This excerpt taken from the SIRI 8-K filed Mar 21, 2007.
Revolutions in Radio, ONLINE NEWSHOUR, May 4, 2005, at http://www.pbs.org/newshour/media/radio/broadcast.html (last visited Mar. 14, 2007) (Radio executives have also moved to reduce the length and number of advertisements heard on the broadcast waves. Clear Channel launched a Less is More campaign designed to reduce the total number of ad minutes per hour of airtime. They're also trying to teach advertisers how to make shorter, more entertaining commercial spots.); Todd Leopold, New tricks for old broadcast medium, CNN.COM, July 20, 2006, at http://www.cnn.com/2006/SHOWBIZ/Music/07/20/radio/index.html (last visited Mar. 17, 2007) (The growing popularity of satellite has woken up the broadcast industry a little, says Ron Dresner, a longtime radio professional Terrestrial radio is investing in new formats and new technology Radio companies are also sinking money into high-definition radio, internet streaming and podcasts.).
and music formats.125 Internet radio offers a package of programming that is similar toif not broader thanthat available on satellite radio. New automobiles increasingly come with input jacks that can be used to connect MP3 players or factory-installed iPod integration kits, similar to satellite radio. Similarly, cars will soon be able to support Internet radio126 and music over mobile phones.127
Given the existing and emerging capabilities of other audio entertainment services, it is not surprising that consumers routinely avail themselves of multiple options. Many users of newer services, such as MP3 players and satellite radio, continue to rely on terrestrial radio to some extent.128 One study noted that satellite radio actually has suffered some attrition,
126 For example, Avis Rent A Car System, LLC recently announced a new service that provides Avis renters with portable wireless Internet access that can be carried anywhere and will be available for a fee of $10.95 per day. See Press Release, Avis Rent A Car System, LLC, Rent from Avis and Get Your Own Mobile Wi-Fi Hot Spot, Jan. 9, 2007, at http://www.avis.com/AvisWeb/JSP/global/en/aboutavis/press_room/2007-001.jsp (last visited Mar. 17, 2007).
127 For example, as noted above, Motorola currently sells connection devices that allow subscribers to its iRadio service to connect their mobile phone to their cars stereo system. See Press Release, Motorola, Inc., Motorola Rocks the House . . . and the Car . . . and the Mobile Phone . . . Rolls Out iRadio® Service, Jan. 3, 2006, at http://www.motorola.com/mediacenter/news/detail.jsp?globalObjectId=6260_6215_23 (last visited Mar. 17, 2007) (Motorola offers optional Bluetooth accessories to extend iRadio, including . . . a wireless car kit compatible with virtually all car stereos from major manufacturers such as Pioneer, Alpine, Sony and Kenwood.).
128 Phil Rosenthal, Satellite deal foes dont hear message, CHICAGO TRIBUNE, Feb. 28, 2007, at http://www.chicagotribune.com/business/columnists/chi-
demonstrated by an average decline of 3.4 listening hours each week per subscriber from the first quarter of 2005 to the first quarter of 2006.129
Finally, the conduct of XM and Sirius demonstrates that both already have been responsive to market forces. Both companies have priced or modified their services in order to make them more competitive with other forms of audio entertainment. In addition, both companies have expanded their channel selection over time, going from an original plan in 1997 to provide 20 or more channels each to over 100 channels today,130 and introducing local weather and traffic channels for major U.S. metropolitan centers in 2004. The emergence of Internet radio and MP3 players has forced the companies to make changes as well, such as by developing new features for their radios like recording and time-shifted listening, improving device performance, and permitting subscribers to listen through the Internet. Both XM and Sirius have introduced satellite radios with built-in MP3 players that allow users to store MP3s that they have purchased, as well as to listen to and record satellite radio. Sirius first MP3 receiver, the S50, was introduced in October 2005.131 During the past year, Sirius rolled out a new MP3 receiver, the Stiletto 100, which has more functionality than the S50.132 XM