Apple/Sirius Deal Unlikely
by , 10:10 AM EST, December 9th, 2005
Sirius Satellite Radio CEO, Mel Karmazin, has discussed the possibility of working together with Apple CEO Steve Jobs, according to the New York Post. He doesn't feel, however, that a deal is very likely. Although Sirius's technology would make a nice fit with Apple's iPod, there is too much overlap in the two company's products.
David Frear, Sirius Chief Financial Officer, noted that its S50 portable satellite radio lets users download programs, and fast forward or rewind through them. It also is capable of storing music files, much like the iPod. The Sirius S50 is priced at US$329.99, which puts it in line with the iPod product line, priced from $99 to $399.99.
The iPod is capable of storing and playing music downloaded from a computer, displaying calendar, schedule, and contact information, and displaying notes and other data. The one feature Sirius can offer is satellite radio, which many listeners prefer to traditional AM/FM commercial radio programming. The similarities in device features, however, may be enough to make Apple uncomfortable with a product or service partnership.
Mr. Frear noted at a press conference on Thursday, "Would we be interested in working with Apple? Sure. I'm not sure it's likely to happen."
Observer Comments
I love the way that they say "many users prefer to traditional AM/FM commercial programming" without even bothering to do some math. With all the stories lately about Howard Stern's big switch to Sirius, and their MAJOR HOPES he brings his 12 million audience to their product, they currently have 4 million Sirius subscribers, including my . That is 1% of the US total population.
By the end of the year, Apple will have sold 28 million iPods and sold over 500 million songs via iTunes since the iTMS inception.
So, who exactly would benefit from a "partnership?"
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