There are interesting differences as well as subtle similarities between satellite radio and traditional FM radio. Both have been going through great shifts in the last twenty years. Both satellite and FM were believed to be dead at many points in their lifespan. But nothing seems to be able to put them down permanently. However, one has used what was seen by many as an impossible model and made it work. The other still seems to struggle to be viable in the 21st century market but will not seem to fade, simply because of its ease of use.
How They Stay Alive: FM vs. Satellite
Both FM and satellite use advertising to stay afloat. While Sirius XM radio advertising is not the exclusive way that satellite radio pays their bills, it is an important component of how they maintain their industry. FM is still completely advertisement-driven. Because radio stations are regional if not local, FM can advertise local sales, events, and amusements, while Sirius XM radio advertising can only go with online, national, or even in some cases international advertisements. Satellite has a subscription service that promises little to no advertising on stations. Despite this, Sirius XM has had to succumb to radio advertising to some degree. This means that even though both are using advertising, they are still hampered by what they can do.
Content Is King
FM is definitely lacking in this department. While they have popular music and some outliers like NPR, they do not have show-like content that makes listeners tune in to listen at an appointed time. Satellite, however, has lured many radio personalities from FM radio to their stations. Satellite can promise to devote a full hour to their star’s shows with not much Sirius XM satellite advertising in between. Unfortunately, FM has to keep breaking for commercials, which can often annoy radio personalities as well as their listeners.
Will One Ever Win Over the Other?
It is very difficult to tell who will win, simply because people still have an interest in listening to both. Most cars built in the last five years have featured both FM buttons and satellite radio options. This gives users the option to take or leave either one. However, there may come a time when cars forgo the FM/AM all together. Car companies often get no money from the radio stations, unlike satellite radio, where they get a piece of the action from Sirius XM. No FM/AM in cars may become a possibility. While there is currently no clear victor, FM may have some trouble keeping up in the 21st century in a way that satellite does not.
