In his Blog, 'Technology Thinker' Mike Elgan says that US Satellite Radio will not survive.
Highlights:
Satellite radio depends almost entirely on subscription revenue. The biggest source of new subscribers has been new-car buyers. Unfortunately, the downturn has not only radically cut car sales, but is reducing the percentage of new cars that have the fancy satellite radio upgrade....
One advantage Sirius has is Howard Stern. But Stern is also a disadvantage because he gets paid $100 million per year. As the Sirius ship starts to sink, and the board starts looking for cargo to throw overboard, Stern and his giant salary will be the first to go...
The ugly truth is that satellite is simply an obsolete way to deliver sound. It's nothing more than an insanely expensive, limited, proprietary content delivery system that increasingly competes head-to-head against the Internet itself. The monopoly that provides satellite radio is billions in debt, with no way to pay off that debt and a looming recession characterized by dramatic slowdowns in consumer spending....
Full article here:
http://itmanagement.earthweb.com/features/article.php/3786146/Satellite+Radio+Is+Dead.htm
