How did Apple miss the Sirius deal?

Discussion in 'General Mac Discussion' started by MarcelV, Jan 5, 2005.

  1. MarcelV macrumors 6502

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    Jul 12, 2004
    #1
    Sirius has chosen Microsoft as partner for their video feeds that will be launched next year for their satellite service. Clearly, it is MS attempt to
    popularize their Windows Media format. I am really surprised why Apple
    missed this opportunity to provide the complete quicktime media server solution, as this is being build and promoted to provide products like this.
    Any thoughts why Sirius chose MS?
     
  2. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #2
    maybe because most of the world now uses windows?
     
  3. MisterMe macrumors G4

    MisterMe

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    #3
    What makes you think that Apple missed anything? You assume that a Sirius business decision represents a failing on Apple's part. Explain your logic.
     
  4. MarcelV thread starter macrumors 6502

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    #4
    You may want to read before you respond. It has the do with the implementation of a media solution that will enable companies to provide multi-media functionality. Media solutions are not OS dependent.

    Sirius will provide video streaming services for their customers. One of the more strategic moves Apple is making is to deploy Quicktime media services (a combination of hardware and software) to companies that provide streaming video. The Quicktime media solution is fully scalable without regenerating the core source. Something Wiindows media is not able to do. The solution Apple has, is currently being deployed overseas, but has no strongholt in the US. Sirius would have been a perfect showcase.
    You're correct that I think Apple did something wrong. They have a very elegant solution but it is only minimal used......
     
  5. DougJrS macrumors regular

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    #5
    I think it is just like the XP radio in the iPod. Why would apple want to go after a market that is in the US only?

    That product will more than likely have a very small market share.

    It looks like it is never going to get off the "ground" to me. It looks to me like they are saying that they need 40 million subscribers to make any money. Since XM and Sirius combined have 3.1 million sat. radio customers that 40 million looks really had to get to.

    Also it requires that people have a TV in the car. I just bought a new car and adding the flip down TV was $2,000. I don't think that this is going to be a big hit.

    New Video Service:
    http://www.azcentral.com/business/articles/0105sirius-microsoft05-ON.html
    Number of subscribers
    http://news.com.com/Ford+to+add+1+million+new+Sirius+users/2100-1041_3-5511909.html

    Doug
     
  6. MisterMe macrumors G4

    MisterMe

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    #6
    The flaw in your logic is that you assume that Sirius ever considered alternatives to Windows Media. As those of us who were not born yesterday understand all too well, just because Apple has a better solution doesn't mean that it will be chosen.
     
  7. Mechcozmo macrumors 603

    Mechcozmo

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    #7
    I hope that Apple will go with XM, because it is overall a better company to do business with in terms of reach, etc, than Sirius.

    And maybe Sirius just flat out ignored Apple...
     
  8. DougJrS macrumors regular

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    #8
    Interesting idea XM and Apple for in car video. I think that BMW only offers XM and I think that the radio in a BMW can controll your iPod thought the radio.

    So XM & BMW and BMW & Apple

    I think tha the only other car company that offers XM is Honda. I know that the Honda Element has a port for a "portable music player" The sales people kind of sell it as an iPod port - at least the sales person did when when my sister looked at them.

    Doug
     
  9. eclipse525 macrumors 6502a

    eclipse525

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    #9
    God, I hope not. Considering that Clear Channel Communications owns 45% and literally dominate and dictates terrestrial radio programming as we know it. It's just a matter of time when the effects reach out to XM. That's the main reason Howard Stern chose Sirius over XM.

    Getting back to the other point about Apple missing the boat. I'll have to agree that there NO logic behind that comment. Apple is not a stupid company and i'm sure have thought about all these angles. Streaming video is still a LONG way away in terms as common place in the consumer home/mobile market. Reason the iPod is extremely popular is that MOST people would rather listen THEN watch. Watching is too distracting but everyone loves to listen to music. On the train, in the subway, walking along the street. You can close you eyes and relax to Josh Groban or dance your ass off to the Basement Jaxx. The applications are way more far reaching then video. Although it would be a nice thing to have at some point, I think we have a LONG way to go. Plus, it's got to offer more than just watching a stream. The selling point might be a device that can stream as well as offer internet connectivity.

