With the year coming to a close, it's time for that obligatory "end of year" prediction and some fine words of wisdom (with hindsight being 20/20 of course). So here's one of them: 2007 will be the year that the OEM subscriber growth will truly begin to shine.

In 2005, we were obsessed with retail. With good reason of course, because the satellite radio retail market was skyrocketing due to the buzz that Stern generated (as well as the seemingly weekly on-air celebrity contract announcements). So it's no surprise that the focus for 2006 was on retail as well. We were still high off of 2005, with noses-sniffling and teeth-grinding, we were jonesing for just another bump to recapture that feeling from the prior year.

And in the beginning of 2006, retail was doing great (thanks again to the aftershock of Stern's move to Sirius). But then the heavy hand of the FCC came down, causing halts in production for both companies (XM's occured prior to Father's Day, while Sirius' after Father's Day; Sirius clearly benefiting from this maneuver). A combination of this, and the drop in Stern-influenced subscribers, caused the retail market to wane. Anyone who was tracking NPD Group numbers clearly saw that XM was feeling the ill effects of this drop in retail more than Sirius, but the overall effects to the industry as a whole were real. This is no better illustrated than the seemingly weak reaction to satellite radio products this holiday season (though the jury is still out on exactly how bad this month will be).

The reason why the retail market has a significance in this industry is because it theoretically is a measurement of consumer interest in satellite radio. This is true to a degree. When people know they want XM or Sirius, they go out and seek it out at retail. So the obvious example is with Howard Stern fans - they knew they wanted to hear him, so they went out and purchased a Sirius. But satellite radio is an interesting product in that many people don't realize that they want it. They don't "get it" until they experience it. The reason why Stern fans wanted Sirius so bad is because they've been experiencing Stern for 20 years. It's already familiar. A softness in retail doesn't mean that there's a loss in interest in satellite radio, it's an indication that there's not enough familiarity with the product.

So that brings us to the outlook ahead. This year is all but done with (though both XM and Sirius still have a few days to aggressively encourage activations before Monday), and now the focus is on what is to come.

But first, a quick note about year-over-year comparisons. (I'm not stalling, I'm bringing it all together. Keep reading.)

While all this doom-and-gloom seems depressing, it's partially driven by unrealistic expectations and skewed comparisons. Last year was a break out year. An anomaly. The retail numbers simply cannot be considered a baseline that we should compare year-over-year results to (though the tendency is to do so, since this is such a young industry). This year was doomed to "drop" in retail because last year's conditions were simply impossible to recreate.

By this same thought, though with an opposite result, we're going to see rapid year-over-year growth in 2007 for OEM-driven subscriber additions - especially when looking at the percentages. Auto manufacturers are very slow to react to 3rd party changes, with no better example of this than that of Toyota (who likes things to be "just right" for factory installation). As a result, many of the OEM partnerships who signed contracts in the previous years will begin to come to fruition next year, and ramp up steadily for the years to follow.

For Sirius, DaimlerChrysler has promised a 40% overall penetration rate in 2007. Mercedes has promised over 50%, and Audi/VW is targeting over 80% next year. Let's not forget the 21 Sirius-capable models from Ford, BMW's increased penetration and the fact that KIA is going standard with Sirius in 2008.

XM is no slouch when it comes to OEM either. Honda has promised over 650,000 XM units, GM has slated 1.8 million XM units and Nissan has promised 500,000 XM units in 2007. XM will be factory-standard equipment for Acura in 2007, while Hyundai too will offer XM as standard equipment in 2007 (~500,000 units). Oh, and let's not forget about Toyota.

Many of these OEM partnerships have yet to see the light of day, so with the initial phases rolling out in 2007, year-over-year OEM driven subscriber additions with undoubtedly show growth. This translates to "good news" in those easily swayed investment media outlets (translating to stock price increases as the easily swayed investors react to this news).

It's not all peaches and cream of course. As penetration increases, the conversion rate will decrease. XM reports just over 50% of OEM free trial subs subscribe to the service. Sirius doesn't report their conversion rate, but it's most likely similar. As the number of new cars with satellite radio increase (from about 27% this year to around 55% in 2010), you can expect that conversion rate to go down. Craig Moffett, analyst at Berstein, expects the conversion rate to decrease to about 44% by 2010. Still not a bad number, all things considered.

So what of the effect on retail? Retail shouldn't be discounted, but the focus will shift in time. As OEM penetration increases, the need for plug-and-play receivers will drop. Think of plug-and-play receivers like the CD players of yesteryear. Before CD players were integrated in vehicles (a process that took about seven years to reach the same installation rates that satellite radio has achieved in three years), everyone was driving around with their portable CD players plugged into their tapedecks. The Discman was the CD equivalent to the satellite radio plug-and-play receiver. Eventually, as satellite is integrated into cars, we won't need them. 

The retail market, over time, will shift to handheld receivers like the Stiletto and the Inno, to home tuners and to more hybrid devices like the XM Mini-Tuner. Inclusion in other devices, like as part of home entertainment systems, will help keep retail subscribers aloft and going strong. Perhaps both companies will start using an OEM-style strategy for retail (i.e., a free 3-month subscription with the purchase of a satellite-enabled home entertainment system). And let's not forget about the fabled "convergence" of satellite radio + MP3 player + a cell phone (which I'm skeptical about). Who knows what's around the corner for retail - innovation will be a key driver - but it's inevitable that retail's focus will drift away from the vehicle as OEM penetration increases.

So while this fourth-quarter doesn't look to be the bearer of great news, take a look at 2007 and focus on the much larger OEM market. Consider that from a percentage basis, OEM growth will be significant (resulting in good press). Even with the most conservative of estimates, there's still a huge opportunity for both companies in 2007, and the doom-sayers will quickly change their tune.

(...now, about that churn issue.) 

The Pioneer Inno's name is derived from the stem of the word "Innovative."

So it's with a bit of a chuckle, a wink-wink, and perhaps even a jab to the ribs, that we see the Inno as one of PC World's 20 Most Innovative Products of the Year.

Their reasoning for bestowing this honor is the Inno's ability to receive a live XM signal and record/store songs, as well as bookmark them for purchase later.

[PC World] 

Thanks Jessica! 

Eminem will countdown 25 of his favorite hip-hop songs during his "Shady New Year" special on Sirius channel Shade 45 (ch 45) this New Year's Eve.

Eminem, who was nominated for a GRAMMY with Akon for "Smack That" will broadcast the "Shady New Year" special on December 31st from 8-10pm ET.

Replays will aur the same day at 10-12pm ET, and again on New Year's Day at 12am, 12pm, 2pm and 8pm ET.

Here's a funny article in Florida Today by columnist Breuse Hickman. The article headlines with the dramatic title of "Stern's leap to satellite the year's biggest flop" - yet it does little to support that bold statement.

First off, Breuse doesn't own satellite radio. Great. But, even though his beat is on local and national media, he justifies not owning satellite radio because... well... actually it's hard to understand his justification.

This graduate of the Univertsity of Central Florida (with a degree in technical writing) doesn't really back up his statement at all. He first says that he doesn't feel left out because of the "latest year-end reports" (let's assume he means the reduction in subscriber guidance) then he goes on to refer to Forbes' "Dethroned" article, for really no purpose.

But... then he goes on to say that regular radio is boring. Breuse, a reporter for 15 years at Florida Today, gets so distracted in plugging different local radio stations that the whole article just resorts to name-dropping. So how did "the year's biggest flop" happen? Who knows, but the title sure is catchy.

