Sirius Satellite Radio
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SIRIUS SATELLITE RADIO
Company Analysis
Marketing 495
Dr. Geoffrey L. Gordon
Fall 2005
Table of Contents
Company Analysis
3-4History of Company
4-15……What They Do Now
15-28……Financial Analysis
28-29….Company Strengths & Weaknesses
?….Conclusion
Industry Analysis
30-31….Description of Industry
31-34….Critical Success Factors
External Environment Analysis
?….External Environment Analysis
35……..Appendices and References
SIRIUS SATELLITE RADIO HISTORY
(Material for this section came from the SIRIUS website and the SIRIUS 10-K)
Have you seen commercials for satellite radio lately on TV? Wondered about the companies that started this trend, do you know much about satellite, wondering if its going to be around for a while? Lets talk about the forerunner in the Satellite Radio market, SIRIUS Radio.

SIRIUS Satellite Radio, a New York City based corporation, began business in 1992 when the FCC allocated a spectrum in the “S” band (2.3 GHz) for broadcasting of satellite-based Digital Audio Radio Service. SIRIUS paid more than $80 million for their broadcast license.

Initially, SIRIUS began business under the name CD Radio. SIRIUS utilizes three geosynchronous satellites in orbit above North America (with a fourth satellite in storage as a backup.) SIRIUS satellite provides customers with 65 programming streams of music and 55 streams of sports, news and entertainment.

SIRIUS took their corporate name from the star SIRIUS, the brightest star in the constellation Canis Major. Sirius (the stars) name was derived from the Egyptian god Osiers, who was depicted as a dog. SIRIUS Radios corporate logo is a dog that bears the nickname “Mongo.”

SIRIUS radio operates satellites in orbit over the continental United States. A recent partnership with the Canadian Broadcast Company will also make SIRIUS available to Canadian customers.

In 2001 and 2002, many car manufacturers began offering satellite receivers as upgrade equipment options in some vehicles. In 2004, even more manufacturers began offering satellite receivers in vehicles. SIRIUS has a partnership with Ford and Daimler-Chrysler to offer satellite receivers in vehicles.

Since October 2003, SIRIUS has also had the right to broadcast live play-by-play broadcasts of up to 40 NHL games each week, as well as the Stanley Cup playoffs and finals, as part of the standard programming package. As a result of the current NHL labor dispute, the 2004-2005 NHL season was cancelled and SIRIUS was unable to provide those games to their listeners in 2004. SIRIUS agreement with the NHL provides for an extension of their broadcast rights and marketing benefits for an additional year due to the cancellation of the NHL season. SIRIUS is also an official corporate marketing partner of the NHL.

In February 2005, SIRIUS entered into an agreement with NASCAR to broadcast live all NASCAR Nextel Cup Series, NASCAR Busch Series and NASCAR Craftsman Truck Series races over a five-year period starting in 2007. SIRIUS will create a new around-the-clock channel of NASCAR-related programming and will become the Official Satellite Radio Partner of NASCAR with exclusive trademark and marketing rights and the right to sell advertising time on the NASCAR channel and during races. SIRIUS will pay rights fees totaling $107.5 million over the term of this agreement, including an initial $3 million payment and a $15 million payment into escrow.

In October 2004, SIRIUS entered into an agreement with Howard Stern and his production company. Pursuant to this agreement, commencing on January 1, 2006, Howard Stern will move his radio show to SIRIUS from terrestrial radio as part of a channel created by Howard Stern. SIRIUS also expects Stern to develop and produce one or more additional channels of programming for them during the term of the agreement. The agreement with Stern will expire on December 31, 2010.

Satellite radio doesnt have to follow the same guidelines for broadcasting as the FCC enforces on AM/FM radio stations. As a result of recent controversies surrounding public decency in broadcasting, SIRIUS was able to attract highly controversial but profitable Howard Stern to their programming schedule.

SIRIUS main competition in the satellite radio market is XM radio. Both provide clear radio communications that are available across the United States.

WHAT DO THEY DO NOW
(Material for this section came from the SIRIUS webpage and the SIRIUS 10-K)
SIRIUS is changing the way America listens to music, sports, news, and entertainment. Operating from its corporate headquarters in New York Citys Rockefeller Center, SIRIUS broadcasts over 120 channels of the best in commercial-free music, sports, information and entertainment. Its digital-quality programming is heard coast-to-coast, and is broadcast daily from New York City, Los Angeles, Nashville, New Orleans, Houston and Daytona.

For a monthly subscription fee of only $12.95, SIRIUS offers 65 totally commercial-free music channels – featuring many genres of Pop, Rock, Country, Hip-Hop, R&B, Dance, Jazz, Classical and Latin music – along with 55 channels of sports, news and talk.

SIRIUS also is the satellite radio service of choice for sports fans, who can follow live play-by-play broadcasts of NHL and NFL games across the United States, also tune in to SIRIUS NFL Radio, the only 24/7 channel dedicated exclusively to all things NFL. As the official satellite radio partner of the NFL and the NHL, all of this great programming is included with every SIRIUS subscription at no extra charge.

Programming

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Sirius Website And Satellite Radio History. (July 14, 2021). Retrieved from https://www.freeessays.education/sirius-website-and-satellite-radio-history-essay/