Xm Radio
Its service included 73 different music channels, 39 news, sports, talk and entertainment channels, 21 regional traffic and weather channels and 23 play-by-play sports channels. XM channels are identified by Arbitron with the label "XM" (e.g.
On July 29, 2008, XM and former competitor Sirius Satellite Radio formally completed their merger, following FCC approval, forming Sirius XM Radio, Inc.
Services
While the satellite receiver radio service is its primary product, XM actually operates several audio and data services, and advertising.
Satellite radio
XM's primary business is satellite radio entertainment. XM carries music, news (both simulcast and syndicated programming), sports, talk radio, comedy (both stand-up and radio shows), and even radio drama.
In addition, XM broadcasts local weather and traffic conditions in its larger markets. The channel lineup is available on-line.
To receive satellite radio programming, a customer is required to purchase a receiver.
With a service commitment, it's possible to get a simple receiver for free.
XM Satellite Radio logo from 2001-2006
There are currently several types of receivers available to consumers:
Plug and Play receivers: The chief benefit of these units is flexibility. The receiver snaps in to a base unit, which provides power, antenna, and audio connections.
Multiple base units can be installed in the home or car, and portable boom-box style units allow the plug and play receivers to be used outdoors. Examples include the Xpress line, and the Delphi Skyfi.
In-dash receivers: these are integrated with a car's stereo system.
Many factory stereo systems include XM or Sirius radio, and the more popular aftermarket stereo brands all have options to connect satellite radio receivers.
Desktop receivers and Home theater systems: Manufacturers are now offering several XM Ready systems. These range from small clock-radio systems to powerful home theater receivers.
Portable personal systems: XM has offered portability kits for various receivers in the past.
It also currently offers the Helix and Inno, which are self-contained and can play both live XM and recorded content with no external antennas.
XM also offers music downloads through XM+Napster for Windows users. This service is being integrated with XM Online and the new MP3 capable XM receivers, such as the Pioneer Inno or the Samsung Helix.
A subset of the XM programming can also be received on the DirecTV satellite network.
To listen to XM on DirecTV, no XM subscription is required, but you must have a DirecTV subscription.
XM also offers many of its stations to its subscribers via the Internet. Most of its original programming is available, but the syndicated and simulcast channels are typically not included.
XM Radio Online
XM Radio Online, XM's internet radio product, offers many of XM's music stations and can be accessed from any Internet connected Windows or Macintosh computer.
It is now included with XM Radio subscriptions, or available separately for US$7.99 a month to internet-only subscribers.
Weather and traffic
XM also provides data services such as weather information for pilots and weather spotters through its XM WX Satellite Weather datacasting service. This up to the minute weather information can be displayed in the cockpit of an aircraft equipped with a satellite weather receiver.
Unlike weather radar, which relies on the aircraft's own equipment, the satellite service can give a pilot information about weather anywhere in the country. In-cockpit radar and lightning receivers return truly realtime information, but they can cost many thousands of dollars.
Certain aircraft are also now integrating the XM radio service in to the aircraft's audio system, as well, allowing the pilot to listen to XM radio while flying.
XM also has dedicated traffic and weather channels that cover many major metropolitan areas. Zipcar, an urban car-sharing service in the United States, initially installed XM receivers in all of their vehicles available for daily or hourly rental.
This service replaces the Music Choice business audio service formerly offered by DirecTV. More importantly for the background music needs of business audio these channels do not feature any kind of interruption and do not feature radio hosts, imaging, or sounders.
Effective October 1, 2006, the 15 channels of interruption-free background music, formerly part of "XM for Business", were moved from satellite 101 to satellite 119 (DirecTV-7S at 119°W).
Older, single LNB receivers may not be able to receive these stations.
In 2007, Air Canada began replacing its current generation of EnRoute radio with XM. The signal can also be received in the Caribbean Islands and most of Mexico (reports have stated that areas north of Acapulco are able to receive a steady signal), however XM is not yet licensed for reception by paid subscribers living in these areas.
The original satellites, XM-1 ("Rock") and XM-2 ("Roll") suffer from a generic design fault on the Boeing 702 series of satellites (fogging of the solar panels), which means that their lifetimes will be shortened to approximately six years instead of the design goal of 15 years. To compensate for this flaw, XM-3 ("Rhythm") was launched ahead of its planned schedule on February 28, 2005 and moved into XM-1's previous location of 85° WL.
