XM Radio 2001 Annual Report Download - page 3

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Dear Shareholder:
Promises made, promises kept. That is the story of XM in the last year.
After years of tireless planning and preparation, XM launched America’s first satellite radio service on September 25, 2001.
But we delivered more than just a historic first: we launched what Fortune magazine called the “Product of the Year”
— a world-class service that is delivering 100 channels of digital-quality sound nationwide, with an unprecedented range
of audio entertainment. We ended 2001 with 28,000 subscribers and are quickly approaching the 100,000 milestone.
We also created the “Car Potato” — people across the nation finding excuses to drive around just to listen to XM or sitting
in their driveways listening to great music.
We were able to succeed because in 2001, we hit milestones, met targets, closed deals, built, invested, innovated,
demonstrated and marketed this fabulous new service under adverse conditions, particularly after September 11. Over
the last year, we:
• Debuted 100 digital channels of amazing radio, many commercial free, providing the most diverse selection of
audio entertainment available anywhere in the U.S.
• Completed and validated our technology, particularly our chipset, which was delivered to our manufacturing
partners in time for them to produce 24 different XM radio models.
•Delivered XM radios to thousands of retail outlets nationwide by Christmas, including national chains Best Buy
and Circuit City.
• Launched an aggressive, multi-media advertising campaign that put “Radio to the Power of X” on the map, and
completed a 60-city “Power of X” press tour, winning accolades from coast to coast.
• Introduced the first ever factory-installed satellite radio in General Motors Cadillac DeVille and Seville models.
• Strengthened our financial foundation with new financings representing more than $382 million.
• Launched “Rock” and “Roll,” two of the most powerful communications satellites ever built and constructed our
network of approximately 800 repeaters.
• Signed key programming partners including MTV, VH1, FOX News, CNN Headline News, ABC News & Talk,
ESPN, FOX Sports, Radio Disney, E!, CNET and CNBC.
• Announced a joint marketing agreement with DIRECTV designed to drive XM subscriber growth.
•Opened studios in Nashville at the Country Music Hall of Fame and in New York City to complement our state-
of-the-art, 80-plus studio broadcast complex in Washington, D.C.
To culminate this year of 2001 promises kept, we not only rolled out America’s first digital satellite radio service in late
September, but also took it national in 45 days and made it the fastest-growing new consumer electronics audio product
in 20 years.
Of all the new technologies of 2001,
XM Satellite Radio is way, way, way above the rest.
— Peter Lewis, Fortune
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