Has Satellite Radio Peaked?

Fri Dec 8, 2006 6:37PM EST

See Comments (25)

This week, both Sirius and XM Radio reported fewer than expected new subscriptions, leading to speculation that each of the profligate, money-losing ventures has reached its peak. And on Wednesday, reports surfaced that Sirius and XM are considering a merger, though XM has since downplayed this rumor. In today's Wall Street Journal, journalist Sarah McBride writes about the waning of satellite radio interest and offers up some examples of people who either don't bother to sign up for a subscription because it's too complicated or who return satellite radios because they just don't find the services compelling enough.

I'm a music lover, and for that reason, I can't completely write off either XM or Sirius, but I have to say that I've never been completely sold on the quality of the programming, even though it's millions of miles ahead of FM radio (which I think we can all agree has become a travesty, with the exception of a few NPR and college radio stations). Meanwhile, the hardware is not without its issues. Here are a few of my gripes:

Despite all the channels, I still can't find anything to listen to: I'm a fickle listener and a music snob. Somehow, I find each of the many specialized channels on either Sirius or XM to almost be too much of one good thing. How about a few channels that are more eclectic? I don't want to only hear all-'80s-all-the-time or just alternative—I'd like to maybe hear an eclectic mix of music that casts a wider net, which is why I prefer well-curated music selections like the kinds I hear on KCRW or the archived shows on the BBC Radio web site (though Sirius offers a live feed of Radio One, thank goodness). Or the "radio" channels I can get on Napster, Rhapsody, or Yahoo! Music, where I can not only create themed channels based on a specific artist or genre but also advance to the next song. It's only a matter of time before it will be easy to listen to streamed Internet radio in the car (without violating a cell phone carrier's contract, at any rate), but in the meantime, I can get my music fix by taping Internet radio with a program like Replay Radio and putting it on my iPod.

Reception is spotty in places: I can't tell you how many times I've lost reception with the Pioneer Inno I was testing last summer, with and without the antenna. Satellite radio was heavily promoted as this new radio that would work across state borders and pretty much anywhere, but I get reception interruptions whether I'm walking around rooms in my apartment or driving around.

The hardware is still clunky and, for the most part, ugly: Even the sexy-looking Stiletto for Sirius and more portable Inno for XM leave something to be desired when compared to the easy-to-use and easy-on-the-eye iPod, and every other satellite radio contraption is about as stylish as a CB radio (see picture!). But I don't think that either XM or Sirius are going to stay in the hardware business forever. Sirius and XM are a lot more compelling when they're built in to other music-blasting products, be they A/V receivers at home or a factory-installed sound systems in the car.

Sound is not CD quality: Whatever that means, but seriously, no matter how good the sound system (and I'm using a pretty nice Pioneer Elite VSX-82TXS 7.1 A/V receiver and Canton CD-220 5.1 speaker-subwoofer package at the moment), the sound quality of satellite radio is just as crappy, if not crappier, than good old FM radio (and don't even get me started on HD Radio). And I'm only complaining because "CD quality" was one of the big selling points of satellite radio back before it launched. I've been trying out the 5.1 XM HD on the aforementioned Canton speakers and find it to be less appealing than the THX and Dolby surround options that the A/V receiver offers me.

It's not all bad: As a music lover, I prefer to have the satellite radio option than not, and I think the ability to just add the Terk XM Mini-tuner to a XM Connect-and-Play-ready A/V receiver is a nice, clutter-free option that allows me to welcome XM into my home a bit more (and I think will help the format in the future).

All I'm saying is that XM and Sirius could use some improving before I sign on wholeheartedly. And I know I'm not alone on this.

Anyone out there care to weigh in on satellite radio? Do you love it or hate it? Do you think it's overhyped, or are has it changed your life?

Related links:

How to Record Streaming Internet Radio

Hands on with the Pioneer Inno XM2go

Sirius or XM Radio?

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Comments on Has Satellite Radio Peaked?

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  • 6 Posted by crazymudman on Thu Sep 3, 2009 3:30PM EDT Report Abuse

    WOW! I am relieved. I thought you were going to kill yourself at the end of your story. You need therapy, but you would probably hate that too. I try not to be around depressing people and I will be sure to avoid you in the future. Is the glass half empty or two quarters empty for you?