XM-1 was then moved to be co-located with XM-2 at 115° WL, where each satellite operated only one transponder (thus broadcasting half the bandwidth each) to conserve energy and cut the power consumption in half while XM-4 ("Blues") was readied for launch. This makes the current active satellites as XM-3 "Rhythm" and XM-4 "Blues" with two in-orbit spares.
XM Satellite Radio headquarters in Washington, D.C., near the New York Avenue metro station.
On June 7, 2005, Space Systems/Loral announced that it had been awarded a contract for XM-5. XM-5 will feature two large unfurlable antennas.
The actual number of sites in the United States has dropped from the original 1,000 installed when the service first launched in 2001. Typically the receiver owner is unaware when a terrestrial station is being used, unless he or she checks antenna information from the receiver being used.
American Honda also retains the right to some of the company's bandwidth to transmit messages to Acura vehicles via a service known as AcuraLink.
XM NavTraffic, an optional service, transmits coded traffic information directly to vehicle navigation systems using TMC technology.
Audio channels on XM are digitally compressed using the aacPlus (HE-AAC) codec from Coding Technologies for most channels, and the AMBE codec from Digital Voice Systems for some voice channels, including all of the Traffic and Weather channels.
The XM radio signal is broadcast on 6 separate radio carriers within the 12.5 MHz allocation. The other 4 carriers carry duplicates of the same content to achieve redundancy through signal diversity.
Effectively the total radio spectrum used for content is a little over 4 MHz.
Each two-carrier group broadcasts 100 8-kilobit-per-second streams in approximately 4 MHz of radio spectrum. XM manufacturing partners such as Denon, Onkyo, Pioneer Electronics (USA) Inc., and Yamaha have introduced home audio systems capable of playing XM HD Surround.
Controlling interest
The company's May 2004 proxy statement notes that four directors are subject to director designation agreements with GM, American Honda, the chairman, and the CEO.
Four additional directors are investors, and two are not affiliated with any significant stockholders.
At that time, GM owned 8.6% of the Class A common stock (a voting percentage of less than 1%) and Honda owned 13% (with a voting percentage of 3.6%).
Unless they unanimously agree otherwise, control of the company remains with the preferred shareholder and noteholders of the company, including Hughes Electronics, GM, Honda, and several private investment groups.
Clear Channel programming agreement
As part of terrestrial radio giant Clear Channel Communications' early investment into XM in 1998, the companies entered into agreements which provided for certain programming and director designation arrangements as long as Clear Channel retained the full amount of its original investment in XM. In June 2003, Clear Channel entered into a forward sales agreement relating to its ownership of XM.
The plans for this bandwidth included the existing four music channels (XM11 Nashville!, XM21 KISS, XM22 Mix, XM24 Sunny) existing talk channel programming (XM142 Fox Sports Radio, XM152 Extreme XM, XM165 Talk Radio), and the eventual launch of XM173 WLW, re-launch of XM161 WSIX-FM, XM154 National Lampoon Comedy Radio, XM233 ReachMD, and XM158 America's Talk. The RIAA claims these devices are equivalent to a downloading service, whereas XM contends the devices are protected under the 1992 Audio Home Recording Act.
It should be noted that XM's subscribers can only save songs they hear on the radio, and cannot request a specific song to be downloaded, or program their radios to record specific artists. There is speculation that these fumbles by XM and its attitude towards the Time Trax technology may have been the warning shot of major troubles between the RIAA and XM.
On January 19, 2007, a district judge ruled that the RIAA could proceed with the lawsuit, rejecting XM's defense that the conduct alleged in the complaint--if proved by the RIAA--would be immune under the Audio Home Recording Act of 1992.
PCR and DirectPCR
At the heart of the TimeTrax controversy was the XM PCR: a computer-controlled XM Receiver.
Unlike the other receivers, which could be used in the car or home stereo, the XM PCR required a computer to run. Some people have dubbed the entire kit, with receiver, cable, and software, the Direct PCR.
The merger will combine the two radio services and create a single Satellite Radio network in the United States and Canada.
The United States Department of Justice announced on March 24, 2008 that it had closed its investigation of the merger because it "concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius was likely to substantially lessen competition."
On June 16, 2008, FCC Chairman Kevin Martin told the Washington Post that he had decided to approve the XM-Sirius Merger after the companies agreed in the previous week to concessions intended to prevent the new company from raising prices or stifling competition. Martin issued an order to approve the merger, according to The Wall Street Journal - setting the stage for a final vote which could have occurred any time after his recommendation was circulated.
The XM-Sirius Merger gained its final governmental approval from the Federal Communications Commission late July 25, 2008, with Martin and commissioners Robert M.