Fine reporting there Breuse!

[Florida Today]

Sirius is busting into 2007 with a series of live concerts as part of their New Year's Eve programming. With performances from The Beach Boys to The Commodores, Patti Smith to Chris Issak, and yes even Hatebread; these concerts will be broadcast live from different locations across the U, S of A.

The list is too long to simply post on the homepage, so check out Sirius' live New Year's Eve performances after the jump... 

James Brown, the "Godfather of Soul", who died on Christmas Day, will be honored by XM Satellite Radio all week on Soul Street (ch 60) and The Groove (ch 64).

Both channels will air tributes, including archival interviews with Brown and vintage concert recordings, througout the week. Yesterday Soul Street played a song of his every hour on the hour to pay tribute to the life and music of James Brown.

Brown died of congestive heart failure on Christmas morning in Atlanta at age 73. There will be a public viewing at NYC's Apollo theater where he made his debut. A private ceremony will be held on Friday in Brown's hometown of Augusta, Georgia, and another public ceremony will be held a day later at the James Brown Arena.

If you missed Opie & Anthony on The Tonight Show with Jay Leno last night, you can catch the video below:

[via Bearing Drift] 

Washington Post tech writer Yuki Noguchi and Leslie Walker, dropped by the XM Satellite Radio's headquarters (nicknamed The Eck) for a tour on Monday.

It's a great read of their experiences within the facility which is a century-old renovated printing press where National Geographic and Newsweek were once printed. Their personal account of the tour really illustrates the corporate environment that creates the music and programming we all listen to everyday.

[Washington Post: Post I.T.]
Thanks to everyone who sent this in!

Comedy gone too far? Bill O'Reilly obviously thinks so. Below is a video from a segment in his show where he talks about Opie and Anthony's recent "Homeless Shopping Spree 2006" where they took a group of homeless people shopping in a mall, giving each $200 to spend on whatever they want.

The event also drew the attention of Boston's Mayor Tom Menino, who issued a statement after it aired this past weekend. 

The Catholic Channel (ch 159) on Sirius Satellite Radio will be broadcasting Christmas Midnight Mass and Christmas Day Mass from NYC's historic Saint Patrick's Cathedral, live with Edward Cardinal Egan.

Midnight Mass will begin at 12-midnight ET. Eric Cutler of the Metropolitan Opera will will sing "O Holy Night." and will also accompany the world famous Cathedral Choir of Saint Patrick.
 
On Christmas morning, The Catholic Channel will broadcast Mass for Christmas Day with Cardinal Egan starting at 10:15am ET.

If you're one of those last-minute shoppers who refuses to hit the mall, remember that it's still not too late to get those satellite radios online. And many of the popular online resellers are now offering free overnight shipping so you're gifts will still arrive before Christmas.

Here's a list of satellite radio resellers (in alphabetical order) that are offering free overnight shipping:

• Crutchfield (free Saturday delivery if ordered by 12 noon ET on Friday)
  
• JJI Electronics (use coupon code: "NEXTDAY" to get free overnight shipping)
  
• MyRadioStore (free Saturday shipping if you order before 5pm ET on Friday)
  
• Satellite Radio Superstore (call for Saturday delivery)
  
• XM Fan Store (order by 4pm Central and get free FedEx overnight)

If you know of other resellers that are offering free overnight shipping, go ahead and comment and the list will be updated.

Oh lookie here, the Motley Fool is at least equally against both satellite radio stocks when it comes to investing in 2007, also giving XM Satellite Radio the label of The Worst Stock for 2007 (and yes kids, I did miss this article an hour ago).

Of particular focus on Fool's article is XM's ever decreasing equity value. Their thought is that the drop in shareholder value can only make sense if XM were to dominate the market - like eBay or Amazon. They just don't see that happening with big players like terrestrial radio or Apple in place.

The Fool also calls into question XM's prediction of reaching 20 million subscribers by 2010 - they don't see that happening either. It's on this point I vehemently disagree. We have yet to reach the full potential of the OEM channel, and while the conversion rate is going to go down, the exposure if going to increase. Still, a lot could change in 3 years (just look at satrad retail marketshare).

Ouch ouch and ouch. The Motley Fool has declared Sirius Satellite Radio (SIRI) the absolute worst stock to buy for 2007.

Of course, they are quick to point out that Sirius won Fool's Stock Madness 2005 (hey Fool: I appreciate the linkage by the way!), but attributed that win to be more based on the voter's hearts rather than their wallets. It's undeniable that both satrad stocks are filled with egos and devotion of an almost maniacal fervor.

Fool ends with this as their final qualification:

Even if Sirius does generate a cash profit this Q4, it's still burning through cash at the rate of $550 million over the course of the other three quarters. That means the company will need to continue piling on the debt, or diluting its shareholders with stock issuances -- or both -- to keep its operations running.

They may have a point with this one. Yes, positive free cash-flow is definitely possible (even likely) for Q4, because subscription prepayments are heavier around the holidays. But remember that there's associated expenses with these prepayments (like retailer commissions) and these are paid out in Q1.

But the worst stock for 2007? I'm willing to bet there's others more worthy for this distinction.

Sirius Satellite Radio's executive VP of programming Jay Clark has announced plans to retire after more than four-and-a-half decades in broadcasting.

Clark told Radio & Records that he's looking forward to spending more time with his family, who have remained in Florida over the past four years while he's commuted back and forth to his current job at Sirius in New York. (And I thought my commute was bad.)

Clark will remain at Sirius through the end of January, after which he plans to catch up on some sailing.

Best of luck to you Jay, you deserve it.
Thanks Tyler! 

Well it was rumored that this would happen, so it's little surprise that it has: Ron & Fez, the "other" dynamic duo from XM Satellite Radio's The Virus (ch 202), have signed an agreement with CBS Radio.

The deal puts Ron & Fezzy on CBS Radio's WFNY New York lineup weekdays from 6pm-9pm ET.

They begin broadcasting on WFNY immediately. Hopefully Fez will be able to get himself a home now.

[via Radio Ink & AllAccess] 

The editors at men.style.com have unveiled their The Year In Gear feature, selecting the 20 most stylish gadgets of 2006, the 3 biggest duds, and 5 things they are looking forward to in 2007.

Unfortunately, they didn't place the Stiletto under "the best" category. Nope, in fact the Stiletto is one of their duds of 2006. Here's the reason:

"Sirius's first true portable satellite radio (and the first player with a Wi-Fi chip that lets you listen over the Internet) was supposed to bring Howard Stern to the mobile masses. But the Stiletto needed better reception and audio quality to get away with a name like that."

Check out the men.style.com list of best and worst after the jump...

The Motley Fool has an intriguing article today on why satellite radio may not be selling so well this holiday season.

They raise the question on whether satellite radio is really losing to bigger ticket items like flat-screen TVs and next-gen game consoles; and more importantly, whether satellite radio is a good holiday gift to begin with. The Fool's view is that subscription services are awkward presents. Unless the recipient has expressed the desire to have a satellite radio, you're pretty much unloading a monthly bill on their lap. Last year was easy... got a Stern fan? Buy a Sirius.

"They're little more than fruitcakes with circuitry."

