain is the mindset. It will kill them in the end.

Let users choose a platform from which to stream any station. Create a list of favorites, switch stations without having to wait for a pre-roll to find out what's on. Revenue will follow as people actually use "radio" again.

 

[TheBigA]

"Radio" needs to be simple for people to use it.

Radio IS simple. You're talking about streaming. That's different. If you just tune in your local station on your radio, there is no pre-roll or proprietary app. Problem solved.

 

[Kelly A]

No, it will not because SiriusXM already has a streaming service for your smartphone. They are smart for not putting all their eggs in one basket.

SXM was boxed into a corner. The satellite subscription model had maxed out to older demos and truckers. As mentioned, Pandora had an audience, but was being killed by music fees. SXM rolled-up the numbers and younger demos into their existing satellite model. Pandora also had technology which would help SXM in the future, vs. a more traditional radio technical model.

 

[wadio]

Radio IS simple. You're talking about streaming. That's different. If you just tune in your local station on your radio, there is no pre-roll or proprietary app. Problem solved.

Streaming is the new radio.

 

[TheBigA]

Streaming is the new radio.

Sure, but you want it to act like the old radio, and the law prevents that from happening.

You want all stations on the same platform, and the government would call that a monopoly.

The only reason all AM/FM stations are on the same platform is because the platform is owned by the government.

 

[wadio]

Sure, but you want it to act like the old radio, and the law prevents that from happening.

You want all stations on the same platform, and the government would call that a monopoly.

The only reason all AM/FM stations are on the same platform is because the platform is owned by the government.

1. Please stop with the you you you. This thread is not about me.

2. Could be multiple platforms. iHeart lets other content providers into their app but not the other way around.

3. Maybe the government should provide the platform.

 

[TheBigA]

2. Could be multiple platforms. iHeart lets other content providers into their app but not the other way around.

Keep in mind we are early in this technology. There was a time when RCA refused to install FM in its radios because the patent was owned by a former RCA engineer who was fighting a patent war with David Sarnoff. All that magically changed the day the patent ran out.

In the early days, everyone is fighting for the acceptance of their technology as THE universal system. But right now, the government is suing Google because their search engine won the acceptance battle. Nobody wants to be sued as a monopoly. But everybody wants to win the competition for the sole streaming platform.

One of the problems with radio streaming is there's no money in being a one-size-fits-all platform. That's why TuneIn is in trouble. They tried to operate as an open system, and it didn't work. They tried to be a subscriber system and it didn't work. They tried to create their own content and it didn't work. The only way it works is if you have a diversified revenue system. So iHeart and Entercom own radio stations that they stream on their own platforms. That system works for now. Sure it would help consumers if they shared content. But that's not where we are now.

 

[wadio]

Keep in mind we are early in this technology. There was a time when RCA refused to install FM in its radios because the patent was owned by a former RCA engineer who was fighting a patent war with David Sarnoff. All that magically changed the day the patent ran out.

In the early days, everyone is fighting for the acceptance of their technology as THE universal system. But right now, the government is suing Google because their search engine won the acceptance battle. Nobody wants to be sued as a monopoly. But everybody wants to win the competition for the sole streaming platform.

One of the problems with radio streaming is there's no money in being a one-size-fits-all platform. That's why TuneIn is in trouble. They tried to operate as an open system, and it didn't work. They tried to be a subscriber system and it didn't work. They tried to create their own content and it didn't work. The only way it works is if you have a diversified revenue system. So iHeart and Entercom own radio stations that they stream on their own platforms. That system works for now. Sure it would help consumers if they shared content. But that's not where we are now.

Fair enough, but I think it's shortsighted. Similar to a restaurant owner fighting to keep other restaurants away from his territory when restaurants usually do better if there are more of them in a given area.

There are other examples such as Philips allowing other companies to copy the audio cassette made the cassette ubiquitous, and that ultimately helped Philips.

I hope those in charge will eventually figure out something that will help consumers and themselves as well. Sometimes you need to give a little to get a lot.

 

[TheBigA]

Fair enough, but I think it's shortsighted.

That's what people thought about RCA. Sarnoff had an ax to grind. AFAIK Philips may have allowed other companies to LICENSE the design, but I don't think they just gave it away as free unlicensed shareware.

 

[davideduardo]

That's what people thought about RCA. Sarnoff had an ax to grind. AFAIK Philips may have allowed other companies to LICENSE the design, but I don't think they just gave it away as free unlicensed shareware.

Sarnoff was not a nice person. He had the same Russian mentality as Lenin, in fact.

 

[davideduardo]

Keep in mind we are early in this technology. There was a time when RCA refused to install FM in its radios because the patent was owned by a former RCA engineer who was fighting a patent war with David Sarnoff. All that magically changed the day the patent ran out.

Edwin Armstron was not a "former RCA engineer". Maj. Armstorng had approached David Sarnoff of RCA with an improved version of the superheterodyne circuit which required fewer tubes and could be done for less money. Armstrong was given RCA shares in exchange, becoming the largest shareholder in RCA at the time. The design became the RCA "Radiola" receiver line and it was mostly responsible for driving former big manufacturers like Crosly out of the business with their more expensive designs... a big disadvantage in the recession.

Later, Armstrong tried to get RCA to similarly buy his FM design. Sarnoff, concerned that a new radio system would hurt his focus on introducing television, did not buy in. In fact, Sarnoff maneuvered to keep FM from prospering to the extent that Armstrong later took his own life.

(Very simplified story. Armstrong is my hero and idol, while Sarnoff is just an evil villain, worthy of taking on even Harry Potter!)