A few months ago, my wife started a job that entails a monster commute across the NYC metro area. She spends a lot of time in the car, so as an anniversary present I got her XM radio to make the driving time a little more bearable. She seems to like it.
A few days after installing it, I was bragging about the device a little with my in-laws in Bombay. In the midst of my laborious explanation of how it works, they stopped me and said ‘hey, what’s the big deal? We already have one of those at home.’ Oops. In some spaces, the Indian market for consumer goods is actually a bit ahead of the western one. Satellite radio turns out to be one such space (the other space where that is true is in mobile phones).
Worldspace Satellite Radio has been around for seven years, and has had India in its service range for five of them. But it’s only this year that it has made a major push to gain subscribers in the Indian market (coinciding with a stock IPO). According to a recent Rediff report, Worldspace currently has about 40,000 customers in India, and 63,000 worldwide (compare to 4 million XM Radio subscribers and 1.1 million Sirius subscribers in the U.S.). Worldspace in fact predates American satellite radio (they originally owned XM Radio), though it seems they’ve now been eclipsed by it in terms of subscriber base. The big news this summer is that XM Radio has invested $25 million back into its parent company.
Worldspace broadcasts from two geostationary satellites, and covers an area that includes 4 billion people, including the majority of Asia (East Asia, South Asia, and Southeast Asia), the Middle East, Africa, and Southern and Western Europe. (See the full coverage map here)
The questionable business strategy and management of this particular company probably isn’t that important. More interesting is the potential of the medium as a whole: 4 billion people is a lot of potential listeners, especially considering they are being reached with just two satellites. If other companies enter the space, and put up their own satellites, the industry could explode across Asia. Among other things, it could potentially be an impressive engine for globalization: because satellite broadcasts cover huge swaths of earth on limited bandwidth, they can’t be specialized very much by region. Thus, all of South Asia gets the same broadcast. Interesting possibilities… Continue reading →