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 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
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. Howard Allan Stern was born January 12, 1954 in New York, New York to parents Ray and Ben Stern. For
propositions that Sirius gives their 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.
willing to 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
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
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
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 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
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
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) 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
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
Emergence of Satellite Radio While the transition of television to a digital technology with its improved picture and sound quality has been a much publicized and controversial process, television's venerable ancestor, radio, has stayed in the background. But this year, in the United States, radio broadcasting is making its own digital leap. Two start-ups are introducing a new type of radio broadcast--subscription-based digital audio sent from satellites. With satellite digital audio radio services
1. Summary and 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
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
Yes, the mass exodus of subscribers is quite alarming to Sirius XM. The reason that this is alarming is because it was the first time in the 3-year period (2011-2013) that there was a net subscriber loss and additionally, subscriber deactivations were at an all-time record high on the transition from Q3 to Q4. The first reason that there could’ve been massive turnover is because of the increase in price enacted by the FCC. Having the minimum subscription cost be $9.99 when it used to run at $6.99
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
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