In spring 2002, XM and Sirius have been fighting for control of the emerging U.S. market for satellite radio. Each company targeting consumers in cars and offers 100 channels of CD-quality audio for a monthly subscription fee of 10 – $ 13th Wall Street analysts predicted that these companies would be profitable for 2005-2006, but investors were increasingly skeptical ventures, huge, irrevocable betting on customer acquisition and infrastructure. This case describes the business models o … Read more »

In spring 2002, XM and Sirius have been fighting for control of the emerging U.S. market for satellite radio. Each company targeting consumers in cars and offers 100 channels of CD-quality audio for a monthly subscription fee of 10 – $ 13th Wall Street analysts predicted that these companies would be profitable for 2005-2006, but investors were increasingly skeptical ventures, huge, irrevocable betting on customer acquisition and infrastructure. This case describes the business models of the satellite radio company, the technology that it employs, and their target markets. Poses questions about their pricing strategies, strategic partnerships with automakers and whether they should develop interoperable radios that receive either company.
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from
Thomas R. Eisenmann,
Alastair Brown
Source: Harvard Business School
22 pages.
Release date: 01 March, 2002. Prod #: 802 175 PDF-ENG
Satellite Radio HBR case solution

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