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Will Sprint's Instinct Go Satellite with Sirius XM?

by: Tyler Savery August 17, 2008 | about stocks: S / SIRI    

Tyler Savery

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A lot has been discussed about the new iPhone application that allows subscribers to access their accounts and listen to Sirius XM Radio (SIRI) right over their iPhone. It is a great concept, but without a push from either Apple (AAPL) or Sirius XM, it will have to grow organically - which may be slower than many people hoped for.

The other hot new phone on the market is the Samsung Instinct being offered by Sprint (S). This feature-packed phone comes at a price point that is far more budget-friendly, and has capabilities that rival, or in some cases outpace, the iPhone.

The problem here is that while Sprint has a relationship with Sirius, it is not what many users would have hoped for, and at this point should be updated to not only reflect current times, but also consumer demand.

The Sirius service on Sprint offers a very limited selection of channels for $5.99 per month. That is $5.99 on top of your existing subscription service. Not something that many people will pay for, especially in today’s economy.

Users of today’s devices want to not be impeded from accessing certain areas of the Internet. Sprint as well as other cell companies purposely limit music sites that users can visit, and for many users, that is not only a frustration, but poor value.

The new Instinct has a lot of potential. However, it needs to be freed of the ties that bind users to specific sites. In fact, all cell phones need to lighten up on the restrictions, and let the music flow.

As far as satellite radio goes, Sprint and the new Instinct have a potential advantage over iPhone. That advantage is the relationship that already exists between the cell phone company and Sirius XM. Sprint has the Simply Everything plan for $99.99 per month: unlimited talk, no roaming, unlimited text, video, and access to 150 music channels. However, you can’t log into your existing Sirius account.

Whether bringing this deal up to pace with today’s consumer is on Sprint or on Sirius XM, the deal should be redone so as to allow consumers who want everything to get it. With the iPhone application from Streamsmart getting ready to launch, Sprint will lose the satellite advantage it currently enjoys.

The Instinct is a capable competitor to the iPhone, but because it has less cache, it needs every advantage it can get. A cell phone company that is satellite friendly may quickly win over the hearts of the passionate fans of satellite radio.

Does Sprint have the instinct to go satellite? Only time will tell.

Position - Long SIRI, No Position Sprint

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This article has 14 comments:

  •  
    Aug 17 12:24 PM
    Tyler your articles regarding Sirius/XM are to me very much appreciated. I am sure that many holders of the newly emerged combined company will express the same sentiments. In my opinion Sirius/XM will not only be an exciting progressive newly merged company but in a not too long future the rising price of the stock will reflect efforts of CEO Mel and his well qualified team of experts in bringing about a highly successful satilite company. I anticipate newly developed related products and a highly profitable firm in the very near future.
    Reply
  •  
    Aug 17 12:29 PM
    Good presentation.

    Thanks!
    Reply
  •  
    Aug 17 01:15 PM
    Nice analyzation Tyler and as always we welcome your knowledge and input.
    Reply
  •  
    Aug 17 01:36 PM
    Tyler - I've enjoyed reading your articles. Your input is a welcome relief from most of the comments posted on the Yahoo SIRI blog ... which, in my opinion, has gotten way out of control.
    Reply
  •  
    Aug 17 02:31 PM
    If it runs window mobile 5 and up you can get access to your sirius accout with two small programs SiriusWM5, and tcpmp.pocketpc.0.72RC1... I have no problem using it with my HTC PCC6800 (Mogul) running windows mobile 6.1. and my service provider is Sprint.
    Reply
  •  
    Aug 17 03:07 PM
    tyler, as always thanks for the info. thanks for the research. helps out the little guy. t.m.
    Reply
  •  
    Aug 17 04:36 PM
    EVERYONE WHO HOLDS SHARES,, JUST BUY A SUBSCRIPTION TO SIRIUS XM... I have been putting bumper stickers on my car and advertising for them as well (FOR FREE) The more subscriptions they get eventually the stock will reflect that which would move it up. Ask ur friends to get subscriptions too! I have lost allot of money in this stock and I just want to break even! I will do whatever it takes! So buy some subscriptions!
    Reply
  •  
    Aug 17 08:39 PM
    Sirius/XM is fine for some...but they won't pry my wallet open until they make online music subscription services (Rhapsody, in my case) available in car/phone.
    Reply
  •  
    Aug 17 09:03 PM
    They do have online music subscriptions though check out their website
    Reply
  •  
    Aug 17 10:35 PM
    thanks, good article
    Reply
  •  
    Aug 18 12:24 PM
    2 big problems:
    1. The problem is the carriers don't want to be sued by record labels...
    &
    2. The streaming would crimp network capacity to much.
    -your not gonna see innovation thru the wireless carriers
    as they are currently configured.
    they are but slaves to ARPU.....
    Reply
  •  
    Aug 29 02:59 PM
    I just purchased and activated my Instict. I have been told by Sprint that if I am currently a subscriber to Sirius, I would not have to pay the additional fee to Sprint. The limited channels don't include Howard, so that short of kill it for me though.
    Reply
  •  
    Sep 15 05:56 AM
    Questions:

    Now that the two companies have merge SIRIUS and XM; Will the Sirius Subscriber be able to get some of the XM Satellite Channels on their Sirius Satellite devices?

    If so; when does the fun began?

    Thanking you; in advance for your answers .....

    SIRIUS X-treme M-usic Channels
    Carlven .....
    Reply
  •  
    Sep 26 01:15 PM
    Hi guys, Free twitter client for samsung Instinct is available at chetu.com/mproducts. so what you all are waiting for Just buzz the world with samsung instinct
    Reply
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