When Apple Drives, Who Calls 'Shotgun'?

NEW YORK (TheStreet) -- For as much as I have pounded the pavement regarding the current state of the audio entertainment market, it seems that my arguments continue to fall on deaf ears. How's that for irony?

The debate has become fierce and at times extremely vile among investors as it relates to the competition between the satellite delivery platform of Sirius XM (SIRI) vs. the likes of Pandora (P), Spotify and even the BlackBerry Music Service from Research in Motion (RIMM) which are all on the IP standard. The question is which will survive and which will be killed off?

If Apple (AAPL) has its way, the answer might be both.

It doesn't take a genius to see that the IP platform is dominant now. It currently connects every mobile device such as smartphones, tablets, video games systems and even your television. Yet it is only starting to grow, as every business is starting to shift to what will eventually be a "cloud-y" environment.

In particular, it appears the now-active fight for dashboard space is about to take a drastic turn, as Apple has climbed in the driver's seat.

When discussing the future of mobile audio entertainment -- particularly as it relates to the satellite delivery platform -- it seems investors are always afraid of venturing into the possibility that cars can one day be WiFi enabled. Well, it's no longer just a "venture" the technology is now here. So essentially, aside from tethering your smartphone to stream Pandora or iHeartRadio or even Sirius, vehicles are being manufactured with their own IP addresses already built in. Your car will soon be able to notify your dealer's service department whenever a part needs replacement or is in need of a simple oil change.

I might one day receive a text message from my car telling me that the rear tire is under-inflated -- this will become possible with the ever-expanding role of IP.

"So what?" you might say. But realize that, at some point, there will be expanding communication capabilities beyond just safety features -- drivers will be able to communicate with their cars. The two companies best positioned to capitalize on what the automobile is about to become are Apple and, to a lesser extent, Time Warner (TWX).

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