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Adjusted Total Revenue. Our adjusted total revenue includes the recognition of deferred subscriber revenues
acquired in the Merger that are not recognized in our results under purchase price accounting and the elimination of
the benefit in earnings from deferred revenue associated with our investment in XM Canada acquired in the Merger.
(See the accompanying footnotes on pages 22 through 29 for more details.)
2010 2009 2008
For the Years Ended December 31,
Unaudited
Revenue:
Subscriber revenue, including effects of rebates ....... $2,414,174 $2,287,503 $1,548,919
Advertising revenue, net of agency fees ............ 64,517 51,754 47,190
Equipment revenue ............................ 71,355 50,352 56,001
Other revenue ............................... 266,946 83,029 11,882
Predecessor financial information:
Subscriber revenue, including effects of rebates ..... — — 670,870
Advertising revenue, net of agency fees ........... — — 22,743
Equipment revenue .......................... — — 13,397
Other revenue .............................. — — 24,184
Purchase price accounting adjustments:
Subscriber revenue, including effects of rebates ..... 14,655 46,814 38,533
Other revenue .............................. 7,251 7,251 3,021
Adjusted total revenue ........................... $2,838,898 $2,526,703 $2,436,740
•2010 vs. 2009: Our adjusted total revenue increased 12%, or $312,195, in the year ended December 31,
2010 compared to the year ended December 31, 2009. Subscriber revenue increased 4%, or $94,512, in the
year ended December 31, 2010 compared to the year ended December 31, 2009. The increase in subscriber
revenue was driven by the increase in subscribers as well as an increase in the sale of “Best of” programming
and the decreases in discounts on multi-subscription and internet packages, partially offset by an increase in
the number of subscribers on promotional plans. Advertising revenue increased 25%, or $12,763, in the year
ended December 31, 2010 compared to the year ended December 31, 2009. The increase in advertising
revenue was driven by more effective sales efforts and improvements in the national market for advertising.
Equipment revenue increased 42%, or $21,003, in the year ended December 31, 2010 compared to the year
ended December 31, 2009. The increase in equipment revenue was driven by royalties from increased OEM
installations. Other revenue increased $183,917 in the year ended December 31, 2010 compared to the year
ended December 31, 2009. The increase in other revenue was driven by the introduction of the U.S. Music
Royalty Fee in the third quarter of 2009.
•2009 vs. 2008: Our adjusted total revenue increased 4%, or $89,963, in the year ended December 31, 2009
compared to the year ended December 31, 2008. Subscriber revenue increased 3%, or $75,995, in the year
ended December 31, 2009 compared to the year ended December 31, 2008. The increase in subscriber
revenue was driven by the sale of “Best of” programming, decreases in discounts on multi-subscription
packages, increased sales of internet packages and higher average subscribers. Advertising revenue
decreased 26%, or $18,179, in the year ended December 31, 2009 compared to the year ended December 31,
2008. The decrease in advertising revenue was driven by the economic environment. Equipment revenue
decreased 27%, or $19,046, in the year ended December 31, 2009 compared to the year ended December 31,
2008. The decrease in equipment revenue was driven by declines in sales through our direct to consumer
distribution channel and lower product and component sales offset by higher product royalties. Other
revenue increased 131%, or $51,193, in the year ended December 31, 2009 compared to the year ended
December 31, 2008. The increase in other revenue was driven by the introduction of the U.S. Music Royalty
Fee in the third quarter of 2009.
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