While many radio industry insiders talk about streaming music services or podcasts as the biggest threat to AM/FM radio, most don’t view satellite radio as the main problem child. But when you talk to those who have a stake in the business, they’ll tell you that SiriusXM is taking no prisoners as it makes its march to truly challenge AM/FM’s nearly century-long reign.
Essentially, SiriusXM broadcasts digital audio from geostationary satellites to receivers around the world (or at least North America). The signal is then transmitted by terrestrial repeaters to cover built-up areas and avoid interference from buildings, hills and trees.
The satellite broadcasts allow for far more channels and programs than any AM or FM station can hope to offer, plus they’re available with no commercial interruptions. It’s a pretty amazing bit of technology that, until recently, was only accessible on boats or cars with the appropriate equipment — namely a tracking dish that costs a few hundred dollars to install.
But in the past few years, satellite radio has become more mainstream. XM and Sirius negotiated deals with carmakers to include the necessary hardware as standard or optional equipment in their vehicles, making it easy for drivers to pick a provider. And new entrants such as Tesla have skipped the satellite route entirely and instead went with a music-streaming service. This has fueled speculation that the disruption may be starting to catch on.
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