Sirius Xm Radio and Xm Satellite Radio Essay

Submitted By hannypabs81
Words: 532
Pages: 3

SiriusXM creates and broadcasts commercial-free music; premier sports and live events; news and comedy; exclusive talk and entertainment; and the most comprehensive lineup of Latin commercial-free music, sports, and talk programming in radio. After the merge of Sirius Satellite and XM Satellite Radio in 2008 SiriusXM is the only firm in the satellite radio industry. Launching a new satellite is very expensive (high fixed costs) which creates further barriers to entry.
SiriusXM is a price setter (market power); they set the price of their subscription services. It does not take the market price as a given. 70% to 80% of cars sold, including new and pre-owned, have SiriusXM pre-installed example of store ubiquity; in addition the new car customer receives a free trial subscription. The key components of SiriusXM are satellite radio infrastructure, ground repeater and radio receivers, which have an electronic serial number or Radio ID to identify it. Even though the company is perceived as too dependent on auto sales, they do not have competitors on satellite radio market. However, their competitors are territorial and Internet radio providers. As a result, Sirius XM has launched their product via Internet too. One of the barriers to entry into the satellite radio market is the high capital requirement. Although this created a monopoly of the satellite radio market, it was perhaps the only way satellite radio could survive. The investment into satellite technology is a significant barrier that prevents other companies from entering the market. Furthermore, Sirius XM has a tight grip on the market preventing smaller companies from entering and competing with them. Sirius-XM is a company that has a moat. It has several things that make it hard for a competitor to enter this market. One thing is the content, they have such a selection of programming on there, two, the marketing, with the merger of Sirius, to XM, they had a total lock on the format, and total name recognition. Another thing is the price, their prices are reasonable, and with that, it would make it hard for a competitor