Zach said:
And they do buy radios, because how else are satellite radios in millions of cars and homes?
Actually, there are scant few satellite receivers in homes. Have you ever tried to listen to satellite in a home without an outside antenna? You can't, unless you live very near one of the terrestrial repeaters.
Which brings us to satellite radios in cars. Most of those millions of installed satellite radios came with new cars, but you did not pay for those radios. Sirius and XM (now Sirius/XM) and the car manufacturers did, in expectation of future revenues. And there truly is a payback... when a free subscription converts to paid, the auto industry participates in the revenue stream. sirius/XM call this "acquisition cost" and it is detailed in their financials. That's an advantage of subscription radio: there is consumer based revenue which will pay for the radio and for an incentive to car companies to equip vehicles with the receivers.