Scribd Logo
Upload

Welcome to Scribd!

  • 16 views

    Future Challenges

    Uploaded by

    Suraj Kumar
    XM and Sirius faced high costs from content deals and promotions in 2006. Competition was also intensifying from digital terrestrial radio and new MP3 players from Apple and Microsoft. One of XM's greatest challenges would be determining which markets to target demographically and in terms of adoption potential, such as older consumers more comfortable with radio or underdeveloped female and Hispanic markets. XM must also decide its best strategic positioning by targeting Sirius, terrestrial radio, or a different approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Future Challenges

    Uploaded by

    Suraj Kumar
    16 views1 page
    XM and Sirius faced high costs from content deals and promotions in 2006. Competition was also intensifying from digital terrestrial radio and new MP3 players from Apple and Microsoft. One of XM's greatest challenges would be determining which markets to target demographically and in terms of adoption potential, such as older consumers more comfortable with radio or underdeveloped female and Hispanic markets. XM must also decide its best strategic positioning by targeting Sirius, terrestrial radio, or a different approach.

    Original Description:

    Original Title

    123

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    XM and Sirius faced high costs from content deals and promotions in 2006. Competition was also intensifying from digital terrestrial radio and new MP3 players from Apple and Microsoft. One of XM's greatest challenges would be determining which markets to target demographically and in terms of adoption potential, such as older consumers more comfortable with radio or underdeveloped female and Hispanic markets. XM must also decide its best strategic positioning by targeting Sirius, terrestrial radio, or a different approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views1 page

    Future Challenges

    Uploaded by

    Suraj Kumar
    XM and Sirius faced high costs from content deals and promotions in 2006. Competition was also intensifying from digital terrestrial radio and new MP3 players from Apple and Microsoft. One of XM's greatest challenges would be determining which markets to target demographically and in terms of adoption potential, such as older consumers more comfortable with radio or underdeveloped female and Hispanic markets. XM must also decide its best strategic positioning by targeting Sirius, terrestrial radio, or a different approach.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Future Challenges

    By the end of the second quarter of 2006, XM had a total of 6.9 million subscribers and expected to have
    8 million by the end of 2006. Sirius added 600,460 subscribers during the second quarter of 2006 which
    brought its total number to 4.6 million. However, both satellite radio companies are facing high costs
    resulting from the deals they made to acquire programming content. Costs for advertising and promotion
    are also high as both companies offer rebates to retail customers and pay incentive fees (spiffs) to retailers
    each time someone buys a satellite radio in the store and activates it. In addition competition is
    intensifying as terrestrial radio begins promoting its digital capabilities and service, Apple released new
    iPods and Microsoft entered the music market with its new line of Zune MP3 players. In August 2006,
    Apple announced deals with General Motors, Ford and Mazda that will result in 70 percent of U.S. made
    cars offering built-in iPod compatibility by 2007.
    One of the greatest challenges XM Satellite Radio faces in the future is determining which
    markets to target in terms of demographics as well as adoption potential. As noted earlier, satellite radio
    appeals to consumers across all adult age groups. Rather than competing directly with Sirius for the 18-
    34 year old male group, XM might have more success targeting older consumers who are more
    comfortable with the radio format than MP3s and Internet radio. Similarly, XM might consider more
    aggressively pursuing females as well as the Hispanic market with additional marketing programs and
    content. Both groups are currently underdeveloped in terms of usage and have significant growth
    potential.
    XM’s challenges also include determining the best strategic positioning for its service. XM must decide
    whether to directly target Sirius by communicating that it has the best content, hardware, and sound
    quality; whether to target terrestrial radio by focusing on XM’s content, national coverage, commercial
    free music, and superior sound; or whether to target more

    You might also like