Read the assigned case study on the XM Radio and answer the following discussion questions: 1.Which competitors should XM target in the future: Sirius, terrestrial radio, MP3 players and podcasts, or Internet radio? Sirius and XM are actually merged now so they should focus on expanding this service. SiriusXM’s first target should be terrestrial radio; terrestrial radio is the largest way to listen to music still today. It is complementary to every vehicle and has been forever, it is convenient, and it is what drivers are used to. The advantage of SiriusXM is that there are less commercials and you can continue to listen to the same channel no matter how far you drive. I would say that SiriusXM has an older target market based on the fact that it is most popular in newer vehicles which are not typically affordable to younger drivers. I do not think SiriusXM should compete with MP3 style devices because most of the people using these devices are not old enough to drive or have the disposable income to purchase music each month. Although $12.95 is not a lot of money, it is $155.40 more than radio …show more content…
SiriusXM could provide free access to the app with the subscription. They could also create rewards to consumers for loyal customers. I think the best partnership would be between SiriusXM & OnStar. They are automatically programmed in new vehicles for a trial run. They should make a promotional offer for a discount to encourage consumers to renew both services. Other ideas as mentioned above would be to bundle with a television or movie company and or internet company to provide a full entertainment experience. Another idea is to sign a contract with one of the cell phone companies to have SiriusXM already downloaded as an app when the consumer purchases their phone. Finally, as SiriusXM has done before, they can introduce the newest songs before terrestrial
* Sirius and XM, separate companies, began to compete in the satellite radio business in 2001 and 2002. Target market was car drivers and daily commuters who listened to their local radio stations that they preferred, but were limited to small service areas and less range and would lose frequency once out of that locality. Wall Street believed that satellite radio was the next opportunity in consumer electronics.
"Sirius XM Has a Monopoly on Satellite Radio, a Growing Subscriber Base, and Loads of Free Cash." Bamboo Innovator. 24 Nov. 2013. Web. 28 June 2015. .
Pandora originally started with a subcription type of business model wherein users must pay $36 per month after they have used up their 10 hours of free access. The original model used was the free trial type. What happened was after the free trial of 10 hours was used up, the customers were unwilling to pay for the subscription fee. Now, the new and current model being used by Pandora is the freemium business model. The new model offered users longer time limit in using their features, which could be used again in the next month and
As a company in the streaming music Industry, it is essential to have a competitive advantage in order to stay in the run. Indeed, a big competition is established between all the companies which are using more or less the same business model. In the streaming music Industry, it is easier for clients to make implicit bargaining. Indeed, the more subscribers a company has, the more music labels will be in
Satellite Radio: Will Howard Stern's move make us change the way we think about radio? Howard Stern's plan to move to satellite radio in January 2006 marks a major turning point for the radio industry. Not only has Stern brought the possibility of subscribing to satellite radio into the minds of the millions in his audience, he has also gotten more people to start thinking and talking about what really distinguishes satellite radio from traditional radio. Satellite radio was first authorized by the Federal Communication Commission (FCC) in 1997, seven years after initial applications.
My recommendation is that NBCUniversal further develop their Symphony marketing strategy to reduce the risk factors, make it more effective, and more profitable, especially in regards to it selling cross-promotional advertisement space and time. Essentially a combination of all three of my strategic growth opportunities would be most beneficial.
The negligence claims against the Radio Station disc jockey. The disc Jockey was liable for misfeasance owed a duty of care toward the young listener in the contest, breached that duty of care by disregarding youthfulness carelessness by the driving unsafe on the Highway to meet in one location just to win a prize which cause the younger driver that performing a legal act, and the resulted in harm cause automobile accident that cause the young listeners
Founded in 2007 as a result of the merger between Sirius Satellite Radio and XM Satellite Radio, Sirius XM Holding Inc., is the largest radio broadcaster in the world by revenue. It currently offers more than 165 streams, including:
These systems significantly attracted Sirius XM’s Internet-based competitors because consumers were able to control all their music through the dashboard of their vehicle, or through voice recognition. It also boosted Sirius XMs competitors outcomes because the competition had many mobile applications that were easier to access through vehicle controls, and these applications were also safer to use in the vehicle, especially while driving (Exhibit 4). All of the innovations that Sirius’ competitors have established all raise major concerns for the forward progression and success for Sirius. While Sirius is losing subscribers and decreasing in their financial supports, the competitors are all raising their market share and also positioning themselves to have future success. The easy accessibility of iPhones and MP3s are also creating havoc for Sirius XM to keep up with the technological advances, given that consumers can create and customize music collection through these devices (Exhibit
1. Sirius XM does not have many competitive pressures so therefore it has good profitability potential in the vehicular radio industry. Through the five forces analysis the competitive forces that are the strongest or highest pressures would be the entry barriers, considering there will be a great deal of switching cost involved since there is a subscription price to pay to have Sirius radio in the car. They would also have to face the dominant player such as the standard am/fm radio which most people will get for free in which the people are very loyal to in that way and they tend to stick with it. The Buyers would also be a high pressure since you’d have to convince them to pay for the Sirius subscription.
Radio One Corp. is the largest radio group targeting African-Americans in the country, and it’s got an excellent record by acquiring underperforming radio stations and turning them around. It’s contemplating whether to buy a significant amount of 21 radio stations (including 12 established urban stations in the top 50 markets and 9 stations from other companies) to be divested by one of the nation’s biggest owner of radio stations, Clear Channel, due to its merge with the other biggest owner, AMFM.
Sirius XM also ranks high on the area coverage but not quite as high as internet radio, due to its decreased portability and signal coverage.
As Tom Hutchison states in his article, “Consumer tastes change over time. As a result, new products must constantly be introduced into the market place” (Hutchison, 2010). This is no truer than in the field of music/entertainment news. Society is a fast-paced, multitasking, eat as you work, place and the live steaming or listen to at your convenience podcast perfectly fits into this hectic balanced chaos. The days of retaining the newest news about an album or artist have switched from physical media to digital media. With the increase in personal “smart” devices digital media has shown, “consumption of music by consumers has increased” (Hutchison, 2010). With this increase has come a higher demand for new ways to listen to and find the next
Spotify was started to provide commercial music streaming services with facilities to search and browse music as well as download. Spotify has various opportunities in increasing the size of the company to a wide area. There are also opportunities in creating interactive websites and providing the customers with extra games and offers. However, there are various challenges to meet these opportunities which may include investments and customer issues. There are two recommendations for Spotify, first is to develop a mobile application for smart phones and second is to create new offers along with online gaming. This will foster growth in the Spotify’s reputation in the market.
Those who prefer download and streaming formats are younger, but more affluent listeners still listen mostly on