These excerpts taken from the SIRI 10-K filed Mar 10, 2009.
Internet radio broadcasts have no geographic limitations and can provide listeners with radio programming from around the country and the world. Major media companies including Clear Channel, CBS, America Online and Yahoo! make near CD-quality digital streams available through the Internet for free or, in some cases, for a fraction of the cost of a satellite radio subscription. In addition, an Internet based radio product was recently announced for vehicles. The past few years have seen a steady increase in the audio quality of Internet radio streams and in the amount of audio content available via the Web, resulting in a steady increase in Internet radio audience metrics. We expect that improvements from higher bandwidths, faster modems and wider programming selection are likely to continue making Internet radio an increasingly significant competitor in the near future. These services already compete directly with SIRIUS and XMs Internet offerings and, through the use of home stereo media adapters or media-centric PCs, with the companies home line of products.
SIZE="2">Internet radio broadcasts have no geographic limitations and can provide listeners with radio programming from around the country and the world. Major media companies including Clear Channel, CBS, America Online and Yahoo! make near
The Apple iPodFACE="Times New Roman" SIZE="1">® is a portable digital music player that allows users to download and purchase music through Apples iTunes® Music Store, as well
This excerpt taken from the SIRI 8-K filed Mar 21, 2007.
3. Internet Radio
Many consumers are not waiting for the prevalence of HD Radio to find digital-quality sound for their audio entertainment. Increasingly, consumers are turning to Internet radio, which requires a device, such as a personal computer, connected to the Internet.76 In one survey, 34.5
72 Id. at 14, 17.
73 iBiquity HD Radio Presentation at 3; Tom Lowry, HD Radio Still Taking the Rap, BUSINESSWEEK, Jan. 29, 2007, at http://www.businessweek.com/technology/content/ jan2007/tc20070129_381520.htm (last visited Mar. 13, 2007) (noting BMWs announcement in January 2007 that it would become the first carmaker to offer factory-installed HD Radio receivers as an option in all of its 2007 models).
74 See Tabletop & Clock HD Radios, RadioShack Home Page, at http://www.radioshack.com/family/index.jsp?categoryId=2032185&cp=2032057&allCount=17 &fbc=1&f=PAD%2FProduct+Type%2FHD+radio&fbn=Type%2FHD+radio (last visited Mar. 18, 2007).
75 Associated Press, Wal-Mart to sell HD digital radio receivers, L.A. TIMES, Mar. 6, 2007, at http://www.calendarlive.com/tv/cl-fi-radio6mar06,0,7415452.story?coll=cl-tvent (last visited Mar. 18, 2007). 76 Broadband Internet is available to the vast majority of American consumers. See Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of June 30, 2006, Jan. 2007, at 3 & Tbls. 14-16, at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270128A1.pdf (reporting that 99 percent of zip codes have at least one high-speed connection in service to an end user, and estimating (1) that high-speed DSL connections were available to 79 percent of the households to whom incumbent LECs could provide local telephone service as of June 30, 2006, and (2) that high-speed cable modem service was available to 93 percent of the households to whom cable
percent of Americans aged 15-24 mentioned online streaming as a primary source of music consumption in 2006 (up from 9.7 percent in 2004).77 Today, almost 20 percent of the U.S. population aged 12 and over listens to Internet radio at least once a week,78 and over 72 million Americans listen to Internet radio on a monthly basis (which is expected to double by 2010).79 Internet radio audiences are estimated to have grown 25 to 50 percent between 2005 and 2006.80 Arbitron tracks online radio usage, and has recently announced changes in the way it will report simulcast radio stations for its measure of radio usage, recognizing that simulcasting has become a significant operational and marketing strategy for many radio broadcasting companies.81 Several Internet radio services, including Yahoo! LAUNCHcast and Pandora, allow users to create their own Internet radio stations based on their listening preferences.82
77 Bridge Ratings, Youth Audience Media Use Study 2007, Feb. 14, 2007, at http://www.bridgeratings.com/press_02.14.07 -Youth%20Media%20Use.htm (last visited Mar. 13, 2007).
78 Bridge Ratings, Industry Update Internet Radio, Feb. 21, 2007, at http://www.bridgeratings.com/press_02.21.07. Internet%20RadioUpd-.htm (last visited Mar. 13, 2007).
79 Bridge Ratings, Digital Media Growth Projections, Feb. 19, 2007, at http://www.bridgeratings.com/press_021907-digitalprojectionsupd.htm (last visited Mar. 15, 2007).
80 Compare 2006 Quadrennial Regulatory ReviewReview of the Commissions Broadcast Ownership Rules and Other Rules Adopted Pursuant to Section 202 of the Telecommunications Act of 1996, Comments of CBS Corporation, MB Docket No. 06-121, at 10 (filed Oct. 23, 2006) (noting a 50 percent increase from January 2005 to January 2006) (citation omitted), with Bridge Ratings, Digital Media Growth Projections, Feb. 19, 2007, at http://www.bridgeratings.com/press_021907-digitalprojectionsupd.htm (last visited Mar. 15, 2007) (noting a 25 percent increase from 2005 to 2006).
81 Arbitron, Learn About Online Radio: Frequently Asked Questions, at http://www.arbitron.com/onlineradio/about_onlineradio.htm (last visited Mar. 15, 2007); Arbitron, Total Line Reporting, Effective Winter 2006 Survey, at
Internet radio, like HD Radio, is becoming a source for mobile audio entertainment as well. Slacker, a service unveiled just last week, allows users not only to customize their music channels but also to listen to them on portable devices, including in their cars; the service includes a free, advertising-based version as well as a subscription option.83 Various Internet radio offerings are already available on mobile phones, and Internet radio is expected to become widely available on portable devices, including car radios, by 2008.84 Already, almost 19 million Americans report receiving media over the wireless Internet each month.85
82 See Stefanie Olsen, Pandoras music box inspires fans, CNET NEWS.COM, July 20, 2006, at http://news.com.com/Pandoras+music+box+inspires+fans/2100-1027_3-6096619.html (last visited Mar. 13, 2007).
83 See J.D. Biersdorfer, Now, a Radio Station for (Your Name Here), N.Y. TIMES, Mar. 15, 2007, at C8 (Web sites like Pandora.com personalize the music you stream to your desk, while satellite radio offers portable listening but little personalized track choice. Slacker, a music service unveiled this week, hopes to merge the two concepts into something new: personal portable radio for the computer, car and coat pocket.); Erica Ogg, A new wavelength for satellite radio, CNET NEWS.COM, Mar. 13, 2007, at http://news.com.com/A+new+wavelength+for+satellite+radio/2100-1041_3-6166934.html (last visited Mar. 13, 2007) (The device-plus-service combines satellite radio, standard portable music player and WiFi-enabled gadget with 10,000 custom music channels that users can tailor according to their taste, covering virtually every possible genre. The end result is essentially portable radio with video instead of audio adsor, for a price, no ads at allwith content that refreshes automatically based on personal preference.).
84 Bridge Ratings, Digital Media Growth Projections, Feb. 19, 2007, at http://www.bridgeratings.com/press_021907-digitalprojectionsupd.htm (last visited Mar. 15, 2007).
This excerpt taken from the SIRI 10-K filed Mar 13, 2006.
Internet Radio. We offer SIRIUS subscribers the ability to listen to our music channels and select non-music channels over the Internet as part of our base subscription price. We plan to add additional content to our internet offering in the future.