Future Viability: Mature
A profitable niche service with growing competition from online platforms.
- Multi-channel, ad-free premium audio subscription service
- Primary target audience: listeners in vehicles
- Low penetration in the Canadian market, but subscribers report high levels of listening
- More popular in the English-language market than in the French-language market, but penetration in both markets is stable
- Canadian operation depends greatly on the health of the U.S. service; both publicly report stable, high profits
Success for satellite radio will depend on maintaining its strong relationship with auto manufacturers to retain a key position in vehicle dashboards. Another factor is how well this model will compete with online subscription audio services as mobile broadband speeds and coverage increase and mobile data costs decline. Overall, satellite radio should remain viable in the future.
Read time: approx. 5 min