Many car manufactures offer one of the services as an option, while some have both

By JEFFREY STEELE, Special Advertising Sections Writer

Check the rapid growth of satellite radio’s subscriber base, and it’s clear the technology’s upside is as sky high as the orbiters the industry employs to beam radio programming.

The industry, born less than four years ago, is expected to boast more than 8 million subscribers by year’s end. Sirius Satellite Radio will serve about 3 million subscribers, with XM Satellite Radio, which launched eight months earlier in November 2001, taking up the rest.

Virtually every major auto manufacturer offers at least one of the radios (costing $195 to $500) as an option in the company’s vehicles, and many offer both XM and Sirius. Those solely in the XM camp are General Motors, Hyundai and Honda, while Daimler-Chrysler, Ford, Mitsubishi and BMW offer Sirius.

Either service is offered by the remainder of the nameplates, which make up about 20% of the market and include Audi, Infiniti, Nissan, Porsche, Volkswagen, Toyota, Lexus and Scion.

Infiniti, manufacturer of the M model, offers both XM and Siruis satellite radio to consumers, as does Audi, Nissan, Porsche, Volkswagen, Toyota, Lexus and Scion.

In addition, XM announced in March that it will provide service on six 2006 Harley-Davidson motorcycle models.

If your current car is not equipped with XM or Sirius, it is still possible to buy into the services. Both companies sell aftermarket radios at such stores as Circuit City, Best Buy, Target, Wal-Mart, Radio Shack and other regional and local mobile audio electronics stores.

Prices vary widely, ranging from $49 for a basic unit to about $2,000 for a home unit capable of transmitting three different channels to three different rooms.

Factors behind the surging popularity are easy to discern.

“It’s the programming,” said Jim Collins, spokesman for New York City-based Sirius Satellite Radio. “Content is king in this business. We use a very sophisticated technology to deliver the programming, but programming drives the success.

“We offer 120 different channels coast to coast. You can drive all the way from New York to San Francisco listening to your favorite channels.”

Paul Kirsch, vice president of OEM for Washington, D.C.-based XM Satellite Radio, believes the general appeal is twofold.

“Lack of commercials for one,” he said. “And I think it’s also the very specific genres we’re able to offer folks.

“If you’re a ’70s nut, you can tune into ‘’70s on 7’ and listen to 1970s music as long and as far up the road as you like.”

The selection on Sirius Satellite Radio includes 65 commercial-free music stations and more than 55 other channels serving up news, weather, traffic, comedy, talk and lots of sports, from the National Football League, National Basketball Assn., National Hockey League and college sports to English league soccer.

And Sirius’ big signing, Howard Stern, arrives in January 2006.

XM Satellite Radio delivers 150 channels, including scores of commercial-free music channels, a dozen news channels and abundant sports offerings, including exclusive coverage of Major League Baseball, NASCAR, Indy Racing League, the PGA, World Cup Soccer and college sports. XM also recently unveiled XM Deportivo, a Spanish-language sports channel.

Both services charge a monthly subscription fee of $12.95.

Only one automaker, Hyundai Motor America, has made a commitment to offer satellite radio as a standard feature. Hyundai will begin providing XM Satellite Radio as standard, factory-installed equipment in all its vehicles, beginning in the fall of 2006. How quickly other manufacturers follow Hyundai’s example is yet to been determined.

“Having satellite radio as a standard feature in autos is nirvana,” Collins said. “That would be the ultimate goal. We are seeing more and more companies offering factory-installed [radios], as opposed to dealer-installed, and certainly that trend is expected to continue.”

Added Kirsch: “The general feeling is satellite radio will become a standard feature on every car. How quickly that happens is anyone’s guess, depending on how quickly the cost of the technology comes down, and how rapidly manufacturers refresh their radio models.”

Jeffrey Steele is a freelance writer based in Chicago.
Top Left Photo: Sirius, which offers units such as the one shown above right, continues to be the exclusive choice of auto manufacturers such as Ford and BMW.

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