Orbitcast: May 2006 Archives

May 2006 Archives

SIRIUS, XM Satellite Radio to Present at the Friedman Billings Ramsey Growth Conference

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The boys are making the rounds this week, this time at the Friedman Billings Ramsey Growth Conference tomorrow.

David Frear, SIRIUS' EVP/CFO, will present at 8:15am ET - listen to the webcast of that presentation here. XM is scheduled to present at 9:00am ET (though no word on a webcast as of yet).

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SIRIUS Radios in full FCC Compliance

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Sirius 

SIRIUS' EVP/CFO, David Frear, today at the Bernstein Strategic Decisions Conference confirmed that all SIRIUS Satellite Radio receivers are in full FCC compliance. Some letters were sent regarding some Sirius devices that were out of spec. Frear stated that they then went to the receiver manufacturers and took care of the problem a while ago.

All SIRIUS Radios are in full FCC compliance. Case closed.

Thanks Tim! 

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Opie & Anthony Returning To WJFK/DC Lineup?

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Opie and AnthonyThat's what The Washington Times and DCRTV are both reporting. The Washington Times says:

We hear that a formal announcement will be made today and that the duo will be heard in middays, a time that has suffered in the ratings since Howard Stern's departure for Sirius Satellite Radio forced WJFK to juggle its lineup.

While DCRTV is confirming the midday move, adding that the date of arrival is June 26th, taking over the 10am-1pm time-slot in a tape-delayed show. While this goes along with on-air conversations of new CBS Radio markets opening up, there's still no additional word on what Citadel markets might get picked up.

[The Washington Times & DCRTV]

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Deadwood Radio coming to SIRIUS

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Deadwood RadioThose of you (myself included) who are hardcore Deadwood fans will love this: Deadwood Radio - a 2-hour weekly show hosted by W. Earl Brown (aka Dan Dority from the program) - is coming to SIRIUS' Outlaw Country (ch 63). Deadwood Radio debuts at 8PM ET on June 10th - a day before the 3rd season of Deadwood begins.

Brown will be joined by a different cast member every week, including Ian McShane (Al Swearengen), John Hawkes (Sol Star), Sean Bridgers (Johnny Burns), Keith Carradine (Wild Bill Hickok), Robin Wiegert (Calamity Jane), Geri Jewell (Jewel), Jim Beaver (Ellsworth), Keone Young (Wu), and Peter Jason (Con Stapleton). Brown and crew will revisit the previous week's Deadwood episode and preview each new episode.

[via Sirius Fan Network

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XM Satellite Radio at Bernstein Strategic Decisions Conference

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Gary Parsons, XM Satellite Radio's Chairman of the Board, is scheduled to make a company presentation and participate in a question and answer session at the Sanford C. Bernstein & Co. Strategic Decisions Conference in New York, today at 4:00pm ET.

A live audio webcast of the presentation will be available here.

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XM Confirms: Certain Radio Shipments Suspended

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XM SportscasterIn a SEC filing yesterday, XM has officially confirmed that certain satellite radio receivers shipments have been suspended as part of an investigations to maintain FCC compliance.

In the filing, XM stated:

 As previously disclosed, on April 25, 2006, we received a letter from the Federal Communications Commission stating that its Office of Engineering and Technology Laboratory had tested the Delphi XM SKYFi2 radio and determined that its FM modulator wireless transmitter is not in compliance with permissible emission limits. We are also aware that Audiovox, manufacturer of the Audiovox Xpress, a radio designed to work with the XM system, received a similar letter from the FCC, and has suspended shipments of that product at the present time. We have been conducting a review of the SKYFi2, Xpress and other devices compatible with the XM system that use a wireless FM modulator to transmit XM programming from an XM radio to an FM radio. We have provided information to the FCC regarding the SKYFi2 radio in accordance with the FCC letter.

Further, we are implementing a series of actions involving various radios to bring them into compliance, including requesting our manufacturers to suspend shipments to retail of radios or accessories that may require changes to operating or installation instructions, or modifications to software or hardware, such as small attachments that reduce emissions through the antenna or cigarette lighter adapter. We will seek new equipment authorizations where appropriate, and expect to provide additional information to the FCC shortly, including test results for several XM radios, as modified, showing compliance with the in-vehicle testing criteria.

In this connection, the FCC recently (April and May) released clarifications of its procedure for in-vehicle testing in a selection of representative vehicles and our test data are being prepared based upon these procedures. We are working to limit the interruption in supply of certain models of XM radios to retailers, and we plan to have modified devices shipping to retailers in the near term. No health or safety issues are involved with these wireless XM radios, and this matter does not pertain to any XM radios which are factory installed in new vehicles. We can provide no assurances at this time that our actions will be deemed sufficient by the FCC, or that other remedies that may be required by the FCC will not have a material impact on our consolidated results of operations or financial position.

According to Radio Ink, XM spokesman Chance Patterson told the AP that other receivers that may face shipment suspensions include the Roady XT and the XM Sportscaster. 

[SEC Filing

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SIRIUS Satellite Radio to Present at the Bernstein Strategic Decisions Conference

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SIRIUS Satellite Radio's Executive Vice President and Chief Financial Officer, David Frear, is expected to present at the Bernstein Strategic Decisions Conference in New York on tomorrow, May 31st at 3:00pm ET.

A live audio webcast of the presentation will be available on SIRIUS' website.

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Mel Karmazin bought 1 million shares of SIRI

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Mel KarmazinSIRIUS Satellite Radio's superstar CEO Mel Karmazin decided to plunk down nearly $4.5 million today in exchange for 1,000,000 shares of SIRI stock. Karmazin paid $4.47/share thereby increasing his stake in SIRIUS to 6.5 million shares.

This is his second big purchase of stock, as back in January Mel bought 1 million shares @ $6.21 each.

[MarketWatch]
[SEC Filing]

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Both Sirius and XM Could Halt Radio Production

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Sportster 4This according to Forbes after BofA Analyst Jonathan Jacoby wrote in today's research note:

"The FCC issue could be more pervasive than previously believed. We believe that XM and Sirius could temporarily suspend retail shipments of certain radios, but the fix would be relatively quick and inexpensive and likely would not lead to stock-outs at retail."

According to Jacoby, the simple addition of a 25-cent part could put the receivers back into FCC compliance and a new product could begin shipping again within 30 to 60 days. "If that is the case, we believe the retail channel would remain sufficiently stocked to maintain a normal level of unit sales -- and sub numbers would not be impacted," he said.
 

[Forbes

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More Details on SIRIUS/CBS Radio Settlement

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Howard SternWhile the remainder of details are confidential, the fact that SIRIUS Satellite Radio now has the rights to 'Classic Stern' shows is undoubtedly the headline winner. This morning, SIRIUS issued an 8-K providing some more details to the settlement:

The lawsuit brought by CBS Radio Inc. against us along with Howard Stern and others referenced in Item 3 of our 2005 Annual Report on Form 10-K has been settled. As part of the settlement, CBS Radio is conveying its rights in the recordings of the Howard Stern Show that aired on CBS Radio from 1985 through 2005. We will have the right to use those recordings as part of our Howard Stern channels through December 2010. We are making a total payment of $2 million to CBS Radio. This is the only payment we will make under the settlement agreement.

Great deal for SIRIUS, not just because they get two decades worth of programming, but also since this is the only public information about the settlement. They definitely walk away the winner here.

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Samsung Nexus - Orbitcast Review

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Samsung NeXusToday I had the benefit of playing with the Samsung NeXus hands-on, courtesy of JJI Electronics, and my overall impression is that this is a great alternative for those who don't want to plunk down the cheddar for the Pioneer Inno or Samsung Helix. The NeXus is also a bit of a breakout concept from the other 'regular' satellite radio receivers, in that it's sole purpose is to replay recorded (and personal) content. This concept isn't what us regular satellite radio listeners are used to, but this device isn't exactly targeted to us - it's meant for the casual MP3 listener (I'll explain more later).

Now unlike the Pioneer Inno and Samsung Helix, the Samsung NeXus does not have live on-the-go reception of satellite radio signal. Instead, it depends on being plugged into the Home Dock (or the optional Car Kit) in order to receive a live XM signal. What the NeXus lacks in on-the-capabilities, it makes up for in size and price. The MSRP is almost half the price of the Inno and Helix (the NeXus 25 MSRPs for $219.99 and the NeXus 50 MSRPs at $269.99).

Samsung NeXus, Helix and InnoThe NeXus measures in at a meager 85.6mm high x 47.2mm wide. When compared to the Inno/Helix, that's 8.5mm less in height, and 8.8mm less in width. To the Sirius S50, it's 13.46mm shorter and 1.06mm slimmer. And with the inevitable comparison to the iPod nano, the NeXus is still 3.3mm shorter, while being 6.56mm wider - not too shabby.

The Samsung NeXus comes with a home docking station with antenna, earbuds, the incredible XM Passport, various cables, a carrying case, and the XM + Napster software to interface with your PC. Read more and check out a whole boatload of photos after the jump...

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XM Pulls FM-Enabled Radios from Kiosks & Online Store

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Audiovox XpressEarlier today word came in that XM has stopped selling certain radio from their kiosks and from their online store. As further investigation showed that only satellite radio receivers with an FM-Modulator were the units being pulled. On XM's Online Store, most units were listed as "Out of Stock" with the exception of the Pioneer Inno.

Then Ryan from XM Fan made the said the following:

"official word from XM is they voluntarily stopped selling the radios with the wireless FM mod at their kiosks and online store until the FCC gives them a decision. This info is from a director of retail marketing at XM.

This is their company decision regarding their own stores, and does not affect radio sales at any other stores."

No doubt this is relating to FCC probes into the FM transmitter emission levels, which even went to far as to cause Audiovox to halt shipments of the Audiovox Xpress plug-and-play receiver.

(Note: at the time of writing this, the XM Online Store appears to be down for "site maintenance" - no word as to whether this is related.)

Thanks Bud and candlebougie!

UPDATE: The reason why the Inno was not pulled is because it has the benefit of allowing firmware updates. Apparently all the latest Inno / Helix receivers are shipping with (if I remember correctly) the v1.10 firmware which disables the FM Modulator when not plugged into the car kit. I believe - and please, correct me if I'm wrong - that v1.09 still as the FM Modulator activated when on-the-go. I can only assume that this is a proactive reaction to the FCC probes.


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CBS, Stern Suit: SIRIUS Gets Rights to Old Stern Shows?

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Satellite Standard Group is reporting that as part of the CBS Radio / Howard Stern suit settlement, SIRIUS Satellite Radio has agreed to pay $2,000,000 for the rights to replay the Howard Stern Show.

No other details are available at this time, and SSG did not list a source for this information.

UPDATE: FMQB confirms and adds some color to this.

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New XM Shareholder Presentation

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XM posted the presentation for the Annual Shareholders Meeting today. Some interesting points that we haven't seen in previous presentations. I grabbed a few snippets of interest that you can view after the jump...

 

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John Gehron in talks with Oprah?

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OprahJohn Gehron, the former Regional VP at Clear Channel and Senior VP Programming / Co-Chief Operating Officer at Infinity/CBS Radio, is supposedly "is in serious talks with Winfrey's Harpo Productions about heading the company's new radio unit," according to the Chicago Sun-Times.

Oprah Winfrey is ramping up her radio division, Harpo Radio Inc., which was formed in conjuction with signing with XM - as she ready's the September launch of the Oprah & Friends channel on XM Satellite Radio. And as part of the launch she quite possible could have tapped John Gehron to head up Harpo Radio, with a deal between the two being finalized within a the next week or two according to sources.

[Chicago Sun-Times]

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David Pogue on the Samsung Helix XM2go (verdict: you'll like it)

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David Pogue on the Samsung HelixIn the world of tech punditry, Walt Mossberg is the admittedly the original "uber-pundit" but David Pogue of the New York Times is also one of the most respected in the business. Both write from the layman's standpoint, while really being true geeks at heart, and still manage to maintain complimentary points of view on new products.

