CRANK UP THE DIGITAL VOLUME Ted Needleman – Investor's Business Daily It wasn't so long ago that 8-track cartridges faded into obscurity in the shadow of cassette tapes, which in turn gave way to compact discs and, more recently, digital music players such as the iPod.
Now comes digital radio in two flavors: satellite radio and HD Radio.
Satellite radio has been available for several years but is only now starting to find its stride, as auto manufacturers actively promote or include satellite radio equipment and service with some models. At the same time, a new terrestrial radio service, HD Radio, is being introduced into many markets.
Both hope to cash in on consumers' frustration with traditional radio. The average car radio can receive perhaps several dozen stations between the FM band and the AM band. Many complain that a consolidation of media companies has led to a homogeny of music aimed at the lowest common denominator of consumer tastes.
With music and other content available over their Internet connections and on their iPods, it's no surprise that audio aficionados want more choices in their cars, too.
The two major satellite radio providers, XM and Sirius, both aim to address these shortfalls.
XM was the first service to start broadcasting, with Sirius coming on board about a year later. To date, XM claims about 7.7 million subscribers, most of whom pay just under $13 a month. Sirius claims 6.6 million subscribers at the same monthly subscription fee.
Calling these services "satellite radio" is perhaps a slight misstatement. Both are primarily satellite-based, but also use ground-based repeaters to boost reception in a number of metropolitan areas where tall buildings can block satellite signals.
Both broadcast using digital signals and offer outstanding audio quality. Satellite radio provides an almost universal coverage of the 48 contiguous states and up to 200 miles offshore.
But satellite radio's main selling point is its wealth of content.
XM boasts more than 170 channels of content, and Sirius offers more than 130, each with a similar lineup of music, sports and news. Each service has its own celebrities — Howard Stern and Martha Stewart appear on Sirius, while Oprah has her own channel on XM.
XM and Sirius have announced their intent to merge into one company and are awaiting approval from the Federal Communications Commission and antitrust officials. If the merger does go through, both services will continue to broadcast, so none of the current equipment will become suddenly obsolete.
A new challenge to satellite radio is HD (high definition) Radio. Like satellite radio, HD Radio is a digital delivery system. It uses the same radio spectrums as the current AM and FM bands, but uses digital signals that offer exceptionally clean sound and don't interfere with nearby AM and FM stations.
Few cars have HD Radio receivers, though they're getting easier to find. For now, there is also less programming available.
IBD tested both satellite radio services and HD Radio.
Our test equipment was a SkyFi3 XM receiver from Delphi, a StarMate 3 Sirius Radio receiver from Sirius Radio, and a KD-HDR1 HD receiver from JVC America.
Both the StarMate for Sirius and the SkyFi3 for XM offer similar features and capabilities, though the SkyFi3 can be used as a portable. Each comes with a variety of mounting options, an FM modulator so you can play the stations through your current car radio and an external antenna. For permanent installation, you can purchase an antenna that installs on your car's roof.
Driving around the New York City suburbs, we found the stations on both services frequently cut out when we were on streets or parkways with lots of trees. That's because the antenna needs a good line of sight to the satellite.
Both services really come into their on interstate highways with a great line of sight to the sky.
We weren't quite as fortunate with our HD Radio experience. Overhead foliage doesn't affect HD Radio reception, but programming choices are scant (though they are free). On the plus side, the JVC KD-HDR1 receiver sounds great and provides standard radio stations as well as HD, so we can afford to wait for more programming.
Which one would we choose if we had to make a choice? For now, probably satellite.
But if HD Radio continues to grow over the next few years, the choice won't be an easy one. |