satellite radio

The history of portable satellite radios is short compared to traditional over-the-air radio, but it has rapidly changed the face of radio listening like no other technology in recent memory. The two major satellite radio services, XM Satellite Radio and SIRIUS Satellite Radio, offer a stunning array of programming and compete fiercely for customers.

Their popularity has stunned many in the radio industry and with the advent of new, smaller, more convenient portable satellite radios, some industry veterans worry about the future viability of traditional broadcast radio.

How did satellite radio get started and what is its future?

The Beginnings of Satellite Radio

The history of satellite radio begins in 1992, when the Federal Communications Commission (FCC) decided to set aside a portion of spectrum to be devoted to nationwide distribution of digital radio service via satellite. SIRIUS Satellite Radio and XM Satellite Radio bid huge amounts of money (at least $80 million each) for licenses to use this new allocation of spectrum, which were eventually awarded to them by the FCC.

Even if they could start delivering satellite radio signals right away, there were no consumer-accessible portable satellite radios to receive the signal. Additionally, there was substantial debate within the radio industry about whether consumers would be willing to pay for new hardware and then pay a monthly subscription fee for radio service.

Making a Business out of Satellite Radio

XM Satellite Radio and SIRIUS Satellite Radio set out to overcome these obstacles and make a real business out of portable satellite radios and satellite radio programming. The results included portable satellite radios, receivers, and “plug and play” components for nearly every consumer application. Manufacturers built satellite radio receivers for cars, homes, offices, trucks, RVs, boats, and even airplanes.

Spreading the Word

Portable satellite radios began to show up in a variety of places where consumers would find it easy to use them. One of the most important places for XM and SIRIUS to gain entry for the hardware was in cars and trucks, where consumers do the vast majority of their radio listening.

They collaborated with car and truck manufacturers to make portable satellite radios standard on many high-end luxury vehicles, and an affordable option on most other mid-range vehicles. Portable satellite radios were also placed in boats and RVs, and standard receivers were heavily marketed for use in homes and businesses. Another innovation, introduced in November 2004, is the handheld version of XM Radio and SIRIUS Satellite Radio receivers. Working closely with retailers, XM and SIRIUS have greatly increased their presence with consumers and sales have steadily increased.

Why Pay for Radio?

The answer is in the benefits received with a subscription to satellite radio. More channel choices (up to 150)
Commercial-free (music channels)
Live audio streaming of sporting events
Weather and traffic information (in major markets)
Clear, crisp digital signal
Signal available with no fading when driving long distances
Niche music stations to suit any musical taste
Assortment of sports, talk, and news stations