Satellite Radio Turns to Telematics to Compete with Streaming Services

  • “Satellite radio seemed like a good idea a decade ago,” writes Wired. “But today, paying for satellite radio has become much less appealing, as gigabytes of music fit in the palm of your hand and smartphones with streaming services flood into vehicles.”
  • Satellite radio provider SiriusXM is now looking to telematics to supplement the flailing radio service. The company will provide 24/7 emergency support for accidents, stolen vehicle tracking and roadside assistance to select Nissan models.
  • “Customers will also enjoy the simplicity of a consolidated bill for their audio entertainment and a central site to manage subscriptions,” SiriusXM said in a press release.
  • The company says it will incorporate both satellite and cellular networks to “expand coverage beyond traditional cellular-based telematics services” and “create the potential for personalized services and next-generation audio offerings.”
  • “And while having a satellite connection to the car could give SiriusXM an advantage over cellular-based telematics services by allowing wider coverage — when you’re out of cell range with most systems, you’re out of luck if you need help — the company’s satellites currently only beam information one way,” explains Wired. This means that satellite signals can transmit to connected cars but not visa versa.
  • Because SiriusXM is already available in multiple vehicles and it has a strong brand name, the company has the ability to add services to stay relevant — although what these services will be is still uncertain.
  • Roger Lanctot, an analyst at Strategy Analytics, says the SiriusXM weather, news, sports and traffic services are less competitive now but adding a cellular connection will allow the company to deliver premium content in an IP manner “with potentially more personalization and maybe with some social aspects.”

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