XM_Radio_Case_Analysis_-_Group_5 - Introduction Radio has...

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Unformatted text preview: Introduction Radio has had a tremendous impact on society in the 20th century. Though r R adio was invented during in the late 1890s, p P ublic radio services offering information and entertainment content started only in the mid 1910s, first in the US and then in European countries. Advertising on the radio started first in the US in 1920; this marked the beginning of commercial radio services. Radio broadcasting stations provided scheduled programs of lectures, news bulletins and other recreational and informative material. On account of the growing popularity of such radio programs, the demand for commercial airtime increased heavily by 1923, which made radio broadcasting a profitable business. In 1992 88 , XM began life as American Mobile Radio Satellite Corporation (AMSC) . The goal of the company at that time was to provide dedicated satellite broadcasting of telephone, fax and data signals . In 1992 the company established a separate unit called A merican Mobile Radio Corporation . The ir goal was to explore the use of satellite based technology to provide radio service. Initially AMSC sought to sell $2,000 satellite phones which would work anywhere in the United States. Due to the explosion of cellular phone services the company signed up far fewer customers and sought alternatives venues to create a revenue stream using satellite technology . In 1992, the U.S. Federal Communications Commission (FCC) allocated a spectrum in the "S" band (2.3 GHz) for nationwide broadcasting of satellite-based Digital Audio Radio Service (DARS). In 1997 the FCC held an auction which gave the owners the right to broadcast in the new S-band. Only four companies participated in the auction and only two companies purchased licenses. The two companies, American Mobile Radio (now XM Satellite Radio) and CD Radio (now Sirius Satellite Radio) each paid more than $80 million each for the licenses. In 199 8 American Mobile Radio was spun off and was renamed XM Satellite Radio Holdings in 1999.XM sought to provide a multi-channel audio service with three key features: nationwide coverage, high quality sound and unique programming. On March 18, 2001 XM launched its first satellite, called Rock, located at 85 West Longitude and on May 8, 2001, XM launched its second geostationary satellite ,named Roll, located at 115 West Longitude, operating in geostationary at 12.5 MHz of the S-Band frequency. They are a monitored and controlled by Telesat Canada. . First Mover Advantage XM Satellite Radio was considered the 2001 Invention of the year by TIME magazine, the product of the year by FORTUNE Magazine; the Best of Whats New Grand Award by Popular Science and received the CES Innovations Awards at the International Consumer Electronics Show in the mobile electronics category for 2002. As soon as XM Radio entered the new market the product they provided was easily recognized and quickly adopted with high popularity. Thus, entering as a new entrant and first mover XM Radio proved its upcoming popularity....
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This note was uploaded on 04/14/2011 for the course MGT 440 taught by Professor Profron during the Spring '11 term at NJIT.

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XM_Radio_Case_Analysis_-_Group_5 - Introduction Radio has...

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