1. Satellite Radio
Sirius Vs XM

2. Group Introduction
Anil Kumar Dayal S-10
Anil Goel S-11
Anil Kumar S-12
Ankit Agrawal S-13
Ankit Barua S-14
Apurva Saxena S-15
Arun Yadav S-16
Ashish Khurana S-17
Atul bansal S-18

3. Agenda
•Satellite Radios – Working
•Beginning of an era – Sirius/XM
•Market Analysis
•Sirius vs. XM
Sirius
•The need and benefits of Merger
•CEO’s word
•Summary & Conclusion

4. How Do Satellites Works
How Do Satellites Work.flv

5. SATELLITE RADIO ?
A satellite radio or subscription radio (SR) is a digital
radio signal that is broadcast by a communications
satellite,which covers a much widergeographical range
than terrestrial radio signals.

6. Satellite Radio
Satellite Radio.flv

7. As the satellites orbit the earth, programs are beamed to them from broadcast
stations. The satellites then transmit the signal to special antennas on homes,
cars and portable radios. Terrestrial repeaters throughout the country also
receive the signal and help ensure that it's transmitted to receivers, especially
in areas with tall buildings that might block the signal.

8. Satellite Vs Terrestrial
Subscription based
Geographical range Superior Quality
Reliable Technology
More Variety

9. Satellite Vs Terrestrial
Subscription based
Superior Quality
Reliable Technology
Covers a much wider geographical range
than terrestrial radio signals
More Variety

10. The Beginning…..
Allocation of spectrum for national
broadcasting of satellite based digital audio
service in 1992
Sirius and XM received approval to
broadcast from FCC in 1997
Launch of satellites by XM & Sirius
Technological challenges gave XM a head
start over Sirius

11. Challenges
FCC license and accompanying dedicated radiofrequency band
Extensive up-front capital needed
Proving to investors that returns will out weigh risk
Infrastructure
Getting customers to pay for a service that has been and still is free
Radio industry is basically in the Sales decline stage of the product lifecycle
Coping with Interference from Other Competition

12. USP
Provide an improved listening service
Allow listeners a commercial free and clear
digital sound
Provide listeners more variety of stations when
they want them

13. Threats
Competition
Total Satellite failure
Rapidly changing technology could leave
Satellite Radio to be an obsolete service

14. Opportunities
Subscription Charges
Sale of Receivers
Accessories
Advertisements

15. Sirius XM
Satellites 3 satellites 2 satellites
Programmi 130+ channels, including: 170+ channels, including:
ng •69 commercial-free music channels •70 commercial-free music channels
•18 news and talk channels •92 news, sports, talk and
•11 entertainment channels entertainment channels
•11 local traffic and weather •21 traffic and weather channels
channels •Major League Baseball , NBA
•NFL football, college sports, NBA basketball, NHL hockey, college
basketball, soccer, horse racing, golf sports, golf and IndyCar
and NASCAR
Highlights Howard Stern Bob Dylan
Martha Stewart Oprah Winfrey
A weekly rock show with Opie & Anthony
skateboarder Tony Hawk Shows hosted by Snoop Dogg, Tom
NBA and NFL games Petty and Quincy Jones
Three video channels FOX sports radio
Listen on the Internet for free

16. Price $12.95 per month $12.95 per month for basic
($16.99, including the package ($16.99 including
Best of XM) the Best of Sirius)
$15 activation fee over $14.99 ($9.99 online)
the phone; $10 online activation fee
Availability The continental United The continental United
States and Canada States and Canada
Subscribers 8+ million in 2008 9+ million in 2008
Already Available installed in Available installed in a
Installed many cars, including variety of cars, including
Chrysler, BMW, Mazda, Audi, GM, Honda, Nissan,
Mitsubishi, Toyota, Hyundai, Toyota and
Volkswagen and Ford Porsche models
cars

18. XM
Satellites used
Two Boeing HS 702 – nicknamed "Rock" and "Roll“
XM launched "Rock” on March 18, 2001, with "Roll"
following on May 8 of the same year.
A design flaw in the HS 702 satellite caused its solar
panels to function inefficiently.
Two BSS 702 satellites it calls "Rhythm" and "Blues“
XM launched "Rhythm" on February 28, 2005, and
"Blues" on October 30, 2006, to replace the older
satellites.
XM Radio powered down "Rock" and "Roll.“
The older satellites remain in orbit and can serve as
backups, if necessary.

