Sirius tries to build on the iPhone
In an interesting move into a new market, Sirius Radio is introducing a custom docking device that turns the iPhone into a full-function Sirius radio receiver for the fairly low price of $120.
It is a move strangely reminiscent of the recent release of the TomTom GPS navigation system app, and especially similar to the upcoming car mount for the unit. Like TomTom, Sirius is attempting to leverage the popularity of the iPhone to move into brand new territory by selling a functional addition to the iPhone, and one which is almost all composed of hardware. Like TomTom, Sirius hopes that the iPhone will carry them into uncharted waters in order to increase their market share in their respective business segments.
Sirius released an iPhone application earlier this summer that allowed subscribers to an Internet-radio package to listen to approximately 120 channels, but not some of the best known shows, like Howard Stern’s channel on Sirius. That proved to be moderately successful as a marketing tool but did not give Sirius the big boost they thought they needed.
Thus was the hardware dock, which plugs in through a car’s cigarette lighter, born. The unit plays through a car’s audio system via Sirius’s new PowerConnect technology. When consumers put their iPhones in the Sirius dock, an interface comes up on the iPhone’s screen that allows them to change channels. Dock users must also purchase a satellite-radio subscription from Sirius, with the basic monthly rate at $12.95. The iPod Touch also works with the dock, according to a Wall Street Journal story.
It is clear that Sirius is trying to use the lower (as compared to most satellite radios) $120 price to lure new users to their satellite radio service. There are an estimated 12 million iPhone owners, so the Sirius dock could be a major new business methodology for the company. There are million of people that like the Sirius idea and content, and which the company is not reaching right now. The iPhone and iPod group may be just what the doctor ordered for Sirius’s flagging sales.
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