XM Satellite Radio Holdings Inc. / XMSR

About XM Satellite Radio Holdings Inc.

1500 Eckington Pl. NE, Washington, D.C. 20002
www.xmradio.com | 202-380-4000 | Founded: 1992

Industry: Media | Category: Top 100 Companies

After years of fierce competition for subscribers, XM and New York-based Sirius Satellite Radio announced on Feb. 19 that they planned to merge. The announcement immediately drew protests from consumer groups, some lawmakers and over-the-air broadcasters, who said a satellite radio monopoly would offer customers fewer choices. The fight for approval by the Federal Communications Commission and the Justice Department is certain to preoccupy the two companies throughout 2007.
In 2006, XM continued to lose money as it recruited big-name talent and offered free trial subscriptions to car buyers in hopes of signing them up. In May 2006, rock-and-roll legend Bob Dylan launched a weekly program. In September, Oprah Winfrey debuted her channel, for which XM is paying $55 million over three years.
XM added a host of new commercial-free music channels during the year, in part to offset radio giant Clear Channel's plans to add commercials to some of its music channels on the network. An arbitration panel ruled that Clear Channel had the right to run the ads under the terms of its early investment in the company.
In December, the company announced it had successfully launched a fourth satellite, called Blues. It joined Rhythm in orbit over the Earth. The two satellites replace XM's original satellites, Rock and Roll, launched in 2001. They will serve as spares should either of the new ones malfunction.
For the year, XM lost $718.9 million ($2.70 a share), following a $666.7 million loss in 2005. It also faces legal challenges. The recording industry is suing XM, alleging copyright infringement over a device, similar to an iPod, that allows listeners to download and store music.

Chairman and founder: Gary Parsons

2007 Financial Data

Total employees: 860 | Local employees: 700