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Commercial-free Is Key Satellite Radio Pitch

By | August 14, 2002

      LAS VEGAS–A major thrust for satellite radio is to convince consumers that commercial-free music channels are worth a monthly subscription fee and equipment costs.

      XM Satellite Radio offers most of its music channels commercial free, while Sirius Satellite Radio offers music channels without advertisements. Sirius compensates for that reduced advertising revenue by charging $12.95 a month to subscribers, compared to $9.99 a month for XM.

      “It is unbelievably clear that the driver for satellite radio will be commercial-free music,” Mary Pat Ryan, Sirius’ executive vice president of marketing, told participants at the annual Satellite Broadcasting and Communications Association (SBCA) conference held here.

      –Paul Dykewicz

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