Summary: Suppliers For Sirius XM

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Bargaining power of suppliers – Suppliers for Sirius XM are the content providers of music and various other programming. Before these two companies operated as a single entity, these providers had an advantage to push up the negotiations for content in demand and during 2002-2007, executives from both sides understood they were paying through the nose to achieve the right and desired content. However, post-2007 once the sole entity in satellite radio arena started pushing for hard bargains, being the sole purchaser for so many subscribers and for being assured of generous fees, the channels had to get their contracts rented at lower fees. This has allowed Sirius XM to lower its per subscriber cost incredibly which now stands at $0.76 in 2016.
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