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Sirius Radio Merger

1799 Words8 Pages

The other company in the merger, Sirius Satellite radio, is a satellite radio company that is based out of New York City. Like XM Satellite radio company, Sirius offers a plethora of channels also. XM contains provides around 135 channels to the subscribers with 69 channels of containing commercial-free music and the additional 65 channels composing of a compilation of sports, news, talk, entertainment, traffic and weather, and data content (Thierer, 2007). As far as finances, the main primary source of income comes from the group of subscription fees which accumulates to over 6,024,555 subscribers. Additionally, Sirius receive income from initiation fees, non-music channels sale advertisements, and the SIRIUS radios and accessories direct …show more content…

Sirius and XM, even though merged, will keep the names of the two companies separate until the obligations within the contract terms are met (Thompson and Reed, 2015). Sirius XM will also offer channels that are priced individually. There were some additional conditions of the merger that included allowing other companies make satellite radio devices, producing latest radios that can receive the Sirius XM channels within one year time-frame, allowing consumers to choose which channels they would like purchase with their subscription, and freezing subscription rates for at least three years (Thompson and Reed, …show more content…

One is the partnerships they have with car manufacturers. These partnerships have been extremely important moments in the growth of satellite radio over the past number of years (Braiker, 2008). The majority of the deals include car installations with capability of a Sirius radio, especially in the brand new manufactured vehicles (Sidak, 2007). It is also important for Sirius XM to move forward not only with the inclusion of the radio but with also a Sirius XM subscription that could possibly last for a lifetime in the transaction of new cars. By doing so, Sirius XM will be able to make their product the gold standard within the market place similar to the inclusion of an AM/FM radio which is currently the standard. One of the main keys to this strategy and in order for this strategy to be successful, the support of the car manufacturers are needed (Thierer, 2007). This can be best achieved by the sharing of revenue which is produced from various sales. This would probably have a slight adverse effect on revenue; however, if Sirius XM ever could become the new standard for the new car audio entertainment, it could be very profitable and yield major revenue(Kawamoto,

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