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Radio News (more headlines)

11-06-2003

The Growth Of Satellite Radio

November 2003 (Newstream) -- A couple of years ago, investors and radio listeners alike wondered if a satellite subscription service could compete with so-called 'free radio.' Today, that question has been answered as XM Satellite Radio celebrates a milestone -- its one-millionth customer.

How is satellite radio able to thrive against its free competition? By far, the biggest selling point for road warriors is not getting the dreaded fade out while traveling. With satellite radio, you could travel cross-country and listen to the same radio station for the whole ride, with no static and little or no commercials. Since you can choose from over 100 stations, you can also break the monotony of regular FM radio. Live broadcasts from XM studios with hot artists like Cassandra Wilson are also keeping people tuned in.

XM Radio took the lead in this technology, satisfying the financial community by hitting their projected subscriber numbers early on. Now, XM predicts having 1.2 million subscribers by year's end. That subscriber base is only expected to grow, as the radio prices fall to less than $120.00. And in 2004, the service will be available in more than 80 new cars -- showing that satellite radio may be the wave of the future for music lovers behind the wheel.

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