Satellite Radio Rhonda Stubblefield COM/150 June 23, 2012 Alain de la Brousse What have 22.3 million subscribers learned about satellite radio that the rest of us listening to traditional radio still haven’t yet figured out? The amazing advantages that are now giving satellite radio stations the power to change how America listens to music, sports, news, and comedy. In 2001 Fortune magazine named satellite radio as their product of the year. The magazine’s rationale for its selection stated:
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Title of the Case: Satellite Radio (B) Time Context or Period: 2005-2008 Summary of the Case: Late 2005 proved to be the high point of expectations for satellite radio due to the unexpected increase of subscriptions for Sirius and XM Radio that even surpassed forecasts made a year earlier. As 2006 progressed, the growth rate started to decelerate and both companies have continued to lose money. Competition in the market became stiffer because of the rapid growth of technology which led to
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Executive Summary: XM satellite is a newly established company that has the potential and the ability to become leading satellite radio service provider in United States. At the time of the case, the demand for high quality, ad-free and mobile radio had a great potential and XM along with Sirius received a great opportunity to enter into the untapped market. XM’s only significant competition threat was Sirius. Both Companies were trying to capture market share from one another by creating superior
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listen to music/talk shows throughout different mediums, such as TV and radio. Radio has been around for a very long time. It was first invented by Guglielmo Marconi in 1895 as a wireless telegraph to send Morse code through the air, so people can send messages from a country to another (Stephens, 1995). However, in 1912 the first radio act was passed (Crawford, 2008). In addition, after the first world war, people started using radio for a different reason. They started broadcasting music or reading
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Paper #1 Satellite Radio: Past, Present, and the Future Satellite radio, also called digital radio, is a relatively new technology to hit the audio broadcasting industry. Satellite radio is transmitted from 22,000 miles above the earth through a multitude of different satellites stationed over the United States (Bronsor, Howstuffworks.com). Through means of digital transmission the signal received and heard in satellite radio is often regarded as superior to the traditional radio experience
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the inventor of FM radio built Alpine Tower, also known as “Armstrong Tower” in 1937. As the discoverer of frequency modulation “FM” in 1933, Armstrong spent many years experimenting on this discovery while working for RCA. Armstrong went through several legal battles throughout his thirteen years of FM discovery and research (and following his death). On April 10, 1938 Armstrong broadcasted for the first time on FM radio, from his experimental call sign W2XMN. The FM radio was discovered after
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consumers or to manufacturers and retail chains. Recommendations: Start off with higher radio and subscription prices because the market will take time to develop and XM should not be the bearing the brunt of the development costs. Later, lower prices on both aggressively in order to attract more subscribers and begin to introduce limited advertising. Work with auto manufacturers, offer subsidized prices, let radio manufacturers and retailers handle the home and aftermarket markets, offer subsidies
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can observe how these forces are disrupting the conventional business models and marketing strategies of industries. These innovations have shaken core of the business world where several venerable facets of the media industry such as newspapers, radio and television are clamoring for their breadth under the impact of innovative giants such as Google and TIVO with large chunk of ad revenue shifting from conventional channels to more topical channels (refer graph 2.1). Why? Primarily, conventional
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Domingo(Dominican Republic). It is well positioned in the New York metropolitan areas (which is one of the largest travel markets). 4. Compete: new aircraft, roomy leather seats with lots of leg room, 36 channel of free DirecTV, 100 channels of free XM satellite radio, free and unlimited brand, and named snacks beverage. It also provides compensation to customers who experience avoidable inconvenience (JetBlue Airway Customer Bill of Rights). And refundable fares and new payment options launched JetBlue.com
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differentiation strategy by offering value-enhancing features include high-end 100-seat Embraer regional jets with regional jets with leather seats, individual TV screen with movies, Live TV, Fox TV, and Direct TV programming, 100 channels of XM Satellite Radio, and free in-flight Wi-Fi capabilities. By offering these unique features, JetBlue made an attempt to enhance their differentiation appeal. 2. What challenges is JetBlue facing with its chosen business strategy? What is the cause of these challenges
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