Unfortunately it's a valid point. It's rude to hand over a gift that is only useful if they pay a monthly fee. So both companies don't just have to overcome a mental "conversion" with the subscriber, but they also need to convince the gift giver that "paying for radio" is appreciated by the recipient. That's rough

So it's understandable that both Sirius and XM are pitching three-months of service, plus radio, for under $99. The $100 price-point is attractive to many, and the 3-months ensures that the radios are at the very least activated (unlike last year) and hopefully sampled by their recipients.

But is three months enough? Hard to say, I guess we'll find out in March.

Audi Canada has signed a long-term agreement to provide Sirius as a factory-installed option to "virtually" all Audi vehicles sold in Canada.

Starting in early 2007, the following Audi vehicles will available with Sirius in Canada: the Audi A3; the A4 sedan, Avant and Cabriolet; the S4 sedan, Avant and Cabriolet; the RS4, the A6 sedan and A6 Avant; the S6; the Audi Q7; the Audi A8, A8 L, and the S8 and A8 L W12; and the upcoming TT Coupe and Roadster.

Audi Canada's factory-installed Sirius Satellite Radio receivers will be made available with a 3-month free trial subscription.

My Old Kentuky Blog (MOKB) is joining the ranks of Gorilla Vs. Bear, Productshop NYC and Brooklyn Vegan as part of Sirius' innovative Blog Radio.

MOKB will debut on Thursday, December 20th and is set to interview The Black Keys for the December 28th show. Nice to see that Sirius is extending this series to more bloggers.

[MOKB]
Thanks Brendan!

XM Satellite Radio's holly-jolly channel, Holly (ch 103) is being extended through New Years Day.

Now you'll be able to hear contemporary holiday hits, sprinkled in with more traditional favorites, into 2007.

Right now it seems like this is the only holiday channel being extended, but if more follow Holly's lead I'll be sure to post it. 

Thanks Matt! 

Joan Lordi Amble, Executive Vice President and Corporate Comptroller for American Express, has joined XM Satellite Radio's board of directors.

Ms. Amble brings considerable financial expertise and insight to the board as she is responsible for all controllership finance functions across the four major divisions of American Express.

Prior to joining American Express, Joan Lordi Amble served as COO and CFO of GE Capital Markets,  overseeing securitizations, debt placements and syndication, as well as structured equity transactions for General Electric Company business.

Ms. Amble also served as vice president and controller for GE Capital, and as Chief Financial Officer for GE Commercial Real Estate. Prior to GE, she worked for Financial Accounting Standards Board (FASB) and Ernst & Young.

She obtained her undergraduate degree in Accounting from Penn State and attended graduate school at UCLA.

Sirius has announced their "top 10" music event for 2006.

I'm not necessarily sure what the criteria was for selecting the list, but some of the events were definitely pretty cool. Anyway, here's Sirius' top 10 music events list for 2006:

1. Exclusive live broadcast of the last performance at legendary NYC nightclub CBGB, featuring Patti Smith, on SIRIUS Disorder. (Orbitcast verdict: Extremely cool)
   
   
2. Launch of Metropolitan Opera Radio: The Met's famed live and archived operas are now heard around the clock, commercial free. (Orbitcast verdict: Great partnership)
   
   
3. Launch of The Who Channel, the world's first station dedicated to the music of The Who, including exclusive backstage reports and concert broadcasts. (Orbitcast verdict: Enough already)
   
   
4. Every concert performance from Jimmy Buffett's 2006 Party at The End of the World tour was broadcast live exclusively on Buffett's Radio Margaritaville channel. (Orbitcast verdict: Big thumbs up)
   
   
5. Two new shows featuring user-generated content were launched: Blog Radio, a new daily show hosted by some of the most influential music bloggers in the U.S. (including Brooklyn Vegan, Gorilla vs. Bear and Product Shop NYC), launched on May 29 on Left of Center, and D.I.Y. Radio, a new weekly show that allows listeners to become DJs, debuted on Sept. 25 on Faction. (Orbitcast verdict: Interactive = Good)
   
   
6. "Elvis Radio Day" was declared in Memphis and Shelby County, Tenn. July 2, in celebration of the 2nd anniversary of Elvis Radio on SIRIUS (channel broadcasts live from Graceland). (Orbitcast verdict: Ehhh)
   
   
7. Rolling Stones Radio, the world's first radio station dedicated to the music of The Rolling Stones, featured exclusive interviews with all band members. (Orbitcast verdict: Please, make it stop)
   
   
8. The music of country legend George Strait took over the entire Prime Country channel for five straight days. (Orbitcast verdict: OK)
   
   
9. Nordic Rox, the first radio program devoted to music from Scandinavia, launched on The Spectrum. A special Nordic Rox worldwide program, heard October 25th, was also SIRIUS' first live international broadcast. (Orbitcast verdict: Nice)
   
   
10. Big '80s Celebrates MTV at 25 on Aug. 1 featured four original VJs -- Mark Goodman, Martha Quinn, Nina Blackwood and Alan Hunter, who are now all daily hosts on Big '80s (channel 8) -- recounting their experiences being part of the pop culture phenomenon and playing the songs from the first videos that ever aired on MTV, on its 25th anniversary. (Orbitcast verdict: Great tie-in, great idea)

An interesting thought was brought up on Radar Online: will Sirius Satellite Radio follow HarperCollins' lead and fire Judith Regan?

According to the NY Times, Rupert Murdoch personally called for her firing after he heard of "comments that were deemed anti-Semitic." The bad press surrounding her is undeniable, and apparently the Anti-Defamation League is "looking into the matter" which could add to the pressure for Sirius to distance themselves.

A source told Radar that he doubts Mel would fire her unless the matter gets worse. "Mel has a long history of taking people who are getting the crap beaten out of them and picking them back up," says their source. "His first reaction would be to let the person who's in deep trouble have some time to dig themselves out."

What do you all think?
(As a side note, due to Judith Regan's recent "rise in popularity" several comments have been posted blasting her - many of which I didn't publish because they were just a little too nuts - but you can read the remainders here and here.)

United Airlines has a new upgrade to their first class suite for their international widebody fleet. The new "United First Suite" reclines in multiple angles and lays down to a totally flat 6-foot, 6-inch bed. But that's only where the goodness begins.

Each suite has a 15.4-inch widescreen flat panel monitor with digital on-demand video and music with different selections of movies, TV and video games. United also will offer 50 channels of XM-branded audio content, providing more than 3,000 songs and a jukebox to create customized play lists.

Other items in the new United First Suite include a 110-volt universal plug for laptop power (compatible with power outlets for 145 countries), a USB port, a set of noise-canceling headphones, an iPod connector, and multiple storage compartments to for your laptop bag and other personal items.

Check out another photo of this thing after the jump...

If you missed Howard's appearance on Jimmy Kimmel late last week, you can watch it below:

Thanks Nate! 

Here's some incredible news for Sirius Canada: Ford of Canada has announced that they will make Sirius Satellite Radio a factory-standard feature in "virtually" all Fords sold in Canada, by the end of 2007.

Sirius will be available as a standard feature in the following Ford of Canada models: Ford Five Hundred, Focus, Fusion, Mustang, Edge, Escape, Expedition, Expedition Max, Explorer, Explorer Sport Trac, Freestyle, Ranger, F-150, F-250, F-350, Lincoln Mark LT, MKX, MKZ, Navigator and Navigator L. 

That's a total of 20 vehicle lines. Absolutely great news, and hopefully a sign of things to come for the U.S. 

XM's interactive hits channels Top 20 on 20 (ch 20) is welcoming Beyonce in studio on Wednesday, December 20th.

