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Sirius Satellite Radio Hits 200,000 Subscribers Soon After XM Hits 1 Million Print E-mail
Wednesday, 10 December 2003
Never underestimate the power of the 12 volt, car audio market when it comes to launching a new audio-video technology. Right after XM Satellite announced its 1,000,000th subscriber, its competitor Sirius announced they have hit the 200,000. Much of this growth is driven by pre-installed automotive systems. XM is found in many GM cars while Sirius is just now making it into Mercedes Benz. Creative dealers are able to burry the cost of the service into a lease (or purchase) payment in a way that adds value to the car and potential profit to the dealer. And with more and more radio groups owning more bland traditional radio stations, consumers are willing to bet $12 per month to find some new tunes to listen to during their daily commute. As more and more car makers add satellite radio to their premium audio systems, this way of enjoying music is sure to grow. It will be powered additionally by aftermarket car audio sales which is a multi-billion dollar industry unto itself. The strongest motivator to the growth of satellite radio is the simple fact that traditional terrestrial radio (FM and AM) are simply horrible on a nationwide level. In the late 1990’s Congress allowed deregulation of the radio business which created monstrous media companies who now pipe the same lame radio stations around the nation with a lifeless presence that consumers are no longer willing to tolerate. The time music enthusiast and mainstream consumers spend in their cars is more and more as urban sprawl is in full-force but these tech-savvy commuters are finding CD, DVD-Video and MP3 along with satellite radio to be far better choices than FM or AM. In the not so distant future expect to see internet radio and DVD-Audio entering the increasingly entertaining car audio market. In a perfect world your commute would be just a few minutes. In reality it is likely longer but with new technology you can enjoy more music than ever before.

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