Technology and content
Because satellite radio uses such high tech instruments (satellites, small portable receivers) many still perceive it as unapproachable and prefer to stick with traditional radio. Most young people, however, cant wait to get their hands on the latest in technological advancements, so satellite radio is perfect for this age group. The price you had to pay for satellite radio one or two years ago was a bit high for many who decide to enjoy traditional, commercial radio stations instead, as they are free. Today however, for a subscription of around $12 per month, you can receive dozens of excellent news, sports and music radio channels. And the best thing is that they are commercial free. In many ways, satellite radio became popular following the idea of DirecTV's success the difference was made through superior broadcast quality, excellent geographical coverage and content. This is in fact the main issue satellite radio broadcasters and terrestrial radio stations are looking at high quality content is actually the most flexible field where subscribers or listeners can be won or lost. In order to get valuable radio content, many satellite radio offers were made to popular media topics. MLB broadcasts, for example, might be broadcast exclusively on satellite radio stations. Although this is still an assumption, chances are that more and more popular US topics will be exclusively available on different satellite radio programs, whether they are from Sirius, XM Radio or from some new broadcasters that will join the market.
It all comes down to what the consumer wants
And its true it does come to that. Some laughed at the idea of paying for radio for as long as we have known, radio programs were free. However, the satellite radio industry only followed in the footsteps of cable TV although all Americans can receive free programs with UHF and VHF antennas, over 80% are willing to pay monthly subscription fees. With $9.95/month for XM and $12.95/month for Sirius, accessibility to satellite radio broadcasts is high and anyone can afford to subscribe. And the truth is that satellite radios have proved, once again, that sometimes a consumer is ready to pay for something they used to get for free as long as the commercials are eliminated. In many cases, out of an hour of radio broadcasting, around 12-15 minutes are commercials people dont want such interruptions in their radio programs. Both Sirius and XM Radio knew this when they launched their paid subscription services and they were right, as each company has millions of subscribers today. The satellite radio craze got even larger when it met the auto manufacturing industry today almost all major manufacturers offer satellite radio receivers as standard or optional with each of their models.
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