The recent development of satellite radio received a lot of
newspaper and web page space, as well as plenty of attention from traditional
media channels. There are a few things that are changing rapidly in satellite
radio, changes that may or may not affect the future of the XM and Sirius
Satellite Radio companies, as well as the consumers. A few major steps towards
the dynamic development of satellite radio have given consumers and financial
analysts different perspectives from which to analyze this phenomenon. With the
MLB moving away from terrestrial radio and heading for digital radio
transmissions, with a Playboy Satellite Radio channel that has over a million
subscribers and several other impressive developments, we can say that
satellite radio is on an ascending path. An abrupt one, filled with shock news
and unexpected developments, but ascending nevertheless. An interesting idea is
the one that XM and Sirius are working on a single receiver unit that can
receive broadcasts from both major satellite radio broadcasters. Another event
that rocked the satellite radio world was Howard Stern’s online streaming on
Sirius. His appearance on the Sirius Satellite Radio gave a new light on the
Sirius company, as one that offers more than radios and broadcasting means – as
one that offers genuine content.
Terrestrial
versus satellite
One of the problems XM and Sirius have had is with making the
satellite receiver something desirable, cheap and effective. In the beginning
the satellite receivers were large and expensive, and performed poorly on
moving vehicles. Of course, the modern satellite receivers are much better,
very small and compact and offer excellent reception in any area. The digital
quality of the satellite radio has some amazing benefits on its own since there
are no noise disturbances that were traditional to FM and AM broadcasts. Both
XM Radio and Sirius Radio can be picked up on all the US territory and they are
also available in some parts of Canada and Mexico. Since the direct line of
sight from the satellite to the receiver may often become obstructed by landscape
or buildings, land based devices were installed in order to eliminate the lack
of direct satellite transmission The broad range of broadcast and the superior
sound quality have taken satellite radio high in the preferences of the
consumers. On the other hand, terrestrial radio has some strong points of its
own. To begin with, it’s free and readily accessible to anyone. Also,
terrestrial radio is so common, widespread and easy to use that anyone can
enjoy it and most people don’t find it hard to actually create their radio
stations. Many people are reluctant to move on to satellite radio, which is
more complex and complicated.
The end
consumer – the real winner
In this battle of the radios, the end consumer is the one that
gets the most benefits. And since the competition got even more fierce when
satellite radio started taking away subscribers of regular radio, things have
gone one step further. Also, the competition between XM Radio and Sirius is in
the benefit of the subscribers. An interesting aspect of the competition
between the two satellite industry giants was realized by Interoperable
Technologies - a joint effort funded by both Sirius and XM Radio, with the
intention of bringing dual-subscription satellite radios to the general market.
Analysts expect to see even more development in this direction, with XM Radio
and Sirius entangled in a strange relationship, where they are working together
on one project and battling it out on the satellite radio broadcasters market.
In order to understand the way online streaming develops and the changes in the
way satellite radios work we have to keep an eye open to the industry giants
but also to the companies looking to obtain a license from the FCC. One thing
is certain, however – no matter if satellite radio or terrestrial radio come up
with new ways of attracting customers, the end users are the ones who will
always come on top.
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