by Demian Russian
In news coming out of the Consumer Electronics Show this week in Las Vegas, the Australian-based miRoamer has partnered with Blaupunkt to introduce “the world’s first internet car radio.” According to a 2009 PR release, the radio will be rolled out as built-in original equipment. Really? When? Do they have an OEM partner? As I looked into this “breaking news” coming out of CES further, I felt a sense of deja vu…
You see, this “breaking news” of “the world’s first internet car radio” isn’t breaking news at all. Not even close. This same “breaking news” of miRoamer and Blaupunkt partnering to bring internet radio to the car and the “unveiling” of “the world’s first internet car radio” was released last year at the 2009 Consumer Electronics Show following the 2008 CES release of their internet radio portal. This will be the second year in a row now that this “breaking news” of miRoamer and Blaupunkt announcing “the world’s first internet car radio” comes out of CES. Apparently there isn’t much competition in the internet car radio space and miRoamer and Blaupunkt have enjoyed a virtual monopoly. The only problem is: it appears that they haven’t yet sold a single radio. No wonder there isn’t much interest from other companies to compete with similar products. Will there ever be a consumer interest in internet car radios? How long will they be announcing “the world’s first internet car radio” might be a better question.
The roadblocks to internet radio penetrating the OEM market are huge. Sirius XM (Nasdaq: SIRI) doomsayers are always quick to point to the theory that in-car internet is a threat to Satellite Radio. They argue that consumers will stream internet radio in their cars for “free” rather than pay for a subscription to Sirius XM. First of all, streaming internet radio in your car isn’t “free” — far from it. The miRoamer/Blaupunkt internet radio gets its internet connection from an embedded 3G GSM SIM. The same 3G SIM that is embedded in cell phones, netbooks and cellular wireless cards. This means that consumers will have to pay for a cellular data plan from the likes of AT&T (NYSE: T). Right now AT&T charges $35.00 a month for 200 MB of data or $60.00 a month for 5 GB of data. Due to increasing bandwidth capacity issues, all of the major cellular carriers have discontinued offering unlimited data connect plans. Consumers, especially those that may have a long commute, could easily go over their monthly data limit and end up paying massive overage charges of $0.10 per MB. Do consumers really want to sign another 2 year contract at $60 a month for limited internet service so they can stream “free” internet radio? Suddenly that “free” internet radio that Satellite Radio critics have been raving about so much gets pretty expensive.
Beyond the expensive cost, another roadblock to internet radio in the car is the quality of the sound and connection. Commenting on this years unveiling of “the world’s first internet car radio”, CNET reports: “At this time, we don’t know how good the audio quality will be, or if the streams will come through largely uninterrupted.” Anyone that has experienced what can happen to their cellular connection when switching from cell tower to cell tower while driving will understand this concern completely. Oh, and make sure to look at all of the holes in your cellular carrier’s coverage map and to plan your trip accordingly. As of now, Sirius XM’s Satellite Radio service is the only platform that provides unlimited coast-to-coast coverage of live audio content. That content, including music, news, weather, sports and talk programming — much of it exclusive, may be the biggest roadblock of all for internet radio to have any hope of resonating with consumers in their cars.
In an article from GIZMODO reporting the unveiling of “the world’s first internet car radio”, the author states in the very first sentence that “satellite radio is dead.” If he was around for the unveilings of this “game changing” internet radio service in 2008 and then the “the world’s first internet car radio” last year at CES, maybe he thinks the third time is a charm?
Demian Russian
Position: Long SIRI
Contact the Author: demianrussian@satwaves.com
internet radio while driving will lag.
imagine listening to radio and it breaks out every few seconds to buffer.
great article…right on target….
You nailed it Demian!
The Only practical uses of internet that I can see in the car are:
1. Looking for directions, checking email, porn while parked – Cant do it while driving and you dont do it everyday. You dont look for weather, directions etc on regular work days unless you forget where you office is everytime you leave home.
2. Only thing that can be done while driving is listening to music, again quality of sound and content comes into picture..
I wont pay $30 per month for all this.
Excelent article revealing the lies and foul play of sat radio adversaries.thanks for bring this to light……….DOC
MY 3G IS DOWN TWO WEEKS IN A ROW IN PHILA. JUST FROM NORMAL BOG DOWN TOWERS JUST IMAGINE EVERY CAR PULLING FROM THE SIGNAL.LIKE MY UNCLE MIKE WOULD SAY FORGEHTAHBOUTIT!
