Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 20 November 2003
Share a link:
https://casecent.re/p/40589
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In early 2002, XM and Sirius were fighting for control of the emerging US market for satellite radio. Each company targeted consumers in automobiles, providing 100 channels of CD-quality audio for a monthly subscription fee of USD10-USD13. Wall Street analysts predicted that these companies would be profitable by 2005-2006, but investors were increasingly skeptical of ventures that required huge, irrevocable bets on customer acquisition and infrastructure. This case describes the business models of the satellite radio companies, the technology they employed, and their target markets. Poses questions about their pricing strategies, strategic partnerships with auto manufacturers, and whether they should develop interoperable radios that receive either company's signals.
Location:
Other setting(s):
2002
About
Abstract
In early 2002, XM and Sirius were fighting for control of the emerging US market for satellite radio. Each company targeted consumers in automobiles, providing 100 channels of CD-quality audio for a monthly subscription fee of USD10-USD13. Wall Street analysts predicted that these companies would be profitable by 2005-2006, but investors were increasingly skeptical of ventures that required huge, irrevocable bets on customer acquisition and infrastructure. This case describes the business models of the satellite radio companies, the technology they employed, and their target markets. Poses questions about their pricing strategies, strategic partnerships with auto manufacturers, and whether they should develop interoperable radios that receive either company's signals.
Settings
Location:
Other setting(s):
2002