1. What is the value proposition for consumers of satellite radio? Why might consumers want to subscribe to a satellite radio service? What are the limitations of the technology?

2. What are the barriers to widespread adoption of satellite radio? 

3. What are potential first mover advantages in the satellite radio business? 

4. Question: What must Sirius and XM do strategically to overcome barriers to adoption and capture first mover advantages? 

5. What is the business model for satellite radio? Is this model economically viable? What alternative models might work? 

6. What is the potential size of the market for satellite radio? Is it large enough to profitably support two players? 

7. Assess the risks posed to satellite radio by indirect competitors? How substantial are these risks? How might the risks be mitigated? 

8. As of 2004, XM is clearly ahead of Sirius in the race to establish market dominance? Why is this so? What must XM do to secure its competitive lead? What can Sirius do strategically to improve its position? 

The case looks at the creation and early growth of the market for satellite radio in the United States and the competition between the two companies licensed to provide this service: XM Radio and Sirius. Radio broadcasting is a very capital intensive industry requiring extensive spending on infrastructure and marketing. The payoffs, however, may be worth it if subscribers grow beyond the 10-15 million critical mass. Topics covered include the pre-launch business plans of both companies, the strategies the companies used to drive consumer adoption and the evolution of competition in the market through to late 2004.