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Old 09-15-2004, 09:26 AM   #1
Amnesia
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Default XM launches XM Radio Online

XM RADIO LAUNCHES PREMIUM ONLINE MUSIC SERVICE; DELL AND XM TEAM UP TO MARKET NEW SERVICE TO THE DIGITAL HOME

Washington, D.C. , September 15, 2004 - XM Satellite Radio (NASDAQ: XMSR), the nation's largest provider of satellite radio with more than 2.1 million subscribers, today announced the introduction of XM Radio Online, a premium Internet music service to debut in early October. As part of the launch, eligible Dell customers who purchase Dell Inspiron notebook and Dimension desktop computers will receive a special trial offer for the commercial-free online music service.

XM Radio Online subscribers will be able to listen to XM's critically-acclaimed, 100% commercial-free music channels and a variety of other XM content, including The Bob Edwards Show, over the Internet for a monthly fee of $7.99. XM Satellite Radio subscribers will receive a discounted rate for XM Radio Online of $3.99 a month Consumers will be able to sign up for XM Radio Online via listen.xmradio.com.

Beginning in mid-October, Dell Inspiron notebook and Dimension desktop customers will receive an exclusive free, 30-day trial subscription to XM Radio. Dell customers also will be able to access XM Radio Online through the Dell Media Experience (DMX) portal.

"We are very excited to be making our commercial-free music line-up available on the Internet through XM Radio Online, and we're especially pleased to be working with a market leader such as Dell," said Hugh Panero, President & CEO of XM Satellite Radio. "We know that people who get XM's music channels through their Dell PCs are going to love the experience, just as our subscribers who enjoy XM in the vehicle, at home, or on the go."

"We're proud to be teaming up with XM to bring XM Radio Online to the digital home," said Mark Vena, Dell's Director of Digital Home Marketing. "This partnership is yet another indication of Dell's unique commitment to providing music lovers with more choices at a great value."
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Old 09-15-2004, 09:40 AM   #2
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Default Re: XM launches XM Radio Online

So you can subscribe just to the online stream for $7.99/month...

And if you are an XM subscriber, it's an extra $3.99 on top of the normal fees. XM is getting more expensive by the day!
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Old 09-15-2004, 09:53 AM   #3
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This is so funny..... and how they always said that SIRIUS was nuts to be streaming their music channels. Now they are doing it, the only difference at a big freaking cost. This alone would make me want SIRIUS over XM. All those SIRIUS subscribers at work that stream the music channels for free have got to be laughing at this. XM is indeed making themselves way more expensive than SIRIUS.
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Old 09-15-2004, 10:29 AM   #4
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The difference is marketing; XM could offer this online deal at $10/month, but because they are teamed up with Dell(albeit the largest computer manufacturer in the world), they are making an ingenious move to intice more customers. You could complain all day that XM is getting more expensive, but to the new college kid buying a new pc from Dell, listening to a trial for a couple of months of commercial free music would definitely generate some new online subscriptions, and possibly a substanstial amount of new car subs. Just my two cents....XM did a smart thing here.
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Old 09-15-2004, 12:13 PM   #5
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So for those keeping score

To get the entire XM service package it will cost you:

9.99 Base Fee
+1.95 O&A
+3.99 Online
+3.00 Playboy
Total: 18.93

Sirius 12.95 Includes at no extra cost:
Maxim
Online
NFL,NHL
And much more.

I think Sirius has an excellent marketing opportunity to exploit the value proposition of their Service. They should add this price comparison to every kiosk where both are sold.

Now if XM is offering even talk channels for online listening, I would say that Sirius should respond and provide the talk side for an added online listening fee (keep the music only free) so that they don't end up with a revenue disadvantage to XM.
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Old 09-15-2004, 12:20 PM   #6
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Quote:
Originally Posted by Manco
So for those keeping score

To get the entire XM service package it will cost you:

9.99 Base Fee
+1.95 O&A
+3.99 Online
+3.00 Playboy
Total: 18.93

Sirius 12.95 Includes at no extra cost:
Maxim
Online
NFL,NHL
And much more.
But let's say that I just want to listen to music in my car. XM is 9.99. Sirius is 12.95.

For those of us who aren't interested in O&A or (listening to) Playboy...or listening to the NFL for that matter, XM remains the less expensive alternative.
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Old 09-15-2004, 12:23 PM   #7
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Quote:
Originally Posted by joshuamjenkins
The difference is marketing; XM could offer this online deal at $10/month, but because they are teamed up with Dell(albeit the largest computer manufacturer in the world), they are making an ingenious move to intice more customers. You could complain all day that XM is getting more expensive, but to the new college kid buying a new pc from Dell, listening to a trial for a couple of months of commercial free music would definitely generate some new online subscriptions, and possibly a substanstial amount of new car subs. Just my two cents....XM did a smart thing here.
While I agree completely with DAB, Josh makes a VERY compelling argument.

