XM Satellite Radio, a Washington D.C., based business, is one of the biggest competitors in the satellite radio industry. Started in 1992, the XM has two satellites in geostationary orbit above North America. These satellites are dubbed 'Rock' and 'Roll.' XM's pay-for-service satellite radio offers consumers 68 different channels of commercial-free music, 33 channels of news, sports and entertainment. XM also has Internet access available to customers for a slight monthly fee.

XM's satellites provide coverage throughout the continental United States.

XM has partnered with car stereo manufacturers like Pioneer, Alpine, Clarion, Delphi Delco, Sony and Motorola to manufacture XM car radios.

XM also has one of the most comprehensive partnerships with various car manufacturers. General Motors originally invested $100 million in XM Radio, and XM has negotiated contracts with Acura, Audi, Honda, Isuzu, Nissan, Toyota, Volkswagen, and SAAB.

XM offers subscribers traffic information in 21 markets - one of XM's unique features is a system called XM NavTraffic, which allows users to be updated on current traffic problems. The NavTraffic system can be tied into the cars navigation system to alert drivers to pending traffic problems and alternate routes. XM's CEO also recently announced plans to work with cell phone manufacturers on placing satellite receivers into cell phones - so subscribers will be able to access their satellite radio service via their cell phone.

XM's major competitor is Sirius Satellite Radio. Both networks are in a fierce competition to find and retain talented radio announcers. Both services have focused on 'shock jock' radio. XM has signed radio duos Amos and Anthony, while Sirius has recently signed Howard Stern to a deal beginning in 2006.

XM currently has 2.5 million subscribers. Like most satellite start-ups, the initial costs of doing business keep XM from showing a profit, but their subscribership seems to be growing - a good indication the XM will be in the black soon.