Miss B is stopping by to host the countdown with Top 20on20 host Michelle, and will give the scoop on her latest movie "Dreamgirls," which is out on Christmas Day. If that's not tantalizing enough for you, they'll also get to the bottom of those nasty rumors about her and Jennifer Hudson. Beyonce Knowles and Jennifer Hudson have both been nominated for Golden Globes for their work in "Dreamgirls" (Best Actress/Best Aong for Beyonce, Best Supporting Actress for Jennifer).

Tune in this Wednesday at 9pm ET, with replays on Friday, December 22nd at 12-noon ET and 9pm ET. 

he Los Angeles Times featured an amazing article yesterday about a single man's experience with his new satellite radio. The entire article revolves around a single aspect that he discovered with his new present:

"The first surprise about satellite radio is the return of surprise."

It's a key differentiator from the iPod: the element of surprise. You've already heard the songs on your iPod, you've heard them over and over again. There's nothing new. The article's writer said it perfectly: "even if you collect 1,000 iTunes they all finish uploading with the same empty thunk."

With satellite radio, the chance to discover (or rediscover) music is an opportunity constantly presented to the listener. It's not your entire personal collection in your pocket like the iPod - music from satellite radio is a chance relinquish control and enjoy music for what it is. For the first time, you're actually listening again.

The article is a bit lengthy, so set it aside for your lunch hour, but try to take in everything he says - it's worth it. Read as his enlightenment unfolds while just sitting in L.A. traffic. Then take a moment and see how his experience relates to your own moment of enlightenment, when you  first realized what you've been missing.

[LA Times] 

XM threw the switch on Friday and began broadcasting through their new XM-4 satellite, nicknamed "Blues."

The combination with the XM-3 satellite (nicknamed "Rhythm") back in March of 2005, replaces the ailing "Rock" and "Roll" satellites that were launched in 2001. Rock and Roll will remain in-orbit as backups.

John Dealy, XM's Senior Advisor who leads the XM Satellite Systems Team said, "both satellites are healthy and expected to deliver excellent service beyond their contract requirement of 15 years, providing the richest entertainment content to XM subscribers for the long-term."

No word on whether any additional functionality is available with these new birds, but at the very least XM doesn't have to worry about them for the next 15 or so years. 

[Press Release] 

Sirius Satellite Radio is offering a lucky fan a special gift this holiday season - a chance at a special experience with one of Sirius' on-air celebrities.

Wanna have dessert with Martha Stewart? Or maybe meet Tony Stewart? Perhaps you'd like a prime seating and a backstage pass at The Metropolitan Opera? Jam with Jim Breur? Hang out at a MAXIM party? You get the idea. There's a total of 18 experiences available, so there's bound to be one that you'd enjoy.

All you need to do is enter the Sirius Stars 2006 Sweepstakes - even if you're not a subscriber. So what are you waiting for?

Have you wanted to find out more about XM's new website redesign? Sure you have, you're probably losing sleep over it. Well thanks to a press release from Avenue A | Razorfish we can all gain back those precious hours of REM sleep.

Here's the breakdown:

• The redesigned site is meant to showcase the wide range of content available from XM
• New features include "Artist Search" and "What's on Now" to help users identify which XM channels play the music of their favorite artists and deliver a real-time display for all XM music channels.
  
• The redesign included an updated "Listener Care Online" section giving a simplified self-service user experience.
• The new "Help and Support" section in the main Web site delivers centralized access to all help-related information.

Following Howard's appearance on Letterman, someone was outside recording fans reactions to the free Sirius Satellite Radios. Not surprising, they were all pretty happy.

Listen to the latest episode of the CNN "The Digital Life" podcast as your's truly talks with CNN's Headline News anchor Renay San Miguel about the current state of the satellite radio industry.

We cover the XM-Sirius merger rumors, the importance of celebrity talent, the future of wearable devices, cellphone convergence, and even what both companies need to focus on in 2007.

A worthwhile listen if I do say so myself.

[Play Audio]

It's always interesting to see what things seem to take hold as buzzworthy news in this industry. One of the key items that seems to continue to have legs is XM's introduction of Radio Hanukkah.

First there's this terrific story on Radio Hanukkah by AP writer Matt Sedensky, who obviously (and refreshingly) did his homework. Obviously so because it's an article that has been republished in countless media outlets. One interesting thing pointed out is that XM is marketing Radio Hanukkah to Jewish organizations, rabbinical groups, etc - offering free access to XM during the eight nights of Hanukkah (available by going to xmradio.com/hanukkah and entering "TheChosen" as the XM promo code).

Another great article in The Mercury News highlights the fact that this is an effort to target niches.  Remember, the Jewish community "only" makes up about 6 million, not exactly a huge audience - especially by terrestrial radio's standards. But this is where satellite radio's strengths come in. It's all about serving hundreds of niches to smaller markets - and in aggregate making a large subscriber base.

Radio Hanukkah officially starts celebrating the Festival of Lights today at 5pm ET. Go here to get your free 8-days of XM. 

Check out video of Howard's appearance on Conan last night. It was definitely a funny and good showing. Even talked about Martha's interview (and her using a vibrator, fighting off lesbian sex in prison, wearing no panties, etc). A good plug for satellite radio in general, but of course great exposure for Sirius.

[Video 1] [Video 2]

Finally, O&A get their own commercial highlighting their presence on XM. Featuring Opie, Anthony and Jim Norton too. Watch it below.

Thanks Squeaky!

Have you been listening to Sirius and noticed more Holiday programming than previously announced? Well, that's because there is more (whodathunkit?).

So go ahead and march on over to Sirius' website to peruse through their holiday selections.

(Psst, there's the full listing of their New Year's programming as well.) 

Thanks Steven! 

Ok, this is fun just for the hell of it. Are you bored at work? Maybe have a friend who's busy filing out TPS reports? Or perhaps you just need to emerse yourself into XM's wacky line-drawing world for a while?

Then XM's Holiday Card Generator is just the ticket kids. Send one to a friend and you all can get a nice chuckle. (Plus it serves as a nice platform for a viral marketing campaign.)

My personal favorite is the groovin' snowman.

Sirius Satellite Radio has launched a new show, "Doo Wop Gold" hosted by TJ Lubinsky, a weekly show devoted to... wait for it... doo wop music!

"Doo-Wop Gold" will feature caller requests, artist profiles, interviews, concert performances and original recordings from music legends of the 1950s rock and pop era. Favorites like Johnny Maestro and The Brooklyn Bridge, The Duprees, Little Anthony and The Imperials, The Skyliners, The Flamingos, and The Five Satins are just some examples of what you'll hear.

Host TJ Lubinsky is the creator, executive producer and director of the public television "My Music and American Soundtrack" series featuring artists from the 1950s, 60s, 70s, in addition to the most successful pledge show in public television history, Doo Wop 50.

"Doo-Wop Gold" will air Wednesdays from 9pm to 12-midnight ET on Sirius Gold (ch 5) with replays on Sundays from 9pm to 12-midnight ET.

XM is broadcasting a special holiday episode of Bob Dylan's "Theme Time Radio Hour" on December 20th.

The special two-hour show will feature a complete reading of "Twas the Night Before Christmas," by Bob Dylan himself, as well as his holiday-theme selections and commentary throughout the show. Songs for the "Christmas and New Year's," themed show include "Sock It To Me Santa" by Bob Seger, "Jingle Bells" by Johnny Paycheck and "What Are You Doing New Year's Eve" by Nancy Wilson; to name just a few.