  • 7 Posted by playnow2345 on Thu Sep 3, 2009 8:14PM EDT Report Abuse

    Satellite radio is the greatest value in entertainment to come along since the internet.Especially for the car. What do you want for less than 40 cents a day? It is in a niche of it's own and makes driving much more enjoyable. I wouldn't consider buying a car in the future, that didn't come standard with it. I have never experienced any reception problems either indoors or out, in over 3 years. The sound quality is close to CD quality without static or fading signals. (or commercials) I have Sirius. It is still radio and it's wrong to compare it to the ipod or CD's. They are used quite differently.

  • 8 Posted by mickster1 on Thu Sep 3, 2009 7:19PM EDT Report Abuse

    OK, so I get that you're a little cool on satellite. But lord, man, the alternative is completely and utterly AWFUL. Sure, the music selection doesn't compare to iPod, but compared to FM radio? There IS no comparison. The selection is better. The variety is better. PLUS there are no commericals. NO COMMERCIALS!!! If you enjoy talk radio or news, again, satellite absolutely CREAMS traditional radio. I commute about 2 hours a day, and I look FORWARD to getting in the car for my drive. Is satellite radio perfect? God now. (Although the only reception problem I'm ever had is when I drive under some bridges -- the radio reception drops for about a second.) All I can say is think of the alternative: traditional radio is just horrific. The station selections limited, the commercials are vast, the music selection is horrible. Everything's censored. I think about when I was little. TV was limited to the three major networks, PBS, and a handful of UHF stations. It SUCKED. Now we have cable TV, which is wrought with issues. But could you live with watching non-cable TV programming? Didn't think so. And I can't live without satellite.

  • 9 Posted by earache100 on Thu Sep 3, 2009 3:50PM EDT Report Abuse

    I have had Sirius radio for the past two years and love it and never listen to FM anymore. I have three subscriptions I pay for each month (one for the car which is OEM installed, one for the house and one for the other car), plus the CD quality premium service on line. The selection of music on the music stations is excellent and the sound quality is excellent (Way better than FM without any loss of signal going from one city to another). I have listened to the HD radio which is suppose to be CD quality sound and I cannot tell the difference on my home stereo between my Sirius directly connected (not using the FM transmitter) and HD radio. In additon, I also have an IPOD for music but with the hassle of having to carry it with me, downloading the music, and maintaining the playlist, I had rather just turn on what I want and let the radio manage my playlist plus I can listen to "talk" if I want. Satellite radio is here to stay because it give consumers a great product for their money (commercial free music and "on demand" talk radio with a wide selection of topics (From Howard to FOX to the Patriot channel to comedy to Discovery). Satellite radio is still just getting started. They project to miss their projected numbers and people are all over them saying "they have reached their peak". Even with the lowered sub count the growth is still phenomenal because it is a great product. I don't who pays Tom Samiljan salary to write, but I totally disagree with his comments on Satellite radio.

  • 10 Posted by billfrazier1 on Thu Sep 3, 2009 3:07PM EDT Report Abuse

    I have XM Satellite and have had it for 3-4 years. Although it is not perfect, I love it. I believe in the technology so much that I paid in advance for 5 years. I just wish XM offered a lifetime subscription like Sirius. I have bought into the technology by buying XM and Sirius stock. The outside reception is excellent and depending on the populace of where you live, then hopefully you will have a terrestrial antenna near you in a cell tower or something to cover you while inside. Overall with the capabilities of automatically recording music and talk shows and the new players mp3 functions, there is no comparison to the "Ipods". This is THE BEST technology and wait till XM becomes available on cell phones.

  • 11 Posted by flamer_rf on Thu Sep 3, 2009 4:00PM EDT Report Abuse

    I purchased satellite radios for my Mother and Mother-in-law. I set them up for them in their homes. Those radios are always on when I arrive. They both absolutely love it. Just recently purchased a Stiletto for my 15 year old Daughter, and I'm so impressed with it, I'm purchasing one for myself and the wife. BTW, did you know that Apple has a patent for adding Satellite radio to an ipod? So much for a dead technology.

