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The Survival of Satellite Radio

Boot Camp feature for Monday, December 15, 2003

The survival of satellite radio. Bloomberg Boot Camp, a report on today's technology. XM and Sirius continue to slug it out trying to win customers over to satellite radio. XM... which was first out of the gate has topped the million subscriber mark while Sirius has only about 150 thousand. But Sirius CEO Joseph Clayton his company will survive. Can it beat XM?

"Well I'm not so sure that's the objective here Fred. I would take a very healthy second place. I don't think it's who is first, but how you execute your business model."

And while Sirius is promoting its 100 channel radio service... it is making plans to expand beyond that...

"Audio is just one form of the data that we'll make available. We'll have customized data which is maybe your favorite stock quotes, your favorite ball scores on your radio and on the screen that you have in your vehicle. We fully expect to be offering video into the back seat of vehicles like a Dodge minivan going forward. So what you see today is really only the beginning Fred. Where we'll go forward will be about audio, it will be about video, it will be about customized data."

Sirius expects to introduce data services within the next year and a half. Rival XM may get there first. Video... most likely featuring back seat entertainment for kids... is still two to three years away. Bloomberg Boot Camp, I'm Fred Fishkin.