And keeping with the holiday spirit, XM will make the special episode of "Theme Time Radio Hour" available to non-commercial radio stations for broadcast.

The two-hour holiday episode will debut on Wednesday, December 20th at 10am ET on XM's Deep Tracks channel (ch 40), with encores airing through the end of the month.

In conjuntion with NASCAR making the move over to Sirius in January, Sirius will debut a new daily NASCAR talk show on Sirius' NASCAR Radio (ch 128).

Airing every weekday from 11am-3pm ET, "The Driver's Seat" is hosted by veteran broadcaster John Kernan alongside a slew of current and former NASCAR drivers serving as co-hosts.

Featured NASCAR co-hosts include: Buddy Baker, Johnny Benson, Randy LaJoie, Ron Hornaday, Ricky Craven, Phil Parsons and interestingly enough - John Andretti. John Andretti is Michael Andretti's cousin, co-owner of Andretti Green Racing, which has signed with XM.

The Driver's Seat, produced in conjunction with Performance Racing Network (PRN).
 

The Onion has gotten the scoop on a brand new lineup for Sirius Satellite Radio, and I gotta say that this is some killer programming. So without further adeau, here's the new channels:

(Yes folks it's called satire.)

[The Onion via Gizmodo] 

NPD Group's November sales data continue to show - once again - a consecutive decline in satellite radio retail demand relative to last year.

For the fourth month in a row, year-over-year retail sales are on the decline - August: -3%; September: -12%; October: -25%; and now for November: unit sales are down 45%.

The Quick Glance:

• Sirius November 2006 Retail Sales:
  Down 45% YoY
• XM November 2006 Retail Sales:
  Down 45% YoY

Marketshare:

• Sirius Nov '06 Retail Marketshare: 59%
• XM Nov '06 Retail Marketshare: 41%

While it's interesting that both Sirius and XM are down 45% from the same period last year, Sirius' retail marketshare jumped up from 56% in October to an impressive 59% in November. A clear indication that Sirius is handling the retail sector much better than XM is (regardless of the fact that NPD doesn't register all retail activity).

Anyone want to make some bets for December? 

• February 5, 1996 - New York City loses country music when WYNY changes formats (it was resurrected as Y-107 in the surrounding areas, only to be killed off again on May 7, 2002).
• May 11, 2005 - San Francisco loses country music when KZBR changes formats. 
• June 3, 2005 - New York's WCBS-FM, an oldies-based station for over three decades, abruptly switches to the Jack FM format. No more oldies on New York's FM dial.
• On the same day - WJMK in Chicago also switches to Jack FM, leaving no oldies for Chicago either. 
• August 17, 2006 - Los Angeles' KZLA switches formats to Adult Contemporary, leaving L.A. with no country music stations.
  
• December, 2006 - Washington D.C.'s 60-year-old classical music station, WGMS, is set to be acquired and turned into a Redskins based sports-talk format station - marking the end of classical music in the Washington D.C. area.

It's an ongoing theme that we're seeing over and over again. Regular radio continues to kill off music genres one at a time, leaving those areas devoid of any way of discovering new music. Commercial classical music stations have dropped from 40 stations in 1998, to only 27 - nationwide - a number that goes from surprising, to really surprising.

WGMS even was to start multicasting in HD Radio (terrestrial radio's supposed technological savior), adding two more classical music stations to the area. Sorry, not anymore.

"But we have iPods."

Sure, iPods are great. They're the perfect way to carry your entire music collection with you. Simple, easy, convenient. But Apple only sells around 20 iTunes per iPod. Twenty. This means that the music on most people's iPods is their own (old) collection (or it's unpaid "borrowed" music that we can't prove). And what's the most popular way that people discover new music? It's through radio.

XM Satellite Radio has been quick to respond.

When country music left L.A., XM stepped in as the sponsor to L.A.'s Country Bash. Now they're aggressively running an ad in the Washington Post, advertising XM's three classical music channels. (Check out the ad after the jump.) XM specifically highlights the fact that D.C.'s acclaimed hosts Martin Goldsmith, Robert Aubry Davis and Paul Bachmann (all formally from WETA) are part of these channels.

Terrestrial radio will continue to complain to the FCC, demanding that satellite radio be regulated by the same rules. The RIAA will gladly file suit against XM, because they need to "fairly compensate labels, artists, songwriters and publishers." SoundExchange will ridiculously demand a massive increase in royalities from XM and Sirius in order to broadcast the music that their terrestrial counterparts continue to cast aside. These are companies who represent the music industry as a whole.

Does anyone see something drastically wrong with this picture?

In the very near future, and even currently, the only way to discover and hear certain types of music will be on the Internet, and on Satellite Radio. Fact: the satellite radio industry is the single largest contributor of sound recording performance royalties to artists and record labels. So while terrestrial radio is killing music, satellite radio is in essence, keeping it alive.

View XM's ad in The Washington Post after the jump...

The Samsung NeXus 25 is on woot! today, but don't get too excited because it's sold out already. And rightfully so.

Woot! put the NeXus 25 up for on $19.99 plus free activation and one free month of service. But wait, there's more. The woot! deal also includes 15% off accessories using the XM coupon code ES06Q415.

All for $20 - no wonder it sold out (they go on sale at 12am central time).

Thanks Matt! 

Did you miss seeing Howard Stern on David Letterman last night? Then you missed some a pretty funny interview and an even more interesting outfit that Howard was wearing.

Well turn that frown upside down kids (did you know it takes more muscles to frown than it takes to smile?) because you can watch a highlight clip of Stern's appearance on Letterman.

View the video here (RealPlayer) and watch Howard talk about Bryant Gumbel's Christmas Party.

UPDATE: Forget the highlight clip, the full appearance of Stern on Letterman is below.

Part 1 [Link]

Part 2 [Link]

Thanks cb!

Apple co-founder, Steve Wozniak (The Woz) gave the satellete radio industry a "Buy" rating in a recent interview with the Motley Fool.

The conversation was basically equating the future of select technologies/products with a investing-style "Buy, Sell, Hold" rating. The interesting part is Woz's reasoning for being so favorable to satellite radio:

"Once you encounter it, it is a one-way street. You go through it and you don't back out. You just discover that there are more stations of the types you want at a very reasonable price and so they basically ... will hold their clientele, and it is large enough," said Wozniak.

Remember that Wozniak was a guest-DJ on XM not too long ago. During that incredible 4 1/2 hour show Woz brought up several times how enamored he is with the service that satellite radio provides.

So why is this important? Because Sirius and XM (and Apple for that matter) aren't really in the radio business. They're in the desire business.

[Motley Fool via SSG]

XM is airing every episode of Tom Petty's show, "Tom Petty's Buried Treasure," as part of a weekend-long marathon entitled "Highway Companion Big Weekend." The special kicks off this Friday, December 15th at 12-midnight ET on XM Live (ch 200).

"Highway Companion Big Weekend" (which borrows its namesake from Petty’s Grammy-nominated album, Highway Companion) will feature rare recordings and previously unreleased live tracks from Tom Petty's archives along with the first 44 episodes his XM show.

Petty’s free-form playlist features cuts by artists from Jimi Hendrix to Carl Perkins, the White Stripes to Little Richard, Elmore James to the Beatles, Bob Dylan to Jerry Lee Lewis. "Tom Petty’s Buried Treasure" debuted on XM in December 2004 and airs on Mondays at 10am ET on Deep Tracks (ch 40) with replays throughout the week.

