On The Verge

In this blog, EDN Editorial Director Maury Wright focuses on digital consumer-electronics gadgets and the converged networks that feed them with video, audio, and data. [Editor's note: As of Feb. 2008, this blog is no longer active and is presented here for archival purposes.]

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Friday, February 11, 2005

Can satellite radio survive?

Feb 11 2005 10:58AM | Permalink |Comments (20) |

Back in late 2001, I got a hands-on look at satellite radio just after the XM Satellite Radio launch, and in “Goin’ Mobile” I questioned the content plan and business model. David M. Ewalt of Forbes makes some similar points in “Satellite radio’s lofty orbit.” Consumers who love music will carry it via MP3 players just as my family has done since 2001. Of late, XM and Sirius have made headway via non music offerings such as talk shows and sports. They are also paying incredibly high tariffs for that programming. And as Ewalt points out, the new “podcasting” trend even has consumers carrying along downloaded talk shows on portable music players.

Related entries in: Convergence | Multimedia | Wireless |

Reader Comments

at 2/11/2005 1:36:29 PM, susan montez said:
But you know what the really great thing about satellite radio is? It doesn't make you work. It's radio. You turn it on in your car--you listen to great music and talk shows--you don't have to think about what you're going to download or where it is after you download it--and you come up on wonderful unexpected things that you love and wouldn't have known about.

at 2/11/2005 2:05:41 PM, cIt is iPod that I do not understandhuck said:
I have had XM radio for only 1 month, but I have it on always, and would not be without it. It is iPod that I do not understand.

at 2/11/2005 2:10:33 PM, Trez said:
Satellite Radio is here to stay. No commercials and better variety make it worth every penny!

Considering it's the fastest growing technology EVER. Kind of a silly question really ~

at 2/12/2005 10:10:56 AM, stevMo said:
Just got it in my new Chevy truck and it is fantastic. Huge selection of content/shows, clear as a bell and easy to use. This is a home run and here to stay! Try it and you will love it!

at 2/12/2005 10:48:48 PM, Jerome Nicholson said:
I got Sirius two years ago and switched to XM last September when I wrecked my car. I enjoy the music I just cant get on my local radio stations; so much that I seldom listen to them any more. It would be like going back to local TV after having cable. XM's new portable unit looks interesting, but I'll wait till someone combines it with an mp3.

at 2/16/2005 10:14:50 AM, Braddon Van Slyke said:
I'm considering getting an MP3 player and XM/Sirius. But generally I have to hear something on the radio first prior to buying/downloading the music. I can't say I don't know much about the sat radio financial future, but I can say for the most part I HATE MY LOCAL FM STATIONS!!! Unless they radically change their programming, I question whether they can survive.

at 2/16/2005 10:58:40 AM, mark said:
I wouldn't pay a dime for cable or sat TV, but after getting XM for three months for free after buying a new Honda, I was hooked. I'd decided within a couple weeks that XM would stay. I never listen to FM in my car anymore. And no, Howard Stern is not the answer for Sirius. They've overpaid for his services and he won't draw enough people to Sirius to generate a good return on their investment.

at 2/16/2005 11:29:18 AM, Jack said:
After a stint working in the Boston area, I returned to Central Florida and a 160 mi. per day drive to work. Local radio just sucked soooo bad, particularly after the bunch of good stations in Boston, that I had XM within a month. I paid for the two year subscription and have loved it ever since. Just bought my fiance a MyFi for Christmas and now she is hooked. The programming is unmatched. Personal favorites: Bluesville, CSpan, Top Tracks and of course, Nascar!

at 2/16/2005 3:46:17 PM, Marc said:
The bottom line is, satellite radio is outstanding. I've been an XM subscriber for over two years and I just love it. And yes, I'm willing to pay for radio; in this case. It's a completely different model than MP3 players and PodCasting, and I think there is certainly room for it in the overall entertainment market.