    Now, the PSP is a totally different story! <LOL>

    ~e
     
  10. RBMaraman macrumors 65816

    RBMaraman

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    Prospect, KY
    #10
    Actually, I don't think that's correct. Let me explain.

    Right now, here in Louisville, KY, the University of Louisville athletics department is in a major dispute with Clear Channel. Clear Channel is dumping the broadcast of U of L games at the end of the season, and picking up University of Kentucky games. Now, U of L wants Clear Channel (who still own the broadcasting right to U of L games through 2008) to forward the signal to XM, and Clear Channel won't because (and I quote Clear Channel spokespeople) "Clear Channel will be glad to forward the signal to another Clear Channel station. Since we do not own, and are not affiliated with XM radio, we will not forward the signal." So, I take that as meaning Clear Channel has little/no stake in XM. U of L is also wanting to forward the signal to Sirius, and Clear Channel will not allow that to happen either.

    Back to the topic... Personally, I think XM is better than Sirius, and maybe Apple does as well. Steve already stated the the VideoPod is not going to happen anytime soon, and this would also mean there was nothing for Sirius to work with. Microsoft already has these solutions, so the choice was easy.
     
  11. MisterMe macrumors G4

    MisterMe

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    #11
    By what authority do you say that Clear Channel Communications owns 45% of XM? The last time I heard, XM is a subsidiary of General Motors. I have heard nothing about a partial divestiture. As best as I can tell, CCC is affiliated and may even own at most some of the channels carried by XM. However, XM also carries channels provided by Walt Disney, News Corp. (Fox Broadcasting), and NBC Universal, etc. That does not mean that any of those companies own any part of the satellite service itself.

    As for Howard Stern, again, what is your authority? I haven't listened to his radio show in 22 years, so I don't know what he said there. However, he has said nothing to that effect in the other media. I have neither read nor heard any reports that support your statement. I cannot imagine the Howard Stern I know holding his tongue about a controvery related to his move to Sirius. He has been generally critical of terrestrial broadcasters. However, his most biting criticism has been reserved for the Federal Communications Communication and its Chair, Michael Powell.

    As far as I can tell, Howard Stern's partnership with Sirius coincides with aggressive moves by Sirius to pull itself out of its position as an also ran in the satellite-based pay-radio business. It is important to understand that Howard will not just be telling dirty jokes and playing his favorite music. He will actually program several channels on Sirius. By joining Sirius, Howard is taking advantage of a significant business opportunity that was likely unavailable anywhere else.
     
  12. eclipse525 macrumors 6502a

    eclipse525

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    #12
    I was actually wrong about the percent they own, my bad. They do however own 3 percent and are one of a few investors, including General Motors. Read the following Article.


    I'm sure his involvement with Sirius is strategic BUT another reason for choosing Sirius over XM was CCC's investments in XM, which is who (CCC) he's trying to get away from by going to satellite.



    ~e
     
  13. lasuther macrumors 6502a

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    Grand Haven, Michigan
    #13
    After using satellite radio (XM), I love it and will have it in my next car. I just got it in my house and a portable XM radio. XM has 3.1 million users and Sirius has 1 million. This number will be increasing over the years. The newest subscribers are holiday recipients of portable satellite receivers. This information is from Automotive News, Jan. 3, 2005.

    As far as why Satellite radio might be important to Apple, I thought it was obvious. Satellite radio is a great product that will most likely have a very large growth soon. It is currently backed by the largest companies in the world, with about 200 vehicles supporting in (120 XM, 80 Sirius). Portable satellite receivers are amazing, as the one I just got last week. Four of my friends also got the XM MyFi and love it. It is conected to my stereo and my car. Portable satellite receivers are going to be a big item, and they were the biggest push for XM and Sirius this holiday season. Apple could have a interest in portable audio units. Maybe. It might be better for Apple to make moves now and lead, then follow what other companies (like MS) are doing. Maybe.

    lasuther
     

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