The details on Satellite Radio 2.0 are still very much a mystery, but Wunderlich Securities said the service is ‘impressive,’ at least in the eyes of Sirius XM’s OEM partners who have seen the new platform due for release in 2011.
To refresh your memory on Sat Radio 2.0, it should impact the aftermarket and could improve sales, said Sirius XM in recent conference calls with analysts. CEO Mel Karmazin said that you’ll need new radios to get the full benefit of the service (although there is some backwards compatibility), so we might see a rush to buy new aftermarket equipment.
Karmazin said in November that 2.0 will add more music and data services and it will be centered on “convenience and personalization.”
Analyst Matthew Harrigan also speculates that Sat Radio 2.0 will likely include “more personalized radio channel content using buffered content, ” which would be “cached onto a storage chip for later playback,” according to a story in Satellite Radio Playground.
Harrigan also speculates that Sirius XM’s new 5-year contract with Howard Stern probably includes similar compensation for Stern as his previous $100 million-a-year, 5-year contract.
See the full story by Demian Russian here.
Source: Satellite Radio Playground
Photo: Sirius XM CEO Mel Karmazin