XM Satellite Radio

XM Satellite Radio Holdings Inc. was one of the three satellite radio and online radio services in the United States and Canada, operated by Sirius XM Holdings. It provided pay-for-service radio, analogous to subscription cable television. Its service included 73 different music channels, 39 news, sports, talk and entertainment channels, 21 regional traffic and weather channels, and 23 play-by-play sports channels. XM channels were identified by Arbitron with the label "XM".
The company had its origins in the 1988 formation of the American Mobile Satellite Corporation, a consortium of several organizations originally dedicated to satellite broadcasting of telephone, fax, and data signals. In 1992, AMSC established a unit called the American Mobile Radio Corporation dedicated to developing a satellite-based digital radio service; this was spun off as XM Satellite Radio Holdings, Inc. in 1999. The satellite service officially launched on September 25, 2001.
On July 29, 2008, XM and former competitor Sirius Satellite Radio formally completed their merger, following U.S. Federal Communications Commission approval, forming Sirius XM Radio, Inc. with XM Satellite Radio, Inc. as its subsidiary. On November 12, 2008, Sirius and XM began broadcasting with their new, combined channel lineups. On January 13, 2011, XM Satellite Radio, Inc. was dissolved as a separate entity and merged into Sirius XM Radio, Inc.

Services

While the satellite receiver radio service was its primary product, XM also operated audio, data and advertising services.

Satellite radio

XM's primary business was satellite radio entertainment. XM carried music, news, sports, talk radio, comedy, and radio drama. In addition, XM broadcast local weather and traffic conditions in its larger markets.

XM Radio Online

XM Radio Online, XM's Internet radio product, offered many of XM's music stations and could be accessed from any Internet connected computer, or via the SiriusXM mobile app.

Weather and traffic

XM also provided data services such as weather information for pilots and weather spotters through its Sirius XM Weather & Emergency datacasting service. This information could be displayed in the cockpit of an aircraft equipped with a satellite weather receiver.

Commercial adoption and partnerships

In 2004, JetBlue announced that XM Satellite Radio service would be available in its Embraer regional jets beginning in 2005. Also in 2005, AirTran Airways began putting XM Satellite Radio on their aircraft. United Airlines started carrying XM programming in March 2006. Zipcar, an urban car-sharing service in the United States, initially installed XM receivers in all of their vehicles, but later announced they would be removed from its fleet in the following months due to uncertainty in the market.

Customer service

In contrast to its high-quality broadcasts, Sirius/XM's customer service has drawn fire from some state governments. In October 2010, Richard Cordray, Ohio's Attorney General, began investigating complaints regarding Sirius XM's policies on billing, customer solicitation, and subscription renewals and cancellations. The company informed shareholders of the probe shortly thereafter. According to news reports, Arizona, Connecticut, Tennessee, Vermont, and the District of Columbia had expressed interest in participating in the inquiry.
According to Reuters, "The investigations come as Sirius XM, home to programs by Howard Stern and Oprah Winfrey, has found its footing and distanced itself from years of huge losses and questions about its business model."
In a report obtained in March 2011, The Better Business Bureau reported receiving over 4,500 complaints against Sirius XM in the preceding 36 months, around half of which regarded the company's billing and collection practices.
In Missouri, some people registered on the state's do-not-call list had complained about receiving repeated calls from Sirius XM workers or agents after canceling their subscriptions. Some Florida customers had reported being billed for automatic renewals of accounts they had canceled. Further, Sirius XM was sued in federal court by a customer accusing it of deceptively raising prices.
The report also stated that "Sirius, in a statement, said it was cooperating with the investigations and that it believed its 'consumer-related practices comply with all applicable federal and state laws and regulations.'"