Take Pogue's review on the Samsung Helix - as we all know, the sister to the Pioneer Inno. In general he liked the device, with his only gripe being that you can't pause live broadcasts. Admittedly, this is a lacking feature in the new generation of XM2go. But in general, David Pogue liked the device - even if the RIAA doesn't. Pogue even went so far as to almost counterpoint Mossberg's gripe about reception (which plagues satellite radio in general):

Now, before you get all fired up, remember that any satellite receiver requires a clear view of the sky; unless you snake the external antenna over to a window, listening to live radio indoors or on the subway is essentially out of the question. (Those are excellent times to play back some of your recordings.)

He doesn't though pull any punches:

The Helix's stubby little antenna, however, is an especially dainty flower when it comes to sensitivity. Even covering it with your hand, slipping the device into your pocket, or facing the wrong way can be enough to introduce hissy static into the signal.

Still, even without being a bubbly fanboy, David Pogue's review seems a bit more fair than the Mossberg review. And in these recent days of doom and gloom for XM, a positive review of their flagship product seems welcome.

[New York Times

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Hip-Hop Stars joining DJ Clinton Sparks on SIRIUS

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DJ Clinton SparksDJ Clinton Sparks will be welcoming some of the biggest names in hip-hop to his SIRIUS Satellite Radio program this June.

Sparks hosts and DJs the weekly program Smashtime Radio, a live mix show broadcast Thursdays from 8 pm to midnight ET on Shade 45, the uncensored hip-hop channel created by Eminem and SIRIUS.  

During the month of June, Sparks will welcome some of the biggest names in hip-hop to hang out with him in the Shade 45 studio.

Check out the full lineup after the jump...

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Tiki Barber to Host Talk Show on SIRIUS

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Tiki Barber on SIRIUSNew York Giants running back Tiki Barber will host Tiki Barber’s National Sweep, debuting today (May 25th) from 7-9 pm ET on SIRIUS Stars, ch 102.

The weekly, two-hour talk show - which is set to run during the NFL off-season - will feature Barber taking calls from listeners and talking about a broad range of subjects that will include news, politics, entertainment and sports.

Scheduled guests on the series premiere of Tiki Barber’s National Sweep will include Arizona Senator John McCain and New York Giants Hall-of-Fame linebacker Lawrence Taylor.

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Howard Stern, CBS Radio Lawsuit Settlement Reached

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CBS vs Stern 

A settlement has been reached in the CBS Radio breach of contract lawsuit against Howard Stern, according to an official in the court clerk's office in New York - but both sides said no agreement had been signed.

"The only response we're authorized to give you is the settlement agreement is not yet signed. We will release a statement when it is," said the office of Peter Parcher, lawyer for Stern.

"A settlement agreement has not been signed. When it is signed, we will make an announcement," said a spokesman for CBS.

Two weeks ago, we learned the two sides were close to settling. Then last week, Judge Ira Gammerman postponed a hearing to give more time for a settlement.

[Washington Post]
[Reuters]

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SIRIUS Reaffirms 2006 Subscriber Guidance

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SiriusSIRIUS Satellite Radio reaffirmed its 2006 guidance of over 6.2 million subscribers by year-end and continues to expect to add more than 2.8 million net subscribers during the year. SIRIUS also stated that positive free cash flow (after capital expenditures) could be reached as early as the 4Q06, and they continues to expect to generate positive free cash flow for the full-year 2007.

According to The NPD Group, SIRIUS achieved 54% retail market share in April 2006 and 58% retail market share 2006 year-to-date. Also according to The NPD Group, SIRIUS achieved 55% year-over-year retail unit growth in April 2006 and a 120% increase year-to-date.

Both SIRI and XMSR shares closed today at their 52-week lows of $3.68 and $13.75 respectively on the Nasdaq.

[Press Release

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SIRIUS Don't Miss List: May 26-June 4 (with special Memorial Day Programming)

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Here's are again with another installment of the SIRIUS Don't Miss List. Highlights this week include Charlie Daniels guest DJing on Outlaw Country, The Raconteurs on SIRIUS Disorder, Nelly Furtado on BBC Radio One, and Avenged Sevenfold guest DJing on SIRIUS Faction.

And of course, there's Memorial Day weekend, with so much going on that you just need to check it out after the jump...

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New Sirius S50 Leather Case by Directed Electronics

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Sirius S50 LC1 Leather Case

New for the Sirius S50, the S50-LC1 leather carrying case, now available from Directed Electronics. The elegant genuine leather LC1 protects the S50 while allowing easy access during operation, with a removable cover, Velcro access for in-case dockability, and a slim rugged belt clip to keep it with you on the go.

The S50-LC1 is expected to MSRP for $24.99.

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XM Satellite Radio Lowers Guidance for 2006

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XMXM Satellite Radio has reported a change to its subscriber and financial guidance for 2006, projecting that it will end 2006 with 8.5 million subscribers (down from earlier guidance of 9 million), resulting in subscriber revenues of $835 million and an EBITDA loss of $235 million.

XM reaffirmed that it remains on track to have positive cash flow from operations for the fourth quarter of 2006 and on an annual basis for 2007.

Hugh Panero cited "overall softness in retail during the second quarter" as one of the key reasons of this. Perhaps the line of most concern from the press release is this one:

XM is currently working through regulatory and legal challenges, the resolution of which could affect future product availability and operating results, and require us to review this revised guidance. 

Let's hope this is only referring to the Audiovox Xpress

This is going to make Gary Parson's session today at the Morgan Stanley Media Conference a little hot under the collar. Unfortunately, neither stock needs any more bad news at this point.

[Press Release

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XM Kicks Off New Season of Original Music Programming

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XM Exclusive Music Series

Starting in June, XM Satellite Radio music fans will hear fresh installments of the popular original XM series Artist Confidential and Artist 2 Artist, as well as the latest addition to XM's original programming lineup: Offstage. The Dixie Chicks, Pretenders, David Gilmour and Rob Thomas will be some of the artists featured during this new season of XM's original music programming, along with many other celebrated stars of rock, pop, country, hip-hop and classical music.

The Dixie Chicks' episode of "Artist Confidential" premieres  on Monday, June 19th at 9pm ET on XM's Highway 16 (XM 16), and fans of The Pretenders can catch their "Artist Confidential" episode on Monday, August 7 at 6 pm ET on The 80s channel (XM 8). Encore broadcasts of both episodes will air on other XM channels during the summer.

The summer season of "Artist Confidential" also will feature Pink Floyd's David Gilmour, The Cars, The Doobie Brothers, INXS, Steven Stills of Crosby, Stills and Nash, and the first-ever "Artist Confidential" to be broadcast in 5.1 surround sound, featuring Alan Parsons.

In addition to "Artist Confidential," XM will premiere a new installment of the original bi-monthly XM series, "Artist 2 Artist," in which emerging stars interview their personal music legends about their life as an artist. The new episode features rising pop star Anna Nalick interviewing Rob Thomas will premiere on Monday, July 10th at 6pm ET on Flight 26 (XM 26).

Also premiering this summer is XM's newest original music series, "Offstage." Each month "Offstage" hands over the microphone and XM's vast music library to a well-known artist to play the music they want and speak their mind. A new episode of "Offstage" will premiere each month, with encores airing throughout the following weeks. To kick off this new series Joe Elliot and Phil Collen of Def Leppard will serve as the first "Offstage" hosts on XM's Boneyard (XM 41) premiering Monday, June 5th at 7pm ET.

Future episodes of "Offstage" will be hosted by a variety of rock and hip-hop icons, including Ann and Nancy Wilson of Heart, Ray Davies of The Kinks, Darryl "DMC" McDaniels, Greg Allman, Joe Walsh of The Eagles, and others.

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SIRIUS, XM both speaking at Morgan Stanley Media Conference

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SIRIUS Satellite Radio's CFO and Executive Vice President, David Frear, will be speaking at the Morgan Stanley Media & Communications Conference today at 2:00pm ET. You can listen to the webcast here.

Then at 2:45pm ET, XM Satellite Radio's Chairman of the Board, Gary Parsons, will be speaking also at the MSMC. You can listen to that webcast here.

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SIRIUS joins the Omni Hotel "Sensory Advisory Board"

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Omni Hotel SuiteOmni Hotel has put together a Sensory Advisory Board to shape "sensory initiatives" in an efort to enhance the hotel customer's overall experience. Ten members were selected for the board to provide non-hospitality expertise, one of which is SIRIUS Satellite Radio.

SIRIUS joins the ranks of other panelists like Apple, The Julliard School, Whole Foods Market, Benziger Family Winery and Bon Appetit magazine. The Sensory Advisory Board will convene several times a year.

Thanks Dave! 

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Rock In Rio Broadcast Live on XM Satellite Radio

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Rock in Rio on XM Satellite RadioXM Satellite Radio, in conjunction with Network LIVE, is broadcasting live the Rock In Rio music event this Friday May 26th, Saturday May 27th and June 2nd, on XM Live (ch 200).

Rock in Rio, held in Brazil, is the world's biggest rock festival. More than 3.7 million people attended the last four concerts - held in Rio de Janeiro, in 1985, 1991 and 2001 and one in Lisbon (Portugal), in 2004 - where they saw 240 performances totaling over 470 hours of entertainment. The 2004 event in Lisbon alone drew in 386,000 visitors.

XM Radio and Network Live's Mainstage features the music of Jamiroquai, Shakira, The Darkness, Carlos Santana, Roger Waters and many more. View the full schedule of the event.

[Rock In Rio on XM

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More Details on upcoming SIRIUS Wearable

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Satellite Standard Group wrote up a description of the upcoming SIRIUS Wearable unit from today's Annual Meeting. These pretty much confirm what I was told by sources familiar with the project - the unit is wider than the S50, black face, white trim, and has a knob on the front. The S50 has an incredible form-factor, and it sounds like Sirius will follow suit with this next unit.

In addition, I'm hearing more things about the battery life - which quite possibly would be the "killer" aspect talked about by insiders when comparing this new unit against the Pioneer Inno. Word has it (and this is still very speculation-ish), battery life will be 25 hours, with an optional additional 25 hour battery pack - with a total of 50 hours of playback time. How? I have no clue.
UPDATE: According to more specific information from a source familiar with the matter, this 25 hour battery life thing is (hmm, how can I put this nicely)... utter bullshit. The last thing I want to do is create unrealistic expectations about this unit, so please make note of this correction. Gotta love that rumormill.

And on the heals of Mel unveiling the device (he held it up in his hand), MasterLink Securities has indicated that the manufacturer for this unit will in fact be Wistron NeWeb (with Directed Electronics being the distributor). Here's an excerpt from the report (or get the full PDF report)

Sirius currently has 3 suppliers for its antenna and receiving terminals/modules, WNC, Kiryung (004790 KS, 5170KW, NR), and Humax (028080 KS, 24950KW, NR), with each produces different models respectively. WNC is now producing 5-6 existing models for radio reception, approximately 60~65% of the Sirius’ shipment, mostly in-house or in-car (after market).

Portable receiving devices are expected to start delivery in 2H06, with MP3 function-enabled, which is not only MP3 on-the-go, but portable radio as well (imagine an iPod with radio channels available!) We believe this new portable device will add excitement to WNC’s satellite radio business, as PMP (Portable Multimedia Player) is of growing consumer interest in the next few years.

Very interesting. As I understand it, Kiryung makes the Starmate Replay, Sportster; Humax makes the S50; and Wistron NeWeb made the original Starmate, Xacts, Kenwood, and Streamer Lite units.

Thanks Rubicon! 

