¶ … Sirius and XM Satellite Radio
Satellite radio has emerged in the past few years as the hot new trend in broadcasting. Operating similar to DirecTV, satellite radio companies bounce their signals off satellites to beam high-quality digital service coast-to-coast, offering exclusive ad-free programming. Satellite radio offers listeners the opportunity to hear any show anywhere in the United States, combining the benefits of premium quality sound and convenience when traveling on the road. Research indicates that similar to the way FM radio grew against dominant AM radio, satellite radio is becoming known for "edgier" alternative programming (McCarthy, at http://www.usatoday.com/money/media/2004-10-6-radio-compare_x.htm). The entire satellite radio industry is currently made up only two companies, XM Radio, which started broadcasting in 2001 and has 2.5 million customers, and Sirius, with 600,000 subscribers since going live in 2002. This paper will offer a comparative analysis of the two companies and a general overview of the satellite radio industry itself.
Overview of Satellite Radio
Just as many TV viewers have come to consider cable TV a life necessity, so too is satellite radio becoming a mainstream replacement for traditional AM/FM listening. Similar to cable, this service has to be paid for, but just as with cable, you get a lot more channels and edgier, more innovative programming. An additional benefit is that there is no loss of your favorite station as you travel across the state or country. As an added plus, satellite players show the artist and name of the song, which is definitely an incentive for those who like to know what they're listening to. I
In 1992, the U.S. Federal Communications Commission (FCC) allocated a spectrum in the "S" band (2.3 GHz) for nationwide broadcasting of satellite-based Digital Audio Radio Service (DARS) (Gustafson, at http://ezinearticles.com/?Sirius-SatelliteRadio-vs.-XM-Satellite-Radio-- -- which-streams-should-you-choose/). Of the four companies that applied for licenses, only two were granted rights to broadcast; Sirius (formerly CD Radio) and XM (formerly American Mobile Radio). Each company has satellites in orbit above the earth to transmit their programming. Programs are beamed to one of the satellites, which then transmits the signal to the ground, where your radio receiver picks up one of the channels within the signal (Gustafson, at http://ezinearticles.com/?Sirius-SatelliteRadio-vs.-XM-Satellite-Radio-- -- which-streams-should-you-choose/). Signals are also be beamed to ground repeaters for listeners in urban areas where the satellite signal can be interrupted.
In many ways, research on the industry indicates that Sirius has set the tone for the industry, being the first to offer commercial free programming on all its music channels and has larger selection of receivers, adapters and other products. XM has a cheaper subscription fee, at least for its basic plan, which offers much the same fare as its competitor. Both providers have partnered with automobile manufacturers to offer satellite radio in new car models. Each has systems that will search the channels for your favorite music and alert you when and where the songs are playing. A further comparative analysis is offered in the paragraphs that follow.
Research indicates that satellite radio is in the very early stages a predicted long, multi-year growth curve. There are over 208 million drivers in the United States, and most of those drivers listen to traditional broadcast radio during their daily commutes or on the way to their local convenience store (Tracey, at 23). In 2004, Americans purchased over 28 million car radio systems, 17 million installed into new vehicles and 11 million sold for installation into used cars (Tracey, at 23). Much like cable, satellite radio offers a wider choice for consumers. Even in large metropolitan areas like New York and Washington DC, there are only 15 to 20 broadcast radio stations available (Tracey, at 23). Outside of the major cities, the programming choice is even narrower, whereas satellite radio offers 100-plus channels available literally anywhere in the United States.
One key to the industry's strategy is that satellite radio is not limited by the geographic boundaries that govern regular radio stations. With the potential to reach people across the country, even channels of relatively narrow interest, classic country and western or pop music just from the 1970s, for example, can reasonably be expected to attract a large enough audience to justify their existence, according to industry analysts (Silverstein, at http://www.space.com/businesstechnology/technology/satcom_radio_industry_031112.html). Secondly, satellite radio companies are creating an array of channels to appeal to every taste. For example, XM offers 122 channels, consisting of 68 commercial-free music channels, 33 news, sports, talk and entertainment channels, and 21 weather/traffic channels (McCarthy, at http://www.usatoday.com/money/media/2004-10-6-radio-compare_x.htm). Sirius offers 120 channels, consisting of 65 commercial-free...
It is too early to gauge the results of this initiative, although early results of 1 million downloads in two weeks are positive (Kharif, 2009). Another competitor is Internet radio. This industry is fragmented, with hundreds if not thousands of operators. It has many of the same content advantages of satellite radio, including the ability to offer a wide range of formats. It is at a content disadvantage, however, because
3). The original cable television analogy did not prove viable for Sirius XM, partially because cable TV became ubiquitous when there were fewer free entertainment options open to consumers. Furthermore, even television itself has become less popular, as more consumers are turning to streaming web-based content to get their visual 'fix.' Consumers have become more rather than less beholden to using the computer to get their news, entertainment, and downloadable music,
But implementing the subscription-based broadcast could only be realized if there are sufficient customers who would pay for a commercial free radio channel. And in these circumstances, success would only be possible after financial analyses too. These financial analyses would tell the company officials if the demand for advertisements-free radio channels, and consequently the revenues adherent to the subscriptions would be enough to sustain corporate growth, development and sufficient profits. All
Satellite Radio: The New Technology Everyone is familiar with cable TV. To get TV signals sent to your TV via cable, the cable company runs wires to your home. It's similar to traditional phone services. Depending on where you live, the wires may be strung above ground or hidden below ground, but the signal to your TV arrives through a physical channel - a wire. Some people have dropped cable TV in
23 Blue sheet Info, Societal, Political, Legal -- w / # from Blue sheet] Alt market + Nonmkt [6 + 7] analysis Mkt reactions Select strategic action [8] Is it legal and ethical? Selected? (Yes / No / Wait) Implementation of strategic action for " each" strategy [9] Provide details of what you will do to achieve your objective(s) Id strategy by its # [Identify facts, figures, #s, outside sources} Information: 1.Talk to FTC, BBB and get the information about
He doesn't mention Apple's iPod, iPod Touch, and iPad, but those devices also pose a challenge for traditional radio broadcasting. People can "…select music that suits their individual tastes and many have wider repositories of music in their own libraries" -- thanks to the iTunes and similar services -- than are offered on the playlists of radio broadcasters (Picard, p. 1). Moreover, Satellite and Internet radio are offering "hundreds of
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