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
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
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
Brand Profile for XM Radio *Brand Name: XM Radio *Brand Quality: Superior digital sound technology, unparalleled signal coverage, proven chipset technology, and outstanding programming. *Physical Characteristics of the Brand: All hardware is manufactured by third parties, the service is all that is supplied by XM; however all hardwire contains the XM logo. *Brand Strategy: “With XM, listeners will enjoy the clearest the clearest, hottest, hippest, and most provocative radio entertainment, seamlessly
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
Mobile Satellite Corporation (AMSC) who was granted the license. In 1992, CD Radio, who later changed their name to Sirius Satellite Radio, successfully petitioned the FCC and Congress to examine the creation of a new digital audio radio service in the United States (Uhle, 1998). Seeing the potential of digital broadcasting the American Mobile Satellite Corporation created a new division of the company called American Mobile Radio Corporation (AMRC). This new company AMRC was one of four other potential
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
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
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
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 I still
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
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
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 expectation that the customers have
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
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
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
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
Sirius XM Canada has to address several problems that arose from their merger before they can successfully become a combined company. The first problem is not having a unified management structure ready to support the Combination Transaction. A second more pressing problem is the conservative approach on proposed synergies. A third problem has to do with the marketing expenditures and how to effectively manage distribution and sales strategies. Lastly, a fourth problem is creating a solid financial
During the summer and fall of 2014, Sirius XM, an American satellite radio broadcasting company, was found guilty of consumer fraud. The company’s means of fraud included, but was not limited to, misleading advertisements and unfulfilled promises. After many consumer complaints, the issue was taken to court. There, 45 United States Attorney Generals announced that Sirius XM Satellite Radio was guilty of misleading, unfair, and deceptive practices which violated state consumer protection laws (Hood
feasible option was to go through this system. To obtain music of high quality, people had to buy vinyl singles or albums or tape, and later, only CDs. There was no practical way to listen to music before buying it without listening to or taping off the radio. Music was very restricted by several different record companies. The record labels in the industry select what music they think people want to hear, and they try to sell the music. Although a lot of times the artists the labels push are not successful