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Indy 500 on XM this Sunday

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Indy 500 
XM Satellite Radio will be broadcasting the 90th running of the Indianapolis 500 live this Sunday, May 28th. The "greatest spectacle in racing" will be covered on XM with live race coverage and pre- and post-race commentary from the Indianapolis Motor Speedway beginning at 12 noon ET on the IndyCar Series Racing channel.

XM Radio first aired the Indy 500 in 2005 and is expanding its coverage of the legendary event this year, with news reports, interviews and special events from the track in the days leading up to the race. Check out the full schedule of all Indy 500 coverage on the IRL section of XM's website.  

 

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Limited Edition SIRIUS Ford Fusion

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SIRIUS Ford FusionSIRIUS Fan Network found a neat limited edition run of a SIRIUS branded Ford Fusion. Only 200 of these vehicles will be made available in the Toronto area  (so yes, this is to promote SIRIUS Canada).

The SIRIUS Ford Fusion comes with tinted windows, 16" aluminum dubs, a decklid spoiler, and a chrome tip exhaust. Oh, and SIRIUS Satellite Radio with a free 1-year subscription. 

Check out the landing page and the 8 videos promoting the car here

[SIRIUS Fan Network

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XM Satellite Radio and WCS Wireless Break Up

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XM Satellite Radio and WCS Wireless have announced the termination of their agreement for XM to acquire WCS Wireless.

At the time of the acquisition agreement between XM and WCS Wireless, announced about a year ago, the two companies had expected to close their transaction by this time. But despite both XM's and WCS' efforts to obtain government approval, it has not been forthcoming to date. The NAB strongly opposed the XM/WCS deal, and worked very hard to block federal approval.

As a result, XM and WCS Wireless have agreed to terminate the acquisition agreement in order to free WCS Wireless to pursue other alternatives for its spectrum licenses.

In commenting on the termination, Gary Parsons, Chairman of XM, stated, "With the inability to obtain the necessary government approval for this transaction in a timely manner, WCS Wireless needed to pursue alternatives for its spectrum with greater certainty of regulatory approval."

It was widely speculated that the acquisition of WCS Wireless would provide XM the bandwidth to broadcast additional satellite radio services such as video, giving way for devices like the XM Satellite Video Player. Whether or not this halts the satellite video project altogether is unknown, but XM did indicate that they would be able to provide these additional satellite services even if the WCS acquisition didn't go through.

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XM Wins 2006 Brandweek Customer Loyalty Award

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Brandweek XM Satellite Radio today won the 2006 Brandweek Customer Loyalty Award powered by Brand Keys for having the highest level of customer loyalty in the satellite radio industry.

XM is selected as the brand with the greatest customer loyalty in the satellite radio category for the second consecutive year, according to a national survey of consumers conducted for Brandweek magazine by the brand and customer loyalty research and strategic planning firm, Brand Keys.

[Press Release

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SIRIUS at Home Depot

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SIRIUS in Home DepotSatellite Standard Group points out to us that SIRIUS Satellite Radio is now showing up in Home Depot stores, just in time for Father's Day. Very interesting point of purchase.

At first glimpse you would think that Home Depot is a perfect outlet to appeal to the male demographic. That is until I learned that while 50% of Home Depot sales are made by women, an even higher percentage of sales are being influenced by women.

So while the timing will have some perks, there's definitely some very well thought out long term benefits to this partnership. The fact that the Home Depot sponsored Tony Stewart just signed on board can't be much of a coincidence either.

[Satellite Standard Group]
Thanks Todd!

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Fred von Lohmann on the RIAA vs XM Satellite Radio suit

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Fred von LohmannFred von Lohmann is the senior staff attorney with the EFF, was interviewed by Steve Gordon for the latest installment of his Future of Music Business Internet Radio show (also available as a podcast). They discuss in length the RIAA vs XM Satellite Radio lawsuit, and Fred von Lohman has some incredible insight on the entire situation. Definitely worth listening to.

Fred von Lohmann also had some very poignent things to say about the lawsuit on MediaDailyNews

[Listen to the Podcast via MyRealBroadcast]

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XM / Inno TV Commercial

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XM Radio has a new commercial out for the Pioneer Inno. The overall theme is to highlight "discovery of music" in an anywhere situation. Sort of nice but a little more subdued than I would've expected.

Watch the TV spot here:

[Low Bandwidth]
[High Bandwidth]
Thanks candlebougie!

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Altec Lansing XM3120 Reviewed by Zatz

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Altex XM3120Dave Zatz got his hands on a new Altec Lansing XM3120 Powered Audio System. It's a nice succinct review and worth checking out if you're in the market for a tabletop for your RoadyXT/Xpress.

Personally I'd like to see more of a push for these tabletop systems from the manufacturers. From a consumer's standpoint, the simplicity of having self-contained speakers + power + antenna setup is a far easier pill to swallow than any Home Dock setup. Hint: instead of including a free Home Dock as a promotion, do more bundles with these tabletops. You'll tap into the 18-24 age demo (perfect for Dads 'n Grads promos).

[Zatz Not Funny

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The X-Men on XM: Mutant Take-Over

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X-Men on XMIn a co-marketing promotion between XM Satellite Radio and 20th Centery Fox, eight XM channels are about to be taken over by The X-Men Mutants.

The promotion starts this Thursday May 25th, a day before the opening of X-Men: The Last Stand.

XM will relinquish all control to Storm (Halle Barry), Wolverine (Hugh Jackman), Xavier (Patrick Stewart), Beast (Kelsey Grammer), Cyclops (James Marsden), Rogue (Anna Paquin), and Director Brett Ratner to channels such as the 80s on 8, Suite 62, Cinemagic, Ethel, XMU and more.

Great idea. 

[X-Men on XM

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Opie & Anthony: Citadel Broadcasting Deal?

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Opie and Anthony - The Walk 

Opie and Anthony may be currently syndicated through CBS Radio, but the virus may be spreading on more terrestrial stations with a possible Citadel Broadcasting deal. That bomb was inadvertantly dropped on the XM portion of todays show as Opie took a call from Citadel CEO Farid Suleman.

The conversation made Anthony so nervous that he actually dumped out on some of the conversation (probably learning their lesson from the CBS Radio deal).

From the sounds of it, the deal may be closing within the next couple weeks and might put O&A on an additional half-dozen stations. Of the markets mentioned on air: Providence, Buffalo, and New London. The other three were dumped out of. In addition, Joel Hollander had mentioned on air that there are more CBS Radio stations in the works.

"We're talking to everybody," Opie & Anthony's agent Bob Eatman told FMQB: "We're syndicating the program and there is a lot of interest from a number of great companies." Super-agent Bob Eatman is handling all syndication deals for O&A's program and added that he expects to have "a dozen new affiliates" within weeks

Let the speculation begin! (again) 

[FMQB]
Thanks Brian!

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New Sirius Commercial: "Trunk"

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SIRIUS Commercial - TrunkThere's another TV commercial spot by SIRIUS Satellite Radio that's been running, this one entitled 'Trunk' - you might have spotted it during this week's LOST (at least that's where I saw it). Well, now it's online or you can just click on the direct links here:

Windows Media Player: [Watch Commercial]
QuickTime: [Watch Commercial]

I'm not sure what I feel about the "best radio on radio" tag, but I do like the narrative guy (ala the Verizon Guy) who shows up out of no where. The explaination of the satellites not being so "mysterious" is interesting - attempts to simplify the technology - but I'm not so sure it expresses it directly enough that all viewers will understand that fact. Whatever the campaign message, it's great to see new ad spots again.

Thanks again candlebougie!

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SIRIUS Satellite Radio signs NASCAR Driver Tony Stewart

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Tony Stewart on SIRIUSTwo-time and reigning NASCAR NEXTEL Cup Series champion Tony Stewart will be hosting a live weekly talk show on SIRIUS Satellite Radio.

Debuting in January 2007, Tony Stewart Live will air on SIRIUS' upcoming 24/7 NASCAR channel. The weekly, two-hour show will feature Stewart taking calls from listeners, talking with prominent guests and covering the spectrum of motorsports -- from NASCAR to open-wheel racing and beyond. Matt Yocum, who is a pit reporter for the NASCAR broadcasts on FOX/FX and NBC/TNT, will be Stewart's co-host on Tony Stewart Live.

Preview editions of Tony Stewart Live, hosted by Stewart, will begin airing on SIRIUS Satellite Radio in October 2006.
 

5 Comments

Defending the XM Nation

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Wow. Through an email to subscribers and off their homepage, XM fights back.

We will vigorously defend these radios and your right to enjoy them in court and before Congress, and we expect to win

Go get 'em boys.
(Thanks to everyone who sent this in!)

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Sirius to launch "Blog Radio"

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SIRIUS Satellite Radio is launching a new program, Blog Radio, set to debut on May 29th on Left of Center (ch 26). Every weeknight at 10pm ET, Blog Radio will be hosted by a blogger who will showcase his or her favorite music and provide views and insights into the indie rock music scene.

Some of the influential music blogs which will contribute to Blog Radio include Gorilla Vs Bear, Brooklyn Vegan and Product Shop NYC.

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Details on the RIAA vs XM Radio lawsuit

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Home taping is killing music

Here's some more gory details on the suit against XM Satellite Radio by the Record Industry. This suit does not just affect XM, and not even just SIRIUS indirectly (with their new wearable coming out soon, there's no doubt it will have recording capabilities), but jeapordizes all consumer electronic devices that can receive and record a broadcast of any sort (such as DVRs).

If you would like to view the actual filing, you can access it here (PDF - 33 pages).

Make no mistake, this is an attempt by the RIAA to change XM Radio's music license structure from performance (which terrestrial radio is privvy to) to a distribution license (like iTunes or Napster). In the lawsuit, the RIAA completely ignores the Audio Home Recording Act, even though that is exactly what XM designed the Pioneer Inno and Samsung Helix to be in compliance with. The AHRA specifically gives users of digital audio recorders the right to engage in home taping.

But the RIAA ignores the AHRA here. Why? Because 14 years after the AHRA was passed, the RIAA feels that with our evolving technology the AHRA no longer suits their interests. Hence the backing of The PERFORM Act.

According to several sources, XM offered the RIAA payments similar to the agreement made with Sirius, and in fact offered more compensation. But the RIAA didn't want this because it sets a precidence of a la carte device settlements. Yet another reason why Sirius isn't necessarily out of hot water yet. Should the RIAA be successful with this suit, and let's all hope they're not, they will be able to define the scope of a "distribution" right as any service that transmits and allows the recording of a broadcast. That means that not just satellite radio, but terrestrial radio and internet radio would all be at risk.

Ridiculous.

So what about the alleged damages? We've all heard that the RIAA is seeking $150,000 for EACH song saved by the Inno - but with 160,000 songs played per month - how exactly will the RIAA track these occurances? In the suit, they claim that XM has the capability to track each saved song through the XM+Napster interface. As soon as the Inno is plugged into the computer, it is "believed" that XM can then receive a transmission over the internet indicating that a specific song is saved.

But it doesn't stop there.

Because of the Helix/Inno ability to automatically buffer up to 10 minutes into a broadcast, the RIAA feels that those "recordings" are infringements as well. So XM should pay them for the cached music occurances as well. As the EFF points out, if half the Inno users are simply tuned in to XM's music content (not actively recording mind you, just listening to), the statutory damages would reach $37.5 Billion a year. Yeah... wait, what?! That obviously has no bearing on the "harm suffered" by the RIAA considering they pulled in $12.3 Billion last year.

The Inno does not allow transferring of the music off the device. It even allows you to buy the music you've recorded and protects the music with DRM that deletes the songs if you are no longer an XM subscribers. So how can these only be used for anything other than the facilitation of personal use?

[EFF.org via Public Knowledge]

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Sirius Bluegrass gets new morning host

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Ned LubereckiNed Luberecki has been promoted from weekend host to weekday morning man on SIRIUS Satellite Radio's Bluegrass (ch 65). Luberecki's show now airs from 6am to noon on weekdays and 3-9 pm on weekends. The show is produced at Sirius' Nashville studios.