Thanks for that well done clarification. Hope not too much fall for that “stunning” internet radio news.
Great article Demian…..as a person who travels (in a car) a great deal of time a month….I can’t even fathom not having my Sirius/XM…..let alone having someone think internet radio is going to replace it (utterly a joke) and then have to pay additional for the shotty/spotty service….LOL
I would imagine a year from now it will still be a new product and remain with no units sold. Maybe further down the line it may have a place in the car, but that may be the time when are cars drive themselves with optical or magnetic sensors embedded in the road. A long ways down the road.
“Oh, and make sure to look at all of the holes in your cellular carrier’s coverage map and to plan your trip accordingly”
Thank you for bringing the facts into the light.
Really Great Article Demian. The guy who wrote that article is a putz. Satrad is dead. ok buddy. 20 million strong my friend. Great detective work too:
oamer and Blaupunkt partnering to bring internet radio to the car and the “unveiling” of “the world’s first internet car radio” was released at the 2008 Consumer Electronics Show and then again at the 2009 Consumer Electronics Show. This will be the third year in a row now that miRoamer and Blaupunkt announce this “breaking news” and unveil “the world’s first internet car radio” at CES.
Why The Internet Is No Threat to Sirius XM (SIRI) Satellite Radio – Satwaves
URL: http://satwaves.com/blog/2010/01/06/why-the-internet-is-no-threat-to-sirius-xm-siri-satellite-radio/#comments
there is no way i am going to pay $60/mo for internet in my car, when i already pay 40/mo in my house and 35/mo for internet on my phone….thanks, but no thanks.
Lastly, why do you have a picture of a young christian slater attached to your articles???
That’s not a photo of Christian Slater, it’s a photo of me, the author.
I don’t believe in Pandora or Slacker model. Until they get to a real subscription model, better content and maybe some satellites, they are of no threat to SIRIUS XM anyway.
Absolutely right on, Demian – on all fronts. All these so called “alternatives” to satellite radio are really no competition at all. Each and every one of these alternatives contains major, and glaring, deficiencies and faults that are not to be found in satellite radio. Quality of delivery and CONTENT are the two most basic deficiencies – and then, as you have factually detailed, these alternatives are far from the “free” ride that the some in the media have proclaimed.
Satellite radio is uniquely superior on all counts and will surely remain dominant in the auto sector far into the future.
Demian,
Very well put and concise. You don’t mince words….terrific. Facts and figures are all we need. Thank you Demian.
Also the future of media is in subscriptions. Relying on advertising won’t get the job done. Look at the recent Time Warner/FOX network debacle just this week.
It’s “reality-check” time for FREE “automobile internet radio” and Demian Russian exposes it for what it is: a fantasy.
Distinct, to the point and factually based…Great job, Demian…Keep up the great work!
Excellent article Demian.
I guess I’ll file “the world’s first internet car radio” along side “the world’s first book holder/stand for the automobile driver”.
Couldn’t internet car radios benefit SIRI also? Won’t you be able to log on to SIRI, or, will it only be used for Pandora(personally havent researched this)? If you can listen to SIRI with the internet radios, SIRI should be all over this with PRs about using this technology for SIRI subscribers.
Oops. I was reading the Yahoo headlines about Pandora and this one at the same time. They don’t call me unsophisticated for nothing. But, I would think the same would apply for miRoamer. For Pandora, it does kind of look like you’d be limited to only accessing Pandora??? It does sound like alot of money for no content “free” radio!
Good luck getting internet radio while driving across kansas, across the county, or basically 1 mile from a house that has a wifi connection. People with iPhones can’t even get ATT service at my house and I live 1 mile from a major university.
Bring internet radio on. It will only bring more subscribers to Sirius.
Maybe some sort of download and listen later type service might work, but internet radio in cars? Does anybody really think that’s going to fly.
I read a similar announcement that pioneer is building one too. yea for $1200 and thats just the unit.
Who in their right mind would pay for that. Perhaps Linux nerds that listen to Gregorian Chants!
Hu? Pandora and any other streaming music service is a clear and valid competitor to Sirius XM. Why is everyone so agreeable on these posts?
A decent competitor to Sirius could force them to play less songs on endless rotation, and could push them to improve sound quality.
I stream Pandora, Slacker, and Rhapsody on my 75 minute commute in Los Angeles spanning 4 major freeways covering 50 miles. I get between zero and 2 hick-ups in that time either on Edge or 3G.
If it’s worth it people will pay a data charge just the same as they pay for Sirius or any other music or video service.