Sirius XM Radio - A Flawed Business Model Analytical Essay by Nicky

Sirius XM Radio - A Flawed Business Model
A look at how Sirius XM Radio's business model is flawed.
# 149188 | 1,543 words | 7 sources | APA | 2011 | US
Published on Nov 29, 2011 in Business (Companies) , Communication (Mass Media)

$19.95 Buy and instantly download this paper now


This paper examines how the economic downturn has impacted Sirius XM radio, a station that was known as a premium subscription radio service, and charged a modest fee to its listeners. The paper describes XM, and how it was part of a larger consumer trend. It also discusses the original business model, which was developed in better economic times. Then, the paper addresses how the station intends to recover following its significant loss of advertisers due to the credit crunch. It also explores the stations bankruptcy filing and how the station stands to lose major talent. The paper concludes by noting that XM radio did not follow the cable TV model, and therefore has not been a success.

From the Paper:

"To be fair to its founders, the concept of premium subscription radio services was born in a very different economic climate. Cheerfully disregarding the early naysayers, XM Radio founder Hugh Panero pointed out that once upon a time, people prophesized that cable television would never 'take off' but with the right type of broadcasting, it did, most notably HBO. XM boasted 68 commercial-free music channels, 21 traffic and weather channels, five or six news channels including Fox and CNN, when it was first launched. In 2005, Panero said: "It really is about just delivering quality content. And clearly, having 22 minutes of commercials on a local radio station--mostly talk, very little music and not the music you want to hear in many cases because it can't be supported by the economic model of a radio station--has basically drawn people to other alternative forms of getting content they want, whether it be satellite radio, whether it be, you know, iPod, whether it be the Internet, and we're just part of the revolution that's going on to satisfy the needs of people who want content when they want it in a very convenient way" (Smith 2005). The theory was that downloadable music had made consumers impatient with advertising, thus satellite radio would be the preferred alternative to listen to sports, music, and informative programming in cars."

Sample of Sources Used:

  • Ferency-Viars, Robert & Ralph Graves (2009, Feb 25). How HD radio works.Retrieved June 1, 2009 at
  • Friedman, Jon. (2009, February 11). Maybe satellite radio is a bad business model. Marketwatch. Retrieved June 1, 2009 at
  • Myers, Jack. (2008). Recession strategy for the radio industry. The Huffington Post. Retrieved June 1, 2009 at
  • Smith, Terrence. (2005, February 2009). Extended interview with Hugh Panero. Online Newshour. Retrieved June 1, 2009 at
  • Sirius, XM merger completed, creating US satellite radio giant. (2008, July 29). AFP. Retrieved June 1, 2009 at

Cite this Analytical Essay:

APA Format

Sirius XM Radio - A Flawed Business Model (2011, November 29) Retrieved April 17, 2024, from

MLA Format

"Sirius XM Radio - A Flawed Business Model" 29 November 2011. Web. 17 April. 2024. <>