Luberecki is also a musician who has been playing and teaching bluegrass banjo for more than 25 years. He is currently a member of the band Chris Jones and the Night Drivers and formerly was part of Paul Adkins' Borderline Band, Radio Flyer, the Gary Ferguson Band and the Rarely Herd. He has also appeared on numerous recordings.

[Billboard Radio Monitor

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SIRIUS Don't Miss List: May 22-28

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Mark your calendars kids, because here's another Don't Miss List of special interviews and appearances on various SIRIUS Satellite Radio channels. Couple highlights are: an interview with famed 80s band Bananarama on Sirius Big 80s; Frank Vincent on Court TV Morning Radio; Fiona Apple interview/performance on Sirius Disorder; and The Alchemist guest DJs on Hip-Hop Nation.

Check out the full list after the jump...

 

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CBS Radio vs. Howard Stern Hearing Postponed

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CBS vs Stern Lawsuit 

Yesterday's CBS Radio vs. Howard Stern breach of contract hearing has been postponed until next week, a clerk for New York state court Judge Ira Gammerman told reporters. This delay suggests that both parties have not yet reached an agreement, but are still in talks over a possible settlement.

The hearing was postponed until May 24.

At a hearing last week, a CBS lawyer told the court the two sides were close to settling the suit, in which CBS is seeking unspecified compensatory and punitive damages for breach of contract, fraud, unjust enrichment and misuse of CBS broadcast time.

[Reuters

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Walt Mossberg on the Pioneer Inno (verdict: "spotty reception")

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Walt MossbergWalt Mossberg is considered one of the most influencial people in technology. He has the abilities to make or break products by a simple wave of his hand (or something like that). For those not necessarily entrenched in the tech punditry world, Walt Mossberg writes several columns (Personal Technology, Mossberg Solution and Mossberg's Mailbox) for a cute little rag known as The Wall Street Journal. And he's set his sights on the Pioneer Inno.

Overall, Mossberg gives a decent review of the unit. Very detailed and in-depth. Where he really fall short though is on the subject of reception. Here's some key snippets about this:

It's hard to overstate the reception problems that plague the Inno. We lost reception while driving through a short tunnel, walking through a row home and wandering through our office, away from the window. Even in an office with an entire wall of windows, we had to sit right next to the glass to get XM Satellite Radio reception.

Walking around downtown Washington, just a few blocks from the White House and a few miles from XM's headquarters, the Inno constantly dropped the XM signal, even though Washington, by law, has no office buildings taller than about 12 stories. Walking just a few feet into a Starbucks killed the signal altogether. When we sat down on a bench in a small park, the reception got much better, but still wasn't perfect. For a device that's primarily a radio, this is a killer flaw. Of course, you can listen to the Inno's stash of recorded music during these signal dropouts, but, when the failures are as frequent as ours were, this need to keep switching modes turns a supposedly pleasurable experience into a huge annoyance.

It occured to me while reading this that Walt Mossberg doesn't have much experience with satellite radio in general. But then I remember the old WIRED article from May 2004, where Mossberg was profiled and XM was a specific case of his "power" when he criticized XM's units. He later wrote a follow up praising XM for their redesigned units, and in fact saying "And that makes XM Radio a service I can wholeheartedly recommend."

So see, what Mr. Mossberg is trying to do here, is write the review from the expectations of the "average" listener. Not the seasoned geek. And the assumed expectation is that the average Joe Sixpack is going to consider the Pioneer Inno as a regular radio and not a satellite radio.

And I have to admit that indoor reception is the single biggest inherit problem with satellite radio. A problem that the Inno's recording/scheduling features are essentially trying to resolve - short of blanketing the country in repeaters - it's the next best thing. Afterall, people enjoy podcasts just fine (to Mossberg's credit - he doesn't) which are basically scheduled recordings.

What I just wish he would have done is not laid blame on the Inno itself, but rather about satellite radio technology in general.

Oh well, I guess when it rains... it pours. I feel for everyone at The Eck right now.

[Wall Street Journal]
[also available at SSG]

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New "Faction Updates" on SIRIUS

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SIRIUS Faction UpdatesSIRIUS Satellite Radio's channel Faction (ch 28) is introducing an hourly Faction Update, featuring the latest news from the worlds of action sports, including skateboarding, surfing, freestyle skiing and more.

Recent Faction Updates have covered such topics as Tony Hawk’s SIRIUS announcement of his upcoming Boom Boom Huck Jam tour; skateboarder Danny Way’s latest stunt; comments from filmmaker Larry Clark about his new film Wassup Rockers; breaking news about surfing competitions, late-season snowboarding, and video games; and remarks by former Blink 182 drummer Travis Barker about Angels and Airwaves, a new band featuring his former band mate Tom DeLonge.

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CEA speaks out against RIAA lawsuit against XM

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The CEA (Consumer Electronics Association) has issued a press release denouncing the RIAA lawsuit against XM Satellite Radio. In it Vice President of Government Affairs Michael Petricone says:

"The lawsuit announced yesterday is a brazen effort by the labels to strong-arm more money from a successful technology industry startup. XM Radio already is the largest single payer of digital music broadcast royalties. More, the record labels receive royalties on every XM recording device sold as provided by Congress under the Audio Home Recording Act (AHRA). 

"The products at issue in this lawsuit do not allow redistribution over the Internet or to any other product. They simply allow consumers to time-shift music they are lawfully receiving through subscription fees - fees that support the royalty payments to the labels. No matter how hard the record labels try to stretch the truth, XM has zero resemblance to the old Napster or other peer-to-peer file sharing services.

Read the entire press release after the jump... it's well worth it.
 

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RIAA Sues XM Satellite Radio over new XM2go

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Samsung Helix Pioneer InnoYesterday the record industry filed suit against XM Satellite Radio for "massive wholesale infringement," caused by the Samsung Helix and Pioneer Inno. The suit seeks $150,000 in "damages" for every song copied by XM customers using the device. How exactly the RIAA intends to track each occurance of a saved song is a mystery. But with 6.5 million subscribers, and approximately 160,000 songs played every month, the potential damages that the RIAA could seek out would be staggering (however no where realistic).

XM issued the following statement to Billboard Radio Monitor:

"These are legal devices that allow consumers to listen to and record radio just as the law has allowed for decades. The music labels are trying to stifle innovation, limit consumer choice and roll back consumers’ rights to record content for their personal use. This is a negotiating tactic on the part of the industry to gain an advantage in our private business discussions. XM Radio is the largest single payer of digital music broadcast royalties, and royalties paid by XM go to the music industry and benefit artists directly. XM will vigorously defend this lawsuit on behalf of consumers."

And the RIAA fired back stating the following:

"Not only are we fans of satellite radio, we consider ourselves partners and we celebrate the industry’s growth," the RIAA said in the statement. "From the outset, we understood the mutual benefits of digital broadcasts. In fact, we provided them with a major price break in our initial licensing agreement to help the industry get off the ground. That agreement has made it possible for satellite radio to grow.

"As we continue to transform our business model, the integrity of the digital marketplace is more important than ever. We want to work with our various partners to offer fans an extraordinary music experience in a variety of different ways, but everyone must play by the same set of rules and fairly compensate labels, artists, songwriters and publishers."

With XM being the biggest single payer of digital music broadcast royalties, they're playing by a very generous set of rules. SIRIUS can't be far behind XM in the amount of royalities they pay either. Both companies are being strongarmed by the RIAA cartel.

Remember that last month SIRIUS settled with the four major music labels (Universal, Warner, Song BMG and EMI Music Group), agreeing to pay an undisclosed amount in 'damages' and cap the production of the Sirius S50.

In a statement to the US Senate over The Perform Act - which essentially is the RIAA's method of bringing Washington into the negotiation - Gary Parsons, Chairman of XM Satellite Radio said, "Recording from the radio is not a download service. Everything recorded from the radio is locked to the device. It cannot be transferred to the Internet ensuring that it is only for personal use."

Back in October 2005, we learned that the RIAA was seeking $1 Billion from both XM and SIRIUS for the new music licensing contracts covering 2007 - 2012. The current $80 Million contract expires this year. Talk about disgusting negotiation tactics. Terrestrial radio, on the otherhand, does not pay a single dime.

[Reuters]
[Billboard Radio Monitor]

Thanks to everyone who sent this in! 

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Samsung Helix/Pioneer Inno: Tips, Tricks and Hacks

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Now that several of you have been receiving your new Pioneer Inno or Samsung Helix's, I figure it'd be a cool thing to write up a list of "tips, tricks and hacks" for everyone.

Some of these are simple shortcuts from the user manual, others are clarifications of features and some are "undocumented" features... so enjoy.

  • Recording Channel on Pioneer InnoPress and Hold the ((( ))) button (also known as the "XM button") to instantly start recording a song.
  • If you are recording a channel and press and hold the XM button. This will switch to recording the current song and stop when it is done.
  • Pressing and holding 'record' on the remote will record the channel.
  • Using the right arrow key in the main menu while highlighting favorites, bookmark and many other keys is a shortcut that skips the popup menu. (This is a priceless feature to know and works the same way in My Music.)

In "My Music":

  • Pressing and Holding the ((( ))) button at the play screen will bring up a shortcut menu with: Add to Playlist, Lock Song, Bookmark and Delete. 
  • The graphic in the upper left will show the % of locked songs to the total amount of lockable content. It has nothing to do with total memory used by unlocked content.
  • You can edit items in groups by: Artist, Channel, Category and recording session (i.e., delete all songs by an artist in one action)
  • You can have one song in multiple playlists and mix playlists with MP3s.
  • In "Organize," you can use the right arrow key to select multiple item to edit. (for instance, pick out all the commercials and delete them all at one time.)
  • You can manually delete songs that are locked and/or playlisted. Locking only protects them from being deleted by the unit when it is recording new content.
  • You can rearrange songs within a playlist (select and move up and down within the playlist).
  • The FM modulator can be turned on in handheld mode (manually) but you must have the headphones or the power dongle plugged in as the FM radiating antenna. (Note, the firmware update version 1.09 disabled the FM mod while in handheld mode - this has since been fixed with the latest firmware update.)
  • Pressing the DISP button while in a list of songs in My Music will switch between song and artist name.

Diagnostic Mode:

  • To enter into diagnostic mode (also know as "2-0-7" for other XM devices), follow the steps below:

    Pioneer Inno Diagnostic Mode

    Press ((( ))), settings, setup, restore defaults, restore setting only, then at the “are you sure” menu press ‘pause’.

    Now back out of the menu to the play screen and repeatedly press the DISP button until it is displayed (there are two screens).


Special thanks to everyone who helped me put together this list!

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Morgan Stanley: Ford to increase Sirius subscriber additions

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Morgan Stanley analyst Benjamin Swinburne increased his estimate for Sirius Satellite Radio penetration of total Ford production from 17% to 28% in 2007, hinting that the figure could increase further in 2008. 

"We remain bullish on the long-term model for satellite radio," Swinburne said.

Morgan Stanley also maintains their "Overweight" rating for SIRI with a price target of $8 per share, while upgrading XMSR from "Equal-Weight" to an "Overweight" rating.

[Forbes

(Side Note: Orbitcast has been going up and down like a rollercoaster today. Not sure why, but I apologize for the wacky German Error 404.) 

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Sirius TV Commercial: 'Sunroof'

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New Sirius Commercial

SIRIUS Satellite Radio has been running a new TV commercial, entitled 'Sunroof,' and now it's online. You can view the landing page here or check out the first video links:

Windows Media Player: [Watch Commercial]
QuickTime: [Watch Commercial]

I guess it's ok.

Thanks candlebougie! 

