Listen to XM now or save it for later
Satellite radio company hopes to get a boost from new players that let users enjoy their music, shows beyond their cars
(Correction: Because of a reporting error, a story in Saturday's Business section about new portable satellite radios incorrectly identified a manufacturer of one of the products, the Inno. The Inno is made by Pioneer Corp.)
Trying to extend its reach after investing a fortune in high-profile hosts, XM Satellite Radio Holdings Inc. will introduce a second generation of portable music players next week. The gadgets, which combine a receiver for XM radio broadcasts, memory for MP3 files, and a TiVO-like feature that allows listeners to schedule recordings of their favorite radio shows to be played later, will retail for about $400, roughly the same price as a 60-gigabyte iPod.
XM, one of two satellite radio services in the nation, said it is not trying to compete with the iPod, Apple Computer Corp.'s popular digital music player, which has become many music fans' standard for toting their tunes with them anywhere. The dramatically smaller hard-drive on the device means it can carry thousands fewer songs than every iPod currently on the market.
After spending millions of dollars on personalities from Snoop Dogg to Oprah Winfrey to lure subscribers, XM needs a way to give listeners access to that content beyond their cars, where most satellite subscribers tune in, said Ross Rubin, director of industry analysis at NPD Group, a Port Washington, N.Y., market research firm. The new portable players might also help XM protect its turf inside the car as more companies introduce ways to connect the iPod to car stereos.
''It enables the subscribers to get more value from their subscription by being able to enjoy the music in most settings. It's also a proactive move against Apple, because more solutions are appearing to listen to iPods in cars and that is obviously the bread and butter of satellite radio these days," Rubin said.
XM and competitor Sirius Satellite Radio Inc. are locked in a battle for subscribers, which the rivals are increasingly trying to lure with big name hosts. XM, which has 6.5 million subscribers, disclosed a deal with Winfrey to add the talk show icon as a host, and premiered a new show with reclusive music icon Bob Dylan this week.
Sirius famously paid shock jock Howard Stern $500 million to move his show from FM radio to its lineup, which also features rapper Eminem and Playboy founder Hugh Hefner. It has roughly 4 million subscribers.
Still, neither of the services are yet profitable. XM lost $149.2 million in the first quarter despite its revenue more than doubling to $208 million from $102.3 million in the first quarter of 2005.
Sirius lost $458.5 million in the quarter on revenue of $126.7 million. Both companies' shares are down roughly 30 percent since the beginning of the year.
That cash is invested in content which for the most part is only heard in cars, since people are primarily exposed to satellite radio through free trials offered by automakers when they buy new vehicles. XM spokesman David Butler said the radios are the firm's response to subscribers' requests for a way to take that content, which costs $12.95 a month, with them.
The new radios, four in all, each store a different amount of music and come with different features. The top-of-the line models -- Panasonic's Inno and Samsung's Helix, will retail for $399.99 and have enough memory to store 25 hours of XM programming and 25 hours of MP3 music. Both are about the size of an iPod with similar buttons and a small antenna for receiving XM broadcasts.
The devices come with docking stations and more powerful antennae for listening in the car or at home, where satellite signals are harder to receive than from outside. Users can record individual songs, or entire live XM programs to the device. They can also ''bookmark" songs and artists they hear and like, then plug the device into their computers where a new service offered by XM and Napster locates them and offers a chance to purchase the song.
Listeners can also upload songs to the radio from their computers, but content cannot be transferred from the device. Users can mix songs recorded from XM and those from their own collections into custom playlists.
XM will also roll out two cheaper radios, both manufactured by Samsung, this month: the $220 Nexus 25, which stores 25 hours of music, and the $270 Nexus 50, which stores 50 hours. While portable, both models can only receive live satellite signals when used with a docking station.
Rival Sirius also has a portable satellite radio that stores programming. The Sirius S50 retails for about $300 and will hold 50 hours worth of Sirius content or MP3s.
Keith Reed can be reached at reed@globe.com. 
