This got lost in the ROKR and Nano announcements, but on Wednesday, Apple outlined plans to expand the iPod line of media players into more automobiles.
To some people this raises doubts about the viability of satellite radio. And with good reason, think of all the available (and free) podcasts that are online. Now compare that to paying a monthly subscription fee. To consumer radio has always been free and will be difficult to change their minds. And between commercials and the constant drone of repetiitive music, local radio stations are all but dead. Now add on the iPod’s Tivo like abilities, download podcasts and listen whenever you wish, and you got an unbeatable device.
Apple expects more than 5 million vehicles will ship with iPod support in the United States in 2006.
Already this year we heard announcements from car manufacturers that they will be installing satellite radio in the factory. Hyundai comes to mind, which will be installing XM in most 2006 vehicles. But it’s not clear whether consumers will continue to pay the subscription after the car rolls off the lot.
XM, the number one satellite provider, has stated that the iPod is no threat. But I disagree. When I bought my new car in February, my next purchase was going to be a satellite radio upgrade. Then I discovered podcasting and purchased an iPod instead. My iPod is the only reason that this writer never switched to satellite radio.