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Strategy report
TO: Music Proximity Team FROM: Amanda Barrett DATE: October 3, 2009 SUBJECT: Sirius XM Strategy Here is my Sirius XM strategy analysis. Although Sirius XM has a monopoly on satellite radio, many other audio developments are available to the potential to play universally instead of paying a fee for car entertainment every month. This company depends on automotive sales. And unless they change their equipment that can be used without limits, gen-Y is not likely to endorse this already failing company. Profile XM Satellite Radio and Sirius Satellite Radio merged into SIRI on July 29, 2008. The merger created a monopoly, as SIRI stands as the only satellite radio service offered in the U.S. It is located in New York City and Mel Karmazin is its CEO. SIRI has over 18.5 million subscribers, which is where the company receives most of its revenue. Other revenues include: activation fees, components, accessories etc (Market Watch 2009) Although the services merged, they are still run separately and have their own individual special features. For example, XM users receive all MLB games, but only some NFL games. Sirius users receive only some of MLB games, but all of the NFL games. Although prices have not risen for the services individually, subscribers will have to pay a higher premium if they want to receive the benefits from each service (Wikipedia 2009). These higher premiums seem to be unlikely to attract customers today who have other capabilities of car entertainment that are free of a monthly fee. Competitive Landscape Although SIRI is a monopoly for satellite radio in the U.S., it still has impressive competition from other audio players. Technology that turns one's phone into a mobile MP3 player like the Apple IPhone makes it hard for stationary inventions such as the traditional radio or satellite radio to survive. People tend to favor the MP3 player or IPOD because they can not only use that in a car, but also wherever they want since the devices are so compact. SIRI also depends on the success of the auto industry, because that is where it sells/starts most of its subscriptions (Market Watch 2009). The company is also in a serious debt, and no one wants to financially support the company. Most people are surprised that the company is still alive. SIRI's Strategy SIRI is very dependent on automotive sales. The company has deals with almost all auto makers that incorporate a free trial of satellite radio with the new car that you buy. These trials last from three months to twelve months. This is the most common way SIRI gets its subscribers (Knowledge Wharton 2008). Sirius and XM still run like separate companies; therefore, consumers still receive different benefits from each service. Since the combining of satellite companies is not compatible right now, it will take years to get the technology locked together. This will cause the providers to try to merge the services which will eventually increase the price of an already over-priced entertainment source (Market Watch 2009). Gen-Y Implications Automotive sales are decreasing in this economic time, so for SIRI to put so much emphasis on their strategy to get subscribers by car sales may not reach out to gen-y as much as an innovative technology to move SIRI in the direction of portable or mobile devices. Gen-Y is a leading consumer in audio entertainment. And if SIRI wants to find a place for itself in the competitive audio entertainment market, it needs to allow for the integration of portable devices. “‘Sirius XM will have to open up innovation on hardware side,’ says [David] Hsu, noting that satellite radio would benefit from offering a must-have device like the iPod to go with it. ‘Sirius XM will have to address convergence and different types of media going forward’” (Knowledge Wharton 2008). Some may argue that if SIRI would expand to portable devices, it would be entering a broader market and be competing in the same areas that Apple and Blackberry have already capitalized, but SIRI has more than just music entertainment. SIRI broadcasts live with sports and talk shows, and even at events. It has channels range from hip-hop to classical, and would include at least one thing for everyone. If SIRI does not innovate, the strategy of depending upon automotives sales died years ago. So a continuing dependence upon cars sets this company up for the fast track of failure.

References Knowledge Wharton. Tuning in a Post-merger strategy: Sirius XM must cut costs and build its case. (2008, Sept. 3). Retrieved September 28, 2009 from [|__http://knowledge.wharton.upenn.edu /article__]. cfm?articleid=2042#. Market Watch. (2009, August 6). Retrieved October 3, 2009 from [|__http://www.marketwatch.com/story/__] 10-q-sirius-xm-radio-inc-2009-08-06. Wikipedia. (2009, October 2). Retrieved October 3, 2009 from [|__http://en.wikipedia__]. org/wiki/ Sirius_XM_Radio.

Blog proposal
//paste blog proposal here//

TO: Proximity Music Team FROM: Amanda Barrett DATE: November 25, 2009 SUBJECT: Proposal on fall of Sirius XM Radio Inc.

