Satellite Radio 2.0 Called ‘Impressive’

Amy Gilroy December 12, 2010 6

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

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6 Comments »

  1. Matt M December 13, 2010 at 5:37 pm -

    Sorry Guys,

    I can’t agree with you. Barry is not right. Thats not a lion hearing himself roar, thats an old dog whimpering and unwilling to learn a new trick. Time for the pasture for anyone not willing to adapt. Sirius/XM has focused on new cars since it realized that was the best way to earn new subscribers. Buying direct and dealing with a company representative has no benefit for such a product line. My company has had great success buying through a distributor that pays the commission on time and always has product in stock.

    And to hifimike, yes you should start to price your parts and labor more similar to a dealership. That shows you have confidence in your staff and the service and product you offer. Why give away labor or parts. If its in stock and you have the abililty to do the job why not charge for it. How long does a satellite install take?…. an hr at most with hardwiring it. Well, we get $79.95 plus the required parts. Take advantage of your so called length of knowledge and expertise and make money. If you don’t, the next guy will.

  2. Jeremy W December 13, 2010 at 1:25 pm -

    Barry is right.

    Remember the days when we made money on the product AND installation?

  3. Mike Irwin December 13, 2010 at 11:11 am -

    I agree with Barry; there’s not much incentive to push a product with such low margins, although installation helps somewhat with the margin. Sirius/XM has all but deserted the independent retailers. We have no direct contact with a company representative, commission payments are late or non-existant, they cut off our demo receivers, and no one at Sirius/XM seems to care about the independent specialists anymore.

  4. hifimike December 13, 2010 at 10:45 am -

    I think Barry deserves a little consideration here. He is a proactive dealer that has many years in the business. Sometimes a Lion likes to roar- not because of threat- but to remind himself he has a voice. I too, being in the industry so very long are very used to assuming a reasonable mark-up on products that I sell, in ADDITION to the add-ons and labor. Are those day’s gone for good? Should I start pricing parts and labor like a Dealership, in anticipation of making relatively nothing on the sale of the car? Time will tell.

    I believe Barry’s real point is that Sirius-XM could really have a strong roll out if they engaged ALL of the aftermarket (not just BB or the Shack), if they could insure a bit more margin for the 12V specialist retailer (think price protection like Apple).

  5. Matt M December 13, 2010 at 10:03 am -

    Barry do you ever have a positive voice? There is a lot of profit to be made in the installation of sat radio devices. There are many customers that have no idea what a professional installation is. How many cars come through your installation bays and have wires hanging off their dash boards and windshields? Does anyone offer this customer a professional installation option. So, the product has short margin but when offered with installation, fm mods, and antenna adapters, it is just as profitable as selling a basic in dash cd player.

    Any product offering that may drive a potential customer to our stores should be seen as a positive. Once in your store, you have the chance to make a customer for life.

  6. Barry Vogel December 13, 2010 at 8:46 am -

    Another great opportunity to create excitement and profitability in the 12 volt aftermarket. What are the odds that Sirius/XM will learn that the aftermarket is not interested in supporting products with no profit attached? Make it profitable and the aftermarket will jump on this!