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Satellite radio is defined by the International Telecommunication Union (ITU)'S ITU Radio Regulations (RR) as a broadcasting-satellite service. The satellite's signals are broadcast nationwide, across a much wider geographical area than terrestrial radio stations, and the service is primarily intended for the occupants of motor vehicles. It is available by subscription, mostly commercial free, and offers subscribers more stations and a wider variety of programming options than terrestrial radio.

Satellite radio technology was inducted into the Space Foundation Space Technology Hall of Fame in 2002. Satellite radio uses the 2.3 GHz S band in North America for nationwide digital radio broadcasting. In other parts of the world, satellite radio uses the 1.4 GHz L band allocated for DAB.

Sirius Satellite Radio was founded by Martine Rothblatt, David Margolese and Robert Briskman. In June 1990, Rothblatt's shell company, Satellite CD Radio, Inc., petitioned the Federal Communications Commission (FCC) to assign new frequencies for satellites to broadcast digital sound to homes and cars. The company identified and argued in favor of the use of the S-band frequencies that the FCC subsequently decided to allocate to digital audio broadcasting. The National Association of Broadcasters contended that satellite radio would harm local radio stations.

In April 1992, Rothblatt resigned as CEO of Satellite CD Radio; former NASA engineer Robert Briskman, who designed the company's satellite technology, was then appointed chairman and CEO. Six months later, Rogers Wireless co-founder David Margolese, who had provided financial backing for the venture, acquired control of the company and succeeded Briskman. Margolese renamed the company CD Radio, and spent the next five years lobbying the FCC to allow satellite radio to be deployed, and the following five years raising $1.6 billion, which was used to build and launch three satellites into elliptical orbit from Kazakhstan in July 2000. In 1997, after Margolese had obtained regulatory clearance and "effectively created the industry," the FCC also sold a license to the American Mobile Radio Corporation, which changed its name to XM Satellite Radio in October 1998. XM was founded by Lon Levin and Gary Parsons, who served as chairman until November 2009.

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