19. Sirius
Satellites used
Sirius used three SS/L-1300 satellites, instead of GEO
satellites, to form an inclined elliptical satellite constellation.
Elliptical path of the satellite constellation ensures that each
satellite spends about 16 hours a day over the continental
United States, with at least one satellite over the country at
all times.
Sirius completed its three-satellite constellation on Nov. 30,
2000.
A fourth satellite will remain on the ground, ready to be
launched if any of the three active satellites encounters
transmission problems.
In 2006, Sirius purchased a GEO satellite because of its
superior signal delivery. The GEO satellite will supplement the
elliptical satellites, not replace them. It is currently under
construction.

20. WorldSpace
Worldspace has been the farthest-reaching company in the satellite
radio industry.
It put two of its three satellites, AmeriStar, AfriStar and AsiaStar, in
geostationary orbit before either of the other two companies
launched one.
It has invested in Sirius XM Radio and has an agreement with the
company to share any technological developments.

21. Mar ‘2005
3.5 250
3
200
2.5
2 150
Sirius Sirius
1.5 XM 100 XM
1
50
0.5
0 0
Subscriber Base ( Millions ) Revenue ( $ Million )

22. Why XM?
Saved Valuable time by tying up with
experienced firms like Pioneer ,Sony.
Offered less expensive and more
sophisticated receivers .
Aggressive marketing strategy : tied
up with several large automakers ,
AIRLINES

23. Cost per New Subscriber
SIRIUS
XM
0 50 100 150 200 250
Cost per Subscriber ( $ )

24. Merger - Need
Both the companies entered into a merger on
July 29, 2008
Mounting Losses – Both companies are loosing money
big time and no sign of making break-even soon.
Market Segment – The subscriber growth in the
industry itself was not that high and was not sufficient
enough to support even two companies.
Redundant Hardware – Due to regulatory requirement
the hardware had become redundant as the broadcast
from both the companies should be supported on both
the hardware.

25. Merger - Benefits
Both the companies entered into a merger on
July 29, 2008
Cost -Both companies will operate as one, this will
reduce the cost of licensing the broadcast material .
Variety - If all of the non-duplicate channels are kept,
this will result in more programming being made
available to subscribers of both services
New development - the new company can afford
to spend more money to develop new products

26. Merger - Benefits
Wide coverage of Automakers via
partnership for offering satellite radio as
original equipment.
Ford GM
Lincoln Cadillac
Chrysler
BMW Mercury Chevrolet VW
Dodge Toyota
Provid MINI Volvo Buick Honda Hyundai Mitsu Nissan Por Audi Suzu
Mercedes- Lexus
er Rolls- Land Pontiac Acura Kia bishi Infiniti sche Bentle ki
Benz Scion
Royce Rover GMC y
Jeep
Jaguar Saturn
Mazda Saab
Sirius Yes Yes Yes No No Yes Yes ? No Yes Yes No
XM No No No Yes Yes Yes No Yes Yes Yes No Yes

27. Numbers after the merger
Total Number of subscribers
18.6 million for Sirius XM radio
Income Statement

28. Numbers after the merger
Income Statement – Quarterly
Last three quarters have been profitable

29. CEO’s Word

30. Road Ahead
Free or terrestrial radio
Attracts 225 million listeners each day
Clear channel has reduced adv time from 20
min/hr to 12 min/hr to gain listeners
Advent of HD Radio
Localized Content
Internet
Music on cell phones, MP3 player & computer
Podcasters

31. Market Penetration

33. Thank You