Does Satellite Radio Have a Future?

A subscription-based service that offers music, talk and sports programming for a monthly fee. It uses satellites circling Earth to broadcast a signal that is bounced back to terrestrial radio receivers, most commonly in cars and home stereo systems.

The two major satellite radio services, Sirius and XM, offer different content despite using similar technology. Depending on the hardware you choose, your subscription will provide access to different channels and music streaming options, but both feature a lot of commercial-free radio channels featuring big league sports and music from many of today’s popular artists.

Both companies use geostationary satellites that orbit in a pattern consistent with the planet’s normal rotation and are located above the equator. They transmit multiple signal beams with overlapping coverage areas. These broadcasts also use ground-based repeaters to prevent interruptions caused by tall buildings and bridges.

While satellite radio is often thought of as a national service, most of the channels you hear on Sirius or XM are local stations licensed to specific markets. This is a result of the Federal Communications Commission (FCC) only allowing a limited number of stations to operate on the satellite spectrum.

As a result, satellite radio is less expensive than conventional AM and FM radio and allows listeners to avoid local interruptions during long commutes. But it’s a niche product, and the rise of podcasts and audio streaming has left some in the automotive industry wondering whether satellite radio has a future.