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February 2006
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Satellite radio: Is it worth the money?
The signals have never been stronger for satellite radio, the subscription service that beams hundreds of “stations” to your car or home. In January 2006, shock jock Howard Stern made the move from FM to satellite radio. Sirius and XM, the two satellite providers, flooded the market with holiday-themed ads, seeking to boost their combined listening audience of several million.

Is it time to consider satellite radio? To help you answer the question, we surveyed a nationally representative sample of several hundred current subscribers who listen in their cars, where most satellite radio is heard. Overall, 71 percent said they were highly satisfied with their service. That's comparable to the satisfaction levels satellite-TV subscribers recently reported to us and ranks high among all services we have rated. They also gave satellite radio high marks for ease of setup and use.

But paying for radio rankles even satellite's devotees. The cost of the service--$12.95 per month or $142 a year from either provider--topped the list of their complaints. More than a third considered satellite radio to be only fair or poor for cost. Still, a whopping majority plans to continue getting satellite anyway; 89 percent said they would definitely or probably renew their subscriptions.

Other points to weigh if you're considering satellite radio:

Expect to discover new content. Half of survey respondents said that satellite had made them more likely to listen to types of music they had not listened to before, especially country, rock, and jazz. Satellite's hundreds of channels are remarkably diverse, exploring not only genres but multiple subgenres; for example, XM's flavors of country music include traditional, bluegrass, and progressive. With that many choices, it's hard not to stumble on unfamiliar ones as you surf, and it's easy to find a few that stick with you.

Many, but not all, channels are commercial-free. While all music channels are commercial-free, most other satellite-radio channels such as sports, news, and talk aren't.

Sports is a main attraction. Sports was a major draw for 10 percent of respondents. Both Sirius and XM provide play-by-play of all games for the professional sports they cover. Thirty-three percent of the respondents to our survey said they had taken advantage of this capability to follow their favorite teams.

Equipment choices have grown. As satellite's programming has diversified, so have the equipment options. You can buy aftermarket receivers that integrate into your car's stereo. You'll find numerous models of new cars with satellite-capable radios as optional equipment, often with a starter subscription--from 3 months to a year--included in the car's purchase price.

It's not just for the car. Still, 42 percent of subscribers in our survey listened to satellite radio at home. There are several ways to do this. Sirius and XM let paying subscribers listen to broadcasts on their Web sites using any Internet-enabled computer. There are also home satellite receivers, plug-and-play models that you can shuttle between car and home, and handheld portables that let you listen virtually anywhere you can receive a strong signal.

One new portable--the Sirius S50, $330, which went on sale too late for us to test--has powerful and controversial new recording features. (Similar models for XM were expected to ship by March 2006.) It can record about 50 hours of commercial-free music, save individual songs, and create the type of mixes that have popularized Apple's iPod. Satellite-radio services and manufacturers view those functions as perfectly legal time-shifting. The recording industry defines it as illegal downloading. In November 2005, Congress was reviewing draft legislation supported by the recording industry that would curb the recording features of models like the Sirius S50. The issue may wind up in court.

For now at least, choose satellite radio if you want a lot of diversity in your radio, plus static-free sound. Serious music and sports fans are most likely to appreciate the investment. If you're set to subscribe to satellite, here's how to pick a provider and equipment.


Satellite radio: Weighing the options

Cost vs. programming

What you get:
• Diverse, commercial-free music
• Uncensored talk
• Exhaustive play-by-play sports
(i.e. most teams, most games)
• Interviews and live concerts
• Same stations coast to coast

What you pay:
$12.95 per month or
$142 per year

Family plans are available for $6.99 per month per additional receiver.

Sirius vs. XM: Some key differences

Category

Sirius

XM

Sports

NFL, NBA

MLB, NASCAR

Talk radio

NPR

Bob Edwards

Special interest

Gay/Lesbian

African-American talk

Trash talk

Howard Stern

Opie & Anthony