XM Radio To Launch Online Music Service

[Kent Pribbernow]

<div class='os_post_top_link'><a href='http://news.com.com/XM+Radio+tunes+in+online+music+service/2100-1026_3-5367703.html' target='_blank'>http://news.com.com/XM+Radio+tunes+in+online+music+service/2100-1026_3-5367703.html</a><br /><br /></div><i>"Satellite radio operator XM Radio on Wednesday announced plans to launch an online music service. The Washington, D.C.-based company said the service, dubbed XM Radio Online, will launch sometime in early October and operate commercial-free, just as its satellite programming does. XM will charge $7.99 per month for unlimited listening and offer a discount rate of $3.99 to subscribers of its existing radio services. The company's main business is a commercial-free radio service that's used with its portable satellite radio receivers, which are designed for use in homes and cars. The company currently claims about 2.1 million subscribers."</i><br /><br /><img src="http://www.digitalmediathoughts.com/images/satradio.gif" /><br /><br />This an interesting move for XM, though I question whether or not this strategy will succeed. The first flaw I see is that the quality of the music experience will depend greatly on the PC user's hardware. No one is going to pay $8 a month to listen to music on a PC with lame speakers and budget sound card. To get the full benefit, you're going to need a good sound card and a 5.1 speaker system.<br /><br />Then there is the question of whether there really is a market for this service at all. I'm sure XM has done some market research, but still...I can't think of anyone I know that would want to listen to XM on their PC, even at work to pass the time. We'll see.

[foldedspace]

I listen to Shoutcast or ITunes online...for free.

:usa

[Kent Pribbernow]

You know, I was thinking about that. And what about Live365? I use that from time to time myself. The content isn't commercial free unless you upgrade to the subscription package, but still..

[Felix Torres]

There are three kinds of customers for this:

1- Existing XM subscribers (say, with a car system) who can extend their subscription inside the house or to work

2- Potential XM buyers, who get to try the service before buying hardware

3- Customers interested in the service who do *not* want to buy the radio.

Given that they are killing the PC-based offering they had, this is a good replacement. Plus it makes sense to leverage the net as a distribution system for their existing product. Besides, why surrender the PC-based market to Yahoo or Real or MS, when they have a recognizable brand in place?

Just another form of convergence, really.
In this case, XM decided they're in the broadcasting business, not just the radio business.

Now if only the TV networks got it and did the same, things could get interesting...

Think about it, why should HBO (or Sci-fi, or what-not) limit themselves to cable systems or dishes when they can use the net to reach customers directly?

Its all one big market; eventually everything is going to converge on TCP/IP packets running on the net...

[coffeeFreak]

...
Now if only the TV networks got it and did the same, things could get interesting...

Think about it, why should HBO (or Sci-fi, or what-not) limit themselves to cable systems or dishes when they can use the net to reach customers directly?

Its all one big market; eventually everything is going to converge on TCP/IP packets running on the net...

On problem with servicing HBO or other TV channel on the net is the security issue. With Cable or Dish, they have physical access control. It's true some people sneak by getting the neighbors cable's box hacked to their TV, etc... but doing so breaks many laws, and if detected, easier to catch. With Internet, it's much harder... I doubt the people like Comcast want to mess with the issue. They just want control over their content.

[hawkeye]

I think this service is only being offered because XM pulled their PC product.

XM pulled it after TimeTrax (I think that's the correct name) got some press.

[Neil Enns]

This is really, IMHO, just to compete with Sirius.

Sirius costs, shockingly, $4 more a month than the base XM Radio subscription. What do you get for that extra $4? The ability to listen to all their radio streams on your PC.

So, XM comes out with a streaming version of their network, and it costs... $4 more :)

Neil

[EscapePod]

While I'm sure the XM system is very good, and has a lot of channels, I get digital music (currently 46 stations) in 5.1 format with my BrightHouse digital and HD cable subscription, which is approx. $10 over the base cable service in my area. I "think" of it as free high performance music.

[lonesniper]

I pay $5 a month for VirginFreeRadio so I get a CD quality streaming country music station (England is a county music free nation).
If XM market their internet service worldwide I think lots of people would be interested. Especially those interested in specialist channels like NFL etc.

[Paul]

This announcement is clearly timed to the launch of Opie & Anthony on XM. There are many listeners that won't buy the existing receivers with the time shifting SkyFi 2 hitting the market soon. They know O&A fans will subscribe to the online feed for now, get a SF2 later, and probably keep the online feed after they start using it to listen while at work. This will result in a huge increase in the number of paid accounts.

[Neil Enns]

England is a county music free nation

You say that like it's a bad thing? :lol:

Neil

[lonesniper]

England is a county music free nation

You say that like it's a bad thing? :lol:

Neil
It is if you are a big country fan like me!!! I know some people say it is just songs about loosing your dog and lover, but I love it and would rather pay to listen to Brooks and Dunn than have to listen to "money grabbing commerial pop".

I think pay for stations like XM and VirginFreeRadio are a wonderful service. I just can't wait for cellphone data speeds and service plans to improve to allow us to stream internet music to our phone/PDA/music combo devices.