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New wave of radio choices

Satellite or HD? It's an uncertain time for those who want to upgrade to digital. Here we try to cut through the static.

CONSUMER WATCH

May 27, 2007|David Colker, Times Staff Writer

Think choosing a TV is tough in the digital era?

Try radio.


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For more than half a century, there were only two major broadcast bands to be concerned about in judging a radio -- AM and FM -- unless you were caught up in the 1970s CB craze and enjoyed saying "Breaker, Breaker" while wearing a trucker hat.

Now, there's digital satellite radio, which debuted only six years ago but soon could go through an upheaval that might affect program offerings, subscription fees and even the radio sets themselves.

And the new digital kid on the dial is HD Radio, which unlocks an expanding alternative universe of stations hidden among the regular broadcast channels.

It's a time of uncertainty for the radio buyer who wants to take advantage of the new technologies.

But at least it won't cost you as much as a TV.

Satellite

From space came XM Satellite Radio beginning in 2001, and then competitor Sirius Satellite Radio debuted in 2002. The services were attractive for the wide spectrum of programming and because the channels could be heard almost anywhere in the county. And lo, people signed up and paid to hear them.

But not enough.

At this point the two services have a combined subscriber total of about 14.5 million. That pales in comparison with the estimated 65 million who listen to Internet radio, not to mention the more than 230 million who tune in to free AM/FM.

More important for stockholders in the satellite radio companies, neither has come close to showing a profit.

So they decided to simply eliminate the competition -- at least between the two of them -- by merging. In February, XM and Sirius announced that they were joining forces to form one company.

That posed a number of unknowables for consumers considering an investment in a satellite receiver, which can cost $100 and up.

Chief among them:

* Which channels of the more than 100 in each service will be retained?

* Which company's technology will be used?

* Will the subscription price -- now about $13 a month for each service -- go up when it's just one company?

There are no clear answers. And there might not be a merger after all.

Governmental approvals needed for the two companies to become one are anything but a slam-dunk, indicated by the rough ride the companies got during congressional hearings this year.

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