Hard to believe it’s been more than 11 years since satellite radio soared onto the scene. I remember the ride-and-drive demo I did with XM just two days before the company was scheduled to launch its service. The reason I can’t ever forget that date is that it was Sept. 10, 2001. I flew to Dallas and was home the next morning to witness the 911 terrorist attacks right from my office window. But that is another story. The XM satellite service, which was supposed to go live Sept. 12, was then delayed for two weeks and officially launched on Sept. 25, 2001. Sirius launched its service on July 1, 2002.
What I remember about those early days of Sirius (formerly CD Radio) and XM (formerly the American Mobile Radio Corporation) is that its time had come. Who wasn’t sick of waiting sometimes as long as 10 minutes to hear a song on the radio? And it really was a bummer to be driving along, singing to a tune, and then to hear crackling static when you were out of range of the station’s signal.
On July 29, 2008, XM and Sirius formally completed their merger, following approval from the Federal Communications Commission (FCC) and on Nov. 12, 2008, Sirius and XM began broadcasting with their new, combined channel lineups. Today, the combined companies offer more than 140 channels including 71 commercial free music radio stations, 40 sports channels, 20 for news and issues, and, of course, Howard Stern.
While it’s been a somewhat of a bumpy journey, this technology opened the doors for the updated dash. Sirius XM Radio recently reported some encouraging numbers for the third quarter with a hefty subscriber gain of 1.8 million in 2012, up from its previous forecast of a gain of 1.6 million. The company also said it added 446,000 subscribers in the quarter through September, finishing the period with a record 23.4 million.
According to CEO Mel Karmazin, the additions represent the best third quarter since Sirius and XM merged in July 2008. In the first six months of the year, 87 percent of Sirius XM's revenues came from subscriptions.
Sirius is also positioned for annual net additions. Since most new cars have the satellite service as a built-in feature — it is preinstalled in about two-thirds of new cars, according to the company — the auto industry, which is now showing signs of life, will give a boost to business.
Still, what happens with this sat-caster over the long haul remains to be seen. At a time when folks are monitoring their money, the subscription costs can be as much as $17.99 a month or $199 annually. There are also smartphones in the mix that now give us the ability to stream all kinds of services into our cars.
But SiriusXM is no different than many others. Staying relevant is a reality that technology companies ultimately have to face.
