Watch out Satellite and Terrestrial Radio, Here comes the iPhone

I have not been fortunate enough to get myself a new 3G iPhone, but I did get to upgrade my first generation iPhone to the 2.0 firmware and have been completely impressed with the apps so far in the App Store.

The developers have done great work and I look forward to many more great titles to be released in the coming weeks.

I did have a thought today while at work about some of the apps, in particular AOL Radio and Pandora.  I totally love the regular Pandora site and when at my desk at work, this is the web site I always have up, playing a never ending stream of music I like.  Well with their great iPhone app, I now get that same experience on my iPhone.  I was hesitant at first, wondering how the music would stream over the “slow” Edge network, and was surprised by the quality.  It played without pause.

So as I sat at work, I wondered to my friends, “Do you think that the Pandora app will play through the fm transmitter in the car ??”  We thought about it for a moment and talked about how cool that would be.  So after work, I gave it a go and was pleasantly surprised that Iwas able to stream the AOL and Pandora apps right through my fm transmitter !  What a cool surprise.  I sat in my car and thought about this for a moment.  I have had Sirius radio for about that past two years and I love it.  I have not looked back to terrestrial radio in the least bit.  But now it occured to me that this may being another turning point.  Besides my Sirius I listen to my iPod/iPhone for mainly podcasts since I catch most of my music on Sirius.  But now what if my iPhone could go so far as eliminate the need for Sirius, music and talk.  With Sirius, I bounced between several stations for my music and would catch some talk shows no and then.  Well now with my iPhone, I not only get my fix of talk shows that I want to listen to through podcasts, I also get a music station that is totally personalized just for me, without a single commercial !  Pandora’s algorithm is such that is finds music you like and adds it to your station.  I have several personal stations set up, an Alt Indie, Jazz, and so on and the Pandora app lets me play any one of them.

This is an interesting time for both the satellite and terrestrial radio businesses.  Traditional radio has been looking in their rear view mirror as the new kids on the block, XM and then Sirius crept up to take a larger and larger share of the market.  And now those same satellite providers are trying to merge in order to not only stay alive, but also to continue to fight the traditional outlets for listenership.  Well now with the ability for a platform like the iPhone to stream content you want with no commercials for free, those new kids on the block better watch their mirrors as well.