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Audiovox halts shipment of XM Radio

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Audiovox XpressReuters is reporting that Audiovox is suspending shipments of the Xpress Model XMCK10 XM Satellite Radio plug-and-play receiver after the U.S. Federal Communications Commission said the unit did not comply with either operating bandwidth or related emission specifications.

Audiovox has said it is conducting an internal review and that shipments would be suspended until it is determined that it operates within FCC specifications.

I have a feeling that there are alot of over-compensating reactions within XM and friends over these FCC inquiries of FM-modulator issues. Understandably so (don't want to mess with the FCC). Let's see how this plays out.

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Sirius' Live Wearable to be by Directed Electronics

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Sirius Wearable 

Well, we now have our answer about who the manufacturer is for the upcoming Sirius Live Wearable satellite radio receiver. No, it's not Toshiba, or Sony, or even Archos as we were all speculating - the manufacturer distributor is the same as that of the Sirius S50 (pictured above) - Directed Electronics. Surprise!

During the Q&A session of Directed's conference call yesterday, the question was posed by a representative of CIBC World Market about a more specific release date of the new device. While there was no definitive answer beyond "this summer" it's the first public confirmation that Directed is indeed the manufacturer of this device. Directed seemed to only have intended on speaking about the Sportster 4 during this call, but during the Q&A session it appears the cat was let out of the bag.

Below is a transcript from the conversation:

Q: "Just a quick question, first of all on the timing of the new live wearable product. I think you guys said summer, but is there a [more precise] launch date at this point?"

A: "That's about as precise as we can be at the moment. The development is nicely on track but [we want to] be very careful to make sure that we answer that question when we know it very definitively, but we're very comfortable to say 'summer' at this point. I'm sorry I can't improve upon that at the moment."
Listen to an audio snippet of the conference call for yourself.

So what of the mysterious "leaked" shot on Sirius' homepage? Most likely... just stock photography. I'm sure the web-guys over at Sirius didn't expect the storm of speculation to ensue as a result of a simple pic of headphones. :)

Speaking of speculation,
additional rumors are coming in that the new device will be black (like the S50) and will contain an iPod-like clickwheel (probably a spinoff of the Media Dial from the S50). The device will also have a docking station that will hold an extra battery said to allow for a 25 hour playback time, according sources familiar with the matter. As further rumors, speculation and all around malarkey occurs, I'll be sure to make it public.

[DEI 1Q06 Conf Call via GSI]
Thanks to everyone who sent this in!
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PC Magazine Pioneer Inno XM2GO Video Review

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Pioneer Inno

I'm not sure how many others have seen this, but it was new to me when a reader sent it along. PC Magazine has an incredible video review of the Pioneer Inno.

He demos it outside (in the rain) and inside on the cradle. Pretty in-depth review, and with some great quotable quotes like this one:

"It does a disturbingly good job of getting your music onto this without driving you insane. [...] Shockingly well integrated, even something Apple might be jealous about."

Definitely worth a watch.
[PC Magazine]
Thanks Mike! 

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Rumor has it...

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...that Sirius' new wearable receiver will not be backward compatable with the Sirius S50. From what I heard the new device, (aka the 'Bellagio') will be somewhat wider in shape than the S50 and thus won't be able to fit any S50 accessories.

Let's hope this isn't confirmation of the S50 being discontinued or that support and accessories for the S50 don't die off to be forgotten. Whatever it means, we can't wait. Can someone please make some fake Photoshops so we can speculate some more?

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The Perform Act: Sister Bill now in House of Reps.

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Well this is just fantabulous. The Perform Act - which you'll recall is an anti-satellite radio bill introduced in the Senate - is now getting a little sister, thanks to Reps. Howard Berman (D-Calif.) and Mary Bono (R-Calif.).

The Platform Equality and Remedies for Rights Holders in Music Act of 2006 - called... wait for it.... The Perform Act - is a companion bill to the senate version introduced in April. In short, both seek to increase the royalties that satellite radio (as well as cable and internet radio) should pay by 'redefining' what exactly the value is of these broadcasts and the definition of fair-use. Now, mind you, that terrestrial radio doesn't pay a dime for the rights to broadcast music - so because satellite radio, cable and internet radio are digital - they want to squeeze more money out of them change the rules. These bills would also effectively disable any sort of advanced recording function, thereby sabotaging any innovative approach to music listening. Read this post if you want a further explaination about this.

"One of America's greatest treasures is its intellectual property," said Berman. "People are listening to more music in more places than ever. Yet the music industry is in crisis, with its revenue declining from $14.5 billion in 1999 to $12.1 billion in 2004."

Translation: who cares about about the consumer, innovation and any progression in technology, the RIAA needs more money!

Now, it's really no surprise that Rep Howard Berman is introducing this bill. Especially when you realize that the TV/Movie/Music industry is his top campaign contributor, not to mention that the Recorded Music & music production industry favors Berman just a little bit (Berman is their #1 recipient for the 2001-2002 election cycle). Ulterior motives? Nahhh. Rep Mary Bono has similar industry contributors, though with TV/Movie/Music at the top, but maybe that's just because they're from California? *cough* bullshit *cough*

An XM Satellite Radio spokesman had this to say:

"This bill would curtail new, innovative and legal devices that listeners want and that generate significant royalties for a broad range of artists and songwriters. It is the recording industry's attempt to gain leverage in negotiations between satellite radio and the labels."

I couldn't have said it better myself. 

[via Billboard]

(Have you contacted your Senator yet? Well, now you can contact your Representative while you're at it. Please take 5 minutes and express your opposition to The Perform Act.)

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Sirius S50 in Ultimate Electronics Top 5 Grad's Gadgets

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Ultimate Electronics, a consumer electronics store chain, has put together a list of gift ideas that is supposed to appeal to graduates. Growing into a new "corporate holiday" - graduation time has become a new push date for many CE manufacturers and resellers. Well guess what, the Sirius S50 made it up there, along with the Nano and other devices, calling it "perfect for any grad on your list."

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SIRIUS Rebate: $50 off for a limited time

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Sirius Rebate

SIRIUS is offering a special rebate just in time for "Dad's & Grad's" to take advantage of it. For a limited time, you can get up to a $50 Rebate on eligible SIRIUS Satellite Radio Receivers with activation no later than 7/8/06,

Start Date: Now. Like, immediately.
End Date: June 24, 2006

Enjoy. 

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CNET reviews the Samsung Nexus

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Samsung Nexus
CNET editors' reviewed the brand new Samsung Nexus giving it a 6.7 out of 10 rating, which fascinatingly enough, is right on par with their review of the Sirius S50. They're particularly not impressed with monochrome screen, 1Gb capacity, Windows-only compatibility, and the ho-hum 7 hours of battery charge.

Definitely not worthy of the super-star status of it's Samsung Helix and Pioneer Inno big brothers, the Samsung Nexus has a different take on 'portability.' This was explained to me in more detail during the Samsung press preview a few weeks back.

Targeting more of the MP3-player market than the satellite radio market - especially novices - the positioning of the Nexus is meant to provide effortless discovery, with go-anywhere abilities. Think of your technologically-inept friend who has no clue how to use iTunes, or has no desire to find new songs. Using the Nexus (or, in essence, the Sirius S50), the discovery+save tasks are simplified to a press of a button. No more listening to the radio, jotting down the song, running to your computer and plopping down $0.99 to own a song. The digital music chain gets shortened.

A neat idea personally. Like I've always said, an iPod is only as good as the content that's on it. Unfortunately for the Nexus, it's completely overshadowed by the Inno and Helix, which provide the full "Hear it. Click it. Save it." experience in it's true form. The marketing message for the Nexus will be much more difficult as a result.

To me, the biggest draw to the Nexus isn't it's portability at all - it's the duality of convenience provided by the XM Passport (included free with it). Show me a commercial of my wife taking the Nexus with her to the gym, while I pop in the Passport into my Home Entertainment System and we're both enjoying music with one subscription. THAT'S a selling point, and something that the Helix and Inno just don't have.  

[CNET]
Thanks candlebougie!

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Every Concert of Jimmy Buffett's "Party at the End of the World" Tour on SIRIUS Satellite Radio

| 2 Comments

Jimmy Buffett

SIRIUS Satellite Radio is airing every concert of Jimmy Buffett's new "Party At the End of the World Tour" live on Radio Margaritaville, and the party is continuing with exclusive interviews and backstage reports throughout the tour. Jimmy Buffett's "Party At the End of the World Tour" is packed with dates throughout the summer, here's a rundown of some upcoming stops:

Fri June 2th at 7:30pm ET in Atlanta, GA
Sun June 4th at 7:30pm ET in Charlotte, NC
Tue June 6th at 7:30pm ET in Pittsburgh, PA

...to name a few. There's seven more stops afterwards, so be sure to tune in and let the Margaritas flow. 

2 Comments

Sirius CFO: Satellite Radio OEM Conversion "an incredibly bullish sign"

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SIRIUS Satellite Radio's David Frear said at a Q&A session with investors this week, "There are roughly 11-million satellite radio subscriptions in the country which is about five percent penetration of the core target which is the car universe.

"When you consider the fact that at most of XM’s OEM partners, the build rate is about in 35% of the production and they’re converting 54%. That’s saying that 20% of the people that are going to dealers every day want satellite radio in their cars. So when you look at that in comparison to the five percent overall penetration now, you’ve got to take that as an incredibly bullish sign for satellite radio."

[Radio Ink

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What can Google Trends tell us about the Satellite Radio Industry?

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Yesterday Google Trends was launched, unveiling for the first time a historical representation of what search terms are being entered into Google. Up to five search terms can be queried, and Google even highlights milestones in news events that could have affected traffic.

What's this got to do with satellite radio? Well, a ton really. Tracking Google searches a damn good indicator, better than looking at Alexa I might add, of gauging online awareness. From a PR standpoint, the milestones show a fabulous correlation of the success of media outreach programs with changes in public interest.

So, inspired by Steve Rubel's 25 Things I Learned on Google Trends, below is a series of things we can learn about the satellite radio industry:

Terrestrial radio still beats out Satellite Radio... by a long shot.
Terrestrial Radio beats Satellite Radio

 

Even with the inevitable XM vs SIRIUS comparison, the symbiotic relationship between these two companies is unarguable (though, the success of SIRIUS in 4Q05 is unarguable as well).
XM vs SIRIUS

More Google Trends after the jump..,

 

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Howard Stern, CBS Radio Close to Settlement

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Howard SternLawyers on both sides of the CBS Radio/Howard Stern breach of contract lawsuit have indicated that they are close to a settlement.

CBS lawyer Irvin Nathan told Judicial Hearing Officer Ira Gammerman, "We have an agreement, but there are details that have to be worked out," addeing that they were "very close" to a settlement.

Stern's lawyer, Peter Parcher, confirmed Nathan's report but refused to elaborate.

If they do not come to an agreement, both will return to the courtroom next week.

[Billboard

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Bridge Ratings: The Stern Effect "has virtually stalled"

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Bridge Ratings has traditionally been showing very positive trend numbers for SIRIUS Satellite Radio over the past few quarters, and rightfully so as SIRIUS has done an absolutely incredible job of adding new subscribers - much of that is due to Howard Stern.

The question on many people's minds, investor's and industry watchers alike, is whether this growth is sustainable. Sure, no one expects the hoards of people to continue signing up at the rate they were doing in Q4 and Q1, but exactly how much influence does Stern have for a long-term effect? Bridge attempts to answer this.

Bridge Ratings estimates that a total of 8.4% of Stern's terrestrial audience (not a small amount mind you - that's 1.1 million listerners) have made the move to satellite radio. For the remaining listeners though, Bridge noted that there's "an apparent apathy for future subscriptions" and that The Stern Effect seen during their satellite radio trends from 4Q05 through 1Q06, "has virtually stalled."