It's been one-year since Martha Stewart launched her Sirius Satellite Radio channel, Martha Stewart Living Radio (ch 112). And what better way to celebrate than to make an appearance on Howard Stern?

It's an appearance so earth shattering that Sirius even issued a press release on it.

Though little details are available about what will be discussed (hopefully it involves a dazzling Creme Brulée for the Holidays) we do know that her visit to Stern's studios will be on Thursday (12/14) at 7:30am ET.

Tune in, a sybian ride may be in order.

Ron and Fez, XM Satellite Radio's mid-day buddies on The Virus (ch 202) are reportedly making the jump to terrestrial radio - though not exclusively.

FMQB has learned that the deal (reportedly in it's final stages) would put Ron and Fez in the 6pm-9pm ET slot on WFNY. Additionally this will be a completely new show, meaning it's not a rebroadcasted version of the earlier XM show.

Back in May, rumors of this deal were abuzz in the board-gossip circles thanks to the sleuthy work of Alan Sniffen. Razzle dazzle!

[via Squeaky's World] 

In early November, Sirius Satellite Radio applied with the FCC to place repeater towers in Alaska and Hawaii. If granted the towers in Anchorage, Fairbanks and Juneau (for Alaska), as well as Honolulu (for Hawaii), would allow Sirius to reliably broadcast outside of the continental United States.

But Alaska radio broadcasters are opposed to the plan. They don't oppose Sirius covering the region mind you, just the repeater towers. Because, well, because they just do.

Scott Smith, president of the Alaska Broadcasters Association, told the Anchorage Daily News it would be unfair for the satellite radio company to be allowed to set up an over-the-air system.

"We don't care if they want to bring the service into the area, but if they're a satellite service, then they should put the bird up," said Smith.

...and who can argue with logic like that?

XM Satellite Radio is adding 12 more bowl games to their BCS line-up, including the Rose Bowl, the Gator Bowl, and the Capital One Bowl.

XM already will provide exclusive satellite radio broadcasts of the 2007 Bowl Championship Series (BCS) National Championship Game, the Sugar Bowl, the Orange Bowl, and the Fiesta Bowl. So that's a total of 16 bowl games being broadcast on XM.

View the full schedule of the 2006-07 college football bowl games on XM after the jump...

NASCAR reporter/columnist David Poole, and veteran broadcaster Marty Snider, will be the hosts of a new daily talk show on Sirius NASCAR Radio's "The Morning Drive."

Starting January 1st, "The Morning Drive" will air every weekday morning from 7am-11am ET on Sirius Satellite Radio's NASCAR Radio (ch 128). Snider and Poole discuss NASCAR's latest news and rumors, interview prominent guests, and take calls from listeners.

David Poole has covered NASCAR for The Charlotte Observer for 10 seasons and is a regular contributor to ThatsRacin.com. Poole is the author of several books on NASCAR, including Race with Destiny: The Race That Changed NASCAR Forever and Tim Richmond: The Fast Life and Remarkable Times of NASCAR's Top Gun.

Snider has covered NASCAR for several media outlets including TNT, NBC, and Motor Racing Network; as well as being CNNSi's NASCAR reporter and a reporter/producer for ESPN's NASCAR Today. Snider is a regular contributor to NASCAR.com and NBCSports.com as a NASCAR Insider.

Be sure to tune in tonight to CBS' Late Show with David Letterman as Howard will be making an appearance, though without Evil Dave unfortunately.

Stern will also be making an appearance on NBC's "Late Night with Conan O'Brien," and ABC's "Jimmy Kimmel Live" this week. All this in an effort to help boost SIRIUS Holiday sales and make Scott Greenstein happy.

Steve Langford of course will be reporting on Howard's visit on scene and I'll try to grab video of his appearance for posting tomorrow.

This video was recently posted on YouTube, although details on it aren't really available (comments are turned off on YouTube). It seems like consumer-created content since the clips used are from different sources (movies, music videos, etc) but it could also be a Sirius promo video. Either way the overall message is a neat one, I wish they could translate the same thing into a 30-second spot. UPDATE: Thanks to the commenters, this is a promo video from a couple years ago which explains some of the footage used. I still like the bolder approach.

Worth the watch if not just for the entertainment purposes alone.

Looks like XM is running a discounted subscription promotion to previous subscribers.

An email promotion was sent out recently to offer a "welcome back" subscription price of only $4.99 a month for three months. Not bad. After the three months it goes back to the standard subscription price.

The offer is only available to previous subscribers, and it expires on 12/22/06, but it's still a good approach. The recipients of the email probably still have their XM receivers (or a car equipped with XM), so the subscription cost is a good thing to go after.

Marketing 101: The most likely people to buy are those who are familiar with your product. It sure as hell works for nearly every other type of subscription-based product.

Thanks Tyler! 

Late last week, Google formally began selling radio ad spots through their AdWords platform entitled Googel Audio Ads. The new Google Audio Ads are being sold in the same manner that typical keyword ads are sold: advertisers set criteria and bid using an open online marketplace.

Back in August Google announced that they've partnered with XM Satellite Radio - reportedly along with "hundreds" of other radio stations - to be included in the Google Audio Ads program. Much like AdWords, the advertiser can only select geographical area, demographics of the radio audience, time of day and radio format - but we don't know what station/service the ad will be run on.

D. Scott Karnedy, XM's Senior VP of Sales and Marketing Solutions said that Google had sold "hundreds, if not thousands of ads" since August.

Great news, but at what price? Are these sold at a premium because of Google's targeting abilities? Or at a discount because of the lack of inventory? Advertising revenue, just like subscriber revenue, is key to the survival and growth of the satellite radio industry.

[Washington Post]

This is an old article about the Sirius and XM merger. Though some of the regulatory hurdles of this article are still pretty valid. But if you're looking for up-to-date info on the merger, you should probably follow these links:

• OFFICIAL: Sirius and XM Announce Merger
  

• Photo: Gary Parsons and Mel Karmazin

• Satellite Radio Merger: Initial thoughts and musings

You may also want to consider just reading Orbitcast regularly (here's the RSS feed), because I've been covering the satellite radio biz for a long time, and I'll be relentlessly covering this merger. But anyway, back to the original article... 

There's been much talk about a merger between XM and Sirius. Most of this is sparked by suggestive comments from management, and fueled by the media's desire to write about something when there's a slow news day.

From a superficial standpoint, it seems like a no brainer - two companies where there's a lot of overlap exist, so why wouldn't they combine to be a single entity?

As always though, the devil is in the details. Below is a handy list of five deadly hurdles that would need to be overcome for a merger to make sense.

1. The FCC.
From a regulatory standpoint, it's hard to say whether or not the FCC would approve such a merger. Here's the single biggest defining question: Does the FCC consider satellite radio as part of a broader market for the distribution of music? Kit Spring of Stifel Nicolaus told BusinessWeek, "Whether or not the merger would be approved depends on if satellite radio is defined as part of a market that includes or excludes terrestrial radio, and to a far lesser extent iPods and MP3 players and Internet radio."

If history is of any indication the FCC likely wouldn't consider satellite radio as part of a greater market. In 2002, the Justice Department blocked EchoStar's bid to acquire GM Hughes Electronics, the parent of DirecTV, saying that the number of competitors in rural markets would drop to two from one. The same applies to satellite radio: competition in rural markets would be removed. Obviously the FCC doesn't consider DVDs to be a consideration in that case, so they wouldn't consider the iPod to be either (both are purchased and stored digital content). The same applies to Online Video and Internet Radio.


