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Saturday, October 21, 2006

Quick Thoughts On iPod-SatRadio Rumors


I'm sure everyone is tired of this subject, but here are a couple of quick thoughts:

Where there is smoke, there is fire...These rumors are based on actual patent applications that have been filed by Apple in 2005 and 2006. Note the timing...the rumors actually began circulating WHEN the patent applications were identified on the United States Patent Application website. These applications specifically mention satellite radio, thus, these rumors have a concrete origin. In the most recent one, it reads "AM, FM or XM". Many think that this references an iPod/XM partnership, however, my sources tell me that "XM" is a being used as a simple, generic term for "satellite radio".

There has been speculation about which SatRad provider iPod will chose, however, based on preliminary technical evaluation, it seems likely that the Apple device will be designed to accomodate either XM or Sirius. Apple realizes where the market is going...eventually, SatRad devices will be interoperable, and the ultimate choice will be based on consumer preference for content.

I believe that the iPod will accomodate SatRad, so it boils down to WHEN, not IF. From the most recent patent applications, the current motivating factor for Apple seems to be content sampling and tagging. But lets say that Apple does not integrate SatRad, then surely another company will (Sandisk, Creative, Toshiba, Phillips, etc). After all, it's not rocket science!

Another thing to consider is cell phone integration. As wireless carriers migrate to 3 and 4G, access to the internet (and developer applications) will be greatly enhanced. With the recent introduction of "internet-only" subscriptions, it is inevitable that any bandwidth-augmented handset could double as a satellite radio receiver. Thus, streaming content would be available anywhere that cell phone service is.

Now, why all the excitement about a iPod/SatRad combo device? Apple has defied the naysayers, single handedly creating an entire product category, seducing more than 60 million users to purchase iPods in just five years. The hope is that the "halo effect" will spill over to SatRad.

10/21/2006 06:38:00 AM


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