Satellite radio threatens iTunes

Thursday, December 08, 2005

Apple and other online music companies along with music labels are facing a threat from satellite radio providers, according to The Wall Street Journal: "The beleaguered music industry faces a new, unexpected threat in its battle to protect copyrights and royalties: the arrival in stores of new satellite-radio receivers that mimic iPods in their ability to store and organize hundreds of songs. Fast-growing subscription radio services, offered by XM Satellite and Sirius provide hundreds of channels of music and talk radio to people who buy special radios and pay a $13 monthly subscription fee. Some satellite-radio receivers already allow listeners to record a few hours of programming." Their growing popularity also threatens the iPod-iTunes ecosystem.... ....The report notes that the new receivers enable users to store much more music from satellite-radio broadcasts as well as manage songs using playlists threatening music labels' more lucrative per-song purchase model and cutting into digital music services' share of the digital download pie. While the iPod has dominated the portable player scene, the variety and extent of satellite programming may be alluring to consumers.
"Because both services offer niche channels, it becomes easy for users to quickly find artists or songs they want and store them. Sirius, for instance, offers channels such as Rolling Stones Radio and Elvis Radio," according to the report.
The WSJ notes that the industry garners much lower royalty rates for songs that are played on satellite radio than it does for songs that are purchased through download services or on CDs. Satellite radio royalty fees are also lower that the charges for songs that play on subscription services, such as Napster. Read full story here
(via iPodNN)

2 Comments:

Blogger Dominick said...

news headlines coming out of conference today:

Sirius Radio, Apple Talked About Working Together (Update2)
December 8, 2005 16:32 EST -- Sirius Satellite Radio Inc. Chief Executive Officer Mel Karmazin has spoken with Apple Computer Inc. CEO Steven Jobs about working together, a Sirius executive said.

Sirius Radio, Apple Talked About Working Together (Update1)
December 8, 2005 11:36 EST -- Sirius Satellite Radio Inc. Chief Executive Officer Mel Karmazin has spoken with Apple Computer Inc. CEO Steven Jobs about working together, a Sirius executive said.

Sirius Satellite Radio, Apple Computer Have Talked, Frear Says
December 8, 2005 10:42 EST -- Sirius Satellite Radio Inc. Chief Executive Mel Karmazin has spoken with Apple Computer Inc. CEO Steven Jobs about working together, said Sirius Chief Financial Officer David Frear at a media conference in New York.

Thu Dec 08, 06:49:00 PM EST  
Blogger Sev said...

I doubt it anytime soon, least the way I see it. People are ignorant, simple as that. I show people my S50 or my old clarion I had, "Oh it's nice, but I can't justify paying for radio". I get the same response when I had a TiVO, " I don't watch that much TV or I don't want to watch more TV".

I haven't watched more TV since I got it, I watch it on "MY" time and in "LESS" time skipping commercials. People do not have an open mind!

So will you get millions of people off their overpriced iPODS anytime soon? I don't think so, they are to comfortable with it.

/rantoff sorry

Fri Dec 09, 08:32:00 AM EST  

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