SIRIUS XM Radio Inc.

You might say radio programming from this company comes from a higher plane. SIRIUS XM Radio operates satellite radio systems under the SIRIUS and XM brands that together boast more than 24 million subscribers. Each service offers more than 150 channels of CD-quality music, news, and talk shows; about 100 channels are available on both networks. Programming includes National Football LeagueMajor League Baseball, and college games, as well as talk shows featuring hosts Howard Stern, Martha Stewart, and Oprah Winfrey. The company has equipment alliances with several automakers; it also sells satellite radio equipment through its website and through such retail outlets as Best Buy and Wal-Mart.

Operations

In addition to its domestic radio services, SIRIUS XM has interests in the Canadian market. It owns 50% of SIRIUS Canada, a joint venture with the Canadian Broadcasting Corporation (CBC). SIRIUS Canada merged with Canadian Satellite Radio (XM Canada) in 2011, giving SIRIUS a solid foundation in the Canadian market.

Sales and Marketing

Subscription satellite radio has proven to be quite popular thanks to the wealth of programming options available beyond the limited content offered by advertising-supported terrestrial radio broadcasters.

With its large subscriber base, SIRIUS XM has stolen away many listeners from traditional broadcast stations operated by major radio companies such as  Clear Channel and  Cumulus Media. Providing all that content, though, is quite expensive due to rights fees for sports and exclusive talk shows, as well as the satellite equipment needed to reach listeners across the country.

During fiscal 2012 the company spent about $140,000 on advertising.

Financial Performance

SIRIUS XM has been experiencing a positive trend in its revenue since 2008. The company’s fiscal 2012 revenues increased by 13% compared to fiscal 2011, primarily due to increases in its subscriber revenues, advertising revenues, agency fees, and equipment revenues.

In fiscal 2012 the company brought in more than $3.4 billion in revenue, up from the $3.0 billion it reported for fiscal 2011 and the $2.8 billion it reported for fiscal 2010. Advertising revenue increased due to a greater number of advertising spots sold and because of increases in rates charged per spot. Nearly 90% of the company's revenue in 2012 came from subscription fees.

SIRIUS XM saw its new profit increase to $3.4 million in fiscal 2012, which was an increase of about $3 million compared to fiscal 2011. The increase was largely the result of an income tax benefit the company received in 2012.

Strategy

SIRIUS XM is dependent on automobile makers. During 2012 the company converted 45% of the customers who received a promotional subscription as part of the purchase or lease of a new vehicle to a self-paying subscription.

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SIRIUS XM Radio Inc.


1221 Avenue Of The Flr 36
New York, NY 10020
Phone: 1 (212) 584-5100
www.siriusxm.com

STATS


  • Employer Type: Public
  • Stock Symbol: SIRI,
  • Stock Exchange: , NASDAQ
  • CEO: James Meyer
  • Chairman: Gregory Maffei
  • CEO: James Meyer

Major Office Locations

  • New York, NY