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Why I?m Glad Satellite Radio is Finally Coming to Canada
Since the CRTC?s decision to allow satellite radio stations to operate in Canada last week, friends and colleagues have been asking me how this landmark ruling will affect the retail car industry.
Satellite radio is a new technology that is sent by satellite to automobiles, homes and public locations for subscribers who have special radios that can receive the signal.
I think that satellite radio will have a profound affect on the retail car industry. I also believe that it will have a strong impact on how people perceive cars and their enjoyment of them, just as in-car DVD players allowed families to enjoy the driving experience so much more.
There are several reasons that go into every car-buying decision: The style of the vehicle, comfort and safety features, price, trade-in value and driving enjoyment. It?s this last option ? driving enjoyment ? that car owners will consider, when deciding whether or not to purchase a satellite radio receiver for their car or truck.
Satellite radio will give car buyers an option that has never been available to them before in Canada ? an unlimited range of crystal-clear, uninterrupted radio stations anytime of the day or night.
For drivers, one of the big features of satellite radio is no more lost signals. Driving out of town on business or pleasure can be an enjoyable experience when you?re listening to something good on the radio. But when you?re out of range and the signal is lost, you often search in vain to find a replacement station.
Quality is another reason why I think satellite radio is going to catch on with car owners. There should be perfect digital reception ? none of the usual static associated with traditional radio signals.
Some may scoff and say, ?It?s only a radio ? how important can it be?? Well, the same comments were made of personal computers, cable TV and cell phones, and look how those technologies have caught on around the world.
Make no mistake - I?m a huge fan of radio and have been all of my life. I grew up listening to Roger Ashby and CHUM AM and I have many fond memories of time spent listening to music on the radio. I think that listening to good radio programming while driving is one of life?s greatest pleasures.
But for the past two decades, traditional commercial radio in Canada has become intolerably boring and predictable. I?m constantly frustrated trying to find something enjoyable on the radio besides the usual noise of top 40 play lists and talking heads. Occasionally, I?ll tune into an oldie station, but the constant commercial interruptions are a turn off.
Public radio is another story - the CBC Radio, for example, has some excellent programming (Andy Barrie and Anna Maria Tremonti come to mind), and the CBC?s broad range of subject matter is refreshing. I have no problem with the CBC, which continues to re-invent itself to attract and maintain listeners. In a sense, satellite radio will be similar to public radio ? except with better quality sound and a much larger selection of stations.
This is why I applaud the CRTC?s decision to bring satellite radio to Canada. For people who love to drive cars, this will be a God-send. Ask yourself this: How many times in the past week have you flipped across the radio dial, searching for something good to listen to while driving? How many times have you simply turned the radio off because the sound of silence was preferable to much of the programming that was being offered?
Imagine having the option of tuning into a radio station that plays nothing but songs from your favourite group, or a station that broadcasts only comedy, sports, news, business info or various musical styles from your deck at the cottage. Want to hear a station devoted to Elvis, the Dixie Chicks or Latin music for hours, uninterrupted by commercials?
At some point in the future, your brand of automobile could even have its own specialty radio station. I understand that the cost of this technology will come in around $10-$12 per month, plus the cost of a special radio receiver, which will be available at new car dealerships.
I believe that satellite radio is a breath of fresh air for the radio industry in Canada. It will take a few years to really catch on, but when it does, there will be no turning back. Once car owners get a taste of the hundreds of specialty channels, with no annoying interruptions, commercial radio as it exists today will seem like 8-track tapes and black and white TV.
Experts predict that by the end of 2007, there will one million subscribers of satellite radio in Canada. I think that a majority of those subscribers will be car owners who spend a good deal of time in their vehicles. For once, they will have a real choice when it comes to listening pleasure.
Will satellite radio affect the retail car industry in other ways? Possibly. I envision a day when satellite radio merges with existing Global Positioning Systems and other ?on-board? technologies, offering consumers not only greater driving pleasure, but more convenience and added safety on the road.
I?m excited about satellite radio finally coming to Canada. I think the vast majority of car owners will share my enthusiasm for this new technology. I can't wait to sign up.
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Paul Stern is President of the Toronto Automobile Dealers Association and is a new-car dealer in Toronto. E-mail comments to president@tada.ca
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