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Samsung & Napster, Not Apple, Partner With XM Satellite on MP3 Player/Radio

TMO Reports - Samsung & Napster, Not Apple, Partner With XM Satellite on MP3 Player/Radio

by , 3:00 AM EDT, July 27th, 2005

Korea's Samsung Electronics Co. Ltd. and not Apple Computer will be the first and possibly only company to form a strategic alliance with XM Satellite Radio to develop MP3 players that will also work as satellite radios, the companies jointly announced Tuesday. XM also announced a partnership that will let XM subscribers buy and download songs through an exclusive arrangement with the online music store Napster.

Under the terms of the accord, Samsung will begin selling by the end of 2005 two miniature flash memory players that will come with a kit allowing them to receive XM satellite radio stations. The solid-state flash memory is he same technology used in Apple's iPod shuffle.

The device XM is developing with Samsung will allow consumers to listen to live XM content when the device is plugged in to an XM-ready car stereo or to a home antenna. Consumers will be able to select songs they hear and purchase them via the new service to be called "XM+Napster." When they return it to a docking station connected to a computer, the device will download the music. Consumers also will be able to record live XM content, but they will not be able to transfer those songs to other devices or burn them onto compact discs.

XM officials did not announce pricing for the devices or the XM+Napster service.

Sean Butson, an analyst with Legg Mason Inc., called the XM's deal with Samsung "groundbreaking," in a research note published Tuesday. Mr. Buston wrote the deal with Samsung is "an important first step towards a mobile phone/satellite radio," being that the Korean electronics maker is also a leading cellular phone maker.

When asked if XM and Samsung are working toward mobile phones with satellite radio receivers, XM chief executive Hugh Panero told the Washington Post, "We're looking forward to having the relationship evolve into other devices."

Apple 'odd man out', for now

The announcement sees Apple shut out of any possibility in forming a partnership with the worlds largest radio satellite provider to create an all-in-one music/satellite radio device based on the best selling iPod music player and sell music via the iTunes Music Store (iTMS), at least for the foreseeable future. By XM going directly to the manufacturer of flash-based equipment -- much like it has done by having Delphi Electronics manufacturer is own XM-branded satellite receivers for auto and portable use, the need to form third-party partnerships with the likes of companies such as Apple are less of a necessity.

The only other remaining possibility for Apple is a partnership with XM competitor Sirius Satellite Radio. In late May, TMO reported Sirius CEO Mel Karmazin admitted he had talked with Apple about a Sirius-enabled iPod, but that no deal had been struck. Tuesday's announcement by XM, Samsung and Sirius could be a further catalyst for Sirius and Apple to form an alliance to compete with XM.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: Sat radio...

We don't need radio, we have podcasting!

Close Name:Guest
Subject: Re: Sat radio...

Quote
Anonymous wrote:
We don't need radio, we have podcasting!


Mac asses!

Close Name:drmacnut Posts: 11 Joined: 10 Jun 2005
Subject: XM+Napster

Personally, I'm glad Apple didn't go for this one. The first poster ("guest") is right: Podcasting is going to be the wave of the future; and I really think that radio, and especially this complicated-sounding setup for purchasing and transfering music to and from the proposed XM+Napster device, is going to eventually go the way of the dodo.

Speaking of Dodo, who was the meathead that came up with such a silly name as "XM+Napster" anyway?

Close Name:Guest
Subject: Talking of dodo's

Quote
drmacnut wrote:


Speaking of Dodo, who was the meathead that came up with such a silly name as "XM+Napster" anyway?


Probably guest 2 judging by his mentality

Close Name:Guest
Subject: Satellite Radio - Another US only 'standard'?

Sat Radio is really only relevant to North America - everywhere else DAB (Digital Audio Broadcast) radio has become the radio format of choice. Maybe Apple see themselves as a global player these days and don't want to be tied to a parochial 'standard' with little or no adoption elsewhere in the world?

Also smacks a bit of desperation on the part of Napster!

