Satellite Radio: Sirius vs. XM

The shares are down, but satellite radio won’t die yet, thanks to Howard Stern. This could be the reason why Google is thinking of marrying radio ads with adwords.

There are no federal decency standards to constrain you, that’s a plus. However,

The bigger problem, is that the potential of satellite radio to justify even current valuations remains very much unproven. The mass appeal of satellite radio is not yet a given.

Even if the two managed to run a cosy duopoly, moreover, they will also have rival technologies to contend with. At the very least, services such wireless broadband internet, multicasting by traditional radio stations and iPods may limit their potential to hold on to the sorts of margins envisioned in a few years time.


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