In the spring of 1991, the business teams of Hughes Communication and Thomson Consumer Electronics asked the question of whether a satellite TV system with an 18″ dish could be a viable consumer product. Would people pay for what was previously “free” and could the market be expanded from the rural un-served to the perceived metro underserved?
Betting that consumers would pay for higher quality and more compelling entertainment, the dice was rolled. That bet more than paid off with the satellite TV industry growing to more than twenty million subscribers.
Satellite radio now faces the same questions, but history has already passed judgment on its ultimate success. The question is no longer whether it will succeed, but exactly how great is the opportunity.
Satellite radio will not only fulfill its promise of offering a wide range of lean back entertainment options, but also the potential for new lean forward services.
In addition it will take economic advantage of many emerging technologies, such as 802.11, Bluetooth and third generation cellular systems while suggesting opportunities in new product and service partnerships.
Satellite TV has taught us many lessons about how to lead consumer paradigm change, the speed at which this can occur and the nature of the new services that can be created.