AOL and XM

AOL and XM have agreed to jointly create a radio service according to the WSJ who says the new cobranded service, which hasn’t been named yet, will replace the current paid service on XM’s Web site and will replace AOL’s current radio services — AOL Radio and Netscape Radio.

XM receives a powerful incentive in this deal as it will be able to market to over 20 million AOL users while AOL will be able to add 70 commercial free XM channels to its 130 other channels. AOL will package these stations for their subscribers and will also have a package for non-subscribers.

My take on this is that this is a win-win strategy and we will see Sirius coming back with an announcement with probably Yahoo! Or MSN. Google will also be heavily considering whether such a launch makes sense for them. In my opinion newspaper companies will get into the act soon as well. We talk about the triple play being part voice, video and data. Radio too can be part of the mix. It is all about increasing average revenue per user or ARPU and the more services you have to offer the more revenue you make.

  • Roy
    April 11, 2005 at 3:50 pm

    This sounds like a nice service however watching the latest trends in radio and TV usage where time delayed consumption is dominant I have a hard time seeing this application really taking off unless you allow the consumer to save the streams similar to podcasting where you could potentially charge money. Otherwise charging money for web based radio service would be a hard sell. Mobility is the word of the year and without mobility some of these services will have a difficult time succeeding.

  • Rich Tehrani
    May 21, 2005 at 8:17 pm

    But doesn’t making something available on the internet make it mobile by definition? I am responding for example on an EVDO connection while simultaneously listening to a podcast.

  • Jay Adler
    July 26, 2006 at 4:12 pm

    I am Jay Adler tom be found on Google-Jay Adler Reviews and as a freelance CD reviewer
    I have a comment on Aol-XM Radio. I am convinced that Songwriters is the finest channel I have ever heard anywhere because we hear the creators of music performing their own material. I have notified XM where it is not carried to consider adding it because although XM is the leading satellite company, in my opinion, Songwriters exceeds most of their channels in quality of content.Fell free to contact me for more feedback.
    Jay Adler Massapequa, New yrk

  • Jay Adler
    July 26, 2006 at 4:13 pm

    I am Jay Adler tom be found on Google-Jay Adler Reviews and as a freelance CD reviewer
    I have a comment on Aol-XM Radio. I am convinced that Songwriters is the finest channel I have ever heard anywhere because we hear the creators of music performing their own material. I have notified XM where it is not carried to consider adding it because although XM is the leading satellite company, in my opinion, Songwriters exceeds most of their channels in quality of content.Fell free to contact me for more feedback.
    Jay Adler Massapequa, New yrk

  • Jay Adler
    February 18, 2007 at 8:17 pm

    The recent turmoil at American idol in which the serio-comic judges acting in consort vehemently defamed and abused several mentally challenged deluded wannabees, starts to substantiate my campaign for change in the music business.what we need is a back to the “Midnight Special” mosaic. Let’s form an agency to contact and pursuade the real talent like Joni Mitchell, Allison Krause, Tom Rush, Steve Poltz, Thea Gilmore, Carol King, Natalie Cole, THe Who and whats ever left of Led Zep to put on a good old concert (no judges) right opposite American Idol on a competing network and just ratings game them out of television. They are usurping revenue from our precious classic performers who are light years ahead of anybody else, making phony illusionary suggestions of fame to people who may have a history of instabilty. In a purely legal sense and on a Federal level these individuals who are abused on camera are possibly covered by the Americans with Disability Act provisions regarding discrimination of the handicapped. This is not a viable and credible way to promopte good music. Let’s get the show on.
    Jay Adler
    CD Reviewer

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