Close Name:Guest
Subject: Re: Talking of dodo's

Quote
Anonymous wrote:
Quote
drmacnut wrote:


Speaking of Dodo, who was the meathead that came up with such a silly name as "XM+Napster" anyway?


Probably guest 2 judging by his mentality


Insecure Mac fans! Can't ignore negative comments!

Close Name:Guest
Subject: iPod + Sirius = Killer App!!!

I can't function without Sirius and will NOT buy any MP3 device that does not have sat radio capability. An iPod + Sirius device is a MUST HAVE if they ever do a deal. Otherwise NO MP3 for me!

View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Apple's Closed Proprietary iPod System Failing
Close Name:Guest
Subject: Apple _is_ missing something here

Apple is missing a great opportunity. I don't have Sat Radio so I don't care if XM or Sirus is L33t but I do belive that having the ability to listen to a feed, and buy what you are currently or just recently listened to, is a major convenience and an important feature consumers will look for.

It is egotistical for Apple to belive that consumers don't want what Apple isn't selling, that is, MP3 devices with record capability, FM tuners, etc. Sure this is handled by the 3rd party Ad-on market and while Griffin could make an XP/Sirus adapter for an iPod, it wouldn't be integrated into a music store capability so it looses the polish.

Come on Apple, re-think this one.

Close Name:mahuti -   TMO Staff Posts: 377 Joined: 09 Jan 2003
Subject: Maybe it's just me

I just don't get Satellite radio. I mean, I have an iPod and I have all the music I want to listen to on it... I don't have to worry about whether or not the next song is going to be good, because it always is. With satellite radio, even if they have 5000 channels, it's still not going to be as good as even 1 of my playlists (for me anyway).

I guess the only draw for people with large music collections would be for Howard Stern and other syndicated talk shows. Yahwn. Doesn't do it for me. I think it's good that apple passed on this one.

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: XM won't save radio

Radio listenership is rapidly declining. Why, because people want to control their own listening habits. And face it, radio personalities have gotten stale, or worse, just dumb. Howard Stern's jump to satellite radio is actually a good thing. Virtually nobody will have to ever hear him again. Who is his core audience these days but the wanna be sex offenders?

iPod sales continue to grow, as does the amount of business at the iTMS.

It's RC's brain that's failing. Failing to come back to reality.

The iPod IS the ecosystem. Just look around, the accessories are everywhere. And automakers are aligning themselves with the iPod, NOT satellite radio. If I worked at Clear Channel, I'd be afraid for my job really quickly. Radio as we know it will soon fail and the government can reclaim those frequencies on the mhz band. They'll be dead air anyway.

Close Name:Guest
Subject: HOw many people want this?

This sounds to me like a bloated functionality for an iPod. I think Apple has done a good job of playing to the majority with regards to the funcitonality in the iPod. I bought an iPod because I wanted to hear my music.

The setup that all these companies are going for sounds super complex and only caters to a small niche group which is a poision pill in the low margin online music sales business.

What would make more sense to me would be for the Sat Radio groups to simply ad a button or a function to existing players that allows you to flag any song you hear and generate a shopping cart that can be download/emailed/whatevered that you can then use to link directly to that song in whatever music store you use (Napster/MSN/Y!/iTMS/...) then the satalite group is paid for getting those songs sold. I believe that Apple already has a system in place that gives a vendor credits for getting people to buy songs.

This seems like a straight forward way of doing things when compared to the XM+Napster method which sounds like a bunch of executives went on a retreat and over thought the "problem".

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

XM won't save Napster either

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

So I hear Napster is going to launch their online music store in Japan next week... oh wait...

Close Name:Guest
Subject: Bizarro Day!

Quote
RealityCheck wrote:
Another I told you so. Apple is losing out on music player deals because its closed proprietary iPod-iTunes system is rightfully scaring away partners. It worked great for the Mac hardware, why not try the same for music players.


Wow your definition of the word failing must be different from everyone else's.