Bridge Ratings asked 3,200 Stern listeners 18+ between April 1 and May 8, "why haven't you yet subscribed to Sirius satellite radio?", these are their responses:

1.
Don't miss listening to the Stern show enough to subscribe
31%
2.
Equipment and monthly subscription costs too high

23%

3 .
Listening to a morning show that was my second choice before

20%

4.
Don't listen to morning radio right now

11%

5.
Don't see the value of satellite radio

10%

6.
Don't Know

5%

Bridge Ratings is also projecting that over the last ten weeks 1,142,312 additional satellite radio subscriptions have occurred at the retail level and that since early April, the retail subscriptions have swung in favor of XM after being dominated by SIRIUS.

I'm curious to see if this continues (or changes) as new devices, from both XM and SIRIUS, are unveiled in the coming months and as preparations for the 2006 Holiday season begin.

Bridge has more metrics about retail awareness and consumer preferences, you can check them out here

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SIRIUS Canada breaks 100,000 subscribers (that was fast)

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Sirius CanadaSIRIUS Canada, which began broadcasting in December 2005, has just announced that they have surpased 100,000 subscribers. That's not too shabby for just over 5 months of operation.

To celebrate this important milestone, SIRIUS Canada is adding 10 more channels to their line-up, available within the next four weeks.

The new news/talk/weather/entertainment channel additions include: Howard 101, Lime, Public Radio International, CNN Headline News, FOX News Talk, and The Weather Network Satellite Radio Service.

The new music channels additions include: SIRIUS Love, BackSpin, and Hot Jamz.

With the addition of the new channels, 110 total channels including 65 music channels in all, SIRIUS Canada will reclaim the title of having the most channels in satellite radio for Canada. You'll recall that XM Canada recently bumped up their offering to 100 channels last month. The battle definitely is continuing up north as well as here in the States.

Thanks Tim! 

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SIRIUS Live Wearable: Details coming in "next several weeks"

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SIRIUS WearableAt the CIBC Conference today, David Frear, SIRIUS Satellite EVP and CFO, said this about their upcoming live wearable satellite radio:

"You can expect it to have not only to be a live wearable, but you can expect it to have a great form factor, a great battery life and also some storage and playback capabilities. And the full functionality of that device will be unveiled in the course of the next several weeks."

He then continued to shine a bit more light on SIRIUS' beliefs behind the wearable market:

"Providing the option of wearability to consumers is an important option to provide them with. We don't believe that there's anything about live wearable that really is category changing. We don't think it's going to change the trajectory of growth [and] doesn't alter the guidance that we've given you.

For 50 years, 5% of radio listening has been done in a wearable mode. We don't think these products change that because we don't think that a product can really change consumer behavior. But we do think it's an important option to offer.

The MP3-like functionality that [we have] offered since October, in the S50, is something that our subscribers like. They like the ability to have a single device where they can listen to their radio in the car or home and they can take content with them as they go. So you want to offer the functionality, and you want to offer the option."

Interesting. It almost sounds as if he's hinting towards a new take on the functionality of a live wearable satellite radio receiver (especially if you hear the tone of when he says "option" in the above statement). I wonder if there's any relation to the recently filed patent by Visteon? Just a thought, but it sounds like SIRIUS may have something unique in the works.

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SIRIUS Satellite Radio to launch The Catholic Channel

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The Catholic Channel on SIRIUS

SIRIUS Satellite Radio has teamed up with the Archdiocese of New York to create a 24-hour, 7-day a week lifestyle radio channel entitled, The Catholic Channel, expected to launch in the fall.

The Catholic Channel will feature a modern format with an open dialogue focused on Catholicism in the 21st Century, as well as live daily masses from St. Patrick’s Cathedral in New York.

Listeners will be encouraged to call in to talk about the issues that are on their mind and in the news - everything from what’s happening in the Church today, to the headline stories of current events and politics, and the latest in the world of entertainment, the arts and sports.

Daily program hosts and guests will include members of the clergy and distinguished laity from across the land, including periodically appearances of His Eminence Edward Cardinal Egan, Archbishop of New York. Regular and previously unavailable content from The Vatican will also be a part of the channel, including programming from Vatican Radio.

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Honda Sells One Millionth Vehicle with XM Satellite Radio Factory-Installed

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Honda  Civic Honda, who first introduced its factory-installed XM vehicles in 2003, has recently sold its one-millionth vehicle with a factory-installed XM Satellite Radio in the United States. American Honda will equip more than 550,000 of its 2006 model year vehicles with XM.

XM Satellite Radio is a factory-installed feature on the 2006 models of the Honda Civic, Ridgeline, Pilot, Accord, Accord Hybrid, Odyssey, and Element. XM is also standard equipment on all Acura RL, TL, TSX and MDX models, and will be standard in the all-new 2007 Acura RDX Sport Utility Vehicle.

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Another Sportster 4 Shot

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Just a little morning eye-candy for you, here's the Sirius Sportster 4 from the front:

Sportster4-Front.jpg

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XM2go vs XM2go (or, Inno vs AirWare)

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Ever since I wrote up the initial Pioneer Inno review where I talked about how superior the Inno's antenna is to the previous XM2go antenna, people have always wanted to see actual proof of this. Well, here you go.

Below are photos from both the Pioneer Inno and Pioneer AirWare - both in diagnostic mode - so you can see actual numbers of how the Inno performs in various conditions.

One thing to point out that's not evident from these shots is how quickly the Inno registers signal strength. When compared against the 1G XM2go, this refresh rate is much faster, with every slight movement quickly showing what your signal is.

A quick note about what these values are. The numbers to pay attention to are the BER % and the SAT C/N. BER stands for Bit Error Rate - the lower the number, the better the signal. SAT C/N stands for Carrier/Noise - essentially a signal-to-noise ratio - above 7 is good. 

This first shot is from INSIDE my office building in New York City. I only get terrestrial signal here, and a weak one at that. With the Inno, I can actually listen indoors to a degree, where the AirWare simply wouldn't pick up anything long enough to make listening bearable.

Pioneer Inno vs Pioneer AirWare
I know it's blurry, so here's what they read:

Inno
Terrestrial BER % - 1.5
SAT 1 C/N - 3.0
SAT 2 C/N - 3.0

AirWare
Terrestrial BER % - 6.4
SAT 1 C/N - 2.75
SAT 2 C/N - 3.0

Not only do I work in NYC, but I live in the middle of woods in Connecticut, a perfect test spot to show satellite signal (with no terrestrial repeaters anywhere). Check out the full North/South/East/West comparison after the jump...

 

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SIRIUS Satellite Radio to Speak at the CIBC Media, Internet & Telecommunications Conference

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SIRIUS Satellite Radio's Executive Vice President and Chief Financial Officer, David Frear, will participate in a question and answer session at the CIBC Media, Internet & Telecommunications Conference in Boston, MA on Wednesday, May 10, 2006, at 9:30am ET. It will be webcast on SIRIUS' Investor section of their website.
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Sirius Sportster4 Officially Announced

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Sirius Sportster 4 

Well, we've been hearing all about the upcoming SIRIUS Sportster4, and now SIRIUS has released the official announcement. Read the full press release after the jump...

 

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Howard Stern to syndicate to Terrestrial? Uhm, no.

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Howard SternSo speculates the New York Post, based on a few misquoted segments from the Howard Stern Show. Here's the quote from the Post:

"The joke could be on them if I get good and worked up [because] I got offered a major deal to go back to terrestrial and stay on satellite at the same time," Stern told his Sirius listeners.

Of course, the Post is (as usual) only leading to an inaccurate conclusion because Stern continues to say, "but I won't do it."

Mel Karmazin, as recently as last week, stated wholeheartedly that they intend to keep Stern exclusive on SIRIUS. And considering the investment they've made, that sounds pretty logical. This is simply the New York Post doing what they do best.  

[NY Post]
Thanks Glenn!

 

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XM at the CIBC World Markets Media Conference

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XM Satellite Radio was at the CIBC World Markets Media Conference and held a webcast this morning. There wasn't really anything unexpected brought up, but the webcast and presentation (PDF) are up online.
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New Patent: Dockable Portable Satellite Receiver

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Looks like Visteon is making a play in the portable satellite radio market and has filed a patent (application # 20060094349) for a Dockable portable satellite receiver.

Here's the abstract:

A portable satellite receiver includes a tuner, an antenna, and an amplifier. The portable satellite receiver has a protective housing enclosing the tuner, antenna, and amplifier. The portable satellite receiver is configured to interface with an accessory device through a communication link such that the accessory device receives audio signals from the portable satellite receiver over the communication link.

Interesting. Reading further into the application, here's the translation from the patent-speak (which many times is written to throw off 'the competition'):

The portable satellite receiver includes a satellite antenna, and a "protective housing" which encloses the satellite tuner and a "media player." That media player is essentially a MP3 player, that also has the ability to record the satellite radio signal. On top of that, the media player will interface - wirelessly - with a docking station (or what appears to be called the "satellite entertainment system"). The "protective housing" also has a plug to interface with this docking station.

So, they're essentially applying for a patent on a live satellite radio/MP3 player. Hmmm...

[US Patent Application: 20060094349]
Thanks George!

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New SIRIUS Sportster Out in the Wild

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Sirius SportsterSatellite Standard Group has gotten ahold of a real-life photo of the upcoming Sportster 4. Previously the only official image we had seen was the reseller product shot of the SP4-TK1, which is most likely a Photoshop'd rendering (common for product shots - there's little in this world that hasn't been graced by the touch of Photoshop).

But now here's a in-person photo of the unit, albeit turned off. And while there was much speculation about the unit having a color screen, SSG has confirmed that the new Sirius Sportster 4 will NOT have a color screen. Which, thankfully, leaves plenty of room for such speculation of future devices.

[Satellite Standard Group

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Get Satellite Radio for Mother's Day

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Mother's Day is quickly coming this May 14th, and if you're like the rest of us, you're searching for a great gift that will put all the other sublings to shame. So why not give her the gift that will (literally) keep on giving... satellite radio of course!

Below are some suggestions of great Mother's Day gifts that will sure put you up a couple notches in the inheritence chain. Of course, sponsors make the world go 'round and help make Orbitcast possible - so please consider visiting the sponsored links below for your Mother's Day shopping.

 

SIRIUS Satellite Radio
Maybe your mom isn't a Howard fan, but she's sure to enjoy tuning in to Martha Stewart, Lime and iif she's feeling a lil' crazy, Cosmo Radio.

SIRIUS Starmate ReplaySIRIUS Starmate Replay
One of the most popular SIRIUS plug-and-plays, and for good reason. The bright backlit screen works especially well for Mom's failing eyesight.

Where to buy:
JJI Electronics
$84.99
| In stock? Yes

Satellite Radio Superstore
$79.95
| In stock? Yes

 

Sirius S50Sirius S50
The Sirius S50 is the only SIRIUS receiver that allows for on-the-go listening so it's best way for dear ol' Mom to listen to her favorite SIRIUS tunes while doing her pilates at the gym.  

Where to buy:
JJI Electronics
$299.99
| In stock? Yes

Satellite Radio Superstore
$274.95
| In stock? Yes

 

XM Satellite Radio
XM's Take Five talk & lifestyle channel will sure to get Mom excited, not to mention chilling out to Hear Music (the sounds of Starbucks), and of course, Oprah & Friends will be arriving in September,

Roady XTRoady XT
The Roady XT is tiny, easy to use and has lots of purty backlit colors that Mom can show all her friends.

Where to buy:
JJI Electronics
$44.99
* | In stock? Yes

The Radio Place
$49.99
* | In stock? Yes

Satellite Radio Superstore
$59.95
* | In stock? Yes

* Price after rebate 

Pioneer InnoPioneer Inno
Brand spankin' new, in stock and shipping now. Sure you may want the Pioneer Inno for yourself, but why not do the noble thing and get it for Mom instead? Yeah right. Whatever your level of nobility, these resellers all have the Inno in stock and shipping.