2. The Dems.
Historically in a Democratic-controlled Congress, major media mergers are looked upon less favorably. The Democratic takeover will change the lineup of committee and subcommittee chairs that oversee federal antitrust policy.

Democratic committee chairs are expected to call for increased antitrust scrutiny of mergers in certain sectors, including energy and telecommunications. The continued stalled approval of the BellSouth/AT&T merger is a great example.

Representatives from the office of Democratic FCC Commissioner Jonathan Adelstein indicated to Bank of America analyst Jonathan Jacoby that "the public is well served with the current setup" of two satellite radio competitors. There's likely to be little reason for this setup to change.

If in 2008 a Democratic President is elected into office, it will be an even bigger uphill battle.


3. The NAB.
If you think the National Association of Broadcasters opposed the satellite radio industry as a two separate entities, imagine how they would react if a merger was proposed? The NAB would vehemently leverage their connections in Capitol Hill to ensure this doesn't happen. This would also help fuel the NAB's rhetoric to have FCC indecency standards imposed on satellite radio. As a monopoly it's much harder to play the part of "the little guy" when lobbying.


4. The Technology.
Both companies broadcast from satellites using the 2.3 Ghz S band, but the similarities stop there. Using different codecs, different encryption routines and different modulation techniques. Each receiver is unique to its respective provider. Period. Sirius' David Frear at this week's UBS Global Media & Communications Conference said that there are about 20 Million aggregate satellite radio subscribers and that about 10% of the 230 Million cars in the U.S. are eqipped with a satellite radio.

It would be impossible to retrofit every single receiver with an interoperable chip, so a transition period of an inordinate length of time would be required. Sure, you can produce new dual-service receivers, but what about your current (paying) 12.3 million subscribers? They would need to be maintained... at a cost. There's a bit more logitics involved when you start moving beyond the theory and into the details. Both these companies are struggling to show a profit, they don't need this to further slow growth.


5. Who Buys Who?
Both companies have been locked into a battle royale since day one. Yet neither is profitable yet. Yes, XM's enterprise value is 20% smaller than Sirius' is, but XM has a larger subscriber base and more OEM penetration. Both companies believe their individual strategy for growth is the "right" strategy. Both management teams, and investors, believe that one company is stronger than the other.

So while we can talk about a merger, the question remains: who buys who? Both companies see themselves in the superior position.

"If you start with the premise that Mel wants to get a deal done, the hard part will be coming up with an exchange ratio," says Sanford Bernstein analyst Craig Moffett. "If they tried to do a deal now, the premium would be too high for it to sit well with Sirius shareholders, so I think Mel may be trying to use the market to do some of the heavy lifting for him."

"[Gary Parsons] is in no rush to do a deal because he knows that the fundamentals at Sirius are about to get worse, as Sirius hits some of the potholes that XM hit a few years ago," says Bank of America's Jonathan Jacoby. "Parsons thinks he's going to be the one to buy." [via BusinessWeek]

The feeling we get is that XM is generally opposed to the merger while Sirius is more open to it. But it's nearly impossible to get a solid answer either way (understandably so). 

Those are only five major hurdles in the way of a merger. We didn't touch upon other aspects, like loss of programming due to the synergy overlap (and that affect on subscriber attrition), or the fact that the merger process would be an incredible distraction of resources (ever been part of a merger before? it's time-consuming, to say the least).Would management really be talking about this so openly if there really was substance behind it? Usually mergers are secretive and kept under wraps (as are most deals, even the most low-leval ones) so is this a sly negociation tactic? or just a pleasant distraction?

Sure in theory it sounds like a dreamy combination. Two companies. Same sector. Signficiant overlap. It's meant to be! Almost too good to be true!

...exactly.

XM Canada has announced that they've reached 147,000 subscribers in their first quarter ending Nov 30th - an increase of 23% over the previous quarter.

The addition of 27,000 new subscribers, up from 120,000 total subscribers (which include automotive factory installs, aftermarket and partnerships) keep XM Canada on track to reach one million subscribers by 2010. These results can't be compared year-over-year since XM Canada was only in operation for 8 days in their first quarter of business last year.

Another interesting figure is that XM Canada holds an 80% share of all factory-installed satellite radios in current 2007 vehicles. XM Canada will be available in 115 different models in 2007. A testiment to their OEM-centric model.

[Press Release] 

For him or for her, satellite radio is the perfect gift for the Holidays. If you already own XM or Sirius, then you know how much that special someone on Santa's lil' list will appreciate your thoughtful gift.

To make things easier, below is a list of three of the latest satellite radios from both Sirius or XM, each arranged in order of affordability.

And we've taken it a step further and even provided a viable alternative to each item listed; so you won't be left in the cold when something is out of stock. How nice is that? (Hey Santa, take note!)

SIRIUS Satellite Radio

Sirius InV Radio

Looking for an affordable Sirius satellite radio? Go no further than the Sirius InV. Sure, there's the Sirius One (which is even cheaper), but nobody wants last year's model under the tree. The Sirius InV is brand spankin' new, and has all the features expected of a plug-and-play receiver. Only drawback is that it doesn't support the universal dock, but it's got everything you need to hook into your car.

Alternative: Sirius Stratus
Slightly more expensive than the Sirius InV, but comes with support for Sirius' universal docking system. A bit more scalabilty for only a few more bucks, it's a good alternative if you can't find an InV in stock.

Sirius Starmate 4

Last year's Sirius Starmate Replay was the best selling Sirius radio ever, and for good reason. Its wide-screen design and gorgeous blue backlit screen makes it fit right at home on your dashboard. This year's model is even cooler with the universal Sirius dock support (so you can use all the latest Sirius cradles) and it's thinner than ever before. The Starmate4 pauses and replays up to 44-minutes of live Sirius broadcasts, so you never miss the action.

Alternative: Sirius Sportster 4
A great alternative for the Starmate4 with it's large six-line display (as opposed to the five-line display of the Starmate4). It's priced only slightly higher than the Starmate, so well worth your consideration.

Sirius Stiletto 100

Sirius' premiere wearable, the Stiletto 100, gives you Sirius whereever you go. Perfect for the family member who simply must have the latest and greatest device on the market. Ditch the iPod, because the Stiletto 100 receives and records live Sirius broadcasts, has WiFi capabilties, and lets you mix in your own MP3s for the ultimate listening experience.

Alternative: Sirius Stiletto 10
The Stiletto 10 is setup as a cheaper alternative to the Stiletto 100 (a full $100 cheaper in fact), so if the person on Santa's list has no need for WiFi or MP3 storage, and will be happy with 10 hours of recording - this would be a great choice.

XM Satellite Radio

AGT Sportscaster

If you're looking for the best bang-for-your-buck XM satellite radio, there's no better choice than the AGT Sportscaster. Small, sleek and did I mention cheap? All the functionality of most other plug-and-play receivers with the added expandability of an on-the-go kit. While the Sportscaster doesn't have any live pause/replay functionality, it makes up for it by being incredibly affordable.

Alternative: Delphi RoadyXT
It's a tiny and an extremely capable XM radio. Slightly more expensive than the Sportscaster, but affordable nonetheless.

