The fact of the matter is that SIRIUSXM has not developed a business model for their .com, iphone app, or even their blackberry app. SIRIUSXM or Internet radio in cars is pointless because we live in a smartphone world. Apple just reported that they sold 1.7 million units in Japan, which accounts for 71% of all smartphones sold in that country for the fiscal year ending March 31. Just think of all the smartphones sold here stateside last year with the introduction of Droid, the continued success of Blackberry and the iPhone.
Like it or not we are in the cloud and embracing that now is beneficial for everyone in the music industry. Instead of selling radio hardware SIRIUSXM needs to focus on providing a relevant product to the two most relevant generations, X AND Y.
The Baby-Boomers will never retire thanks to the market crash and will be forced to correct their spending habits. Done is the time of frivolous spending on products that can be found for free.
What the two apps are missing, the most important selling vantage that is SIRIUSXM is HOWARD STERN. With out him what the hell is the point of paying for the service? What happens when Stern actually calls it quits? What will you give us SIRIUSXM? If Pandora can implement a business model providing free music with streaming audio ads and CPM banner advertising to support their mission then why can’t SIRIUSXM? Until Mel Karmazin can provide this product for free then their product is derivative, and will continue in failing to provide anything revolutionary to the music industry.
To return to my point of a prior op-ed piece, written a few weeks back, satellite radio and Internet radio will not be doing artists any good. Internet radio fails to pay artists, and satellite radio refuses to harness the sea of data the Internet provides so that they can provide a better focused product to the country and discover meaningful revolutionary sounds.
Regional concentration by SIRIUSXM would not be similar to that of the failing terrestrial stations. When I discuss this term “regional” I suggest a larger microcosm than the small circles Internet Radio covers. I am talking about a Mid-Atlantic channel, a New England channel, Mid-West, Southeast, Pacific Northwest, Southwest and of course California.
There is just so much talent out there that fails to make the mainstream mark and its a shame that a company with such great potential refuses to move away from the poisonous influence of Zach Horowitz, Doug Morris, Jimmy Iovine, Jordon Schur, PollyAnthony, and L. A. Reid. Who are all dopes hanging onto a failing business model delivered on a 20 year old platform.
If I was a SIRIUSXM stockholder I would be wildly concerned with my investment. The satellites now hovering over earth providing you a signal to your cars are just fancy space ornaments. The problem with SIRIUSXM form its conception is that they never asked themselves the appropriate questions. Rather than asking “Should we put satellites into space?” they asked “Could we?” and never thought of the potential of it losing its technological prowess. Investors need to realize that if they want huge long term returns in their shareholding they must first rid themselves of the old guard Mel Karmazin, Howard Stern, Oprah, Rosie O’Donnell, Opie and Anthony, and the VJs from MTV ::COUGH COUGH:: SWAY!
There are a lot of brilliant DJs, bloggers, and celebrity musicians out there who are willing to contribute to the industry and they do it out of love, because the music is what keeps their feet tapping, even when they’re napping. SIRIUSXM needs to step up to the plate and hit a game changing home run, the time is no better then right here, right now. The industry is dying for a leader on all levels of the spectrum. Who is it going to be?