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XM Satellite Radio Brand Analysis BA590 Fall 2005 Prof. McAlexander By: Brian Smith Gideon Darko Oppong Gene Wooden Sirikanya Buranabunpot Joe Dollowitch Table of Contents Table of Contents 2 Introduction 3 Customer to Product?Relationship 6 Customer to Brand Relationship 13 Customer to Marketer (Company) Relationship 14 Consumer to Consumer Relationship 17 XM Satellite Radio: What’s in store for the future? 21 Appendices: 24 References: 25 Introduction XM Radio is the leading satellite radio provider in the United States, with approximately 70% market share (, 2005). XM Satellite Radio Holdings, Inc. became a publicly traded corporation in 1999 and officially launched satellite radio service to consumers in September 2001, the first to do so. XM is one of only two companies, along with Sirius Satellite Radio, to be licensed to broadcast via satellite. Headquartered in Washington, D.C., XM broadcasts its entire programming lineup out of facilities in Washington, New York, and Nashville. Much of XM’s market share dominance can be attributed to several factors; being the first provider to launch satellite radio service, as well as its diverse array of programming content. With such a large share of the market, XM should be able to leverage its existing success in order to promote its service to potential customers in the coming years. XM currently holds a sizeable lead over Sirius in terms of subscribers and technology. But XM has not always been out in front of its competition. Sirius Satellite Radio was formed two years ahead of XM and was the first company to be granted a satellite radio license by the Federal Communications Commission. Sirius also had all three of its satellites in orbit by 2000, while XM had yet to launch any of its satellites. The big turnaround for XM came in 2001, when both companies had plans to officially launch the service to consumers near the end of the year. Sirius had some glitches in its technology that forced it to postpone