XM Radio and Best Buy Sign Sales Agreement
30 May 2000
XM Radio and Best Buy Co. , Inc. today announced a multi-year strategic sales , marketing and distribution agreement. The agreement calls for Best Buy to sell the XM Radio service and XM capable radios throughout its more than 350 retail stores beginning with launch of XM service in 2001. The sales effort will initially be focused on the more than 200 million car owners in the United States. XM Satellite Radio is developing a new band of radio. It will create and package up to 100 channels of digital-quality music , news , sports , talk and children's programming. The service will be uplinked to XM's powerful satellites and transmitted directly to vehicle , home and portable radios across the country. XM's first satellite is scheduled to launch in November 2000. Commercial XM service is scheduled to begin during the first half of 2001 for a monthly subscription fee of $9.95. "We believe that retail car stereo sales will be critical to building a mass-market subscription base at the inception of our satellite-radio service next year," said Hugh Panero , President and CEO of XM Satellite Radio. "We're excited that Best Buy , the country's largest retailer of car stereo systems and recorded music , is leading the industry in offering XM's aftermarket products." "Best Buy is dedicated to providing consumers with a variety of technology products , connections and content that can enhance their time and make it more fun," said Mike London , Senior Vice President of Consumer Electronics at Best Buy. "We are confident that XM's market-leading entertainment service will be a real benefit to consumers and create a retail opportunity similar to DBS and DVD." About XM Satellite Radio The XM sound will combine leading brand-name channels with distinctive formats produced in XM Radio's fully digital Programming Center by some of the country's leading artists , producers , programmers and radio format designers. XM-Ready radios will be manufactured by such household names as Sony , Alpine , Pioneer Electronics Corporation , Delphi Delco Electronics Systems , Audiovox , Clarion , Mitsubishi Electronic Automotive America , Motorola and the Sharp Corporation. The service will be easy to order directly through XM's customer service center , with XM-Ready radios available at leading consumer electronics stores , like Best Buy , and at car dealerships across the country. XM has a long-term distribution agreement with General Motors to integrate XM-Ready radios into its vehicles commencing in 2001; GM has ordered AM/FM/XM radios from Delphi Delco. XM's owners include Motient (formerly American Mobile Satellite Corporation) , which holds controlling interest in the company , General Motors , Clear Channel Communications and DIRECTV , respectively , the leading car , radio and satellite TV companies in the US.