While Dell is losing a lot of points in customer satisfaction (due to Indian tech support for consumers), XM still has an avenue that Sirus does not have.

I have seen the Sirius Commercial on TV ONCE! XM is not on the Avis Car Rental comercial. Sirius needs more marketing. They needed it before the NFL season began.

Sirius needs to exploit this developement.
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Old 09-15-2004, 01:50 PM   #8
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Definitely not a SIRIUS killer, however I do hope this motivates SIRIUS to offer an online-only subscription service.

$5 a month for unlimited music streaming would be a great package to offer.

Jeff
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Old 09-15-2004, 02:08 PM   #9
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Default Re: XM launches XM Radio Online

Quote:
Originally Posted by scb147
So you can subscribe just to the online stream for $7.99/month...

And if you are an XM subscriber, it's an extra $3.99 on top of the normal fees. XM is getting more expensive by the day!
It really depends on how they do it. Sirius streams the channels for free, but they sound really bad because of the extreme compression used (unlistenable as my office mate says), and the frontend to use it is poor, basically a tiny app that any coder could write in a day.

Now, if XM does the same thing, IE charges $4/mt for extremely compressed audio with a poor frontend, then they are boobs. But, if they are kept at the same data rate as their main service *and* if they offer a compelling frontend to add to the user experience, then its well worth the $4.

Odds are, they will take what they've coded for the XMPCR and reuse alot of that to make a pretty cool frontend for this new service. This should dramatically affect subscriber numbers since as we all know, when people try satellite radio for free they tend to keep it. Having it on free trial on Dell's is a huge deal.
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Old 09-15-2004, 02:28 PM   #10
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Do you know how many other services you can get for 3.99 or 7.99? There are so many other free online radio services it ain't funny.
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Old 09-15-2004, 02:38 PM   #11
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Quote:
Originally Posted by TulaneJeff
Definitely not a SIRIUS killer, however I do hope this motivates SIRIUS to offer an online-only subscription service.

$5 a month for unlimited music streaming would be a great package to offer.

Jeff
True, it would be a nice addition. Lots of people probably enjoy the option of home/car and computer listening (eliminating the limited audiences for O&A and Playboy). $12.95 for Sirius, and $13.99 for XM.
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Old 09-15-2004, 03:57 PM   #12
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Does any one know what the compression is going to be like on the XM online service? Because if its low, and people are stupid and don't notice, they could be making a killing.
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Old 09-15-2004, 04:08 PM   #13
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Quote:
Originally Posted by TulaneJeff
Definitely not a SIRIUS killer, however I do hope this motivates SIRIUS to offer an online-only subscription service.

$5 a month for unlimited music streaming would be a great package to offer.

Jeff
The magazine Satellite Today thinks not:


XM Tests The Internet Waters, But Why?

XM Satellite Radio [XMSR] now is looking at Internet users as the next source of subscribers to its commercial-free satellite radio service. XM Radio Online subscribers will be able to listen to XM's music stations and a variety of other content for a monthly fee of $7.99 As a perk, current subscribers to XM's traditional satellite radio service can subscribe to XM Radio Online for $3.99.

While having a solid source of commercial-free music and other content could be desirable, Satellite Today sees a couple of red flags regarding this service. First, one has to question why XM would seek more money from its existing subscribers just to get access to something for which they've already paid but over a different medium? Given the availability of in-home receivers for satellite radio, why would anyone who already is an XM subscriber want to pay for this service? We believe it could be an interesting marketing tool to introduce potential subscribers to XM and to allow them to see if the service is for them, but to ask existing subscribers to pay for an additional mode of access doesn't make much business sense.

The other red flag has to do with XM Radio Online's competitors: the plethora of free Internet radio stations. Given the fact that many Internet users consider music as something to be distributed for free over the Internet, XM's premium service is going to be a hard sell.
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Old 09-15-2004, 04:51 PM   #14
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[quote="Amnesia"]
Quote:
Originally Posted by Manco
So for those keeping score
For those of us who aren't interested in O&A or (listening to) Playboy...or listening to the NFL for that matter, XM remains the less expensive alternative.
I'm sorry Amnesia, this just isn't a valid argument anymore. 70% of Sirius subs sign up for multi month discounts. Everyone I know has the yearly plan making it actually less than 9.99 a month. If you are willing to shell out 150+ for equipment/installs and everything else you need. An extra 120 for a years service is not that big of a deal and results in a 36 dollar savings.
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Old 09-15-2004, 04:55 PM   #15
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I listen to the online str3eams all day. While they don't sound as good as a 128 kbs MP3, they certainly don't sound like crap
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