Unlike terrestrial, or AM/FM, radio stations, satellite providers (Sirius and XM) broadcast digital signals from orbiting satellites that reach listeners over a range of miles. The satellites beam down a signal that’s picked up by specialized antennas on cars, homes, and portable radios. Satellite radio is available throughout the United States and Canada, and most subscribers say they’re happy with their service. The stations offer a huge assortment of music channels—from classic rock to classical, from country to modern rock and alternative—and feature sports, news, talk, and comedy programming.
Satellite radio had a good run in the 2010s, but subscriber growth eventually peaked. To boost numbers, XM and Sirius got car companies to include the requisite equipment in new vehicles as standard gear. And they started offering free 6-month subscriptions on new vehicles to encourage consumers to sign up. It helped.
Sirius and XM also bought competitors (such as Stitcher and Pandora) and diversified their offerings. They have since been able to stay in business even as the broader media industry struggles and the popularity of streaming music services like Spotify, Apple Music, and YouTube Music continues to grow.
But the future of satellite radio is still unclear. It will be interesting to see how demand for the service holds up as the world shifts toward connected, wireless devices. And it will be equally interesting to see how a new generation of entrepreneurs innovates on the back of massive investments in satellite infrastructure.
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