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XM's business model is to provide pay-for-service radio, free of a great number of commericals, analagous to the business model for cable television. As of January 2003, revenues have been lower than expected, and the company has needed to refinance. Their service includes 101 different music channels. The XM frequency opperates on 12.5 MHz of S-Band: 2332.5 to 2345.0 MHz.
At the end of 2003, XM has accumulated a subscriber base of more than 1.3 million. The tuners required to obtain XM's satellite frequencies cost $100-200 and on top of that a $10 per month for the radio service. The company has partnerships with auto companies such as Acura, GMC, Honda, Toyota, Saab and others to install XM-Ready sets as a standard feature in their automobiles. As of January 2004, XM is the leader in the satellite radio market.
XM's competitor is Sirius Satellite Radio.