10 million.
As of this writing, that’s about how many subscribers the two satellite providers achieved.
The reasons for XM and Sirius making inroads into the territory occupied by terrestrial radio since the 1920's are several, some of which I already have enumerated in earlier postings. Along with these aforewritten reasons is the “convenience factor.” I’ll define this by relating a conversation I had many years ago with two male friends. The subject of discussion was the installation of garage door openers. Both of these guys were attempting to install the openers in their respective houses. After hearing their gripes about trying to mount a heavy object onto a ceiling I laughed and said: “You guys have it all wrong. The trick is to buy a house that has an opener as part of the deal” (As you may have guessed, my home already had the opener installed when I bought it.) I probably didn’t further my fellowship with either one after that statement but my point was clear. Having someone else do the dirty work is almost always beneficial.
Whether it’s a plug-and-play system or an in-dash unit, having the required receiver and antenna already in the vehicle is undoubtedly a boon to the two providers. Nearly all new vehicle manufacturers (both foreign and domestic) have inked deals with XM or Sirius. Even “across the pond” automakers are catching on, as evidenced by Rolls-Royce providing lifetime Sirius service in their vehicles sold in North America. (But the suits at Sirius are aware this won’t result in a great number of new subscriptions...)
Perhaps the contribution to the increase in satellite subscribers due to the equipment being available on the car dealer showroom floor is best illustrated by my own mother and father. In 2004 they bought a Honda Accord which came with XM service. On their most recent journey out to my home (a trip close to 1000 miles) my father commented how having the satellite radio is handy, given the direct route takes them through many long stretches of desolate nothing. Certainly there is little desirable FM radio through that territory but having a diverse selection of music or talk without losing the signal helps the hours pass. I then noted that they chose to keep the XM service even though their free first year had passed. “A year?” my mother replied. Turns out they only got three months free after purchasing the vehicle. Apparently they decided it was worth the monthly cost to have satellite radio in the car. And, this is from a couple that has never been too quick to embrace new technology. (Sorry Mom and Dad! Please forgive me.)
So not only are new-vehicle buyers being exposed to the benefits of satellite radio, but the hardware manufacturers are also taking note of the increased interest in satellite radio technology. When I was in the market for a satellite radio receiver I was very surprised by not only the different receivers available, but also by the lower cost. In 2001 and 2002 when the services launched I looked over the displays at Best Buy but knew it would be years before I had anything like that in my own car, given the fiscal obligations of being a parent and homeowner. Last fall, when I began looking around the Internet for prices on plug-and-play units I learned I could purchase a unit for either provider for around $50 before rebates. Just as DBS TV such as DirecTv and Dish Network took a few years to reach real popularity (in no small part due to prices coming down), so also it will be for Sirius and XM. Bet on it.
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