Wednesday, February 7, 2007
Video Killed the Satellite Radio Star.
Alright, so maybe I was really behind on this, but I suppose it's a newsworthy subject, considering the recent and possible fakery that comes in the form of a YouTube video of an advertisement (see the bottom of the post for the clip, k?). Last January, the Internet was all abuzz with the latest news that satellite radio could potentially be complemented by the addition of satellite video features. The device, which would enable users to have on-the-go broadcasts delivered straight to their handheld XM receiver, looks kind of like hand-held video game console: jet black, directional pad, color screen… you get the idea. Where the Wii made the jump from a standalone device to a satellite and wi-fi monstrosity, XM is willing to make the jump as well, expanding on the radio-only format of their services to include streams upon streams of audio-visual entertainment. I can just picture it now: you're sitting on a bench in a park on a gorgeous Spring afternoon; the birds are chirping, babies are giggling, and there you are, missing it all, because you're streaming the new episode of 24 on your XM receiver. Shame on you, consumer.
But it's a cutthroat industry, and XM is willing to make the first move to reign supreme. Partnering with On2 to mooch off of their technology, XM is going to be a "wearable video device," according to Bear Stearns analyst Robert Peck, which receives streaming video at 256 kbps and receives at least 20 video channels (thanks Orbitcast, for the tip). There is no foreseeable release date on the product, but it's no surprise that it will be an enormous hit when it is released. Imagine sitting on the subway and being able to watch the cached shows that XM downloaded for you. Where the iPod made it possible to have portable video players in the palm of your hand, XM is taking the next step by making it streamable and cutting out the computer middleman. Although this would be a fantastic and revolutionary technology, a question must be brought into consideration: what will happen to the satellite radio aspect of the company, and what is the inevitable future of satellite radio?
Consumers that purchase the devices will most likely be concerned with the ability to get their favorite TV shows and movies delivered right to their device, and mostly ignore the availability of music stations. It comes in the form of simple logic: why listen to the radio when you can mindlessly watch a video? As our society becomes more Internet-friendly and sites like YouTube and MySpace are replacing their music-based formats with video technology offerings, people are going to become dependent on the video technology and forget about the music aspect that used to be dominant. Or, in my opinion, music will have to be accompanied by a complementary visual for people to truly experience it and maintain their interest. If these situations are the case, and society is gearing towards the video form of entertainment, then what happened to all of the effort to make satellite radio a major outlet for listening to music?
Most likely, the satellite radio stations will just be an extra feature, and will eventually be fazed out over an extended period of time. With the radio industry dying a slow and relatively painless death, XM video will predominately be able to replace the satellite radio technology, and Sirius will have to follow in suit. Sure, satellite radio may stick around for a while for those who commute and enjoy dancing to the 60's channel when cooking dinner for the family, but in the technology-friendly society, even working-class society will get tired of a radio format. Color me pessimistic, but given the above speculation and a knack for predicting the future (some say it's a gift, I call it a curse), I just don't see satellite radio lasting in a world that is already having a hard time accepting it.
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