Satellite Radio Becomes Smarter While HD Radio Remains Left in the Dark

This past Monday, CEOs at XM and Sirius Satellite Radio announced their decision to combine forces. Yes, this will mean that the two main satellite radio service providers will be merging in the near future! In an attempt to lower overall costs, XM and Sirius will form one main satellite radio network that will provide the same "quality" programming of both stations, respectively. The only thing standing in their way, however, is the law. This minor aspect specifically prohibits this merger from happening. According to reports, the FCC will evaluate this case to see if it is in the public's best interest and, if it is, then the merger will be on its way to finalization.

XM and Sirius' goal to lessen its cost through a merger, theoretically, will attract more consumers. However, these companies will have to do a lot more to retain the interest of its listener public. XM's advertisements on television are entertaining and of the times, but what is a commercial without the content to back it up? I am not degrading the programming of XM radio, it just seems like people in this day and age are more prone to listening to their music on-demand via an iPod than tuning their satellite radio to a certain station. Hopefully, this merger will exhilarate motivation to respond to such issues.





HD radio, on the other hand, is becoming even more pathetic. Constant spots on terrestrial radio advertise its HD counterpart as the "hidden channels you didn't know you had". These "hidden channels" come at a cost, however. In order to access the hidden channels, one must purchase a device equipped with HD radio. Currently, HD radios can cost anywhere from $200-$1,000. This high cost may make most consumers wary of purchasing this device. Some potential purchasers of the HD radio could ask themselves, "why would I purchase a device that costs more money than an iPod when I will most likely be more satisfied from my iPod?" This question is completely valid. HD radio is terrestrial radio's attempt to save its listenership while attracting even more listeners. So far, things have not gone according to plan.

The high cost of HD radio is daunting. Some reason that programming on side channels will be a bit better if not the same as the main terrestrial channel and, if this is the case, then why should they spend the money? It has even been mentioned that HD radio will be offered as an option in new BMW models. If anything, HD radio creates exclusivity as opposed to inclusiveness. By valuing HD radio at such a high cost and associating itself with top of the line vehicles, this crack-team in radio is combating competition by isolating its listeners. This just doesn't make sense---why would you attempt to gain listenership through a high cost of listening (in both respects)? Clearly, the radio big wigs have some work to do if they want to compete with the Steve Jobs of the world.