  • 12 Posted by comababy21601 on Thu Sep 3, 2009 3:28PM EDT Report Abuse

    I am currently a Sirius subscriber. I switched from XM. I switched because I like the music stations better on Sirius, they have DJ's that will come on between songs (sometimes) and tell you different things about whats going on with this group or that, the DJ's are not over bearing. As far as reception, I have had problems with both services, especially on heavy tree lined roads, which I guess can be expected since satellite is a line of site thing. I do wish there were more channels with a more eclectic mix, but with the preset buttons you can just keep changing stations.

  • 13 Posted by sirius_savoir_faire on Sun Dec 10, 2006 2:05PM EST Report Abuse

    So you're a "Monkey see, Monkey do" ipod user/pumper! Sorry, but I prefer not spending the rest of my life downloading songs to an ipod. Besides, satellite radio is not just music. It's Talk, News, Business, Comedy, Sports, etc. Try getting that out of your Ipod. You must be one boring person. You probably order the same meals over and over again at restaurants too. Pathetic BS article to say the least.

  • 14 Posted by bethpoydock on Thu Sep 3, 2009 3:05PM EDT Report Abuse

    I have had XM for several years and love it. I can't even name the local stations in my area. I do surf some of the pop stations (23, 25, 26) and always take a shot of 80's on 8 every now and then. I enjoy the fact that I don't have to listen to commercials. And most importantly, I get all the Holly I want on 103. I am terrible at taking care of my CD's; I can't remember how to get new songs loaded on my IPOD; and I don't want commercials. I like my XM!

  • 15 Posted by sbstorm11 on Thu Sep 3, 2009 9:06PM EDT Report Abuse

    I've had XM in my car for almost 2 years and at home for about 18 months. I'm quite happy with the variety of music; one of XM's channels, Fine Tuning, plays a great mix of everything from classic rock to jazz to classical. Tom Petty and Bob Dylan each host their own shows on XM; Tom Petty plays rock and r&b from different eras, and Bob Dylan has a different theme each week and plays music from many genres. In the car I lose reception in some parking garages and underpasses, but overall it's been good. The nice thing about having XM at home is being able to listen to music in the morning and not near annoying commercials or idiotic blather from DJs. I also have an iPod, which I use a work and sometimes at home, but I enjoy satellite radio.

  • 16 Posted by cosmicsmith on Thu Sep 3, 2009 3:29PM EDT Report Abuse

    I have had Sirius for about a year and a half now and absolutely love it. I have since bought receivers for two of my children. I listen to it in the car, and use the boom box option to listen to it at work and even outside at home. We all love it and would never willingly give it up. I have never had XM so I can't compare the two services but Sirius is excellent. I do sometimes lose signal indoors at certain times of the day, which Sirius needs to try to fix but that is my only complaint. Well worth the money.

  • 17 Posted by lithpd101 on Thu Sep 3, 2009 6:54PM EDT Report Abuse

    I spend most of the day, five days a week in a car. I don't care for the Chicago radio stations and the local one are kinda lame. Sirius gives me the talk radio I enjoy as well as what ever music I am in the mood for. I recently went on a road trip with my wife and brought the Sirius along and she was like a kid in the candy store changing stations locking and listening to all the different stations, kind of frustrating since I have my personal favorites. She is getting one for Christmas for her long drives to work where she has to constantly search for stations in her hour and a half drive to work every day.

  • 18 Posted by idecr84u on Thu Sep 3, 2009 4:22PM EDT Report Abuse

    I've had XM for about a year. I have the myfi2go portable radio. I installed it in my car and have some spots i loose reception because the mountain is blocking the satelite. I love my radio because I can put the portable antenna on my helmet and ski with it. The other day i listened to the top 20 while snow skiing then switched to the acc channel to get score updates. I loose some reception riding the lifts, but skiing down i have necer lost any reception.

