Case: Xm Satellite

Case: XM Satellite

                                        Qisheng Zhang 861188631

Introduction

XM satellite Radio Company in the United States provides for the auto mobile receiving and fixes receiving high quality such as satellite digital broadcast. Incorporated in 1992, XM satellite radio has gained more than 60000 users all over the country.

With the largest and most extensive radio in the United States, XM headquarter in Washington, D.C., and use the 3 satellites. Owning 21 channels separately for traffic and weather updates, 30 news, sports and entertainment, and more than 2 million songs, XM satellite entertains, informs and instructs the audience, and also provides 69 independent network songs.

With XM, users can watch many sports broadcast more than 5000 games, including major league baseball, college football and basketball administrative coordination. XM also have different kinds of talk shows, including Allende, Johnny, al Franken, jerry Springer and the host of the more popular. Besides, users can listen to XM, anywhere without having to use a radio, because the company provides online streaming service all the customers with an Internet connection. The service is part of the standard of XM subscription, and all the XM music is completely free of business, not to stop broadcasting, without interruption.

Value Proposition

Since XM Satellite Radio was found in 1992 as a subsidiary of American Mobile Satellite Corporation, their products and business tend to concentrate on their value propositions. The vision of them is to support audio entertainment by using of a satellite-based digital radio broadcast system providing 50 or more channels of audio directly to consumers throughout the continental United States. Surprisingly, XM assumed to use two high-power satellites, spatial diversity concealing error in the signals, and its terrestrial repeater networks would make sure a listener could travel across several states without losing the signal, which must be more advantage than traditional AM/FM radio. The network also works on a direct stream with relative good quality to terminals, which definitely better than CD has. The satellite radio is developing with more open future, and traditional earning model is applied into the satellite radio system like the advertising based revenue model of AM/FM radio. Due to the FCC restricted licensing in satellite radio, the value proposition of XM Satellite radio will have few competitors, which makes them leading this field as monopoly in the satellite radio market. However, SIRIUS had the tendency to plane fee-based service charge about $10 per month for 50 channels of near “CD quality” programming sound. XM radio is going to compete on the commercial-free feature by the potential new product. Besides, the development of satellite radio technology would approve that XM Company create the specific products on their consumers.