lewinski+report+proposal

 To: Proximity Music Team From: Derek Lewinski Date: January 11, 2010 Subject: Proposal for report on Sirius XM

When satellite radio first came out it was considered to be the future of radio; now it isn't. When Sirius XM first merged its market value was valued just about $17; today its market value has fallen to $0.67. I propose to write a report to analyze Sirius XM's financial situation,what has caused its decline to near bankruptcy, and how it can save itself.


 * Need**

The use and marketability of satellite radio broadcasting is declining exceptionally;  Clients of Proximity who wish to target Gen-Y consumers need this report to understand the role of internet music and mp3 players will have in allowing them to market their advertising to suit the new landscape of the music industry.
 * Mp3 compatible radios are making radio obsolete
 *  Torrents and other peer to peer websites offer access to unlimited amounts of free music and talk show recordings
 * The massive storage capacity of mp3 players, such as iPods and Zunes, provide for hours of continuous music at the users complete control
 * ·According to American Media Services, "some 27 percent of Americans are now listening to the radio less than they did five years ago."
 * Radio broadcasting is a thing of the past. Whether it is standard FM radio or satellite broadcasting, mp3 players are proving to be too competitive. With more and more people leaving radio behind in favor of digital music devices, Sirius XM faces serious problems.


 * Topics**

The proposed report, “Sirius XM and the Future of Radio,” will cover the following topics:
 *  current financial state and future of Sirius XM
 *  increasing popularity and use of MP3 players in automobiles
 *  role of the internet and peer to peer networks on radio's dwindling market share

The report will also include attachments that outline Sirius XM’s market value, profit margin, and subscriptions through the years.


 * Sources**

The following items are key sources to be used for the report.

Kim, Gary. Why Did Sirius XM Fail? (2009, February 11). Satellite. Retrieved January 11, 2010 from: [|http://satellite.tmcnet.com/topics/satellite/articles/50407-why-did-sirius-xm-fail.htm]

Kim’s article offers an inside look at some of the main reasons that Sirius XM is failing. The article also provides several statistics from credible sources that can be incorporated into the report.

Sorkin, A, & Kouwe, Z. (2010, February 10). Sirius xm prepares for possible bankruptcy.// New York Times //, Retrieved January 11, 2010 from: [|http://www.nytimes.com/2009/02/11/technology/companies/11radio.html]

Sorkin and Kouwe discuss the current state of Sirius XM. In the article financial losses and market value are discussed. Sirius XM’s future and the possibility of a buyout out are also discussed. This article will be useful in talking about the key financial standings and future implications of Sirius XM.

Manjoo, Farhad. (2009, February 12). Satellite Diss. Retrieved January 11, 2010 from: [|http://www.slate.com/id/2211158].

Manjoo’s article discusses the ways that Sirius XM can save itself from collapsing into bankruptcy. The article expresses the importance of Sirius moving its content onto the internet. The article is also useful because it outlines more factors leading to Sirius XM's demise including the introduction of the Google Android, internet music and talk shows, and peer to peer sharing.

Sirius XM. (2010, January 12). Stock Information. Retrieved January 12, 2010 from [|http://investor.sirius.com/stockquote.cfm].

This source is important for the graphs on market share it provides. With this I will be able to incorporate visual images into the report. The accurate and up-to-date information on this website will help in making a valid about Sirius XM's situation and future.

Wikipedia. (2010, January 12). Sirius XM Radio. Retrieved January 12, 2010 from [|http://en.wikipedia.org/wiki/Sirius_XM_Radio]

Wikipedia is a good source for this proposal because it offers many different statistics about Sirius XM. From this source I got information about the number of subscriptions Sirius XM has and how that number has changed over the years. The site also contains information about the formation of Sirius and its top employees.