Reading The Mobile Road Map
Duffy: It’s been a long-rumored deal for a while. We were pleased to hear the rumors becoming more of a reality. Directed joined with Sirius in 2004, and at the time, Sirius didn’t have the lion’s share of the aftermarket; XM had control of the retail market. But by ’06, that changed and now today, working together, we’ve been able to increase our share. It will take some time till it all shakes out, but we’re looking forward to working with Sirius and XM together. We were concerned at first about consumer confusion—would this stop people from signing up? But we and the Sirius people went to stores the weekend after the merger announcement and very few consumers actually asked about how the merger would affect what they would be able to receive on their hardware. The satellite radio business in general did slow down a bit in the fourth quarter of last year, but it wasn’t related to the merger talk, because that hadn’t been brought up.
Warren: Drive + Play 2 incorporates the ability to add Sirius satellite radio by allowing a customer’s new black box tuner, or existing tuner such as Stiletto, to be fully controlled by our device. It appears that things have settled down quite a bit since the big announcement and that business is back to normal. It’s far too soon to predict what will happen in the merger, but either way, we are enthusiastic about the future of this category.
Braun: Satellite Radio and HD Radio continue to develop and evolve in the ever-changing world of content delivery. We’re excited because it all lends to product innovation, greater consumer choice and benefits.