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XM SATELLiTE RADiO 20 0 1 Annual Report
“The Choices are absolutely phenomenal … I find the quality to be outstanding.”
— Bill Hennes, XM Subscriber, W ilmington, North Carolina
“Two weeks ago I had an XM radio put in my car. Suddenly, I want to drive
everywhere.” — Art Vuolo, XM Subscriber, Detroit, M ichigan
“I don’t mind traffic jams anymore … in fact, I look for them.”
— Jeff Stein, XM Subscriber, Los Angeles, California
“If Thelma and Louise had XM Radio, they would not have driven off the cliff.”
— M ark Obmascik, XM Subscriber, Denver, Colorado
People love XM: Consumers are voting with their ears … and their dollars. XM beat
analysts’ expectations with 30,000 subscribers in its first 60 days after launch,
representing the fastest consumer electronics audio product introduction in 20 years
according to the Yankee Group. And we are quickly approaching the 100,000 milestone.
XM is a mass-market product: In contrast
to the traditional early adopter profile for
new products, XM’s initial customer base is
evenly distributed among age groups from
18 to 54, with subscribers in 48 states.
XM is popular in major urban areas:
Interestingly, almost 80% of our initial
subscribers are located in urban areas
despite the availability of numerous AM
and FM choices. We are now expanding
distribution into rural areas characterized
by much fewer local radio choices.
To build on this success, XM has put a
series of consumer feedback mechanisms in
place, from a toll-free number for subscriber
suggestions to a interactive, dynamic
website that includes weekly programming highlights, on-line request voting and the
ability to contact and interact with each of XM’s original programming channels. XM is
already acting on subscriber suggestions to take the listener experience to the next level.
Listeners
All you want to do is keep
driving — and turn it up.
“— Popular Science
“
I Love My XM …
“— Josh Holstead,
XM Subscriber, Houston, Texas
“
Universal customer
satisfaction:
An extraordinary
94% of XM’s initial
customers have rated the
service as “excellent,”
92% called the sound
quality “excellent”
and a near unanimous
99% said XM represented
a “good” or “excellent”
value at $9.99 a month.
XM Initial Subscribers (By Age Group)
16 XM SATELLiTE RADiO 20 0 1 Annual Report
AR 2001 TEXTPGONLYFINAL 4/9/02 12:09 PM Page 16