Satellite radio service is a new method of receiving audio content, most often when in an automobile. There are currently two providers licensed to broadcast satellite radio within the United States. They are XM Satellite Radio and Sirius Satellite Radio.

The technology works like this: the satellite radio company beams content such as music, talk shows, sports and weather to their satellites, which then beam the content down as a radio signal spread across a wide area. Some areas will not be covered by the satellite signals (tall buildings may block their path, for example) in which case a ground-based repeating station will be required. Many new cars will ship with satellite receivers built in, and there are several aftermarket radios available which will receive the broadcasts.

Unfortunately the two services are not compatible with each other, and if you own a receiver for one it will not work with the other. Sirius claims to have exclusive agreements with Ford, DaimlerChrysler and BMW to provide only Sirius-compatible receivers in their vehicles. XM has an agreement with General Motors, the largest automobile manufacturer in the United States.

Customers will pay $9.95 per month for the service. Both Sirius and XM promise that they will supply many commercial-free music channels in addition to some non-music channels with limited commercial interruption.

It remains to be seen how these companies will survive the internetization of traditional commercial radio stations and the proliferation of MP3 audio. It stands to reason that eventually everyone will have a high speed internet connection in their car, in which case who needs satellite radio?