Imagine radio that broadcasts from a satellite in orbit and can travel coast-to-coast without losing signal. Music that is clear and close to CD-quality, with few or no commercials, and no annoying static. This is the promise of satellite radio, a service that was launched at the beginning of the 21st century by rival companies XM and Sirius.
Satellite radio works by transmitting a digital signal to one or more satellites in space, which then bounces the signal off of Earth and down to specialized receivers, usually found in cars and home stereo systems. The signal is then decoded into a stream of audio that can be listened to on an FM, AM, or CD radio. Most satellite radio services offer a wide range of channels, including music, talk, news, and sports. Many channels are also free of commercials, making it a convenient alternative to traditional AM and FM radio.
Each satellite radio company broadcasts a different mix of music, and some are more popular than others. Some channels feature exclusive programs from marquee stars, such as TV personality Oprah Winfrey and radio host Howard Stern. In an attempt to lure listeners, both XM and Sirius offered car owners the option of purchasing their equipment as standard or optional equipment in new vehicles. GM and Honda signed deals with XM, while Ford and BMW went with Sirius.
While the satellite radio boom peaked in the 2010s, it has since struggled to retain customers. Several disrupters have emerged, such as Spotify and Pandora, offering streaming music for a fee instead of charging subscription fees. Other companies, like Rivian and Vietnamese EV startup Vinfast, have decided to skip satellite radio altogether, opting for audio streaming over Bluetooth or USB instead.
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