[BC] WSJ: Satellite Radio Runs Into Static

[Rob Atkinson]

in today's Wall Street Journal headline top Front Page column 5:

Low Fidelity:  Until Recently Full of Promise, Satellite Radio Runs Into 
Static

XM, Sirius post big losses as listerners prove fickle;  investors take a 
pass, too.

one-year free trials end soon.

by Sarah McBride.

Last year, Nicky Baumohl bought a new Audi A4 featuring an XM satellite 
radio with a free, trial subscription.   But Ms. Baumohl's salesman never 
activated the service and an XM customer-service representative mistakenly 
told her she wasn't eligible.  Already irked at the idea of paying for 
radio, the 35-year old event planner instead listens to CDs, broadcast radio 
and her iPod digital music player as she tools around San Francisco.

The customer who got away--especially after so many inducements--is one 
reason why satellite radio is encountering unexpected turbulence after just 
a couple of years of being a hot consumer item.

The problems are myriad, underscoring the fast-changing and fickle nature of 
the consumer-electronics business.  In addition to not activating 
pre-installed car radios, or those given as gifts, customers who actually 
sign up don't always stick with the service.  Many people are simply having 
iPod adapters installed in their cars and skipping satellite altogether, a 
concept that was barely on the horizon when the industry was young.  In 
addition, bidding wars have driven up the cost of on-air talent far beyond 
what was initially expected.......

You have to buy the paper; no time to add any more but you have the first 3 
or 4 graphs here.

rob atkinson
st. charles IL

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