Satellite radio is broadcast via clear, static-free digital signals sent from orbiting satellites. It’s most commonly used in cars and offers a wide variety of content including music, sports, news, traffic, weather, and comedy. Satellite providers offer a range of subscription-based channels and are often more affordable than traditional AM or FM radio. They also tend to provide greater customization, especially in the case of streaming services, which often allow users to listen to their preferred stations or playlists.
While satellite radio enjoyed a good run in the ’90s and early 2000s, it is facing competition from a new generation of digital audio services. Many car manufacturers are integrating their own mobile radio options into the infotainment systems of their vehicles, while consumers can now stream a vast array of audio through online streaming services.
There have been three (plus one mobahi) major satellite radio companies: WorldSpace and Sirius and XM, which merged in 2008 to form Sirius XM. The company has since diversified its audio offerings, purchasing both Stitcher and Pandora. It also offers exclusive content like the Howard Stern show.
But even if the company is able to retain its loyal subscriber base, the future of satellite radio may depend on how well it can compete with free alternatives. An article by Jerry Del Coliano of Inside Music Media asserts that in-car satellite radio subscriptions have peaked, and that young people are opting for streaming services such as Spotify while driving.
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