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 2006 1st-Dish-TV.net
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