Think of it like FM radio. It's free for us to listen but we have to sit through advertisements. XM and sirius said hey, let's have people pay to listen, so don't have to make them sit through ads. Basically just a different biz model. That model can work though because you don't necessarily need critical mass to have people consume your content. (Yes to a certain extent you do) But the critical mass needed for the n…
But they're also SATELLITE radio. That is a huge value add over traditional radio service. I don't think users were only paying for sirius/XM because the services didn't have ads. It was because the products were technically superior.
Although I think they are running ads in some markets... Guess they couldn't survive on the no ads model and are going hybrid?