Satellite radio is defined by the International Telecommunication Union (ITU)'s ITU Radio Regulations (RR) as a broadcasting-satellite service. The satellite's signals are broadcast nationwide, across a much wider geographical area than terrestrial radio stations, and the service is primarily intended for the occupants of . It is available by subscription, mostly commercial free, and offers subscribers more stations and a wider variety of programming options than terrestrial radio.
Satellite radio technology was inducted into the Space Foundation Space Technology Hall of Fame in 2002. Satellite radio uses the 2.3 GHz S band in North America for nationwide digital radio broadcasting. In other parts of the world, satellite radio uses the 1.4 GHz L band formerly allocated for DAB.
There have been three (not counting MobaHo! of Japan) major satellite radio companies: WorldSpace, Sirius Satellite Radio and XM Satellite Radio, all founded in the 1990s in the United States. WorldSpace operated in the Africa and Asia region, whereas Sirius and XM competed in the North American (USA and Canada) market. Of the three companies, WorldSpace went bankrupt in 2009 and Sirius and XM merged in 2008 to form Sirius XM. The merger was done to avoid bankruptcy. The new company had financial problems and was within days of bankruptcy in 2009, but was able to find investors. The company did not go bankrupt and Sirius XM Satellite radio continues () to operate.
Ondas Media was a Spanish company which had proposed to launch a subscription-based satellite radio system to serve Spain and much of Western Europe, but failed to acquire licenses throughout Europe.
Onde Numérique was a French company which had proposed to launch a subscription-based satellite radio system to serve France and several other countries in Western Europe but has suspended its plans indefinitely, effective December, 2016.
In April 1992, Rothblatt resigned as CEO of Satellite CD Radio; Briskman, who designed the company's satellite technology, was then appointed chairman and CEO. Six months later, Rogers Wireless co-founder Margolese, who had provided financial backing for the venture, acquired control of the company and succeeded Briskman. Margolese renamed the company CD Radio, and spent the next five years lobbying the FCC to allow satellite radio to be deployed, and the following five years raising $1.6 billion, which was used to build and launch three satellites into elliptical orbit from Kazakhstan in July 2000. In 1997, after Margolese had obtained regulatory clearance and "effectively created the industry," the FCC also sold a license to the American Mobile Radio Corporation, which changed its name to XM Satellite Radio in October 1998. XM was founded by Lon Levin and Gary Parsons, who served as chairman until November 2009.
CD Radio purchased their license for $83.3 million, and American Mobile Radio Corporation bought theirs for $89.9 million. Digital Satellite Broadcasting Corporation and Primosphere were unsuccessful in their bids for licenses. Sky Highway Radio Corporation had also expressed interest in creating a satellite radio network, before being bought out by CD Radio in 1993 for $2 million. In November 1999, Margolese changed the name of CD Radio to Sirius Satellite Radio. In November 2001, Margolese stepped down as CEO, remaining as chairman until November 2003, with Sirius issuing a statement thanking him "for his great vision, leadership and dedication in creating both Sirius and the satellite radio industry."
XM's first satellite was launched on March 18, 2001 and its second on May 8, 2001. Its first broadcast occurred on September 25, 2001, nearly four months before Sirius. Sirius launched the initial phase of its service in four cities on February 14, 2002, expanding to the rest of the contiguous United States on July 1, 2002. The two companies spent over $3 billion combined to develop satellite radio technology, build and launch the satellites, and for various other business expenses. Stating that it was the only way satellite radio could survive, Sirius and XM announced their merger on February 19, 2007, becoming Sirius XM. The FCC approved the merger on July 25, 2008, concluding that it was not a monopoly, primarily due to Internet audio-streaming competition.
Satellite radio subscribers purchase a receiver and pay a monthly subscription fee to listen to programming. They can listen through built-in or portable receivers in automobiles; in the home and office with a portable or tabletop receiver equipped to connect the receiver to a stereo system; or on the Internet. Reception is activated by obtaining the radio's unique ID and giving this to the service provider.
Ground stations transmit signals to the satellites which are 35,786 kilometers (22,236 miles) above the Equator in geostationary orbits. The satellites send the signals back down to radio receivers in cars and homes. This signal contains scrambled broadcasts, along with meta data about each specific broadcast. The signals are unscrambled by the radio receiver modules, which display the broadcast information. In urban areas, ground repeaters enable signals to be available even if the satellite signal is blocked. The technology allows for nationwide broadcasting, so that, for instance US listeners can hear the same stations anywhere in the country.
, SiriusXM had 34.7 million subscribers. This was primarily due to the company's partnerships with automakers and car dealers. Roughly 60% of new cars sold come equipped with SiriusXM, and just under half of those units gain paid subscriptions. The company has long-term deals with General Motors, Ford, Toyota, Kia Motors, Bentley, BMW, Volkswagen, Nissan, Hyundai and Mitsubishi. The presence of Howard Stern, whose show attracts over 12 million listeners per week, has also been a factor in the company's steady growth. , the main competition to satellite radio is streaming Internet services, such as Pandora Radio and Spotify, as well as FM broadcasting and AM broadcasting Radio.
Free for terrestrial. Very low for cable television or satellite—DTR represents a small portion of the total monthly television fee. |
None—a typical set consists of a stereo attached to a television set-top box (the primary function of the set top-box is normally designed for viewing digital television on an analogue set). |
Very high |
Varies |
Variable—dependent on location and the television provider for cable and satellite, dependent on the various packages they provide and on the user's subscription. |
None to low—dependent on the provider; however, it is common that some stations will have DJs. Usually no advertisements on subscription services (DirecTV and Dish Network both claim to provide advertisement-free content). |
Yes for terrestrial. For cable and satellite, low to none. |
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