Satellite Radio Hitting Its Stride

from the amazing dept

I’ve been trashing the idea of satellite radio for years, but they’re working very hard to prove me wrong. Both companies seem to have gotten past their early troubles and are starting to focus on growth. I still question how large the market really is – and whether or not it will be big enough to make the business models of subscription radio profitable (remember, they had to launch satellites into space, and have to keep paying for programming, as well as subsidies to get carmakers to include their radios). Also, maybe it’s just a personal taste issue, but I don’t see that much variety in the 100 or so channels each service offers. If I was going to pay for something, I’d want much more customized offerings. Finally, at some point, someone is going to work out a good way to offer internet radio and/or MP3 streaming on the go, and that will offer a serious challenge. In the meantime, satellite radio continues to bring on subscribers, and my original prediction doesn’t seem to be holding up.

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