In a potentially devastating blow for satellite radio operators, drivers will be able to plug iPods directly into the stereo systems of a majority of 2007 models of Ford, GM and Mazda vehicles in the United States. These manufacturers make up about 70% of cars sold in the United States, and many of the remaining 30% already include iPod integration features.

Some speculate that this will result in severe losses for terrestrial radio, but surely at least a niche market will remain; otherwise, how will people know what new music to plug into their iPods?

FreeiPodGuy predicts that there will be some shift in format of terrestrial radio away from popular music into other formats, such as sports, news, and talk: formats that are less likely to directly compete with the iPod. Providing their programming in the form of podcasting (with some advertising included) will enable terrestrial radio to ride the iPod wave instead of fighting the tide.

read more | digg story