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The History Of Portable Satellite Radios
By Julie-Ann Amos
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? Let's take a look.
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.
Owning the right to use the spectrum, though, was only the first step. 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. After all, AM and FM radio
broadcasts were available free all over the country.
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. They knew that to attract the most consumers they
needed to offer a variety of hardware components that could be used in a variety
of locations – home, work, and especially the car, where most radio listening
occurs.
Working with electronics manufacturers already trusted and recognized by
consumers (Sanyo, Panasonic, JVC, Kenwood, etc.), hardware development got
underway. 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.
On the programming side, XM and SIRUS put together an assortment of niche music
stations that would have something to offer consumers with nearly any musical
taste. Each station was programmed to appeal to a specific type of listener, and
most were commercial-free. Programming originated primarily from New York, but
also from other locations, plus XM and SIRIUS entered into collaborative
agreements that would allow popular musicians, entertainers, personalities and
others to perform live from the originating locations. This would give the
services another unique selling point to attract consumers.
Dealing with resistance to a monthly fee, though, required a broader array of
marketing, public relations, and strategies to communicate the benefits and
advantages of portable satellite radios. XM and SIRIUS knew that the key to
their success would lie in convincing consumers of the value they would receive
while making the hardware widely available and affordable.
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. For most of these consumers, the cost of a
monthly subscription would not be prohibitive and by making it easy for them to
access their services, XM and SIRIUS could entice consumers to try it out and
start spreading the word about its value.
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. These devices were designed to appeal to
people who want access to satellite radio services while running, walking, or
otherwise moving out and about in locations other than their cars, trucks, homes
or offices.
Another important component of spreading the word was establishing partnerships
and marketing agreements with electronics retailers such as Circuit City, Best
Buy, Target, Wal-Mart, and other well-known names. Working closely with
retailers, XM and SIRIUS have greatly increased their presence with consumers
and sales have steadily increased.
Why Pay for Radio?
Still, the bottom line question for most people is why pay for radio? The
answer is in the benefits received with a subscription to satellite radio. Some
of the most popular benefits include:
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
Coming Soon
Satellite radio service is in its infancy so it is inevitable that the
technology and the features will continue to develop. XM Radio and SIRIUS
Satellite Radio will have to devote resources to such innovations if they are to
attract enough subscribers to become profitable.
For example, one feature that will soon be available in some areas real time
traffic information delivered via satellite directly to the navigation system in
the car. This information will appear as color-coded displays of the average
speed of vehicles on specific roads, allowing the driver to select the travel
route that is least congested at any particular time.
Other new options and ideas are inevitable over the next few years, so it is
likely that portable satellite radios will continue to grow in popularity and
become more common in vehicles, homes, offices, boats, RVs, and just about any
other location that can be imagined.
About the Author
Julie-Ann Amos is a successful writer for 1st-Dish-TV.net, a consumer guide
to free DirecTV satellite
dish systems. She has contributed numerous articles on
portable satellite
radio receivers and writes frequently on
high speed
satellite Internet service providers.
Copyright 2005 1st-Dish-TV.net
Permission is granted to publish this article on your site only if the
author's byline is included and all links are hyperlinked.
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