Satellite radio . what is all the hype?
July 31, 2002
Have you ever wondered if most FM radio stations’ archives of music contained nothing more than a couple of “NOW” CDs? How about the wacky notion that other music exists in the universe besides Pink’s “Don’t Let Me Get Me”? If indeed you have shared these radical insights into the blatantly obvious, then satellite radio might just be your hero, baby.
Satellite radio technology aims not only to greatly expand playlists, but also to cut down on commercials, offer more formats, and increase reception and sound quality.
One company, Washington, D.C.-based XM Satellite Radio offers 100 channels, 69 of which are music channels that feature everything from ’60’s rock to folk to electronica. XM offers six separate jazz channels alone: Traditional, contemporary, modern, vocals/standards, blues, and Latin jazz.
The remaining programming consists of news, sports, children’s programming, talk and non-musical entertainment like comedy.
Right now, there are only two companies competing for subscribers, XM and New York-based Sirius Satellite Radio. Subscription rates are $9.99 per month for XM and $12.99 per month for Sirius – Sirius claims the higher rate is for less commercials than XM. In addition to the monthly subscription fee, a user needs a satellite-equipped radio.
Travis Sobaski, general manager of Cyclone Stereo, 4907 W. Lincoln Way, says his business has been putting satellite radio receivers into vehicles since XM’s nationwide launch last November.
“To integrate [satellite radio] into most factory systems, you’re looking at about $200 for the receiver itself – and that’s on the lower end. Then you need to purchase an antenna, and those range from $80 on up. It just depends on the application, “he says.
Even though satellite radio is almost exclusively for use in a vehicle, it will soon be available for use in the home as well. Sony has developed a receiver that is capable of going from the home to the car, only requiring a docking port for home use.
Sobaski says that satellite radio intrigues people in several demographics.
“Mostly they’re over-the-road truck drivers, then you have males between the ages of 30 and 50 asking a lot about it, and even the 16- to 20-year-old males are after it.”
Some within the industry compare the arrival of satellite radio to the arrival of cable TV. Far from replacing terrestrial radio, they think that satellite radio will simply provide a wider variety of options for the listener. After all, you still need to tune into regular radio to get your local news and events updates. Greg Rice, online and loud rock director for KURE, says that such a win-win outlook might be premature.
“If more people begin switching to satellite radio, less money will be invested in product advertising for smaller, older radio stations. Older analog stations, such as WOI, KURE, and even commercial stations such as Des Moines’ Lazer 103.3, cater to the local listeners.
“If listeners start switching entirely to XM radio, they not only lose community reporting and local news, but they also decrease the overall constant listener population of FM/AM radio, possibly resulting in less AM/FM advertising investments,” he says.
The result of this, Rice says, is the closing of older stations whereby “listeners lose the ability to switch back to local channels, make DJ requests, or listen to community news,” he says.
Even though this situation is certainly a possibility, it seems that as long as terrestrial radio engages in the guerrilla tactic of playing up the local, older stations might still have a place in the increasingly niche-oriented world of radio.
Sobaski, himself an XM subscriber, is a perfect example of someone who listens to both. “There are things I can’t listen to on the satellite that I can listen to locally. Every once in a while, let’s face it, it’s nice to hear what’s going on when they break in with a 30-second news update,” he says.
Rice, however, remains wary of some of the claims satellite radio companies make, especially XM’s claim that it offers a wider variety of music.
“I resent comments that XM offers a wider variety of music than [terrestrial] stations; they are simply marketing exaggerations. I’ve listened to XM’s hardcore music channel-it’s simply more commercial nu-metal advertised as hardcore . If you really want to listen to hardcore all the time, listen to hardcore over Web radio. It’s free, high quality, offers long playlists and is commercial free,” Rice says.
It remains to be seen whether traditional radio and satellite radio can peacefully co-exist, or whether one’s existence will be parasitic on the other. As for the fate of satellite radio, Rice hits on the heart of the issue when he says “It’s simply a question of whether the end-user is willing to pay the subscription fees to take advantage of XM radio.”