Satellite digital audio radio service (SDARS) will become a major component of in-vehicle telematics over the next several years, a new study predicts. "SDARS will provide enhanced audio entertainment to drivers and passengers," said Jonathan Lawrence, equity analyst and author of the report at Dain Rauscher Wessels.
The report, "Satellite Digital Radio: In-Vehicle Entertainment...Telematics-Style," explains the emerging market of telematics focuses on in-vehicle communi-cations and services. "SDARS seeks to fix everything that music-lovers, particu-larly automotive listeners, hate about traditional AM/FM radio," said Lawrence.
"We believe SDARS represents the first major revolution in radio in nearly a century." Lawrence's 60-page report cites several factors that makes SDARS valuable:
* Sound quality;
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* Reliability (nationwide coverage as opposed to the limited 30-40 mile range of AM/FM radio);
* Commercial free music (some of XM's music stations will have commercials);
* More choices: 100 channels (e.g., 50 music/50 news, sports, talk shows, entertainment);
* Music channels are targeted to well-defined categories;
* Live performances; and
* Special events (e.g., interviews, celebrity guest DJs).
DRW recently initiated coverage on the two FCC-licensed SDARS providers (Sirius Satellite Radio, Inc. and XM Satellite Radio Holdings Inc.) with a Buy-Speculative rating.
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