Business Proposal for Sirius Satellite Radio Inc.
The following is a proposal for Sirius Satellite Radio to gain exclusive rights to Division 1 college football. It examines Sirius' current business model and how this new line of programming could be incorporated in to the existing model.
Sirius Satellite Radio offers advertisement free, subscription based, satellite radio service in the United States and Canada. Sirius was founded in 1990 as Satellite CD Radio Inc., but, according to Radio Ink, officially changed it's name, to the current designation, in 1999. According to Yahoo Finance, they are listed on the Nasdaq 100 under the service industry and have the designation SIRI. The company is run by CEO Mel Karmazin. The CFO and Executive Vice President is David J Frear. Jame E Meyer is the President of Operations and sales. Scott A. Greenstein is the current President of Entertainment and Sports Operations. Finally, Patrick L. Donnelly is acting Executive Vice President, Secretary, and General Counsel. (Yahoo)
According to their website, Sirius's business model is to provide pay-for-service radio, analogous to the business model for premium cable television, in which music channels are free of commercials. Subscriptions are prepaid, with at least three months purchased at a time, and range in price from $12.95 monthly ($6.99 for each additional receiver) to $499.99 for lifetime subscription. There is a $15 activation fee for every radio activated. According to Yahoo Finance, Sirius offers commercial-free music channels that provide a selection of music genres, such as rock, pop, hip-hop, country, dance, jazz, Latin, and classical; and channels of sports, news, talk, entertainment, traffic, and weather content. A...
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... exclusive content. Division 1 college football would be excellent exclusive content that could attract many new customers and make existing ones even happier to have a Sirius Satellite Radio.
Sources
Yahoo Finance. Retrieved 02/02/08. http://finance.yahoo.com/q/pr?s=SIRI
Sirius Satellite Radio. “Corporate Overview” .Retrieved 02/02/08. http://www.sirius.com/aboutus
Knowledge@Warton (February 22, 2006). “Sirius Satellite Radio and Howard Stern Go Ear to Ear with XM”. Retrieved 02/02/08. http://knowledge.wharton.upenn.edu/article.cfm?articleid=1393&CFID=53784779&CFTOKEN=70274173&jsessionid=a8303bc0fa873d673735
NASA. “Satellite Tracking”. Retrieved 02/02/08. http://science.nasa.gov/programs/pagebuilding/trackmusicsats.asp
Radio Ink. “CD Radio Announces Name Change.” Retrieved 02/02/08. http://www.radioink.com/HeadlineEntry.asp?hid=28066&pt=archive
Howard Stern is a radio personality, producer, actor, author, and is the self proclaimed “King of All Media”. Stern is widely known for “The Howard Stern Show”, which was aired on FM radio from 1986 to 2005, until it moved to Sirius XM Radio in 2006. Stern specific style of “shock jock” radio is what makes him so popular, taking him only four years to get his show nationally syndicated in 1986.
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Sack, Allen L. 1991. "The Underground Economy of College Football." Sociology Of Sport Journal 8, no. 1:
Music Television, a basic cable service known by its acronym MTV, remains the dominant music video outlet utilizing effective marketing and competitive business practices throughout its nineteen year history. The creation of the "I Want My MTV" marketing campaign and use of the campaign throughout the 1980's helped the cable outlet secure a substantial subscriber base. MTV dealt with competition from cable mogul Ted Turner's Cable Music Channel by creating a fighting brand, sister cable service VH-1, along with facing challenges by numerous other music video programming services. Through exclusivity agreements with record labels for music videos and limiting access to cable systems owned by MTV's parent company, MTV exercised anticompetitive and monopolistic means to fend off competition. From its launch, MTV successfully applied these marketing and competitive business practices. The board of the Warner - AMEX Satellite Entertainment Company (WASEC), a partnership between Warner Communications and American Express, gave approval in mid-January 1981 for the creation of a cable service that would broadcast music videos . Music videos, song length visual depictions used in the promotion of a musical act's latest release, were already popular on European television since the mid 1970s. A deadline of August 1, 1981 was set for the launch of this new cable service as programs featuring music videos were beginning to appear on cable outlets such as Home Box Office and USA Network. The set-up and programming of the entire operation was to be established in approximately six-and-a-half months.
With the recent controversy and scandal surrounding the University of Colorado and the college football world, this off season has been one of the busiest ever. College Football has experienced an eye-opening revelation and these experiences call for major changes in the traditional recruiting practices. Last month, stories surfaced about the University of Colorado using sex, alcohol, and parties to lure blue chip recruits to their program. While these types of actions are prevalent at every major football program, this is the first time that they have been officially exposed. This exposure has started a chain-reaction of changes to the recruiting part of college football and has grabbed the attention of the United States Congress. The involvement of the most powerful government in the world shows the seriousness of the present situation and also that these inappropriate recruiting practices are not going to be ignored any longer. The face of college football will change dramatically and the results of this scandal will have a lasting impact for decades to come. For any person who follows college football and has a favorite team, this is an important issue because the traditional way that many of us have come to love, is about to disappear.
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exposes most Division II sports drain athletic budgets and do not make a profit. ...
Bose Corporation was established in 1964 by Dr. Amar G. Bose he was a professor of electrical engineering in Massachusetts Institute of Technology (Business Wire, 2013). The company fundamental goals developed new technologies in satisfaction of pleasing their customers. New technological advances impacted the corporation in a positive way and innovated new ways for decades to gain customers outlook. Some of the technological advances of the corporation are products for the home, car, and public spaces. The noise cancelling, audio headphones and Bluetooth speakers has changed the way people listen to music.
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Satellite radio is a technology that provides a radically new way to listen to radio. XM’s service makes use of advanced satellite capabilities and elaborates terrestrial receiver architecture to deliver a wide array of high quality radio programming nationwide. In early 1998, Robert Acker, director of strategic planning at XM, needs to develop a marketing strategy for this new radio service. There are several decisions that need to be made by the company in order to finalize the business plan. At fist XM needs to decide which of two business models to pursue, whether emphasis should be placed on charging customers a monthly subscription fee, or whether to rely more on earning revenue through advertising. In addressing this problem, management must consider the value that XM radio could propose for different consumer segments as compared with existing modes of radio (AM, FM) and in relation to its sole competitor in satellite radio – SIRIUS. Besides choosing a business model there is also a need to explore how best to approach and leverage manufacturer and channel partners, considering high unknown and high-risk technology. The purpose of this report is to analyze possibilities and outline possible recommendation on strategies for XM Radio. The following areas will be examined:
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find it difficult to set up a business and make it a success. This is