1988–2000

The American Mobile Satellite Corporation was founded in 1988 where Bob Kerstein was the Chief Financial Officer. In 1991, Lon Levin joined the company. In 1992, the American Mobile Satellite Corporation created a new division known as American Mobile Radio Corp. Later that year, American Mobile brought in WorldSpace as an investor.
On May 16, 1997, American Mobile Satellite and WorldSpace officially changed the name of American Mobile Radio to XM Satellite Radio. Later that month, Lon Levin became president, a position he would hold until 1998. In October 1997, XM Satellite Radio obtained one of only two satellite digital audio radio service licenses offered by the Federal Communications Commission. In 1998, Hugh Panero President and CEO, joined XM Satellite Radio in the same role.
In June 1999, Clear Channel Communications, DirecTV, General Motors, and a private investment group invested US$250 million in XM Satellite Radio convertible debt. On June 7, with GM's investment in XM, they entered into a 12-year "Distribution Agreement" between XM and GM subsidiary, OnStar Corporation. The agreement called for exclusive installation of XM Satellite Radio into GM vehicles from November 12, 2001, until November 2013. OnStar had to meet specific escalating installation rates each year, while XM needed to make extensive payments to OnStar for the installation and sale of XM in their vehicles, while sharing revenue earned from these radios with OnStar, as well as payments on the exclusivity agreement.
At the same time as the investment, American Mobile Satellite, still XM's parent company, reacquired the stake WorldSpace held in the company. In October 1999, XM Satellite Radio issued 10,241,000 shares of Class A common stock at an IPO price of US$12.00 per share. American Mobile Satellite remained the majority holder of the public company.
In April 2000, American Mobile Satellite Corp. changed its name to Motient. In July, American Honda joined several private investors in a US$235 million preferred stock investment in the company.

2001–2005

On September 25, 2001, XM Satellite Radio launched in San Diego and Dallas–Fort Worth, with nationwide expansion plans set for November. The initial lineup included 100 channels consisting of sports, talk, children's programming, entertainment and news.
In October 2001, Motient was heading into bankruptcy and spun off their non-XM satellite division into a joint operation with TMI Communications and Company, L.P., a wholly owned subsidiary of BCE Inc. of Canada. The new venture was known as the Mobile Satellite Ventures. In November, Motient was in bankruptcy, and sold off their controlling interest in XM to Hughes Electronics, SingTel and Baron Capital Partners. Hughes Electronics would go on to combine this new interest in with the interest already held by their subsidiary, DirecTV. On November 12, 2001, XM Satellite Radio officially launched its nationwide service.
In January 2003, the company underwent a re-capitalization plan, involving XM exchanging US$300 million in old debt for new debt, while deferring interest for 3-years on the notes. They also restructured payment obligations on the General Motors installation agreement, issuing a convertible bond to GM, issuing a warrant for shares to GM, and establishing a revolving credit facility with GM. The plan also included new funding coming from a placement of over US$300 million in 10% convertible bonds to a group of private investors.
In 2004, General Motors sold Hughes Electronics to Rupert Murdoch's News Corp., and sold DirecTV's interest in XM Satellite Radio. On March 1, XM Radio launched Instant Traffic and Weather Channels for major metropolitan markets in the United States. Also in 2004, the company partnered with automakers General Motors, Honda, Isuzu, Nissan, Toyota, Volkswagen, and SAAB to offer in-dash XM receivers on an OEM basis. The Acura TL is the first luxury automobile to offer XM radio as "standard" in every vehicle.
On October 4, 2004, "shock jocks" Opie and Anthony begin broadcasting on a premium XM Satellite Radio station. Also, former National Public Radio host Bob Edwards broadcast the first Bob Edwards Show on XM Public Radio on channel 133. On October 20, XM announced an 11-year, US$650 million deal with Major League Baseball to broadcast games live nationwide and to become the Official Satellite Radio provider of Major League Baseball. The agreement granted XM the rights to use the MLB silhouetted batter logo and the collective marks of all major league clubs. As part of the deal, XM created a 24/7 MLB channel called "Home Plate". The deal started with the 2005 baseball season and ran through 2012, including a 3-year option that MLB could have picked up.
On May 28, 2005, The Wall Street Journal reported that XM had awarded the contract for the XM 5 spacecraft to Space Systems/Loral. On June 7, XM partnered with Audible.com to offer downloadable audio show archives of The Opie and Anthony Show, as well as The Bob Edwards Show. On August 1, XM announced a three-year partnership with the United States Tennis Association to broadcast the US Open tournament through 2007, as well as weekly reports from other US Open Series events. On September 12, XM announced a 10-year, US$100 million deal to carry National Hockey League broadcasts beginning with the 2005–06 season, initially sharing the coverage with SIRIUS but gaining satellite-radio exclusivity from 2007 onward. On November 29, XM launched service in Canada.