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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
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?
Wed Jul 27, 2005 7:42 am Subject: Apple's Closed Proprietary iPod System Failing
Wed Jul 27, 2005 9:43 am 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.
Wed Jul 27, 2005 9:51 am 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.
Wed Jul 27, 2005 12:23 pm Subject: I thought the idea of an MP3 player was to move away from ra
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).
Wed Jul 27, 2005 1:12 pm Subject: Ah, the smell of vaporware first thing in the morning!
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.
Wed Jul 27, 2005 5:33 pm 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.
QuoteRealityCheck 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.
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