a. Economic overview
c. Products and services
m. Strategic forces
e. Current crisis:
b. Market size and trend
c. Target consumers and Segmentation
d. Upcoming and prediction
e. International market progress opportunities
3)Distribution channels Analysis:
The most useful segmentation of the satellite radio companies are by the channel through which the subscriptions happen to be obtained. Net subscriber improvements refers to the overall number of subscribers acquired within a given time period and deducts all non-renewed subscriptionsВ—including ended promotional subscribers that were not really converted to typical subscriptions. XM segments that market through three channels. i)Distribution through OEM: Satellite tv radio subscriptions that come in through the OE auto manufacturer channel are frequently attached to a promotional period in which XM or Sirius receives about half of the subscription revenue as it would which has a non-promotional subscription. Depending on the dish radio providers' role in the promotion, the revenue sum received for any promotional subscription may be bigger or lower. The OEM promotional times typically vary from three months into a year and they are paid for, partly, by partner manufacturers. Consumers who get hold of their satellite tv radio with all the purchase of a newВ—or just lately manufacturedВ—car just activate their very own service through one of the broadcast providers. These kinds of radios have been developed specifically for individual car models. In a new car, the satellite television radio can be an original products manufacturer (OEM) component that is certainly either pre-installed in all of the models or is an optional upgrade. In an increasing number of versions, the radios are AM/FM/SAT, which obtain both satellite tv and classic radio broadcasts. Figure 7: Net OE subscriber enhancements for XM, 2002-2004
YearNet subscriber enhancements
#% vary from previous 12 months
2003 OEM669, 7187, 624. 9
2005 OEM989, 78147. 8
ii)Distribution through Full: While XM and Sirius have shaped partnerships using a variety of electronics retailers and mass merchandisers, industry market leaders have mentioned that OE holds even more potential than retail over time. The retail market is mainly served simply by larger suppliers such as Bargain, Circuit Metropolis, Wal-Mart and Sears, although also includes specialised retailers like Tweeter, Great Guys, RadioShack, and Advance Auto Parts. Physique 8: Net retail subscriber additions, 2002-2004
YearNet subscriber additions
#% change from past year
2002 retail338, 480
2003 retail669, 71897. being unfaithful
2004 retail (est. )752, 00312. several
Source: Mintel/XM Satellite Radio/Sirius Satellite Radio
iii)Distribution through Rental car: Subscribers through the rental car segment incorporate satellite the airwaves receivers installed in car rental vehicles. Normal monthly subscription revenue through this channel is typically less than other channels. In the initially quarter of 2004, XM reported the regular monthly membership for carrental to be $7. 72, when compared with $8. 66 for the rental, OEM and selling channels merged. Figure 9: Net car hire subscriber enhancements, 2002-2004
YearNet subscriber upgrades
#% vary from previous year
2002 rental car0-
the year 2003 rental car20, 792
2005 rental car (est. )30, 92348. 7
Supply: Mintel/XM Satellite tv Radio/Sirius Dish Radio
a. Satellite radio Market:
While the idea for satellite radio started out development inside the early nineties, consumers weren't introduced to the technology till 2001. Since that time, satellite a radio station has grown due to the work of two firmsВ—XM Satellite television Radio and Sirius Satellite television Radio. Both firms had been scheduled to launch in Fall 2001, but Sirius was postponed for eight months as a result of chipset issues. The satellite radio industry completed 2003 with $91 million in membership sales. This kind of represents a jump via $16 mil in 2002, rising via less...
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