Howstuffworks "Sirius vs. XM"

These days, many people think of "radio" as that thing attached to their clock or what they listen to in their cars. But radio transmission is a science. Learn more about this technology, from Ham Radio to Sirius and XM.

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Sirius vs. XM

by Stephanie Watson

Introduction to Sirius vs. XM

Satellite radio is poised to make radio ads and signal loss a thing of the past. With more than 100 channels of commercial-free music, news, sports and entertainment available across the country, you can take your favorite station with you from Los Angeles to New York and never miss a beat.

Courtesy Sirius Satellite Radio Inc. and XM Satellite Radio

Satellite radio has been around in the United States since 2001, and it's catching on with consumers. But despite its growing popularity, there are really only two players in the market: Sirius and XM Radio. Although XM is currently the market leader, each company's service has its own set of pros and cons.

In this article, we'll compare Sirius and XM technologies, prices and services and find out what the experts have to say about the future of satellite radio.

What is Satellite Radio?

Satellite radio is just what its name suggests: a radio service that uses a satellite circling Earth to broadcast its programming. In 1992, the Federal Communications Commission (FCC) allocated a satellite spectrum (the "S" band, 2.3 GHz) for the broadcasting of satellite-based Digital Audio Radio Service (DARS). It eventually granted two licenses, one to Sirius (formerly CD Radio) and one to XM (formerly American Mobile Radio). The world's biggest satellite radio provider, WorldSpace, is available in Europe and other countries but not in the United States.

Satellites orbit the earth. Programs are beamed to the satellites, which transmit the signal to a special antenna on homes and cars. Terrestrial repeaters throughout the country also receive the signal. They help ensure that the signal is transmitted to receivers, especially in areas with tall buildings that might block the signal.

For about $13 a month, plus $100 or so for the equipment and a small activation fee, both Sirius and XM listeners can receive more than 100 channels of satellite radio, including music ranging from classical to heavy metal, plus news, sports, talk and entertainment. But there are some notable differences between the two services.

What is XM?

XM has two Boeing 702 satellites that transmit its signal to cars and homes across the country. The satellites are called Rock (XM-2) and Roll (XM-1) and they were launched, respectively, on March 18 and May 8, 2001. They are now positioned over the east and west coasts in stationary geosynchronous transfer orbits (see How Satellites Work to learn about orbits). The satellites are powered by two solar-paneled wings. The company's broadcast center, the origination point for all of its programming, is based in Washington, D.C.

Photo courtesy XM Satellite Radio

XM radios contain a proprietary chipset that decodes an encrypted signal from the satellites and from repeaters on the ground.

Photo courtesy XM Satellite Radio
Top to bottom: XM Commander in-car receiver, Delphi MyFi personal receiver, Delphi XM SKYFi plug-and-play unit

The company makes four different types of receivers: home receivers (which range from $170 to $1,000 - not pictured above), in-car receivers (which range from $100 to $170), a personal receiver ($350) and plug-and-play units that work with both home and car audio systems (which range from $100 to $350). XM is the only company to have a personal receiver -- the XM MyFi can hold up to five hours of content and can be carried everywhere, similar to an MP3 player.

What is Sirius?

Photo courtesy Sirius Satellite Radio Inc.

Sirius was founded in 1990, and was the first satellite radio service to get an FCC license in 1997. But because of technical problems with its satellites, its first broadcast wasn't until July 2002, nearly a year behind XM. Since then, it has lagged behind its competitor in subscribers.

Sirius broadcasts satellite radio from three satellites, which were launched in 2000 from the Baikonur Cosmodrome in the Republic of Kazakhstan. The satellites typically fly in geosynchronous orbit, between 15,200 and 29,280 miles above the earth's surface.

The three solar-powered satellites follow one after the other, so when one passes out of the Northern Hemisphere, for example, another is right behind it to provide uninterrupted transmission. Two ground stations, one in Ecuador and another in Panama, are in constant contact with the satellites.

Photo courtesy Sirius Satellite Radio Inc.
Top to bottom: Antex SRX-3 TriplePlay multi-zone, multi-room audio system, Kenwood XDC-X859 CD/MP3 receiver, Sportster Boombox

Sirius comes in three formats: car receivers that either work with your car's existing radio or replace it (ranging from $150 to $2,300), home receivers that either work with your home stereo or in addition to it (ranging from $250 to $2,000), and plug-and-play receivers that can go from the car to the home and also act as standalone, portable radios (ranging from $50 to $160).