Where to buy:
JJI Electronics
$369.99
| In stock? Yes

The Radio Place
$399.99
| In stock? Yes

Satellite Radio Superstore
$399.95
| In stock? Yes

 

So there it is folks, your Mom will love you for plunking down all that cash, and everyone else in your family will hate you for being the successful one in the family.

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XM Class Action Suit: Five Law Firms Now Involved

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XMLooks like everyone's jumping on board this class action lawsuit against XM Satellite Radio. Here's a list of the firms now involved, courtesy of SSG:

  1. Brodsky & Smith L.L.C. - info here
  2. Cohen Milstein, Hausfeld & Toll P.L.L.C - info here
  3. Law Offices of Charles J. Piven - info here
  4. Schatz & Nobel - info here
  5. Law Offices Bernard M. Gross, P.C. - HERE
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Jamie Foxx Guest Hosts SIRIUS Hits-1 Countdown

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Jamie Foxx

Jamie Foxx guest hosts SIRIUS Hits-1 Weekend Countdown this weekend to count down the top 45 biggest songs in North America based on airplay on SIRIUS Hits-1, and listener phone calls and emails.

Tune in to SIRIUS Hits-1 on Saturday, May 6th from 11am to 2pm ET with re-broadcasts throughout the weekend (6-9 pm ET on Saturday; 12am-3am ET, 7am-10am ET, and 8pm-11pm ET on Sunday).

Foxx will take a quick shot at Nick Lachey when introducing Lachey’s No. 23 song, "What’s Left of Me" for Nick allegedly requesting alimony payments in his divorce from Jessica Simpson.

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Be Jane (and possible MSN) to air on Satellite Radio?

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Be Jane on Satellite Radio? Be Jane Inc, a media firm that develops female-targeted home improvement content, will be provding original content for MSN's new original content venture entitled... wait for it... MSN Originals. Set to launch on July 1st within MSN's Lifestyle channel, the programming features female-targeted do-it-yourself content.

Amid this article about MSN Originals hides a hint that Be Jane will be providing similar female oriented content to satellite radio. Whether or not the MSN Originals content will be distributed to satellite radio, or whether the content will be exclusive to satellite, is still up in the air.

So who will they partner with? Very good question. Both XM and SIRIUS are pushing hard for the female market mindshare, so it could be either. And if MSN is actually in this game, there's little clues there either. Microsoft has relationships with both XM (in the form of Windows Media Player) and SIRIUS (in the form of upcoming video content). So speculate away folks.

[ClickZ]
Thanks Tim!

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'Less is More' doesn't give much more

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A recent study, sponsored by the NAB in fact, shows that the "Less is More" 30-second commercial spots (down from 60-seconds) on terrestrial radio really aren't performing as well as everyone had hoped.

While the general brand recall of the commercial's message was not signficantly different (good news), the recall of the advertisment's message itself is signficantly higher on the 60-second spots. The funny thing is, terrestrial has managed to charge only 75%-80% less for the 30-second spots over the original spots - causing some advertisers to some advertisers to call the plan "giving you less, charging you more."

"Based on these results," said David Allan, a marketing professor and former radio executive at Saint Joseph’s University in Philadelphia, "this study further suggests a possible rate of these 30-second commercials at 50 percent below that of a 60-second commercial."

Stay tuned as the NAB will undoubtedly sponsor another study that actually agrees with their advertising policies.

[Newswise

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SIRIUS ready Outdoor Entertainment Island

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SIRIUS ready Outdoor Entertainment Island

Chalk this up in the "too damn rich for you own good" category. The peeps over at Frontgate and Cal Spas have put together the ultimate in outdoor entertainment extravagance. Introducing, the thoughtfully named: Outdoor Entertainment Island.

Equipped with a stow-away 42" JVC Plasma TV, four 6" Clarion surround-sound speakers, Built-in subwoofer, DVD/CD player with AM/FM tuner, A/V coaxial input for satellite receiver or cable TV and of course, Sirius Satellite Radio compatibility. This stucco and ceramic tile finished outdoor entertainment system will be sure to woe your friends at the Hamptons.

But if they're not impressed with the soothing sounds of Hard Attack washing over your mid-afternoon barbeque, maybe the price will get them excited: a mere $16,995.00.

[Sirius Fan Network]

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Speck unveils Tough Skins for Helix, Inno and Nexus

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Cases for the Helix, Inno and NexusSpeck Products, who currently have a line of cases and skins for the Sirius S50 and the Delphi MyFi, have unveiled a line of products for the Samsung Helix and Nexus, and the Pionner Inno. The Samsung Nexus case is dockable while on the device, but no word about whether the Inno and Helix case will be as well.

One big potential sub-industry for XM and SIRIUS is the accessory market. Only a few companies are in right now, but as these devices get more and more popular, you can bet that more will come on board.

[Speck Products]

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Sirius signs Deepak Chopra show to attract women

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Deepak Chopra
Sirius Satellite Radio, in an effort to attract more women subscribers, will launch a weekly three-hour call-in talk show hosted by lifestyle guru Deepak Chopra. The new show, entitled "Deepak Chopra's Wellness Radio," is expected to be airing Saturday mornings starting in July on SIRIUS Stars (ch 102).

The terms of the agreement were not disclosed.

[Reuters]
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WorldSpace Launches in Four More Indian Markets

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WorldSpace Satellite RadioWorldSpace Satellite Radio launched in four new markets in India: Goa, Jaipur, Nagpur and Trivandrum. Collectively, the markets represent a potential of approximately 2.6 million consumers who would fall into the WorldSpace targeted listener base.

The addition would expand WorldSpace's target market penetration to nearly 38 million consumers in that country.

[Radio World]

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Another lawsuit against XMSR

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That didn't take long. Another lawyer jumps on board the Class Action suit against XM bandwagon.
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Class Action Suit Filed Against XM Satellite Radio

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A class action lawsuit has been filed against XM Satellite Radio Holdings Inc, on behalf of purchasers of the common stock of XMSR between July 28, 2005 and February 15, 2006.

The charges are that XM Satellite Radio Holdings, Inc and Hugh Panero made "materially false and misleading statements to the market during the Class Period" which are violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5.

In short, the claim is that XM Satellite Radio's ability to reach its goal of 6 million subscribers by EOY 2005 was misrepresented, and that they failed to disclose that XM's SAC would rise as it did in Q405.

There are many more details to this class action suit that you can read about in the press release. This just cannot be good for the XMSR share price, which has been getting hammered as of late from a string of bad news.

Thanks to everyone who sent this in! 

2 Comments

Another Hearing on the Hill: Audio Digital Rights Management

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The chairman of a subcommittee of the House Commerce Committee, Rep. Cliff Stearns (R-Fla.) plans to hold a hearing today on audio content and consumer electronics. Stearns will explore fair use, DRM and the need to protect copyrighted works.

Gary Parsons, chairman of XM Satellite, is set to testify, along with representatives from the NAB, Universal Music Group, and Intel.

Let's see what comes about from this. 

[RW Online

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Karmazin on O&A: "I Think It Was A Great Deal For Opie & Anthony"

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Mel Karmazin When asked yesterday about whether Mel Karamazin would consider syndicating content back to terrestrial radio like XM Satellite Radio has done with Opie & Anthony show to CBS Radio - the SIRIUS CEO said:

"We’re in the business of getting subscribers to satellite radio. The more exclusive content we have that will drive them to subscribe to satellite radio – as compared to shared content – the better for the industry. We like exclusive content. Having that on satellite radio justifies the $12.95 purchase price."

Karmazin did however call XM's agreement with CBS, "a great deal for Opie & Anthony."

[Radio Ink

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Ron & Fez to broadcast on CBS Radio?

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Ron and FezAccording to Allan Sniffen of the NY Radio Message Board, word has it that Ron & Fez may be showing up on CBS Radio during the evening timeslot. Currently the only station talked about is 92.3 FreeFM, but this could very well work out into a similar deal like their buddys Opie & Anthony.

Remember, Sniffen was the first to bring the O&A / CBS Radio deal to light, so this could hold some water.

[via DCRTV

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More on The Perform Act

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It's great to see the response from readers about how ridiculous The Perform Act is. It's funny how the RIAA is so willing to push legislation against an industry that provides so much potential and opportunity to actually sell music.

Satellite radio not only plays music, but plays music that otherwise would get little-to-no airtime. Back catalog tracks are finally getting the exposure they deserve, and in essence increasing general awareness of all genres of music. Broadening listener's awareness of music, means a stronger "long tail" for album sales. So why would they try to sabotage that? For short-term profits? C'mon.

Terrestrial radio shouldn't be sitting around giggling about this either. If enacted, The Perform Act could very well extend into other digital radio formats, like HD Radio.

But let's ignore the business aspects of all this. It's the listener, the consumer, who really gets the short end of the stick here. For those who want to know how this will affect them personally, here's a quick rundown of what The Perform Act wants to limit:

  1. Satellite Radio content would be limited to real-time recordings - no scheduling - only programs or blocks of time.
  2. You would not be allowed to record only music from specific artists, albums or genres.
  3. The devices could not selectively playback (or even change the order of) individual songs from the recordings made off the air.

Limiting innovation and progress is not a way to sell CDs. That's just not good business.

Both XM and SIRIUS have, or will have, the ability to purchase songs you hear with a simple click while listening. That's something that actually helps sell music for these companies. But instead they choose to take a proactive lobbying approach, because of the fear that innovation will overtake their business.

So what can we do?

We need to mobilize and let your members of congress know that you oppose The Perform Act, S. 2644. And here's an easy way to do it. Visit the Home Recording Rights Colation, and voice your opinion. It's easy and really doesn't take too much time.

And to help everyone along, please share what you wrote so that others can use it as inspiration for their own emails.

[Voice your opposition of the Perform Act, S. 2644

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Gary Parsons on The Perform Act

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With all the uproar that The Perform Act is causing among readers, I thought it would be nice for everyone to read some of Gary Parsons' testimony he made in front of the US Senate.

"Satellite radio is an American success story, and we play by the rules.  We pay for the right to play music.  And our manufacturers pay for our subscribers' right to record what is played."

More after the jump...

 

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New Sirius Wearable: Not Immune to the RIAA

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Sirius WearableWhile SIRIUS may have reached agreements with the RIAA over the Sirius S50, these agreements are not applicable for their upcoming live SIRIUS Wearable unit due out later this year.

During today's earning conference call, Mel Karmazin suggested the agreement reached between Sirius and the four major record labels could be a one-time deal that won’t be repeated.

Karmazin said that their portable device "adheres to the law" and should be considered a legitimate consumer device with recording and playback capabilities.

Yet another reason why The Perform Act needs to come to a halt. Current and future receivers are at stake.

[Billboard Radio Monitor

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It's An Inno-vasion!

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This just cracks me up. Frontpage of Crutchfield.

 

Inno
 

 

I'm curious how Inno-vative XM and other resellers will be with this product. The month of May is supposed to be a big marketing push by XM, so let's see what Inno-vating things they come up with.

[Crutchfield]
Thanks jimmy & candlebougie!

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Prince Paul to air show on XM Satellite Radio

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Prince Paul on XM Satellite RadioPrince Paul will produce a special show on XM Satellite Radio entitled "The Ill Out Show with Prince Paul," set to air on May 15th on The Rhyme (XM 65). He will be joined by partners in crime, Bimos, Newkirk, Buster, Nyce and Mr. Dead, to highlight classic tracks, interviews, rare outtakes as well as air some of his unreleased demos.

Having started out as a DJ for the first hip-hop band Stetsasonic, Prince Paul became instrumental in exposing a group by the name of De La Soul, worked with Rza to form the short lived group The Gravediggaz and released two critically acclaimed records with Dan The Automator as the Handsome Boy Modeling School. He also worked with Chris Rock to produce his comedy albums Bigger and Blacker and Never Scared, both of which won Paul Grammy awards.

