There are two important characteristics that recommend satellite radio as a service most people would like to have in their vehicles or homes: quality and content. When talking about quality we mostly refer to how clear the sound output is from satellite radio when compare to terrestrial radio broadcasts. Content, on the other hand, refers to the quality of the transited material. This is where the two giants in the satellite radio industry - Sirius and XM Radio - battle it out. The quality of the receivers and the technologies they both use are similar, but the difference can be made when it comes to exclusive high quality content. Let's have a look at both the satellite radio quality and content characteristics:
The broadcast quality is, when put in numbers, of 128kb/s 44.1khz for both digital radio service providers. This is the equivalent of CD quality. Although the coverage of satellite radio, which is far superior to what any terrestrial radio station can deliver, is an important factor, the quality of the sound is what brought Sirius and XM Radio more subscribers. There are many similarities to the way digital television worked or how cable TV has over 80% of the US population as subscribers, although they can receive free programming using UHF and VHF antennas. It's the same with satellite radio - although one can get free terrestrial radio, satellite radio comes at an affordable price and offer a broadcasting quality that is superior to analog radio. Also keep in mind that satellite radio is commercial free - and this is huge selling point.
So now that we know how good the technological side of satellite radio really is, let's have a look at how broadcasters are trying to improve the quality of the content they provide. One of the most interesting approaches was to fight for obtaining exclusivity over some transmissions. For example, negotiations have been carried out between XM Radio and MLB in order for the satellite radio provider to obtain exclusivity rights to broadcast all MLB games. In an interview to WSJ, Edison Media Research's President Larry Rosin declared that "it is probably inevitable that baseball radio broadcasts will go to a 100% subscription model...
It will happen because there's too much money in it not to do it." Today, around 23% of XM subscribers are signed up to receive the MLB transmissions, so there is real potential in such a venture. Of course, this would be a terrific blow against terrestrial radio and the two sides are engaged in combat while you are reading this. Of course, content quality can also be increased by having the best people in the industry work with satellite radio. Both Sirius and XM Radio know that someone who pays $300 for a receiver and $10 - $12 each month for a radio service wants to get the best content out there.
Surprisingly, when it comes to music channels, the difference in content quality between satellite radio and terrestrial radio is made in one main topic - commercials (or rather, lack of commercials on satellite radio). Since most of XM Radio and Sirius channels are in-house productions and only a small percentage are retransmits of terrestrial radio, this becomes an interesting aspect to consider.