Close Name:Guest
Subject:

Quote
mahuti wrote:
I just don't get Satellite radio. I mean, I have an iPod and I have all the music I want to listen to on it... I don't have to worry about whether or not the next song is going to be good, because it always is. With satellite radio, even if they have 5000 channels, it's still not going to be as good as even 1 of my playlists (for me anyway).

I guess the only draw for people with large music collections would be for Howard Stern and other syndicated talk shows. Yahwn. Doesn't do it for me. I think it's good that apple passed on this one.


Satellite radio greatly expands your musical taste and experience. Sirius has so many chanels and genres, you discover new artists & music every day! It's alot better than listening to the same old songs over and over again. At times, I will catch something new that is really, really great, and want to buy it, but cannot because by the time I try to find pen & paper to write down the artist and song, it's too late. If Sirius had an iPod type of service, all I would have to do is just push a button!

Close Name:Guest
Subject: I thought the idea of an MP3 player was to move away from ra

I thought the idea of an MP3 player was to move away from radio and listen to what you like and not what someone else plays.
Plus I don't want to pay a monthly subscription to listen to the radio.
I'll stick with my iPod and listen to what I want to listen to.
Also with XM satelite if you're using one of there portable units you need to be in line of sight of the satelite. Otherwise your reception might not be good or you might lose it all together. The Elton John commercial looks good but it really doesn't work that well in real life.

Close Name:JimWCB Posts: 301 Joined: 29 Aug 2002
Subject:

The way I read this news is that you can't recieve the live satelite radio without connecting this device to either an home antenna or a car XM stereo system.

So what's the point?

You can apprently buy and download songs from the XM service, but we already do that through iTunes. Do we really need to buy songs when we're in your car? (which you can technically already do with a laptop connected to the internet by WiFi or a cell phone). I can kind of see the impulse buy angle (hear the song on XM and buy it right away), but it's not worth additional hardware or complexity to do it.

You can't listen to live XM satelite while away from home or a car, so why do you need it integrated into a portable music player?

It seems likely that Apple didn't see a reason to partner with XM or Sirus until the live satelite radio capabilities can be made portable. Apple doesn't really need an alternate way to buy songs or the headcache of working with services that will want a piece of the profits (they have enough hassles with the iTunes phone and that issue).

Close Name:Guest
Subject: Ah, the smell of vaporware first thing in the morning!

EOM

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: need more proof

of the iPod's ecosystem?

http://www.ipodnn.com/news/05/07/27/harley.ipod.support/

Harley Davidson has unleased 7 new models that provide for iPod plug in.

The list just grows and grows.

Close Name:Dirt Road Posts: 1239 Joined: 24 Oct 2002
Subject: Sat radio fans will like it, the rest of us...

...just *YAWN*.

I'm actually the target for satellite radio -- long commute, sick & tired of commercial broadcast radio -- but I usually stick a CD in the player and get on with the drive.

At the moment, I tend to listen to a lot of Internet radio on my iBook. No commercials or even very many breaks; what's not to like? OK, once I get away from the house I don't get a signal, but that's when I stick the CD in.

Close Name:rickag Posts: 5 Joined: 21 Oct 2001
Subject:

Quote
RealityCheck wrote:
Another I told you so. Apple is losing out on music player deals because its closed proprietary iPod-iTunes system is rightfully scaring away partners. It worked great for the Mac hardware, why not try the same for music players.


Oh, well. But here's what some people think of Napster

http://www.theregister.co.uk/2005/07/09/napster_rochester_survey/

And it is coming to light that many students are not happy with paying for services they do not want or need. Dell and Napster are really really pissing off a lot of people.
http://www.theregister.co.uk/2005/07/06/dell_napster_college/
http://www.theregister.co.uk/2005/07/27/uw_dell_napster/
http://thedaily.washington.edu/news.lasso?-database=DailyWebSQL&-table=Articles&-response=newspage.lasso&-keyField=__Record_ID__&-keyValue=13619&-search

You may what to go troll elsewhere, and re-examine why in the world you continually post on a Mac centric site.