As Susan (2/11/05) pointed out, it doesn't make you work. Just turn it on and enjoy. And you can instantly change music genres, pick up some news or listen to comedy.

It's great for traveling. But I also enjoy it in my office.

The crummy broadcast radio market is now completely irrelevant as far as I'm concerned.
Yes, satellite radio can survive. Rock On Satellite!

at 2/16/2005 3:46:34 PM, Marc said:
The bottom line is, satellite radio is outstanding. I've been an XM subscriber for over two years and I just love it. And yes, I'm willing to pay for radio; in this case. It's a completely different model than MP3 players and PodCasting, and I think there is certainly room for it in the overall entertainment market.

As Susan (2/11/05) pointed out, it doesn't make you work. Just turn it on and enjoy. And you can instantly change music genres, pick up some news or listen to comedy.

It's great for traveling. But I also enjoy it in my office.

The crummy broadcast radio market is now completely irrelevant as far as I'm concerned.
Yes, satellite radio can survive. Rock On Satellite!

at 6/11/2005 10:48:55 AM, claire said:
Would Satellite radio work in europe?

at 6/13/2005 11:52:24 PM, cong zhang said:
of course, it could.

at 6/14/2005 8:47:27 AM, claire said:
but europeans don't drive as much as americans so the portable in-car receiver might not work as well as it does for sirius and xm in the U.S.

at 9/10/2005 12:50:17 PM, silicon said:
Love satellite radio

at 10/12/2005 12:30:58 AM, kht said:
I actually think satellite radio wouldn't work in Europe. The radio markets in the US and Europe are very different. Europe is divided by national divides (but inside the individual countries you have several nation-wide radio stations to choose from), and also has something the US hasn't got: High-quality public radio like the BBC. Third, in Europe the radio host can say pretty much what they want without having the FCC taking them off the air.

at 10/12/2005 3:00:31 PM, notty dred said:
sirius has a BBC station and i believe their programming is superior to xm. but xm has superior hardware - makes sirius radios look like kids toys. mr. stern will bring millions of new listeners to sirius next year - me being one 3 months early! if i couldn't listen to howard in the morning i'd go postal - i think many feel as i do - that the fcc has ruined the terrestrial airwaves, it all sounds the same and i'm sick of it. 12 bux a month is in the noise when you consider my energy bill will be 50% higher next month. rock on sirius! i'm a believer...

at 2/17/2006 10:30:02 PM, Randy said:
You people posting comments don't seem to have any concept of the actual financial condition of Sirius and XM. These companies have yet to break even. They are losing money hand over fist. Last year, both companies lost 600-700 million dollars. Howard Stern will have to draw 2.4 million new subscribers just for Sirius to break even on him. That hasn't happened and probably won't. Some consumers may love the product, but it won't last if the companies go bankrupt.

at 10/26/2006 3:39:32 PM, Jason said:
Yes, but when they do go bankrupt some happy soul will buy them or they will simply declare bankruptcy. Then all problems are solved?!?

at 10/6/2007 6:34:11 AM, aice said:
unlike television it is easier to connect to a radio station. It is not that expensive more advertisers still supporting radio stations. It has two purpose for entertainment (fm) ad for information/ surveillance (AM) .radio plays an important role to distribute messages through technological devices. It become part of our history and still now it persists as a mass medium.

at 6/26/2008 2:05:09 PM, stef said:
The cost for this radio is a bit too much. Plus you need to buy a thingie to put in your car which cost a bunch. That makes the barrier of entry pretty high for most people and they won''t bother.

The cost for normal radio is zero since every car has it. Cost is a big factor because everyone is used to pay zero cents to have access to radio.

Very difficult to change people behavior, especially on something that was free before.

Let''s say i want to try that xm radio, i still need to buy the thingie for a couple of $$$ wich is far too much. If i don''t like it, im screwed with the thing. Just there i won''t bother since radio is not that important to me anyway.

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