Discussion Questions

1. Which competitors should XM be focusing on in the future: Sirius, terrestrial radio, or

emerging/explosive growth technologies such as MP3 players, podcasts, and Internet radio?

2. Should XM try to appeal to all demographic groups or target specific segments? If the latter,

which segments should they target and why? What types of advertising and promotion

tactics can be used to market XM to these market segments?

3. What are XM's options for their advertising creative strategy? Should they focus on their

content and programming, digital sound quality, ease of use versus the other alternatives,

their innovative hardware, or a combination of these features and attributes?

4. Are there any other sampling or promotional programs that XM should pursue to attract new

subscribers and retain them?

5. How can XM combat the momentum Sirius has gained from the signing of Howard Stern?

6. Is there a cooperative advertising message (such as Intel Inside) that XM should seek to

promote with its distribution partners that can create synergy and even greater awareness for

the brand and it's unique benefits?

7. What type of programs can XM develop with retailers to increase their share of aftermarket

installations?