  • 19 Posted by thebrav10 on Thu Sep 3, 2009 10:03PM EDT Report Abuse

    I got Sirius about three years ago when it was still very young. I also have occasional signal problems, but they are seconds at a time and much better than any cell phone signal. My biggest complaints have come from the changes they have made since the beginning. If I want to listen to newer country songs, I have my pick from all of one station, which requires me to listen to Carrie Underwood five or six times until I hear Gary Allen again. Same idea with the rap stations. And those rap stations do more than enough talking to take place of any commercials. I didn't buy commercial free music to listen to people run their mouths. So two months ago, I let Sirius go and i switched back to FM. It sucks! I am going to try HD radio, but Sirius wants to give me three months for the price of one, so I may switch back for a spell, mainly for ESPN radio. I miss that the most. Lesson: not everyone can be happy...

  • 20 Posted by jcychiu on Thu Sep 3, 2009 4:31PM EDT Report Abuse

    Why pay for something that you can get for free?

  • 21 Posted by bkerley76 on Thu Sep 3, 2009 3:08PM EDT Report Abuse

    I have had both XM and Sirius subscriptions. I cancelled XM and stuck with Sirius. Here's why. XM does have more music channels. However, "more" doen't always mean "better." And in my opinion the content of Sirius' stations is much better than those of XM. Also, Sirius carries the UK's BBC Radio 1, which for me is in itself a big reason to subscribe to Sirius over XM. Many of the stations XM and Sirius carry have similar themes. But I prefer the content on those stations better on Sirius. It just sounds fresher. To me, XM has always sounded like corporate commercial FM radio without the commercials. Boring, unimaginative, and very "safe." Sadly, I think that has also been the key to XM's lead over the number of subscribers to Sirius. XM does have better equipment available and they marketed their service better than Sirius. Also, if you don't live in a major city where Sirius has a repeater antenna you might have more difficulty getting a good signal indoors. For people that ask why pay for sometihing when you can get it for free...lol...umm...no I won't even touch that one. Hopefully, the person that asks that question uses an antenna for tv reception and doesn't pay for cable or satellite. I am prepared for the possibility of not always having Sirius. They are the @#$%s in a money losing scheme. But the good news is that there are alternatives. HD radio is a good idea (although DAB used in the rest of the world seems a lot better. But then again so is the metric system), and internet radios, like the Roku Soundbridge Radio (there are more, just an example) are promising.

  • 22 Posted by e694 on Thu Sep 3, 2009 3:50PM EDT Report Abuse

    I have the XM Roady2 and mainly listen to the 60's & 70's stations. I know there are people who love the announcer and the hype they lay on themsevles, but other than not having commercials, I see little difference between XM and broadcast. I would like to have them play more hit music than talk so much and leave the "deep tracks" to the "deep tracks" stations. There are plenty of good, well know songs, they could play with out searching to find something to play. I also find I hear the same song sometimes 3 days in a row!!! My main listening time is to and from work, 5-6 am / 4-5 pm. XM is good however, on a trip so you do not need to search for a station playing your choice of music. Ed

  • 23 Posted by mbr_9489 on Thu Sep 3, 2009 7:12PM EDT Report Abuse

    I just purchased a Dodge Durango with Sirius built in to the Alpine Sound System. Love the selections, but the sound quality is not as good as the major FM Stations in Houston. It just isn't as rich or vibrant. I think I have a free year - but unless the sound quality picks us - I would be reticent to subscribe. Hopefully it will improve. Mark

  • 24 Posted by puckthis44 on Thu Sep 3, 2009 8:22PM EDT Report Abuse

    I got an XM satellite portable device last year for Christmas. Although at first it was pretty cool, the choices for good music just didnt add up to me. That and you had wires running all over your car for the cassette device to play through your stereo makes a ton of noise, and the FM transmitter to the car stereo is terrible and degrades the sound so much you need to crank the stereo up. The antenna wire running out through the back of the car, and the DC connection to the device just made a mess out of everything. I looked on line to renew my subscription and XM had jacked the price up 2 dollars a month since my last subscription. I decided to not pay and clean out my car. Its just not worth the trouble unless you live in the middle of nowhere and dont have much choice in terrestrial radio.

  • 25 Posted by amaunus on Thu Sep 3, 2009 2:52PM EDT Report Abuse

    dropped serius..they can`t get me parts for the starmate unit,I have to buy the entire package just to get the AC transformer....not a happy camper.

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