Sirius XM CEO Mel Karmazin isn’t buying the idea that broadband Internet in the dashboard of cars is going to put his company out of business. In fact, he insists that Internet radio is a bigger threat to AM and FM stations than to satellite radio.
“Make no mistake, this does represent competition, but we’ve lived with and grown tremendously despite intense competition since our inception,” Karmazin said of broadband Internet in his quarterly Wall Street conference call. “After all, how could we ignore the free competition from terrestrial radio, which represents 100% of the radio market when we launched service back in 2001? But over the years we’ve provided a superior product that consumers were willing to pay for and I don’t see wireless Internet radio having more impact on us than terrestrial radio has had,” he insisted. Read the story on RBR by clicking here