Hyundai in the news

NBC News this morning stated that Hyundai will have Standard XM radio in auto in 2006. But we still have to pay $12 a month for satelitte radio?

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Yes.

Of course. It's simply a marketing ploy by both companies. It's no different than GM and OnStar. The give it to you free for a while, hoping you'll become dependent on it and be willing to pay for it once the trial period expires.

different than GM and OnStar. The give it to you free for a while, hoping you'll become dependent on it and be willing to pay for it once the trial period expires.

And you will. But the point is that other automakers charge big money for XM -- for example, Nissan & Toyota charge several hundred dollars. XM has reached a point where their technology is cheap enough to almost give it away. That's why this is happening now.

It was a smart move by Hyundai. Hyundai knows they have a great product but an image problem. This helps to improve their image by putting them way out front of all other automakers (no other has gone standard equipment with XM yet).

I would prefer if it came with sirius

There are people on both sides. I have both, but prefer XM. But the bottom line is that both services are so much better than AM/FM, it really doesn't matter. XM's music is quite a bit better IMO.

Sirius cannot do this kind of deal yet because it is cost prohibitive. A few years from now, maybe. But right now, XM's technology lead is cost effective enough to make a deal like this workable and Sirius' isn't.

You making the rather big - and quite possibly erroneous - assumption that there are a lot of people out there that would be swayed to buy a car simply because it comes with a radio that requires you to pay for the privilege of listening to it. Particularly with a brand that's known for inexpensive vehicles, that seems highly unlikely. It's also questionable whether XM or Serius will even survive.

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Are satallite radio receivers installed instead of, or in addition to regular receivers?

assumption that there are a lot of people out there that would be swayed to buy a car simply because it comes with a radio that requires you to pay for the privilege of listening to it. Particularly with a brand that's known for inexpensive vehicles, that seems highly unlikely.

This is not an assumption. GM has heavily reasearched the subject and determined that cars factory equipped with XM sell faster than cars that aren't.

At this point, the survival of both companies is no longer in question. Sirius still has some major financial hurdles to clear and may or may not be fully funded, but XM has a billion in cash and will actually post its first cash positive quarter this quarter (although, they will return to a cash flow negative situation for a few more quarters; however, the cash burn for XM at this point is minimal). Not only is XM in a secure financial position at this point; they will, a couple years from now, have reached a point where the term "cash cow" will apply.

Sirius may need a small amount of additional funding, but will have no trouble raising another few hundred million in the debt markets.

to regular receivers?

Factory installed units appear as part of the regular am/fm radio. There is just a new band called xm.

Thank you.

I didn't mean to imply that the radios would be XM only. Sorry for any confusion.

GM also sells a lot of more upscale vehicles than Hyundai does. One could also argue that anyone that would buy a GM vehicle can probably be talked into just about anything. ;-)

That all sounds rosy, but if people don't buy the service, they're not going to survive. The history of new technologies is awash with "sure fire" companies that didn't make it. Personally, I can't ever see myself paying for radio.

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I feel the same way... at least for now. I'm old enough to remember when having a radio (any radio) in a vehicle was a big deal. What I really want is a radio that does the same thing that TiVo does for my television viewing!

I bet it was also people like you who said cable tv would never survive, look at them now. There is a huge market for satellite radio, and Sirus and XM are both exploiting it. If you live in an area like Kingsport, TN or out in the middle of nowhere I am sure XM is great because FM and AM selection is horrible. I personally had XM a couple years back when I lived in TN, now I live in DC and there are so many FM and AM stations I no longer feel the need for it. I might go back though if my morning talk show (Elliot in the morning on DC101) is ever canceled. I personally know 6 people who I work with (out of 15) that use XM. To tell you the truth I no nothing about Sirus and don't know anyone with the service so I can't speak to their success. But getting back on track, I am quite sure the demand for Satellite Radio is there, and as long as demand is there the companies won't be going anywhere as the technology is cheap once you get the satellites in the sky and get them paid off.

I agree with you but my kid's priorities are quite different. Who'd pay a dolloar song to download music for their IPOD when they could just turn on a broadcast radio? Then there is the content issue. The shock jocks and a lot of the marginal and fringe folks are gong to sattellite as the FCC restrictions are much less stringent.

This would be a turnoff for me. I would never pay to listen to talk radio. It doesn't make any sense to pay for something that would not be used. My daughter is having the same problem is finding a new car that the dealer had not order with XM. There is too many monthly fees nowadays for all the audio and video services.

I work in the computer industry, so I'm hardly the luddite you make me out to be. However, I won't pay for things I don't need and I don't adopt "bleeding edge" technology simply because it's cool. I'm not saying that you do, either, but merely staking out my position. BTW, I choose not to have cable TV because I don't need it and it's gotten way too expensive.

Sure. Satellite TV and internet access are a boon to them, too. But, how many people in this country are actually in that position and can afford to pay for it?

Let's see if they stick with it long-term.

Therin lies the rub. If the demand isn't enough to pay for the infrastructure, the companies will fail. If there's enough demand to get them over the hump, they'll make it. We'll see, but as I said before, I can't see myself ever subscribing to either of them.

the great WHINE strikes again

everyone else pays the $12 a month, you special or something?

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