| Entertainment service in automobiles is getting | | | | size of the antenna is approximately 10" X 11", |
| important new players. AT&T has revealed | | | | and 4" in height. The technology is sophisticated |
| plans for a satellite TV service called Cruisecast. | | | | enough to buffer the signal for interruptions. If |
| And MediaFlo, a subsidiary of Qualcomm, a | | | | you temporarily lose the signal by going under a |
| wireless telecommunications company (San Diego, | | | | tree, overpass, or tunnel, for a period of up to 3 |
| CA.), is introducing a competing system called FLO | | | | minutes, the service will not be interrupted. The |
| TV, that is based on cell phone technology from | | | | picture is standard definition TV, not HDTV. |
| AudioVox. The U.S. switch to digital TV will free | | | | AT&T is partnering in the effort with RaySat |
| Rf spectrum for the delivery of advanced | | | | Incorporated (Dallas, TX). RaySat has previously |
| wireless services such as FLO TV. | | | | offered a similar system called TracVision that |
| Current players in the automotive TV market | | | | worked with DirecTV. The hardware for this |
| include Sirius XM's Backseat TV (also an AudioVox | | | | system was even more expensive, costing about |
| partner), an optional service from Sirius XM which | | | | $3000. The antenna was significantly larger, and |
| offers limited video programming featuring | | | | the system did not include the buffering feature. |
| Nickelodeon, Disney Channel and Cartoon Network | | | | Cruisecast system satellite technology is based on |
| combined with the standard audio programming. | | | | Ku band transmission, with a bandwidth of |
| However, the quality of the Backseat TV system | | | | 500-600 kilobits per second. The antenna needs |
| has been a disappointment. At its best, the picture | | | | exposure to the southern sky to receive the |
| is poor, and sometimes it is worse than poor. | | | | signal. The antenna is receiving a signal from a |
| Sirius XM currently has more than 19 million | | | | satellite in geostationary orbit over the equator. |
| subscribers, and its adoption rate also has | | | | There is an electronics module that interfaces |
| outpaced that of the wireless and satellite | | | | between the antenna and the monitors. This |
| television industries. But the rate of growth has | | | | module can go in the trunk, or under a seat. It is |
| slowed in recent years. Sirius XM gained about 10 | | | | comparable to the set-top box for cable TV. A |
| percent more subscribers last year, compared to | | | | remote control included for changing channels on |
| 27 percent growth in 2007 and 48 percent | | | | the electronics module via an Rf signal, so that |
| growth in 2006. Sirius XM is currently battling | | | | line-of-sight is not needed. |
| financial problems, holding more about $1 billion in | | | | Don't look for Howard Stern on the Cruisecast |
| debt ($559 million of the debt matures this year). | | | | lineup. Instead AT&T will focus on family |
| The business model for all of these services is to | | | | entertainment, including the Disney Channel, |
| provide pay-for-service entertainment, analogous | | | | Discovery Kids, The Animal Planet, Nickelodeon, |
| to the business model for premium cable | | | | The Cartoon Network Mobile, and Comedy |
| television. In the United States, more than 90% | | | | Central. In addition, news channels from MSNBC, |
| of homes pay for television service, but less than | | | | CNN Mobile Live and CNBC are planned. "Our |
| 20% pay for entertainment in automobiles. | | | | target audience is families with children," said |
| The AT&T Cruisecast system will cost about | | | | RaySat CEO Yoel Gat. The Cruisecast lineup |
| $1300 for the hardware, and $28 per month for | | | | includes 22 video and 20 audio channels. |
| the satellite subscription. The hardware requires | | | | Car rental companies Budget and Avis plan to |
| installation of a small satellite antenna on the roof | | | | offer the Cruisecast service at some locations for |
| of the vehicle. At the price of the hardware, a | | | | about $10 per day. |
| security system should probably be included. The | | | | |