Despite satellites' appeal, most listeners prefer free, local radio

Satellite radio had been billed by many as the up-and-coming form of broadcast entertainment, the auditory version of the cable revolution for television.

That prediction seemed credible when XM and Sirius, the two satellite radio companies serving the United States, went from fewer than 400,000 subscribers in 2002 to nearly 12 million today.

Stock prices for both companies plunged recently, a development a recent front page article in The Wall Street Journal blamed on marketing snafus, bidding wars for talent and the emergence of new competition.

Others argue that traditional radio simply remains the more appealing choice to the masses.

"I think the impact of satellite radio will be minimal on free radio," said Dennis Wharton of the National Association of Broadcasters. "Most people listen to radio for local information, whether that be news, traffic, weather reports, high school sports, professional sports from the favorite hometown teams, and generally that is something that satellite can't offer."

Wharton also said the recent arrival of high-definition radio -- also known as digital radio -- is another big reason satellite radio will never ascend to the heights some first anticipated.

With HD radio, Wharton said, sound quality on free radio will improve dramatically, with FM becoming CD quality and AM improving to FM quality. Programming also will be enhanced because digital technology will allow any station with the necessary equipment to broadcast at least two program streams over the same radio signal.

A station, for instance, might elect to broadcast a rock-'n-roll format over one stream and cover local high school sports on the other.

Listeners would have to invest in an HD radio in order to get the multiple formats, but beyond that initial investment the entertainment would be available at no charge.

To what extent satellite radio has penetrated Maine is hard to determine. Sirius said it does not break down subscribers by state. XM did not respond to a request for that information.

Suzanne Goucher, president and chief executive officer of the Maine Association of Broadcasters, said satellite radio's impact in the state has been minimal and doesn't expect that to change.

"I suspect it will creep up over time," she said, "but I don't really see it as a groundswell right now."

Howard Segal, a history professor at the University of Maine, has written several books about communication and technology development in the 20th and 21st centuries.

Segal said he always reserves judgment when somebody proclaims something the latest greatest thing.

"The idea that something will replace something else, I'm always skeptical about," he said. "I think (of satellite radio) not so much as replacing (mainstream radio) but as offering an alternative to it."

"When television first became available, its popularity significantly reduced attendance at movie theaters, but ultimately TV did not stop people from going to the movies," he said.

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