In early 2002, XM and Sirius have fought for control of the emerging U.S. market for satellite radio. Each company targeted customers in cars, providing 100 channels CD-quality sound for a monthly fee of $ 10 - $ 13. Wall Street analysts had predicted that these companies would be beneficial for the years 2005-2006, but investors are becoming skeptical of businesses that require huge, irrevocable bid to attract new customers and infrastructure. This case describes the business model of the satellite radio companies, the technology they work, and their target markets. Poses questions about their pricing strategy, strategic partnerships with car manufacturers, and whether they should develop interoperable radios that receive signals or company. "Hide
by Thomas R. Eisenmann, Alistair Brown Source: Harvard Business School 22 pages. Publication Date: March 1, 2002. Prod. #: 802175-PDF-ENG
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