XM Radio Receives Additional Funding
XM Satellite Radio Inc.,(http://www.xmradio.com) a company working to develop and commercially launch a new band of radio, today announced that it has commitments for an additional $235 million. The company believes that this round completes its funding through commercial launch of its newnationwide satellite radio service.
XM Satellite has an impressive list of key investors including American Honda Motor Co., General Motors, DIRECTV Enterprises, Clear ChannelCommunications and Motient Corporation. The investor group is led by AEA Investors Inc.
"XM is thrilled to add American Honda and AEA to our group of highly-respected strategic and financial partners," said Hugh Panero, XM's President and CEO. He added that, "This has been a blockbuster year, in just 12 months XM has raised over a billion dollars, completing our financing through commercial launch."
XM is currently moving into the execution phase. They have a satellite launch scheduled for mid- November and they recently opened a new digital broadcast studio and headquarters in Washington, DC. XM Radio has signed deals with Sony, Alpine, Pioneer Electronics Corporation to manufacture XM Radios. They will be offered as factory options by many automotive companies and sold at retail outlets such as Best Buy and Circuit City.
One interesting aspect of this announcement is the impact it will have upon the streaming industry. There are several companies such as Kerbango.com, Sonicbox, and PenguinRadio.com promoting standalone internet "radios". According to Jim Gable, president of Kerbango.com, the target market of the two products is distinctly different.
"Their focus is on creating their own specialized content to make the service fee worthwhile. They are mainly focused on cars and partnering with car manufacturers," Jim Gable stated.
Internet Radio is by definition wired down because you must be connected to the internet at this time, but the variety that the internet can provide is still untouchable. One company that may perhaps be more concerned with the impending competition is Penguin Radio. They announced back in February that they were working with Ineva.com and Ellipso Satellite to deliver wireless internet connectivity which is slated to eventually be available to mobile and automobile devices.