By Fred Delkin

 Billed by Fortune magazine as “way, way above…all the new technologies of 2001,” digital satellite radio just debuted in these parts, final stop on a nationwide rollout of XM Radio.  This satellite powered signal claims to be “the first major advance in radio since FM,” which debuted in the ‘60’s.

After a rolling demonstration, we attest that the new technology delivers lofty levels of sound quality and programming variety to automobile listeners, the primary target for this extremely well-financed service which launched from XM’s Washington DC base on the fateful day of September 11.  Twin satellites, cutely dubbed “Rock” and “Roll,” were launched last spring to power this new source of sound.  Now receivers strategically placed across the U.S. pickup a broad programming panoply of 100 digital channels.  These include 71 music formats (over 30 commercial-free) ranging from hip hop to opera, classical to country, bluegrass to blues, gospel to all decades of rock & roll and jazz.  Added to the tunes resources are 21 channels of talk, sports, children’s, comedy and a variety of 24-hour newscasts covering the world.

All these choices emanate from a 150,000 sq. ft.,  82-studio complex in the heart of DC that is boldly billed as “maybe the largest (broadcast facility) in the world.”  Planning for the enterprise began in 1997, and the entrepreneurs raised no less than $1.4 billion to establish and launch the system.  The payroll is no small part of the budget, with 450+ employees including a starry roster of established radio personalities, programmers and production types.  The XM launch includes a tab for some $100 million in media advertising.

Competition is coming

XM will soon have competition in digital satellite audio broadcasting .  A similar enterprise, Sirius Satellite Radio, is scheduled to begin sending signals from three satellites this coming February.  Sirius has pungled up some $392 million to launch 100 channels.  While XM charges $9.95 monthly for exciting your ears, Sirius’s service will cost $12.95, hopefully offset by the fact that it offers substantially more commercial-free music programming than XM.  XM and Sirius won federal rights four years ago to evenly split a 25 MHz chunk of previously unused broadcast spectrum licensed for satellite radio.  

Both of these radio broadcast breakthroughs owe their genesis to satellite-sourced television systems.  They arrive on the heels of DMX, a commercial-free varied music format brought to listeners via their cable television carriers.  Both XM and Sirius go far beyond DMX in programming, and the latter’s sound quality is dependent upon the value of your residential stereo speaker system.

Your car is converted to digital satellite radio by  a small, dash-installed receiver that will play via any existing automobile stereo.  One of these units, currently made by Pioneer, Sony and Alpine (over a dozen other auto stereo equipment manufacturers are reportedly planning to market similar receivers) will set you back just under $400 for receiver and installation (including a special externally-mounted antenna.  The Sony receiver is a “plug and play” unit that literally fits in the palm of your hand and can be transferred between car, home and office.  The variety of receiver configurations available, allowing you to add XM to your existing car stereo system or buy a new AM/FM/XM system.  XM has rallied General Motors, Saab, Suzuki and Isuzu as initial automotive partners offering satellite digital receivers in 2002 models.  Anticipating long haul truckers as a golden market segment for this entertainment, XM is also partnering with Freightliner and Peterbilt truck producers. 

Dig that sound!

The genuinely incredible sound we enjoyed while being piloted about Portland by XM marketing executive Robert Acker, unlike FM broadcasts, remained unfazed by any external barriers along the road, such as buildings and tunnels.  “Our receivers are now installed to provide a strong and steady signal virtually anywhere you drive in the U.S.,” Acker declares.    Our concern about missing regular local programming such as talk and news was quickly addressed.  “Just press a button and you’ll still be able to tune to local AM and FM bands.”  When receiving XM music, a display screen shows the channel name and number, artist and song title.

The December launch of XM in the Northwest was enabled by several major retailers featuring the various available receivers.  Outlets include Best Buy, Circuit City, CarToys and someRadio Shack dealers.

Our ears tell us that digital satellite radio is a valuable, affordable addition to listening.  It remains to be seen how this added choice will affect the popularity and income of traditional local broadcast outlets.  This is another example of capitalistic opportunity (and competition) in full sway!

Text (C) 2001 Oregon Magazine