 BellBoySteven Paul Jobs 1955-2011Premium
join:2001-02-20
Los Angeles, CA | I would jump on the Sat-Radio bandwagon... I've heard SR and it is impressive. I wouldn't even mind paying a monthly subscription fee. But I can't get the gut feeling to go away that anyone using the service will have "first adopter's syndrome" as I call it: shell out a ton of money for hardware and fees only to see the service go belly up shortly thereafter.
I mean REALLY Sony...$300-$400 for a fairly basic SR car radio?? I went shopping for one of these setups just to see what I would be looking at cost-wise--if anyone can point a finger at the reason SR hasn't caught on yet, that reason would be the equipment cost! Only the rich are going to be using this stuff, since it's obviously priced that way! Add to that--the equipment selection is rather limited. Oh sure you could buy a radio that's SR ready, but then throw the needed equipment into the mix and you're looking at selling the kids for some quick cash...
Bring the equipment prices down to a reasonable level and we'll talk...'til then, forget it. The subscription numbers speak for themselves--in a year or two, these people are gonna be listening to the same crappy stations we do now on their nice, expensive, useless, sat radios. 
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I'm not an ASI tech, but I play one on TV... |
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nl4jy
join:2002-05-02
Brooklyn, NY | So true, so true. It's really the hardware that's killing SR not the monthly subscription. If they are able to offer massive discount, then they'll have plenty of customers. Think of it as cell phones. I was looking at the two wireless service, and they both offer the same phone, but one give it to you free for a contract, and another want you to fork over $200 for it without... not wait WITH a contract. Now which one would you go for?
SR really have to figure out how to sell the hardware first instead of blaming of the government. |
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KearnstdElf WizardPremium
join:2002-01-22
Mullica Hill, NJ | the cell phone route, cell phones can cost 300+ but you get it for free or some really low price when you get service with it. im sure SR can do this.
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[60 Sorcerer]Filan(High Elf) Zone: Broadband Reports |
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 RoKmAn
join:2000-09-09
East Elmhurst, NY | reply to nl4jy
Not a good analogy. Cell phones are a total different scenario. AT&T's service is horrible, who cares if they are offering V60 for free, on the other hand, I get top notch service with Verizon with a 30 dollar Mot V120.
To many people, equipment isn't an issue for cellular service. But for SAT rad providers, equipment is a major issue. You cant go out and buy a 50 dollar radio that will support SAT providers.
I think they should lower equipment prices and somehow recover costs within a period of time (contracts) and I dont mind if they increase the service fee by a little bit.
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RokMaNAstoria, NY |
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| I think that's what Elf was trying to say: Just subsidize equipment costs, and make back your money with a contract arrangement. Just like cellphones/cell service. |
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| That actually might be the best way to keep XM afloat (Sirius looks like it's just not going to recover...). Give away or severely discount the equipment in exchange for service committments. That way the providers can show that they not only have subscribers, but expect to get revenue from the same subscribers for X amount of time, if not beyond.
That, and they need to market their channel variety more. |
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| reply to BellBoy
said by BellBoy:
Oh sure you could buy a radio that's SR ready, but then throw the needed equipment into the mix and you're looking at selling the kids for some quick cash...
I believe when they say Satellite Ready, they mean that all you have to do is sign up for the service, you do not need to purchase any additional equipment. Also, within the next few weeks, new GM vehicles in the Dealer's Showrooms will have the Satellite Radios already installed at the factory or will be available as a factory installed option. XM Radio is offering a $75.00 rebate to anyone purchasing a Sony Radio through Dec 31, 2002 and other brands are now becoming available. Prices are coming down. It is no different than when any other technology is first offered. These radios require custom chip sets that will come down in price as they become mass produced. XM Radio also had over 201,000 paying customers on September 30, 2002. Satellite radio will never replace local broadcast radio, but then again there isn't really any local broadcast radio left! Doesn't Clear Channel Radio own around 1,500 "local" radio stations? |
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BellBoySteven Paul Jobs 1955-2011Premium
join:2001-02-20
Los Angeles, CA | said by mjcrocket:
said by BellBoy:
Oh sure you could buy a radio that's SR ready, but then throw the needed equipment into the mix and you're looking at selling the kids for some quick cash...
