Polk to introduce a home component XM tuner

[Deleted User]

I thought I would post this link to today's press release
http://biz.yahoo.com/prnews/040519/dcw011_1.html

dorokusai

EDIT

fireshoes

Thanks for posting this, Jim. It would be awesome if we got all of the Polk press releases posted here instead of second hand.

Will Polk be exclusive with XM or are there thoughts about making a Sirius tuner as well? Are you considering having other Polk branded components?

Thanks!

[Deleted User]

That is a good question. At this time it will take all of our energy to competently deliver this first product. So we have not even entered into discussions with Sirius. I would not rule it out but XM is the clear market leader numerically and in some ways it seems on the technical side. XM's technical capabilities will make it easier for us to deliver the premium performance we are specifying.

[Deleted User]

Another good question. We are constantly discussing where to take the company's product portfolio and those decisions need to made with with great care. The formula we want to pursue is to first ensure that a product we would introduce can match our company culture and values. We are still populated here by industry veterans many with up to thirty years of experience and we haven't forgotten why we all got into this business. In the past we have been unsuccessful when we have jumped into a market or product configuration that we really didn't add value to. So we would bring a prodct if we felt we could field an item competitively that met our customers needs in ways that other more entrenched manufacturers had failed to address. And suggestions are always welome.

Shizelbs

Jim, I think many of us are pretty excited at just the thought of this. Does this signal Polk's moving away from speakers, or just a broader range of products offered by Polk? Also. since you are watching, you may want to look at some of our other threads here concerning an SDA revival. There seems to be a very strong interest in the reintroduction of a modern SDA speaker.

[Deleted User]

No chance of that. Speakers still embody our preatest passion and our best core competency. We have developed knowledge over thirty years that others don't have and I suspect we will always enjoy developing loudspeakers where the greatest difference can be heard in the performance chain. I have seen the other threads and we are aware of the interest in more SDA. Matt is working on things...but I can make no tangible commitment and I should say no more on that for now.

Shizelbs

Just glad to know someone is aware. We are never quite sure if our cries for attention get noticed.

[Deleted User]

We are slowly realizing the importance of this Forum for exchange of ideas and inspiration. Our marketing guys like Justin, Paul and Ken have long valued the Forum and have immersed themselves in it's maintainence. They have been frustrated with the slowness of the rest of the organization to get involved. In the past six to seven months I have tried to stay current with the posts and I often forward things I find to people here at Polk who I think need to see a particular thread. So keep posting we are listening!

Rudy

I e-mailed XM a few months ago, with my opinion that someone should start targeting XM more for home use. I've had XM since December (when there was a deal on a Sony), and have used it for hours in the home, in the garage, and elsewhere. I listen to "50s on 5" quite a bit, and would miss the special programs I like if I had XM only in the car. I don't have a car kit yet, but it's nice to know Polk is going to have an audio component I can put in with the rest of my equipment. The Sony's not bad, but it's noisy (the fan can be heard across the room) and not convenient to put with other components.

Looks like a good thing to ask Santa for, this coming Christmas.

brettw22

I can say that it is DEFINITELY a cool thing to have news like this given to the forum.

The only concern/question I have about this type of a product from a consumer standpoint is the required monthly fees. If this is an item that (and not being familiar with anything else on or coming to market similar) doesn't have any sort of rival, the prices for the potentially high monthly fees might make people automatically dismiss it. I think what comes to mind most is Tivo. Those things were pitched as the next best thing in the world, but years later the market saturation is virtually nil compared to how many people watch tv.

Since I haven't ever looked at satellite radio before, I'm curious what the numbers show with companies such as XM and Sirius on how long the average customers staying power is. Do many approach it as a novelty and after a few months lose interest and cancel or do their numbers show that most customers have kept it since they subscribed to it. (Is there a contract requirement for any of the satellite radio services?) I just wonder if there's such a large core customer base that would be willing to commit to a piece of equipment that requires a subscription to make it work. I guess that's a silly question considering the existence of satellite tv, but I don't have that either. Doesn't satellite TV have digital music on it such as the XM and Sirius products provide?

My intent isn't to come across as negative, so I hope that isn't the case. Just some thoughts that came to mind.....

[Deleted User]

Brett -

You ask many great questions, let me try an answer some of them.

Yes, some people are scared away by subscriptions. However, as has been proven by cable, satellite TV, cell phones, etc. if you have a compelling service people will pay for it. XM currently has more than 1.8 million customers and thier churn rate is less than 3%. XM states that 96+ % are satified with thier service. They are on a course to more than double thier suscriber base this year. Sounds like somebody is willing to pay for thier service. How long will XM keep its customers is hard to say since XM & Sirius have only been around for a few years, but early indications are positive.

As for contract lengths, it can be one month or a year or 5 years, it is up to the customer. The longer the contract the better the pricing.

Satellite TV does have music channels but thier content and information is not nearly as good as XM. What really makes XM exciting to most customers is the variety of music and information provided about the song and artist. XM gives you an easy way to discover new music or change to music that fits your mood. They have done a great job of providing something for everyone, kids, comedy, classical, rock, country, jazz, etc you name it and you can probably find it on XM.

Give it a try, if you are a music lover then it may be the 1st subscription you find worthy.

madmax

Brett,
Even I (a person who has 5 crappy TV channels because I'm too cheap to pay for cable) have had an XM subscription for the past 3 years. For what it gives you $10 a month is nothing. That stuff you hear on FM is the worst out there. A day with XM and you will be a subscriber for life.
madmax