{"id":1839,"date":"2018-10-01T03:05:43","date_gmt":"2018-10-01T03:05:43","guid":{"rendered":"https:\/\/uoesterl.expressions.syr.edu\/?p=1839"},"modified":"2018-10-01T03:07:38","modified_gmt":"2018-10-01T03:07:38","slug":"siriusxm-satellite-radio","status":"publish","type":"post","link":"https:\/\/uoesterl.expressions.syr.edu\/?p=1839","title":{"rendered":"SiriusXM: “The Largest Audio Entertainment Company”"},"content":{"rendered":"

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SiriusXM recently celebrated its 10th<\/sup> birthday, continuing to thrive as a mega giant within the audio entertainment industry. In 2017, the satellite radio company reported $5.4 billion in revenues, touting 32.7 million subscribers to their 200-channel lineup of content (\u201cFull Year 2017,\u201d 2018).<\/p>\n

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The original logo for Sirius Satellite Radio.<\/figcaption><\/figure>\n

SiriusXM started out as Sirius Satellite Radio, co-founded by David Margolese and Robert Briskman in 1992 (Dillon, 2000). The entrepreneurs were first to take advantage of the Federal Communications Commission\u2019s (FCC) plans to set aside specific frequencies for satellite radio broadcasts (Andrews, 1992). These plans were originally met with legal opposition from AM\/FM radio broadcasters, delaying major developments for most of the 1990s (Moran, 2000). In 1997, the FCC finally granted one of two satellite broadcasting licenses to Sirius Satellite Radio, the other license going to XM Satellite Radio (Dillion, 2000). Both companies continued to develop their technology and content as the advent of satellite radio gained popularity throughout the 2000s. However, development of satellite radio is an expensive endeavor, and during their first 10 years of operation, both companies racked up billions in losses (\u201cSirius completes,\u201d 2008). Sirius\u2019s stock reached its peak in February of 2000 at nearly $60 a share, but in 2007 hovered between $2 and $4 a share (\u201cSirius XM holdings,\u201d 2018).<\/p>\n

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SiriusXM announced the purchase of Pandora internet radio on September 24, 2018.<\/figcaption><\/figure>\n

In 2007, Sirius Satellite Radio and XM Satellite Radio announced their plans to merge into one company (Ellis & La Monica, 2007). Because of concerns that Sirius and XM merging would create a monopoly on the satellite radio market, the companies would not receive approval for over a year. In 2008, the FCC finalized the merger, saying the audio industry was diverse enough with traditional radio, internet radio, mp3 players, and digital downloading services for SiriusXM to operate alone within the satellite radio market (Hart, 2008). The FCC did include a few conditions for SiriusXM to follow, such as keeping their subscription prices at the same level for 3 years (Hart, 2008).<\/p>\n

SiriusXM has grown steadily over the last decade into the audio giant that it is today. Stock prices have increased slowly since the merger, yet still sit at a very modest $7 a share (\u201cSirius XM holdings,\u201d 2018). On September 24, it was announced that SiriusXM would purchase Pandora, a popular internet radio service, in a $3.5 billion deal, allowing the company to widen its influence to become the largest audio entertainment company (Tsang & Lee, 2018). SiriusXM is currently headquartered in New York City and employs somewhere in the range of 1,000 to 5,000 workers (\u201cSiriusXM,\u201d 2018).<\/p>\n

SiriusXM\u2019s business model involves providing a wide variety of audio entertainment channels for subscribers who, with freedom that doesn\u2019t come with traditional radio, can listen to any specific channel within their subscription, anywhere in the United States and Canada, without the interruption of commercials or signal static. The Beatles Channel, Eminem\u2019s hip-hop channel, Kenny Chesney\u2019s country channel, and Howard Stern\u2019s talk show (see below) are some examples of SiriusXM\u2019s diverse programming assets (\u201cXM channel lineup,\u201d 2018). SiriusXM also works with the major sports leagues to provide content for sports fans. Subscribers to SiriusXM can access content in their cars, at home, at work, and on the go by using the mobile application. The company has partnered with most major automobile companies to provide built-in SiriusXM receivers with newer car models (\u201cVehicle availability,\u201d n.d.). In some cases, car dealers can include a SiriusXM subscription with the purchase of an automobile (Rubenfire, 2013). If a subscriber doesn\u2019t own a built-in receiver, they are able to purchase a separate receiver for their automobile.<\/p>\n