FutureTool: Satellite Radio
Sirius Radio offers a similar service using the same technology. It has three satellites in orbit and a spare on the ground, just in case. With a special receiver you can subscribe to either of the services, but Sirius will cost you $12.99 a month. Both companies have signed deals with the big automakers (Porsche, GM, and Ford to name a few) to install satellite-capable receivers in their cars. In fact, if you’re in the market for a 2002 Cadillac Seville or DeVille, it’ll be part of your option package. The lineup offered by the two companies—music, sports, news, and even entertainment channels like E!—is also comparable.
Why the difference in cost? Advertising. Sirius’ service is “commercial-free,” uninterrupted radio, while XM plans to supplement its cash flow in a variety of ways. XM will limit commercials on each of its channels, providing its advertiser with prime 30-, 60-, 90-, or 120-second spots. These spots will be available on a per-station basis or across a ten-station band to allow for targeting of almost any demographic. Commercial-free stations and hourly XM feature interviews and broadcasts will also be available for exclusive sponsorships. For those interested in metrics, XM will begin audience measurement in the spring of 2002. Visit www.XMRadio.com for more information.