XM Satellite Radio is a company that is different than many that we have seen in the past. This is due to the rather small number of competitors that XM had in their industry. Although radio has been around for decades, XM Satellite Radio was much different by opting to use satellites to send signals to radios while having a much higher level of quality. At the time of XM’s creation, their sole competitor was Sirius, making it very difficult for others potential competitors to enter the industry
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
Mobile Satellite Corporation (AMSC) was formed with the intention of providing a satellite telephone, fax and data network. It was ruled by the Federal Communications Commission (FCC) that sufficient bandwidth existed for only one license to be issued for such broadcasting, which forced the competing firms to form the joint venture. It was the above named American Mobile Satellite Corporation (AMSC) who was granted the license. In 1992, CD Radio, who later changed their name to Sirius Satellite Radio
XM Satellite Radio: An Innovation Beyond AM and FM Radio How much do you enjoy drinking a nice cold beverage, reclining in your most comfy chair, while listening to your favorite radio station? Music is a very important part of the average person's daily life. We wake up to music set on our alarm clocks, sing to music in the shower, listen to music while driving to work, and enjoy it throughout the rest of our day. Well sit back and get ready to experience Radio to the Power of X. We're talking
merger of Sirius Satellite Radio and XM Satellite Radio, there are currently three radios (XM, Sirius, and SiriusXM). All of them offer a diversity of channels, but the platforms and prices are different. Howard Stern was also part of the merger promise, but there were a lot of issues and concerns from him about the censorships. Due to this setback the company’s stock took a turn for the worst. The reason I know is because in 7/2005, I purchased 280 shares of SIRIUS SATELLITE RADIO INC (SIRI), which
Sherman Antitrust Act of 1890 (Wikipedia 2001), it set forth precedent for many cases to be brought up against it for years to come. Such as the case of two major players in the entertainment community of Sirius and XM who both have a majority of the marketplace in the satellite radio business and their talks of consolidating both businesses into one. This article on Ars Technica (Lasar, 2008) expands on the idea that these corporate entities should not be allowed to merge into one corporation, but
JetBlue relies completely on technology with an operation strategy of choosing less crowded airports located near large cities to keep its turnaround down. In addition, JetBlue offers leather seats, LiveTV (a satellite service with programming provided by DirectTV), and began adding XM Satellite Radio to its fleet in 2005 to stress customer value. According to our chapter, the Service Value Model has six components that focus on customer value. The quality of JetBlue flights is a perception based on the
maintain our profitability in face of rising competition and fuel cost. Background: “AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI), is a low-fare airline designed for business travelers, offering Business class, new planes with XM Satellite Radio and EasyFit Overhead Bins, assigned seats, and our accommodating frequent flier program A+ Rewards. AirTran Airways' mix of low fares and an affordable Business Class with excellent customer service and one of the world's youngest all-Boeing
completion within the music industry since the media policy wars in the early 2000s. Since then, the radio industry arguably has lost a significant amount of the authenticity it once had. The only exception is college radio: the last safe haven for musical integrity. The only facet of radio not owned and controlled by a major monopoly. Recently, however, Clear Channel has gone to bed with college radio stations across the country. Although the corporate monopoly has shut out authenticity and artistic
customers in include assigned seating (contrary to its competitor, Southwest Airlines), leather seats, more leg room, and superior on-board service. Furthermore, JetBlue is one only a few airlines that offers each passenger free Direct TV and XM satellite radio entertainment. Finally, with regard to customer service, JetBlue focuses intently on attracting and motivating a talented workforce. The company gives each employee a sense of ownership in the operations. This value and respect bestowed on
pay $12.50/month for commercial free radio beamed right to their car or home. Well two companies and many big investors are betting about $3 billion dollars that people are willing to do just that. In 1997, the Federal Communication Commission (FCC) granted a portion of the S-band spectrum for satellite radio and two companies purchased use of these bands and started the only two companies competing in the satellite radio business today, namely Sirius and XM. Analysts like William Kidd of CE Unterberg
consumers. I think the number of radio stations and genres that they have is the most important. The second most important I think is that they have no commercials on most of their stations. I think that these value propositions would sell most of the nation, but that isn't true because there are only around 700,000 subscribers total. I completely agree with these value propositions, these value propositions give satellite radio the edge against FM and AM radio. Sirius's positioning statement
Satellite Radio When I drive my car around town running errands and going from place to place, it’s nice to listen to the radio. Now since this distance I am traveling seems to be within a 30-40 mile radius, flipping through the stations is not much of a problem for me. Now on the other hand, I do travel out of town frequently, and I hate it when I want to listen to the radio and there is no signal. The reason why none of us can is because radio signals don’t carry much farther than the town’s
COMPANY BACKGROUND SIRIUS Satellite Radio was incorporated on May 17, 1990 as Satellite CD Radio Inc. On November 18th 1999 the company changed their name to SIRIUS Satellite Radio Inc, which is the name under which the FCC license to distribute satellite radio was given to. SIRIUS Satellite radio currently offers over 100 of music, news, sports, talk, entertainment, traffic, weather, and children’s programming to subscribers throughout the United States. Their primary source of revenue is through
The Benefits of XM Radio Over the years, many people all over have listened to the radio for entertainment and information. Radio supplies news, sports, music, talk, and many other options with great ease. However, since television has become so popular lately, people look to it as an alternative to radio for the previously stated options. The reason for this can be linked to the redundancy that radio has encountered by not offering anything new and exciting for people to become interested about
does that leave Radio? 95 years ago radio was the second language of mass media and it has been around since, making it a great survivor medium. Radio has changed the way we communicate. The first broadcast was in 1916 out of the garage of Frank Conrad who moved his station to Westinghouse factory where he relaunched the station as KDKA on November 2, 19201. Radio has since branched out with each branch growing a new form of media to create a world of new Radio sub-categories. Radio has become a medium
Satellite Radio is at a point where several decisions need to be made before it sells its satellite digital radio. Some important considerations that XM need to decide on are: What type of segment(s) should XM market to? What will be the retail price of the product, and will XM require a monthly subscription fee? If so, how much should it be? Should XM allow advertisements on their programming? Is penetration pricing the best strategy? What would the early launch of SIRIUS SIRIUS is going
Sirius vs. XM: Ratio Analysis and Statement of Cash Flows Paper From the previous company selection paper, we are now familiar with the selected satellite radio broadcasting companies, Sirius and XM Satellite Radio. Our group will now take a further, in-depth look at the ratio analysis and statement of cash flows to get a better understanding of how the companies are doing financially and with in their market. First, we will be reviewing the cash flows for both companies and identifying how much
Sirius & XM Radio Merger Mergers among companies is not a new concept, in fact, this concept has been used since the 1980s. There are a few reasons that companies decide to merge. A merge can increase the performance which produces a stronger company. A stronger workforce is the dream of all companies. Companies love the idea that they are able to produce a product in half the time. Diversification is another reason companies like mergers. A company that merges to diversify may acquire another
Conclusion We believe XM Satellite Radio should offer a subscription-based offering of 50+ channels for $10 per month. XM needs to acquire new customers and we recommend using the $100M launch campaign as described in this report to generate significant customer adoption. 2. Situation Analysis a. Company XM Satellite Radio was founded in 1992 to provide radio entertainment to the via a satellite-based broadcast system. XM is a very early-stage company. Primary Issues · XM must define a business