XM Radio 2010 Annual Report Download - page 57

Special Note Regarding Forward-Looking Statements
The following cautionary statements identify important factors that could cause our actual results to differ
materially from those projected in forward-looking statements made in this Annual Report on Form 10-K and in
other reports and documents published by us from time to time. Any statements about our beliefs, plans, objectives,
expectations, assumptions, future events or performance are not historical facts and may be forward-looking. These
statements are often, but not always, made through the use of words or phrases such as “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimated,” “intend,” “plan,” “projection” and “outlook.” Any
forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this
Annual Report on Form 10-K and in other reports and documents published by us from time to time.
Among the significant factors that could cause our actual results to differ materially from those expressed in
the forward-looking statements are:
• our competitive position versus other forms of audio and video entertainment including terrestrial radio, HD
radio, Internet radio, mobile phones, iPods and other MP3 devices, and emerging next-generation networks
and technologies;
• our ability to retain subscribers and maintain our average monthly revenue per subscriber;
• our dependence upon automakers and other third parties, such as manufacturers and distributors of satellite
radios, retailers and programming providers;
• our substantial indebtedness; and
• the useful life of our satellites, which, in most cases, are not insured.
Because the risk factors referred to above could cause actual results or outcomes to differ materially from those
expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on
any of these forward-looking statements. In addition, any forward-looking statement speaks only as of the date on
which it is made, and we undertake no obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which the statement is made, to reflect the occurrence of unanticipated
events or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise or
to assess with any precision the impact of each factor on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(All dollar amounts referenced in this Section are in thousands, unless otherwise stated)
Executive Summary
We broadcast our music, sports, news, talk, entertainment, traffic and weather channels in the United States on
a subscription fee basis through two proprietary satellite radio systems. Subscribers can also receive certain of our
music and other channels over the Internet, including through an application on Apple, Blackberry and Android-
powered mobile devices.
We have agreements with every major automaker (“OEMs”) to offer satellite radios as factory- or dealer-
installed equipment in their vehicles. We also distribute our satellite radios through retail locations nationwide and
through our websites. Satellite radio services are also offered to customers of certain daily rental car companies.
As of December 31, 2010, we had 20,190,964 subscribers. Our subscriber totals include subscribers under our
regular pricing plans; discounted pricing plans; subscribers that have prepaid, including payments either made or
due from automakers and dealers for subscriptions included in the sale or lease price of a vehicle; activated radios in
daily rental fleet vehicles; certain subscribers to our Internet services; and certain subscribers to our weather, traffic,
data and video services.
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