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Case Summary
XM radio is truly changing the world of radio. In 1997 XM paid more than $80 million for a federal license to broadcast digital radio. Am and Fm radio is free due to commercial sponsorship. However, XM believed that consumers would be willing to pay for crystal clear 24hr digital radio, commercial free with up 160 channels. Their argument is that people pay for cable television when basic channels are already free. XM currently has two satellites that work clear across the United States. XM faced extensive set up for its operations. It spent over $1billion to get fully up and running. Listeners have to purchase radios in addition to paying a monthly service fee. To help push their services, XM partnered with large auto makers to have their radios factory installed. These dealers include General Motors, Honda, Hyundai, Nissan, Porsche, Subaru, Suzuki and Toyota, and are available in more than 140 different vehicle models for 2008. These radios initially cost consumers......

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Approximate Word Count: 1463
Approximate Pages: 6 (250 words per double-spaced page)

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