Wall Street Journal Negative On Satellite Radio
Low FidelityUntil Recently Full of Promise,Satellite Radio Runs Into Static
XM, Sirius Post Big LossesAs Listeners Prove Fickle;Investors Take a Pass, Too
One-Year Free Trials End SoonBy SARAH MCBRIDEAugust 15, 2006; Page A1, Wall Street Journal
Last year, Nicky Baumohl bought a new Audi A4 featuring an XM satellite radio with a free, trial subscription. But Ms. Baumohl's salesman never activated the service and an XM customer-service representative mistakenly told her she wasn't eligible. Already irked at the idea of paying for radio, the 35-year-old event planner instead listens to CDs, broadcast radio and her iPod digital music player as she tools around San Francisco.
The customer who got away -- especially after so many inducements -- is one reason why satellite radio is encountering unexpected turbulence after just a couple of years of being a hot consumer item.
The problems are myriad, underscoring the fast-changing and fickle nature of the consumer-electronics business. In addition to not activating pre-installed car radios, or those given as gifts, customers who actually sign up don't always stick with the service. Many people are simply having iPod adapters installed in their cars and skipping satellite altogether, a concept that was barely on the horizon when the industry was young. In addition, bidding wars have driven up the cost of on-air talent far beyond what was initially expected....Full article:
HERE8/15/2006 01:22:00 AM
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