Close Name:Guest
Subject: Apple Did Lose Out!

Do not be so stupid XM commands Over 4 million listeners. Car companies ARE striking just as many deals with XM or Sirius as they are with iPod. There are more Sat. radio ready car audio systems than there are iPod ready systems. XM is the future! Yes internet radio, and podcasts are dandy, but when FM replaces AM, XM is replacing FM. THAT IS A FACT!

Close Name:Guest
Subject:

"It is egotistical for Apple to belive that consumers don't want what Apple isn't selling"

It's clueless of you to think that consumers want what Apple isn't selling. The iPod completely dominates the MP3 player market, and the iTMS completely dominates the online music store market. There are lots and lots of choices in those markets, but consumers freely chose to make what Apple sells #1. Saying they want anything else flies in the face of reality.

Close Name:Guest
Subject:

"Apple is losing out on music player deals because its closed proprietary iPod-iTunes system is rightfully scaring away partners."

First of all, liar, iPods are compatible with music stores other than the iTMS. That's a cold hard fact you've never been able to swollow. Second, what's Apple need partners for? The iTMS is a wild success that's completely crushed the competition, and so is the iPod, which has been selling way above expectations. And I mean WAY above, like over six million units in Q2 when everone was expecting it to barely sell more than five million.


"Do not be so stupid XM commands Over 4 million listeners."

Ooooh, over 4 million listeners! Oh wow. Do you know that's completely insignificant compared to the number of iPod and iTMS users? In Q2 alone, Apple sold more iPods than there are XM satellite listeners. Tell me, which is the bigger market?

Close Name:Intruder -   TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Subject:

XM and Serius will reach their maximum audience much faster than the iPod. Why?

Because both are US-only services. iPod is world-wide. If XM or Serius worked everywhere I might be willing to try it out, although paying a subscription fee to listen to music doesn't thrill me.

Close Name:Guest
Subject:

Quote
Anonymous wrote:
"Apple is losing out on music player deals because its closed proprietary iPod-iTunes system is rightfully scaring away partners."

First of all, liar, iPods are compatible with music stores other than the iTMS. That's a cold hard fact you've never been able to swollow. Second, what's Apple need partners for? The iTMS is a wild success that's completely crushed the competition, and so is the iPod, which has been selling way above expectations. And I mean WAY above, like over six million units in Q2 when everone was expecting it to barely sell more than five million.

Ooooh, over 4 million listeners! Oh wow. Do you know that's completely insignificant compared to the number of iPod and iTMS users? In Q2 alone, Apple sold more iPods than there are XM satellite listeners. Tell me, which is the bigger market?


Angry Mac fanatic, get a life!

Close Name:Guest
Subject:

"Angry Mac fanatic, get a life!"

Brainwashed Windows zombie, can you disprove anything I said?

But that's really asking the impossible. You can't disprove the cold hard facts. Although Winbots sure are good at denying them, aren't they?

Close Name:Guest
Subject:

Quote
Anonymous wrote:
"Angry Mac fanatic, get a life!"

Brainwashed Windows zombie, can you disprove anything I said?

But that's really asking the impossible. You can't disprove the cold hard facts. Although Winbots sure are good at denying them, aren't they?


What's your problem, angry guest? Please register.

Close Name:Intruder -   TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Subject:

Quote
Anonymous wrote:
What's your problem, angry guest? Please register.


It will never happen. It is far easier to throw stones anonymously than to actually attach your name to them, because then he/she would actually have to take responsibility for them.

Close Name:Guest
Subject:

Quote
Intruder wrote:
Quote
Anonymous wrote:
What's your problem, angry guest? Please register.


It will never happen. It is far easier to throw stones anonymously than to actually attach your name to them, because then he/she would actually have to take responsibility for them.


I don't need to explain myself to you, Google bot.

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