I believe when they say Satellite Ready, they mean that all you have to do is sign up for the service, you do not need to purchase any additional equipment. Also, within the next few weeks, new GM vehicles in the Dealer's Showrooms will have the Satellite Radios already installed at the factory or will be available as a factory installed option. XM Radio is offering a $75.00 rebate to anyone purchasing a Sony Radio through Dec 31, 2002 and other brands are now becoming available. Prices are coming down. It is no different than when any other technology is first offered. These radios require custom chip sets that will come down in price as they become mass produced. XM Radio also had over 201,000 paying customers on September 30, 2002. Satellite radio will never replace local broadcast radio, but then again there isn't really any local broadcast radio left! Doesn't Clear Channel Radio own around 1,500 "local" radio stations?
If that's the case, then all of the people I've talked to about this are wrong. I was told that an additional piece of equipment plus a special antenna would have to be purchased.
Yeah, the prices might be coming down, but if your technology is hanging on by a thread you want people to adopt the service. Cutting prices might make the companies suffer in the short term, but that would hopefully do a couple of things: get more people to buy the cheaper radios--which would then lower prices for all sets because of increased demand...and more users would stabilize the subscriber base and expand it. That's just a theory, but it could work...
BTW, never say never when speaking about technology...once upon a time people said that there wouldn't be a need for computers outside of businesses either. With all of the RIAA bull***t going on, the public might flock to SR which could take out smaller broadcasters (if there's any left). So many different scenarios, so little time...
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I'm not an ASI tech, but I play one on TV... |
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 tcp1Premium
join:2000-04-17
Herndon, VA | reply to BellBoy
Well there's your problem, you're looking at Sony radios. Good luck with a company that thinks an "entry level price point" is $699. Try Pioneer, Alpine, or Clarion for XM and save your cash. |
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tcp1Premium
join:2000-04-17
Herndon, VA | reply to BellBoy
Satellite "ready" (as in XM ready) means you need a tuner and an antenna. You can't just activate. No big deal, though; the pioneer is $149 or so.. and Sony (bless their overpriced hearts) is offering a $75 rebate right now. |
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BellBoySteven Paul Jobs 1955-2011Premium
join:2001-02-20
Los Angeles, CA | said by tcp1:
Satellite "ready" (as in XM ready) means you need a tuner and an antenna. You can't just activate. No big deal, though; the pioneer is $149 or so.. and Sony (bless their overpriced hearts) is offering a $75 rebate right now.
There's the problem...you'd think with all of the electronics created these days that you could get an all-in-one unit! Next they'll start charging for the knobs and buttons...then the wires...gimme a break!
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I'm not an ASI tech, but I play one on TV... |
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tcp1Premium
join:2000-04-17
Herndon, VA Reviews:
 ·Verizon FiOS
| reply to Kearnstd
Not really.. They can't... XM and Siri are both strapped for cash, unfortunately.. Even the way it is now, they'd need a couple million subscribers to be profitable..
Remember, cell phone subsidization came first from the PHONE COMPANIES. They had a few extra bens and ulysses' laying around.
If they subsidized the radios, that'd be quite a gamble, and few people would invest in that risk.. (And remember, the only way they're operating now is because people have invested in them. Things ain't free, satellites ain't cheap, and you get what you pay for.)
[text was edited by author 2002-10-14 09:50:30] |
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tcp1Premium
join:2000-04-17
Herndon, VA Reviews:
·Verizon FiOS
| reply to RoKmAn
"I get top notch service with Verizon with a 30 dollar Mot V120. "
I don't think you would like it if I took out of your paycheck the amount MORE THAN $30 that your v120 really costs.
Even when you buy a phone like that, it's still subsidized. Even sprint's phones, at $150-350 a pop, are still subsidized -- just not nearly as much. |
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tcp1Premium
join:2000-04-17
Herndon, VA | reply to BellBoy
Aha! And that is coming out. XM's new chipset should be ready by christmas, and will specifically enable an all-in-one unit. |
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RoKmAn
join:2000-09-09
East Elmhurst, NY | reply to tcp1
Duh! The fact is the prices are indeed subsidized so I couldnt care how much it really costs. I dont need to know how the provider recover costs of the subsidized phone (contract, etc), as long as the money isnt coming out of my paycheck to pay an additional 200 dollars to the 30 bucks V120, I am cool. Make the equipment available for cheap through whatever means and the service will sell!
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RokMaNAstoria, NY |
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