Satellite Radio Services Duel for Consumers' Ears

Cable World, Jan 24, 2000 by Alan Breznick

In another posturing difference between the two, XM is spending more time developing the advertising side of the business while Serius is positioning itself as a relatively commercial-free oasis for listeners. To promote that image, Serius is vowing to offer 50 channels of commercial-free music to subscribers.

Seeking yet another distinction, XM argues that it has wider-reaching distribution agreements in place with car and radio manufacturers. On the auto maker side, Serius has an exclusive deal with Ford Motor Co. and the BMW group while XM has an exclusive agreement with General Motors Corp.

"This business is all built on distribution," Panero said. He's now aiming to recruit Daimler-Chrysler and the major Japanese car manufacturers, as are his Serius counterparts.

Finally, Serius is playing up its head start on XM. While XM is still raising a hefty chunk of its capital and doesn't plan to launch its two-satellite service until spring 2001, Serius has already raised nearly all of its $1.2 billion in projected capital expenses and intends to launch its three-satellite service late next year.