Anybody have an idea about the long term survivability of XM/Sirius and/or satellite radio? It seems like Sirius is having a tough time making money.

Is it the down turn in the overall auto market, or is newer technology going to replace satellite radio? Sort of the video "tape" VHS format going to DVD?

 

I think that MP3 USB flash drives are going to replace CDs and DVDs. Many cars already come with built-in USB ports.

However, MP3s players are only useful to people who own (or have stolen) lots of MP3s. There is still going to be a market for streaming music sources. The Slacker players are one way to play streaming media on a car stereo.

XM and Sirius got in to trouble trying to compete with each other, but now that they have merged, maybe they have a chance.