The primary (immediate) obstacle of Satellite radio is attracting sampling.
It’s very difficult to appreciate the experience of using Satellite radio without actually using it. Conventional radio solves this problem by being both free and universally available at the touch of a button.
One good way to speed the adoption process for Satellite is therefore by facilitating sampling. And there’s no better way to do this than by giving away the hardware for free.
In fact, as business models go, it would make a lot of sense for Satellite radio to take a bath on the hardware and make it all up on the monthly payments. I am surprised, for example, that neither XM nor Sirius seems to offer a FREE version of the receiver bundled with a MORE EXPENSIVE monthly payment.
Why don’t they do this?