Satellite radio stock:

Radios have been around for some decades now. At first these signals were used only for research and medical purposes. it took some time  for the radio signals to be used for communication purposes. They were first used for military communications. Then they were commercialized. Once they were commercialized they became huge success because people just needed to make one time payment of buying the receiver then they could receive the signals for eternity. It was an exceptional business model.


Commercialization Of Radio Service:
The first commercial establishment related to radio was the one setup by Marconi. He started his wireless factory. He employed around 50 people in his factory. Then the invention of rotary spark transmitter enabled he broadcast of radio signal over long distances. The first broadcast was the song “O Holy Night”. The business of radio was a very successful one. Many companies got established and provided very high quality radio service. But with the introduction of TV the radio industry got affected. People started liking the more dynamic TV to the static radios. Then the radios made a comeback through satellite radio service.
When the satellite radio service was introduced many doubted its success but it has proved that it’s a good investment. It was an instant success. The investment required is very high and the break even could take some years. This is because these satellite radio service providing companies have to place their satellites in the earth’s orbit to receive and transmit the signals. The cost of producing the receiver boxes is high too. They have to provide these receivers at a low price to attract more customers. The main source of income to these satellite radio service providing companies is the subscription fee, advertisement revenue. The advantage that the satellite radio service had over the ordinary radio service was with the signal strength and the distance covered by it. The ordinary radio service provided only very standard and traditional programs they never thought out of the box. But the satellite radio service provided a variety of programs and many innovative services. They provided separate channels for music, comedy, news and sports. They provided a lot of interactive programs.

Players in Satellite Radio Service Industry:
 The companies that have established themselves in the satellite radio service providing business are XM, Sirius and Worldspace. They have been very successful in their business. In order to support their huge investment they went public. Their stocks are listed on the NASDAQ. They have been good investments for the investors who have invested in these stocks. They have been providing good dividends for many years. The value of the stocks has been appreciating too. These stocks gain a lot of momentum when there is some announcement of an alliance with some major satellite radio receiver manufacturer. They get a huge boost when the company announces its plans to develop new satellites to increase their reach and to add many new value added service. They are a very safe investment because of the steady nature of business. These companies keep increasing their customer base and have become one of the more sought after in the stock market.