XM satellite radio and Sirius satellite radio are the duopoly companies that compete each other in imperfect competition market in order to replace radio wave, FM AM, with satellite radio. There are barriers to entry this market since it needs a high cost. FM and AM are government owned and the network coverage is limited. In order to eliminate this complication, XM and Sirius introduce satellite radio, which have competitive advantages such as nationwide coverage, high quality audio, wide array of entertainment options, easiness to access. However, Sirius strategy is to create a free commercial radio and used subscription based service. In my opinion, in order for XM to win over Sirius is, to have wide variety of subscription fees targeting different segments of markets. For example, to price sensitivity customers, XM could charge them lower subscription fee but with a few advertisement. Nonetheless, higher prices for customers who want commercial-free radio. By that way, XM could generates revenue from advertising service from price sensitivity customer and at the same time not losing the advertising service revenue from not price sensitivity customers since they are charged higher price. The aforementioned strategy leads to higher income to the company in compare to Sirius company that adopt subscription-only model. Thus, the supernormal profit could cover the expected annual operating expenses that are high-priced. The other strategy is ‘keeping that customer’ strategy and creating brand loyalty by lowering subscription fee for customers who agree to have long terms contract. In order to be more successful, XM and Sirius could joint venture and monopolized the satellite radio market. However, there are some benefit and drawbacks from this joint venture. The benefits are cost minimisation from combining their programs and operating fees. The drawback is higher cost to technology engineering since Sirius XM needs to develop a radio that is able to receive signals from XM and Sirius satellites. I suggest that, they do joint venture although the cost to develop a new radio is high but it is a one-time cost. The benefits definitely outweigh the setback.