Will Internet Radio Deliver Blow To Satellite?

I've been discussing internet radio with a friend of mine Barry. We think it's the next big thing or at least one of them. It's big now but it's only going to get bigger. I read today in the WSJ today and interesting article by Walter Mossberg (The Mossberg Solution) about internet radio. Unfortunately I only have a print subscription and not an on-line subscription. So I can't provide the link.

[Later: found the story here]

In the article Mossberg describes a new device by Roku LLC called SoundBridge Radio. This device is a WiFi enabled radio with built in speakers etc. So you don't have to plug it into a receiver or speakers like other devices in this market.

Why will this deal a blow to satellite radio? Well I don't think this device will do it but I think it's a sign of things to come. Again I get back to WiMAX. When WiMAX becomes more ubiquitous then for most people devices like the SoundBridge Radio will become more appealing, because of cost. Basically it will be free. Like AM and FM today. And those satellite subscriptions will need to come down or go away to compete.

Of course a WiMAX version of this device won't work when you're driving most of I-70 through Kansas but for commuting in a metro area and bringing into your office and home it will work just great.

And of course developing and delivering content will become a lot more interesting too. (Consider the recent rise in popularity of PodCasts). It won't be just the current radio providers that will have on-line radio channels. Who knows maybe an IPBabble broadcast would be a fun experiment.