Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • March 2002 (Revised November 2003)
  • Case
  • HBS Case Collection

Satellite Radio

By: Thomas R. Eisenmann and Alastair Brown
  • Format:Print
  • | Pages:22 
ShareBar

Abstract

In early 2002, XM and Sirius were fighting for control of the emerging U.S. market for satellite radio. Each company targeted consumers in automobiles, providing 100 channels of CD-quality audio for a monthly subscription fee of $10-$13. Wall Street analysts predicted that these companies would be profitable by 2005-2006, but investors were increasingly skeptical of ventures that required huge, irrevocable bets on customer acquisition and infrastructure. This case describes the business models of the satellite radio companies, the technology they employed, and their target markets. Poses questions about their pricing strategies, strategic partnerships with auto manufacturers, and whether they should develop interoperable radios that receive either company's signals.

Keywords

Growth And Development Strategy; Price; Risk And Uncertainty; Problems And Challenges; Network Effects; Partners And Partnerships; Technology; Business Model; Investment Return; Auto Industry; Media And Broadcasting Industry; United States

Citation

Eisenmann, Thomas R., and Alastair Brown. "Satellite Radio." Harvard Business School Case 802-175, March 2002. (Revised November 2003.)
  • Educators
  • Purchase

About The Author

Thomas R. Eisenmann

Entrepreneurial Management
→More Publications

More from the Authors

    • 2020
    • Faculty Research

    Determinants of Early-Stage Startup Performance: Survey Results

    By: Thomas R. Eisenmann
    • August 2020
    • Faculty Research

    Updating Dating

    By: Scott Duke Kominers, Thomas R. Eisenmann and Alan Lam
    • March 2020
    • Faculty Research

    Poppy (B)

    By: Thomas R. Eisenmann, Scott Duke Kominers, Jeff Huizinga and Allison Ciechanover
More from the Authors
  • Determinants of Early-Stage Startup Performance: Survey Results By: Thomas R. Eisenmann
  • Updating Dating By: Scott Duke Kominers, Thomas R. Eisenmann and Alan Lam
  • Poppy (B) By: Thomas R. Eisenmann, Scott Duke Kominers, Jeff Huizinga and Allison Ciechanover
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Digital Accessibility
Copyright © President & Fellows of Harvard College