Business |
9 Months Ended |
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Sep. 30, 2011 | |
| Business and Principles of Consolidation and Basis of Presentation [Abstract] | |
| Business |
(1) Business
We broadcast our music, sports, news, talk, entertainment, traffic and weather channels in the
United States on a subscription fee basis through our two proprietary satellite radio systems.
Subscribers can also receive certain of our music and other channels over the Internet, including
through applications for Apple, Blackberry and Android-powered mobile devices.
In October 2011, we launched an expanded channel lineup, including new music, sports, comedy
channels as well as Sirius XM Latino, a suite of Latin channels. These channels, available online
and over certain new radios, are the first phase of Sirius XM 2.0, an upgrade and evolution of our
satellite and Internet delivered service that will ultimately span hardware, software, audio, and
data services. This new technology effectively delivers 25% more bandwidth capacity, which will
allow us to expand our audio and data services without affecting the broadcast quality of existing
channels.
Our primary source of revenue is subscription fees, with most of our customers subscribing on
an annual, semi-annual, quarterly or monthly basis. We offer discounts for prepaid and long-term
subscription plans as well as discounts for multiple subscriptions on each platform. We also
derive revenue from activation and other fees, the sale of advertising on select non-music
channels, the direct sale of satellite radios and accessories, and other ancillary services, such
as our weather, traffic, data and Backseat TV services.
Our satellite radios are primarily distributed through automakers (“OEMs”); nationwide through
retail locations; and through our website. We have agreements with every major automaker to offer
satellite radios as factory or dealer-installed equipment in their vehicles. Satellite radio
services are also offered to customers of certain daily rental car companies.
In July 2008, our wholly owned subsidiary, Vernon Merger Corporation, merged (the “Merger”)
with and into XM Satellite Radio Holdings Inc. In January 2011, XM Satellite Radio Inc., our
wholly-owned subsidiary, merged with and into us. All outstanding debt instruments held by XM
Satellite Radio Inc. were assumed by us in the merger.
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