Sirius XM Radio Inc. was never really a successful company when the companies were separate. Now that the two satellite radio companies merged, they are still struggling financially and are lacking technologically. I propose to write a report on how Sirius XM is not keeping up with the interests of Gen- Y to get out of the red and make a profit before it’s too late.

Although SIRI tried to expand its coverage, the iPhone app. may not be a good venture.
 * Need **

·  SIRI came out with a program for the iPhone, but the program is more complex than almost all other music applications.

·  The sign-up process for the iPhone application is ambigious and long.

·  SIRI’s iPhone application costs the same price as their radio service, and provides less channels.

When Sirius XM merged, it left the two satellite companies separate entities. Because of this customer’s cannot enjoy dual access to all the channels on each service. A plan with access to each service will cost the consumer more than already over-priced $12.95 monthly subscription.

The company is in enormous financial trouble and may need to file for bankruptcy.

Clients of Proximity that want to target Gen-Y users should advertise services such as Pandora, Slacker, or Tuners which provide the same services as Sirius XM but for free.

** Topics ** The proposed report, “Sirius XM Falls Short on Delivering Accessible Music Media,” will cover the following topics:

·  The decrease of subscriptions due to fees, limited service, and decreased promotion (i.e. car sales)

· The convergence of the two entities; “Best of both services.” ·  Falling short on the iPhone application

·  Failing to reach Gen-Y

The report will also include some tables and percentages of use on SIRI compared to other radio services.

** Sources ** The following items are key sources for the report. I still need to find comparative information between SIRI and other media services.

McCracken, Henry. Sirius XM on the iPhone: Siriusly disappointing. (2009, June 18). < []> Retrieved Nov. 25, 2009). McCracken reviews the new iPhone application that SIRI developed. McCracken explains that the application is over-priced and is hard to manage. She gives detail about the service to support her assumptions about the application.

Snider, Mike. Satellite shuffle leaves some listeners confused. (2008, November 18). //USA// //Today, Final Edition//. Retrieved November 25, 2009 from LexisNexis Academic.

Snider reviews the channel difficulties between the two services. Its basis is information and feedback from customers as to why they may have switched services. It also has a layout of the channels available from each service, and the idea of combining the services to charge more.

Callan, James. Sirius XM loss widens as subscriptions slow, stock written down. (2008, November 11). //Bloomberg Blog.// Retrieved November 25, 2009 from LexisNexis Academic.

Callan reports that Sirius XM is suffering net profit loss. He ties in the slow-down of automotive sales with the falling subscription numbers. It also supports that the company is already in the red, which makes it a lot more prone to bankruptcy.

Team conference presentation proposal
//paste team conference presentation here//

December 21,2001 Mr. Mel Karmin, CEO Sirius XM Radio Incorporated Houston, TX 70246

Dear Mel:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Sirius XM Radio Inc.'s need to promote its media to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the different media players that Gen Y has adapted to that Sirius XM should be looking to compete against.

As you noted yesterday, Sirius XM s trying to establish its brand to compete with the portable devices Gen Y is using to play their music. I believe Proximity can work with you to devise a comprehensive campaign that uses on-demand media and social networking to achieve that goal.

We can provide you with customized survey and focus group results to help shape Srius XM’s image as a progressive, green company. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Sirius XM by online networks like Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Sirius XM’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Amanda Barrett Media Analyst PROXIMITY reports //** || || connecting with Gen Y using on-demand media // ||  ||

Sirius XM Radio Inc. Falling Behind Amanda Barrett // Establishing A Device That Will Compete With Current Competition // ||

The problem __//** As new technology advances us, Gen Y has moved to more mobile devices to listen to their music. Gen Y can get free music from the web, while Sirius XM is charging a monthly service fee and the user can only listen by radio. ||
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Proximity’s on-demand media solution __//** Proximity focus group results show that Gen-Y will still use this media, but the only way to get more subscribers is to cut the cost of the limited source. They will continue to use the radio, but will not continue at that price. This report details how Sirius XM must find a more portable way to reach out to Gen Y. If it is able to reach the consumer by convenience, the consumer will be more willing to pay a high price for a more qualified product. Advertisers could use this information and try to promote directly to Gen Y. ||
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