Fm Radio - Analysis
1) XM Overview
a. Financial overview
b. Operations
c. Products and services
d. Strategic alliances
e. Current crisis:
2) Market Analysis:
a. Market share
b. Market size and trend
c. Target customers and Segmentation
d. Future and forecast
e. International market growth opportunities
3) Distribution channels Analysis:
The most useful segmentation of the satellite radio market is by the channel through which the subscriptions are obtained. Net subscriber additions refers to the total number of subscriptions acquired in a given period of time and deducts all non-renewed subscriptionsincluding expired promotional subscriptions that were not converted to normal subscriptions. XM segments it market through three channels.
i) Distribution through OEM: Satellite radio subscriptions that come in through the OEM auto maker channel are frequently attached to a promotional period in which XM or Sirius receives approximately half of the subscription revenue as it would with a non-promotional subscription. Depending on the satellite radio providers' role in the promotion, the revenue amount received for a promotional subscription may be higher or lower. The OEM promotional periods typically range from three months to a year and are paid for, in part, by partner manufacturers.
Consumers who obtain their satellite radio with the purchase of a newor recently manufacturedcar simply activate their service through one of the broadcast providers. These radios are specially designed for individual car models. In a new car, the satellite radio is an original equipment manufacturer (OEM) component that is either pre-installed in all of the models or is an optional upgrade. In an increasing number of models, the radios are AM/FM/SAT, which receive both satellite and traditional radio broadcasts.
Figure 7: Net OEM subscriber additions for XM, 2002-2004
Year Net...
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