[Baller Status]


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Howard Stern online streaming by Father's Day

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Howard Stern

SIRIUS Satellite Radio today announced that they have plans to stream The Howard Stern Show via the Internet to SIRIUS subscribers by Father’s Day. This will be a momentous day when this occurs, because many fans have been frustrated by the lack of an online stream. Even back in the 'terrestrial days' Howard was never streamed online. Cubicle rats rejoice!

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SIRIUS Satellite Radio Q1 2006 Financial Results

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SIRIUS Satellite Radio ended the first quarter with 4,077,747 subscribers, that's 761,187 additions from the year ago quarter, giving SIRIUS a marketshare of 57% satellite radio subscibers in the first quarter. Q1 2006 revenue grew to $126.7 million, with advertising revenue increasing to a record $7.3 million - effectively giving SIRIUS 53% of total satellite radio industry advertising revenue for the first quarter.

Monthly churn was 1.8% and SAC for the first quarter was $113. 534,958 net subsciber additions were through the retail channel (at 169% increase from Q105), and 225,343 subscribers were added from the automotive OEM channel.

As a result of such strong gains, SIRIUS has increased their full year guidance of net subscribers to 6.2 Million by EOY, a SAC of $110 and total revenue to exceed $600 million.
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The Perform Act: Anti-Satellite Radio Bill Attacks New XM2go Devices

| 2 Comments

Helix and InnoThat didn't take long. Already the big music labels are going after the next-generation XM2go devices. This time, the debate took place in front of the US Senate over the latest onslaught of anti-satellite radio legislature: The Perform Act.

The bipartisan bill known in long-form as "Parity, Platforms and Protection: The Future of the Music Industry in the Digital Radio Revolution" (mouthful? The Perform Act for short) seeks to change the compensation structure in the music industry to match that of digital music services. Also known as: performance versus distribution. Read on, I explain it.

In one corner is "performance" which is completely passive listening - like that of listening to the radio. In the other corner is "distribution" which involves actively taking possession of the music - like downloading off of iTunes. Then innovation comes marching in and blurs the line between the two with devices like the Pionner Inno and Samsung Helix (and the S50), but of course, leave it to major music labels to want to charge a tax on innovation.

See, the Satellite Radio industry currently is governed by compulsory licenses, which is a bit closer to the performance side of things. Of course, XM and SIRIUS still pay tens of millions of dollars in performance royalties to labels, writers, and performers - while terrestrial radio pays absolutely nothing. So it's not like the RIAA is being taken to the cleaners. In fact, XM Satellite Raio pays more in royalties than any other single company under the terms of a deal established in 1998.

But that's not enough.

"XM has paid market rates for everything from Oprah Winfrey to baseball, but not the music on which it built its business," said Edgar Bronfman Jr., chief executive of Warner Music Group. "It is not fair for satellite radio to turn performances into distributions without paying distribution licenses."

The claim is that at the point where these devices can record satellite radio, and allow you to store it, the music is now being distributed and performance rules no longer apply.

Of course, the first thing we all think of are the days with cassette tapes.

"Our subscribers, just like radio listeners have done for 50 years, have the right to make a single copy of a song for themselves," said Gary Parsons of XM Satellite Radio. "They don’t have the right to distribute that copy on the Internet for others."

"We designed these devices to fully comply with copyright law. Recording from the radio is not a download service.," Parsons continued. "Everything recorded from the radio is locked to the device. It cannot be transferred to the Internet ensuring that it is only for personal use. And you can only hear the material as long as you remain an XM subscriber."

Funny. The NAB wants satellite radio to be treated as a performance service under the same FCC rules and regulations that they have to abide by. Yet the RIAA wants satellite radio to be treated like a music distribution service, coughing up higher fees for usage. Both want congress to enforce this.

And while The Perform Act works to clarify what exactly the difference between performance and distribution are, perhaps we can all get involved and help give our own point of view. First, contact The Perform Act's sponsors: Senators Dianne Feinstein (D-California), Lindsey Graham (R-South Carolina), and majority leader Bill Frist (R-Tennessee). As satellite radio listeners ourselves, no one knows our listening habits are as much as we do. Maybe we all need to be less passive right now, and more active, when it comes to contacting your congressman and let them know how you feel.

[Red Herring

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CGC Complains to FCC About Sirius

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Radio World: Communications General Corp, a consulting engineering company, said it has filed a formal complaint with the FCC against SIRIUS Satellite Radio. The complaint is the use of the 87.7 and 87.9 MHz band in the built in FM transmitters of four Sirius plug-and-play receivers.

This comes oddly close in timing to the recent FCC investigation on XM's SkyFi2 transmitter (which is said to be too powerful). I wonder if we'll be hearing about this tomorrow. If Sirius doesn't have a waiver, it very well could result in an FCC probe starting up.

Follow the jump to read the formal letter sent... 

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Circuit City featuring XM2go

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Zatz Not Funny has a scan of a Circuit City ad showing the new Inno, Helix and Nexus. Couple funny things to note about this ad: the Nexus' screen shows it being in color - it's actually black & white. Also, apparently the URL in the ad doesn't work. Hah.

[Zatz Not Funny]

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"No significant loss of listeners to satellite" from Stern's defection

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Howard SternInside Radio had a bit of spin based on the recent Winter Arbitrons:

Katz researcher Maggie Hauck says “Howard Stern listeners have stuck with terrestrial radio despite all the hype.” From the first batch of Winter Arbitrons it appears “the Stern audience poured out all over the terrestrial radio dial” — scattered among other stations — but “the Persons Using Radio levels barely budged.” So Americans (at least n the biggest markets) didn’t run to Sirius to catch their idol. [...] What Katz is saying is that the total audience — the PUR — didn’t shrink in this Winter book (so far).

I'm not the only one who found this funny, as Radio Marketing Nexus found some curious discrepencies with this. See, apparently Katz forgot that Satellite Radio listenership is now recorded and as a result SIRIUS listeners are counted towards Persons Using Radio. So there definitely was no "signficant loss" because Stern's listeners just moved from one row to another. In fact, Arbitron told the Nexus that almost 4% of the NY MSA diarykeepers reported listening to Satellite Radio in the Winter book.

Hmmmm... so that didn't work. What about those not listening to satellite? The audience that "poured out all over the terrestrial radio dial" as it's so colorfully stated?

This from Nexus' inside source on the NY numbers:

Let’s look at 25-44 men (Howard’s core demo) in morning drive. [The AQH] figure is off 3% book-to-book and 9% this Winter compared to last Winter!
Spin that.

[Radio Marketing Nexus]
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Sneak Peek at new SIRIUS Wearable Receiver?

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the new Sirius Wearable Receiver? Over the weekend, SIRIUS.com got a very nice redesign, and a photo appeared on the homepage that has caused quite a bit of buzz in the online community. The boys over at Sirius Backstage were able to snap off a screenshot of the possible live SIRIUS wearable unit before it was taken down later in the day, replaced by a photo of earbuds.

Much speculation abounds that this is a SIRIUS equipped Dell DJ - and while it definitely isn't the harddrive based DJ (which was killed recently) - there is a slight possibility it's a flash-based since the Dell Ditty remains. Still, Dell does have a long standing relationship with XM, so it's hard to see them flipping the script like that.

My opinion? I'm betting that the pictured unit is an Archos... I dunno, let's just call it a hunch. (*cough* EchoStar *cough*)

Whether or not this is in fact the new SIRIUS portable - dubbed the "Bellagio" after the hotel is was privately shown at - it's also rumored that this device will be unveiled tomorrow in conjunction with SIRIUS' Q1 conference call. Though the hardware announcements may be limited to only the new Sportster. I guess we only have a day to find out.

[Sirius Backstage]

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Hugh Panero On Sharing O&A With CBS

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Opie and Anthony on CBS Radio

During the Q&A session at last Thursday’s Q106 financial results announcement, XM Satellite Radio CEO Hugh Panero was asked about sharing Opie & Anthony with CBS Radio and if this kind of deal opens up a longterm model of satellite radio sharing with terrestrial radio much like broadcast TV does with cable.

Panero responded, "They [O&A] were one of our top 10 shows on XM. They're obviously very popular. My experience having been in the cable TV industry is that when you have these overlapping distribution technologies services companies that everybody tries to find some way to work together. We have found a pretty unique arrangement whereby CBS had a challenging situation with the people they currently had on their radio stations. Opie and Anthony provides them with this very proven radio talent and we get branding and marketing messages along with syndication revenue. We do it on a case by case basis. Our Bob Edwards show is actually syndicated on the weekends to some public radio stations."

Panero added, "I have had a cordial relationship with Joel Hollander for awhile. Obviously competitors in some environments, we are neutral in others and I think in regard to this deal, we're kind of in love with it. The attributes of the deal in its totality is really what convinced us it was a smart thing for both companies."

Whether you agree with the move or not, this is probably going to be a growing trend. Terrestrial has been syndicating to satellite for some time, and now satellite is syndicating back. It's inevitable.

[Radio Ink]

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Free SIRIUS trial from Papa John's

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SIRIUS Satellite Radio and Papa John's pizza have teamed up in an neat lil' co-marketing promotion. When you visit a special landing page on Papa John's website, you get the chance to have a "taste" of a 10-day free trial of SIRIUS.

[Satellite Standard Group]
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SIRIUS Satellite Radio launched Nordic Rox

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Nordic RoxSIRIUS Satellite Radio will spotlight the best music from Sweden and more with the launch of Nordic Rox produced under the creative guidance of Per Gessle. Nordic Rox will be hosted and programmed by Radio Stockholm on-air personality Viktor Petrovski, a prominent figure in the Swedish music scene. Also contributing to the program will be the lead singer of The Hives, Howlin’ Pelle Almqvist, and highly respected ABBA historian Carl Magnus Palm (on behalf of ABBA’s Benny Andersson and Björn Ulvaeus).

The first episode of Nordic Rox was broadcast on SIRIUS channel 18, The Spectrum, this past Sunday.

Nordic Rox will place a spotlight on the quality and depth of Scandinavian artists and music, which have never been exposed in this manner in the US.  The show will also be the first place in the US to hear exciting new music emanating from Sweden and Scandinavian countries.

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XM Faces FCC and FTC Probes

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XM Satellite Radio disclosed in a regulatory filing last Thursday that the Federal Communications Commission found that one of its products, the Delphi XM SKYFi2, wasn't in compliance with applicable transmitter emission limits. XM says it is conducting an internal review, will respond to the letter shortly and is cooperating fully.

XM also said the Federal Trade Commission was investigating whether its marketing practices were in line with rules governing telemarketing, including the Telemarketing Sales Rule and the Truth in Lending Act. The company said in the filing that it received both inquiries on April 25th and was cooperating fully with them.

It's a little early to actually say what the reprocussions of these inquiries entail, but the FCC investigation seems a little late considering how long the unit has been on the market. On a conference call with analysts, XM Satellite Radio's chairman Gary Parsons said the FCC notice on the radio unit was unlikely to result in a product recall, and noted that it was not a health or safety issue.

Also speaking on the call, Hugh Panero, the CEO of XM Satellite Radio, expressed frustration that the notices came so soon before the company's earnings announcement. "I would like to avoid having these kinds of letters show up two days before our earnings call, but that's the journey we're on right now," Panero said. He said he believed the company was already complying with marketing rules.
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XM Satellite Radio Announces First Quarter 2006 Results

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For the first quarter 2006, XM Satellite Radio reported revenue of $208 million, an increase of over 100% from the $103 million reported in first quarter 2005. XM's subscriber acquisition cost (SAC) fell sharply from the fourth quarter to $62, higher than the $52 it posted one year ago, but down from $89 in the fourth quarter of 2005.

Cost per gross addition (CPGA) was $94 compared with $90 in the year ago period, but was off from $141 in the fourth quarter of last year.

In all, XM's total cost of revenue rose 74 percent in the quarter.
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