Group 7

XM SATELLITE RADIO

PRIMARY TARGET

Primary Target: 25-34 year olds

• Desired market young and tech friendly

• Car owners or in the market to purchase a new car

• Best performing target in exhibit 10 ($12/month)

VALUE PROPISITION

• High Quality Radio

• Better coverage

• Commercial free

• Nationwide set channels

• “You’ll be able to drive from NY to LA and always listen.”

TIER PROGRAMMINGAssess consumer price sensitivity

• Validates optimal price

• Consumers can move up tier ladder

Possible Advertising Profits (Trial package)

• Free monthly fee with profits in advertising

• Only basic channels for limited time

• Less ads than FM/AM radio

PREMIUM PACKAGE

TRIAL PACKAGE

BASIC PACKAGE