Two years ago, satellite radio was a curiosity that not many everyday radio listeners had heard of, let alone experienced.
Now, even though its listenership still pales in comparison to the multimillions of people who tune in AM and FM radio, satellite radio is growing with stunning momentum.
“Once you’ve had it, it’s pretty hard to give up,” said Jim Collins, spokesman for Sirius Satellite radio.
| Signals from the XM and Sirius services are beamed from satellites, making them crystal clear nationwide. They also beam information, such as the song’s title and artist XM, with a monthly fee of $12.95, features 150 channels with commercial-free music, news, sports, entertainment, talk, weather and traffic. XM has exclusive rights to Major League Baseball. Sirius also charges $12.95 and offers 120 channels. Howard Stern will air exclusively on Sirius next year. It also has rights to NFL, NBA and NHL games. For more information, check the Web sites at www.xmradio.com or www.sirius.com. |
The industry’s biggest player, XM Satellite Radio, got a big shot in the arm with last week’s announcement by Hyundai that it will become the first automaker to equip all of its U.S. models with XM receivers within the next two years.
Gary Micallef, who owns the Hyundai of Everett dealership, said that by late 2006, 75 percent of all the brand’s models should come standard with XM receivers.
“I have satellite radio personally in my RV and boat. I think it’s awesome,” Micallef said. “I’m a classic rock listener, and if you just want to listen to that music over and over, it’s great.”
He said he also likes being able to listen to Seahawks games clearly even when he’s visiting Oregon or Montana.
The medium’s quality sound and dozens of channels that satisfy most people’s musical or entertainment tastes clearly are a big draw. In mid-2002, Sirius had fewer than 10,000 subscribers. It now has more than 1.1 million and is aiming for 2.5 million by the end of 2005. XM has grown to more than 3.2 million subscribers.
By the end of the decade, the two services could have more than 30 million subscribers combined, industry analysts say.
Josh Sanford, owner of Car Stereo Plus in Lynnwood, doesn’t have to be told about satellite radio’s exploding popularity. His shop’s installing many more satellite receivers than it did just two years ago, he said.
“Probably 15 times more, at least. It’s almost a mainstay for us now,” said Sanford, who’s had a satellite receiver in his car for a few years and now also has a receiver in his house. “The public awareness is so much greater now.”’
He said many customers want it after driving rental cars with either Sirius or XM receivers. Sirius comes in some Hertz rental cars while XM is available in some Avis rentals.
Additionally, Sirius is available now as a dealer option in new cars and trucks made by Ford, DaimlerChrysler and BMW. Those include Volvos, Land Rovers, Jaguars, Mazdas, Lincoln-Mercury cars and Mercedes-Benz models. XM has deals with General Motors, meaning it’s an option on some Buicks, Cadillacs, Chevrolets, Pontiacs and Saabs.
And the more people listen to it in the car, the more they want to hear it elsewhere. Product partners for both Sirius and XM are offering a wider range of receivers for at-home listening, as well as tiny mobile devices for subscribers who want to listen nearly anywhere else.
“They’re making it increasingly easy for people to access satellite radio from multiple domains,” said Paula Baldwin, spokeswoman for Best Buy, which has a store in Lynnwood and plans to open later this year in Everett. “We’ve seen a marked uptick in interest.”
For Best Buy and its subsidiaries, including Magnolia Audio Visual, sales of satellite radio equipment began soaring at the end of 2003.
“We compare it to cable television when it was starting out,” Baldwin said. “Initially, there was a level of skepticism that people would pay for radio, but as they listen to it, they become convinced.”
In early 2006, radio personality Howard Stern will move from traditional radio to Sirius, which could give that service a new boost in subscribers.
That emphasis on attracting big names and exclusive programming that people want is key to building up the medium, Sirius’ Collins said.
“In the end, what we think really matters to consumers is what you get for your $12 a month,” he said.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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