Information Technology Reference
In-Depth Information
As is common and mentioned often in this topic, there were several name
changes along the way, including CD Radio, which did not attract enthusiasm. Pri-
or to acquiring XM, the final name was Sirius Satellite Radio; it is now called Siri-
us XM Radio.
Sirius was a startup company, but it also basically invented and founded an en-
tire new industry. Sirius engineers had to design custom satellites, calculate op-
timal orbits, design custom computer chips, and develop custom software. They
also had to lobby the FCC and Congress and even build custom broadcast studios
with glass walls. From the first petition in July 1990 until the first broadcast on
Valentine's Day in 2002, almost 12 years and more than $2 billion were needed to
get Sirius off the ground.
The business model of Sirius was to offer fee-based high-definition music
without commercials. There are commercials on Sirius, and plenty of them, but
not while music is actually playing. (In the interest of disclosure, I have been a
Sirius customer for several years.)
In 2007, Sirius acquired the competitive XM satellite radio after gaining Secur-
ities Exchange Commission (SEC) and FCC approvals, which involved another
complex political process.
Sirius does not just broadcast derivative or common materials. Quite a few
broadcasts are unique, and Sirius has forged relationships with entertainers and
also sports teams and leagues. For example, Sirius broadcasts many college and
professional football games to national audiences. However, it is a curious legal
issue that restricts major league baseball games only to XM and not to Sirius, even
though the two are now merged. That is a legal issue outside the scope of this
book.
Sirius would make a very interesting case study for business schools because it
not only created a new industry but also technical issues were strongly intertwined
with political and regulatory issues. While software is critical to Sirius and XM
operations, it is the combination of politics and technology that makes the story
unique.
ThoughtWorks
ThoughtWorks is an interesting example of a software company aimed at improv-
ing software itself. The company is also unusual in that it has a strong social com-
mitment.
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