The Shock Jock Comes to Satellite With his never ending parade of strippers, porn stars and willing female fans, shock jock Howard Stern has often been the target of the Federal Communications Commission (see How does the FCC police obscenity?). In 2004, Clear Channel Communications dumped his show over alleged indecency violations. Late that year, Stern announced that he was going to be moving to Sirius, where he was reportedly offered a five-year, $100 million contract. Whereas traditional radio falls under the watchful eye of the FCC, satellite radio has no such restrictions. Like HBO and other pay cable networks, it can air virtually anything, including obscenity, giving Stern virtually free reign in his new home. But whether lawmakers will vote to regulate satellite radio in the future is still unknown.

How do the Technologies Stack Up?

Which is better -- Sirius or XM? They both have a similar range of music, news and entertainment programming. Sirius has signed Howard Stern to bring his raunchy brand of entertainment on board, plus it offers more sports than XM. But XM has the only personal listening device. XM is still the clear market leader when it comes to subscribers, but Sirius is investing some significant cash to improve its offerings in order to entice more listeners. This table shows how the two formats stack up.

Sirius vs. XM
	Sirius	XM
Satellites	3 satellites	2 satellites
Programming	120 channels, including: 65 commercial-free music channels 13 news channels 4 entertainment channels 20 local traffic and weather channels and The Weather Channel NFL football, college football and basketball channels	150 channels, including: 68 commercial-free music channels 33 news, sports, talk and entertainment channels 21 traffic and weather channels Major League Baseball and NASCAR
Highlights	Howard Stern show (coming soon) A weekly rock show with skateboarder Tony Hawk NBA, NHL and NFL games Plans to add three video channels in 2006 Listen on the Internet for free	Opie & Anthony Shows hosted by Snoop Dogg, Tom Petty and Quincy Jones FOX sports radio 24-hour NASCAR radio (although Sirius has announced that it will begin broadcasting NASCAR in 2007)
Equipment	Car receivers range from $99 to $2,300. Home receivers range in price from $99 to $2,000. Plug-and-play receivers cost from $50 to $160.	Car receivers range from $99 to $170. Home receivers range from $170 to $1,100. Plug-and-play receivers cost from $100 to $130. Delphi XM MyFi (the only personal satellite receiver available) costs $349.99.
Price	$12.95 per month $15 ($10 online) activation fee	$12.95 per month for basic package (premium programs are available for an additional fee) $14.99 ($9.99 online) activation fee
Availability	The continental United States	The continental United States
Subscribers	1.14 million in 2004	3.2 million in 2004
Already Installed	Available installed in Chrysler, BMW and Ford cars	Available installed in more than 100 new cars in 2005, including AUDI, Buick, Cadillac, Chevrolet and GMC models

Another big question is: Are the two systems compatible? For right now, the answer is no. Sirius can only receive broadcasts from Sirius satellites, and XM can only receive broadcasts from XM satellites. Several years ago, the FCC ordered both companies to develop a receiver that could receive both services. Although the two companies say they are actively developing the technology to do so, there is no word yet as to when it might be available to consumers.

The Future of Satellite Radio

So what does the future hold for Sirius and XM Radio? It's unclear whether one will come out the clear winner in the satellite market, but experts say the business as a whole will boom in coming years. The biggest growth area for satellite radio companies is with new car buyers. General Motors is currently installing XM in 55 of its 2005 car models. The company also has deals with Honda and Hyundai. Sirius' partners include DaimlerChrysler, Ford and BMW.

The biggest impediment to satellite radio may be the iPod and other personal music devices, which enable consumers to download and carry around thousands of songs anywhere they go.

Photo courtesy Apple Computer, Inc., XM Satellite Radio
Apple iPod 30-GB MP3 Player (left) and Delphi MyFi

XM has fought back by introducing the MyFi personal satellite receiver, which can hold up to five hours worth of music. Sirius' current portable model, the XACT Stream Jockey, doesn't fit quite so snugly into the handheld market. While it is a portable reciever, it's simply too big to compete with pocket-sized portables. Sirius head Mel Karmazin spoke with Apple chief executive Steve Jobs in 2005 about adding the satellite service to the iPod, but Jobs reportedly wasn't interested. Sirius isn't giving up, though -- they should have smaller portable receiver out sometime later this year.

Will satellite radio replace your favorite FM stations? Despite its growing popularity, that's not likely, say experts. Traditional radio still boasts more than 200 million listeners -- 50 times more than satellite radio's current subscription base. Odds are that satellite service will complement free radio, just as cable television now complements the broadcast networks.

For more information on Sirius, XM and related topics, check out the links on the next page.

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