Why I cancelled my XM subscription
On September 25, 2001, XM Satellite Radio (XM) launched a service to provide paying subscribers with radio that they would traditionally receive free of charge. With in hand an $80 million Federal Communications Commission license to broadcast its signals via satellite rather than through a network of ground-based transmitters, XM had raised $1.1 billion to launch two Boeing-made satellites and to build a 60,000 square-foot broadcasting headquarters in Washington, D.C. (Colker T1). XM also secured deals with electronics manufacturers and auto-makers to make certain the public can buy XM-ready receivers, and by pouring $100 million into a preliminary advertising campaign, it made sure the public would know about this new, “revolutionary” technology (Taub G1). What was supposed to be revolutionary was that this new conception of radio would financially support its 100, genre-specific channels with almost no advertising within their programming (see appendix for full channel listing). Instead, the commercial-free programming is funded directly by the listener through subscription fees.
The opening paragraph of my Wake Forest honors thesis just begins to hint at my enthusiasm, at the time, for the new medium of satellite radio. Indeed, at that time, I was still furious about the loss of my beloved 90.1 FM WDCU jazz station three years before—as a high schooler, I had written something of a precursor, citing Eric Boehlert’s Rolling Stone article “Radio Land Rush” warning about the dire effects on music quality and diversity of the Telecommunications Act of 1996, which eliminated ownership restrictions on radio stations under the forward-looking but narrow logic that the public would soon be getting their music and information from sources other than radio, that radio needed to homogenize to survive. (Boehlert’s piece isn’t online, but he made a similar argument in “One Big Happy Channel?” for Salon.com in 2001.)
I hated those effects of the Telecom Act. WDCU went under (my friend Jon arrived at school, agitated, and told me the station, at midnight the night before, during a Miles Davis solo, had fallen to static). 99.1 WHFS, the alt-rock station that introduced me to Pearl Jam and Ted Leo, become a shell of itself, and in a few years, following the market, became a Spanish-language station. The Telecom Act allowed media companies to buy up many stations and program music from a single central list, rebroadcasted identically throughout the country. Except in the preposterously upped number of local furniture company ads, radio no longer had any connection to geographic communities.
But I was optimistic about satellite radio when it came along in 2001, after nearly two decades in the works. It had some of the same limitations…XM was broadcast entirely out of its DC headquarters, for example. But it had no ads, meaning the only way to make money was to play music the subscribers wanted, including new music the DJs thought their listeners would really like. And as the tone of my thesis can attest, I loved it. By 2004, XM had a 100% commercial-free lineup, had struck a deal with Major League Baseball to broadcast all their games nationwide, and, thanks to savvy deals with automakers, ended the year with over 3 million subscribers.
Despite this, it wasn’t long before the landscape around satellite radio changed enough that “playing music the subscribers wanted” became nonsensical. You no longer needed to subscribe to anything to get what you wanted; you had your iPod and your music sharing services and, more recently, social media and online recommendation engines that, to many, made the DJ role obsolete.
It was a few years later, in 2007, that XM and Sirius, pushed by their investors and a bad economy, decided to merge and were able to make a compelling case to the government it this wasn’t an anti-competitive move. Yes, these were the only two satellite music companies and had gotten a lot of what they wanted by dint of a promise that they’d never merge. But now they were up against traditional radio, web feeds, podcasts, iTunes, concert footage on YouTube, radio on cable TV, legal file sharing, illegal file sharing, and dozens of other distribution networks for music and information.
The government approved the merger, and on July 29, 2008, when the merger was completed, satellite radio officially began to suck.
DJs were laid off on stations like XMU—Sirius-XM’s alt-rock station—destroying the last human connection between listener and company. This is the primary reason I had decided to cancel my subscription. In the past year, though, Sirius-XM began to charge for listening on the web, even to existing subscribers, and the overall monthly cost continued to increase ahead of inflation. It got harder to justify paying more for so much less of a product.
From a business perspective, Sirius-XM weathered the recession with relative aplomb, avoiding a bankruptcy that was seen as all but certain after its shares fell to $0.05. But from a music-lover’s perspective, the service is, like terrestrial radio in 2001, a shell of itself. I recently listened to the station RealJazz, for example, and heard entire blocks of music repeated during one afternoon, reinforcing the fact that I was no longer listening to a radio station staffed by fellow music lovers. I was listening to a computer program run by Wall Street investors.
I get it. I do. I know it’s a business and Sirius-XM has to do what it can to survive and thrive financially. But like the changes made by conglomerates the wake of the ’96 Telecom Act, these changes feel more like a betrayal to a community than forgivable good business sense.
Anyway. So I made the call yesterday. After only a little well-trained pushback from the person at the other end of the phone, my XM radio, for the first time since 2001, fell to static.
