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New content delivery vehicle from Sirius and Microsoft

The news that Sirius and Microsoft are collaborating development of video applications for a new mobile video platform may seem like just one more way in which Microsoft wants to be part of the digital lifestyle, but in my opinion it is something more than that. Satellite radio and a whole bunch of associated hardware/software actually represent what my good friend Ed Zander, CEO of Motorola, calls "Seamless Mobility" (at home, at work, in the auto, and out in the world). As a management consultant, it is definitely going to make my life easy.



Sirius and Microsoft are making a small start - two or three channels targeted at children. But the possibilities are enormous, particularly in a world where use of air travel is declining (Related article: Airlines in America continue to struggle) and an automobile is the preferred vehicle in a post-9/11 world. I would not, therefore, be surprised if an automobile simply becomes an extension of digital home/office allowing us access to information almost everywhere, as both Bill Gates and Ed Zander seem to envision.



This shift in technology is going to create new business opportunities for many participants in the digital lifestyle value chain: hardware manufacturers, software developers, technology developers, content developers, and services providers.



What does it mean for you?

  1. Continued shift towards digital delivery of content. A screen in the automobile that can receive satellite signals has potential applications for business professionals, particularly when combined with a microphone and connectivity to a laptop. This has implications for publishers, media companies, businesses, and telecom services providers.
  2. Transformation of automobiles, particularly RV's, into mini versions of homes/offices. This will create demand for new content and enable us to stay connected no matter where we are. Not only does it create new business opportunities for auto companies and others in the auto value chain, it will have a significant shift in how we perceive what is home and work and leisure.
  3. Convergence of content delivery vehicles. There are several conflicting opinions on whether convergence is good or bad but some sort of convergence makes perfect sense. For instance, on-demand television is expected to be the next big thing because we have a generation that was born after the Internet and they like to enjoy content when they want not when the content provider delivers it. Microsoft wants to move in that direction.

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