Delphi SkyFi3

The latest generation in the beloved SkyFi family, the SkyFi3 includes all the functions most people would ever want, but in a package fit perfectly for the car. Featuring live pause/replay functionality, the largest display of any satellite radio, and the added convenience of removable MicroSD cards. The SkyFi3 also has the ability to be a handheld wearable receiver with the optional wearable kit.

Alternative: Samsung NeXus 25/50
The handheld equivalent of the SkyFi3, if you're buying a gift for someone who's on-the-go more than they're in-the-car, the NeXus should be on your list.

Pioneer Inno

Sirius Satellite Radio will celebrate Frank Sinatra's birthday on Tuesday, December 12th with 24-hours of non-stop Sinatra music.

Sinatra's 1961-1968 recordings from Reprise Records will played all day on the 91st anniversary of Ol' Blue Eyes' birthday, on Sirius' Standard Time (ch 75).

Sinatra started up Reprise Records when he looked to get more artistic freedom from his own records.

Check out some of the specials that will air on Tuesday after the jump... 

With Sirius' recent lowered subscriber guidance (and don't forget, XM lowered guidance - twice), and continued evidence that the retail market is continuing to decline; you have to wonder what might be the cause of this "softness" in satellite radio retail sales. One possible cause for this could be Opie & Anthony's move to terrestrial radio.

Before I continue: There's absolutely no doubt that Howard Stern has had a massive influence in moving subscribers to Sirius. He has brought in more subs than most people expected, so this is in no way an attempt to downplay his success. Stern also continues to be bring brand awareness to the entire satellite radio sector, Sirius especially. So let's not go there.

Moving on.

A recent Bridge Ratings study estimates that a total of 1.6 million Stern fans have made the jump to Sirius with him. That's approximately 13% of his total fan base. During the first month following Stern's move to Sirius, David Lee Roth lost 75% of his audience - no doubt many of these listeners decided to subscribe to Sirius after hearing his on-air dribble.

But in April, Opie and Anthony signed with CBS Radio and began broadcasting in many of Stern's prior markets. They now are syndicated in 26 different stations nationwide. Below is a chart that shows the number of Stern influenced subscribers, with the time periods of when O&A began syndicating to terrestrial:

An interesting coincidence to say the least. Now this isn't necessarily translating to XM subscribers either. In the week following Thanksgiving, Bridge estimates that 15% of respondents were Stern motivated subscribers, compared to a mere 3% of Opie and Anthony motivated subscribers.

But the fact that new nationally syndicated "shock jock" talent is now available on terrestrial radio has most likely caused many listeners to reconsider a satellite radio subscription. This could also be why satellite radio has dropped off the map as being a "hot item" of the Holiday season.

The fact is, prior to Stern migrating to Sirius there was absolutely no non-political morning drive talent on the air. When Stern left, the vaccum of poor on-air personalities undoubted drove a portion of the audience to seek an alternative - even if they had to pay for it. But with a free alternative readily available, there's no impending reason to leave anymore.

Food for thought. 

FCC Commissioner Robert McDowell told investors at the Credit Suisse conference Tuesday that a satellite radio merger could be "an intriguing idea" and that he'd "be happy to look at it."

The sentiment didn't seem to extend towards Satellite TV and the merger of DirecTV Group and EchoStar Communication. McDowell only referred to recent comments made by FCC chairman Kevin Martin, who had said he hasn't seen enough evidence to justify a satellite merger.

When asked about media ownership rules, the commissioner said he sees a need for change, joking that "I have a hunch it is no longer 1975."

[The Hollywood Reporter]

Real quick. If anyone in Cali wants to talk to the L.A. Daily News about the satellite radio industry, please shoot Barbara Correa at barbara.correa@dailynews.com or call her at 310-841-2402. Looking for either XM or Sirius subscribers.

Thanks! 

Speaking at the UBS Global Media & Communications Conference on Wednesday, XM Satellite Radio's Chairman of the Board, Gary Parsons, said that the shift to an OEM driven model occured "faster than expected" this year.

Back in May, XM cited an "overall softness in retail" - something that we apparently have been seeing industry-wide when compared year-over-year. Still, Parson said that XM is "not going to chase the retail market" for growth at any cost.

He mentioned that while GM has increased OEM penetration to 1.8 Million vehicles for 2007, GM will actually represent a lower percentage of XM-installed vehicles in 2007. This is because their other OEM partners are stepping up production at an even faster rate than GM is.

When asked whether XM will going into the Telematics market considering their relatively recent foray into Navigation and Weather systems, Gary Parsons said that he "would not go into specifics" over future Telematic services. He did point out that GM has OnStar which currently is the largest player in Telematics, but that it was "no mistake" that Honda and Acura were the first to offer XM NavTraffic.

When asked what keeps him up at night, Parsons responded that the retail softness is "concerning" but in his opinion could be "largely cyclical" in nature. There's still a market for retail, and will always be a market in retail. 

While both Sirius and XM have gone through extensive steps to resolve over modulating FM transmitters, NPR says they have not seen an improvement.

In fact, NPR believes that the issue is even worse and has asked the FCC to take steps to remove non-compliant devices from the streets.

A refreshing change (at least from the NAB-fueled whining over the FM modulators), NPR is calling into question all wireless FM modulators - from iPods, Satellite Radio, and other devices - and is asking for a review of the certification process.

CEA spokeswoman Meghan Henning said that "XM and Sirius had their FM modulators redesigned and re-certified," by the FCC, and would support a "rational and reasonable approach of ensuring compliance on an ongoing basis rather than recalling products already in the retail chain."

I would tend to agree. I can understand NPR's frustration (especially since many affiliates broadcast on 88.1 - the most common default FM transmitter setting), but a mass recall is simply not the solution.  

[Radio World Online] 

Sirius Satellite Radio Chief Financial Officer David Frear gave a snapshot of Sirius' 2007 OEM penetration at today's UBS Global Media & Communications Conference.

DaimlerChrysler will have a 40% overall penetration rate in 2007, up from approximately 30% in 2006. Ford, while they have a non-disclosed penetration rate, will factory-install Sirius in 21 models. Mercedes is targeting over 50% in 2007 and BMW is targeting a higher penetration rate (though I didn't catch a specific number).

Audi/VW is the most aggressive as they're targeting an 80% penetration rate in 2007, and Kia will offer Sirius standard in 2008.

When asked about used car sales, David Frear said that there is an opportunity, but that there are very strict rules regarding using vehicle registration information for marketing purposes. So how do you market to these people? It's a good strategic question that I'm sure both companies are looking at.

His Eminence Edward Cardinal Egan, Archbishop of New York, will host a one-hour weekly talk show on Sirius. He was originally scheduled to simply be a contributor and regular guest to Sirius' The Catholic Channel (ch 159).

The Cardinal's program will debut this Thursday, December 7th (and  air every Thursday) at 12-1pm ET on The Catholic Channel. Cardinal Egan will discuss a variety of topics, addressing what is happening in the Archdiocese of New York and other significant issues in the Church.

Cardinal Egan will also be one of the regular celebrants of the Mass broadcast each day on The Catholic Channel from the Cathedral of Saint Patrick in New York City.

Directed Electronics is revising their 2006 guidance to reflect lower than anticipated satellite radio sales. Directed's sales are now projected to be in the range of $430 - $440 million compared to previously issued guidance of $440 - $460 million.

Jim Minarik, President and CEO, said in a statement, "We are revising our guidance based on lower-than-expected sales of satellite radio receivers. While several key weeks remain in the holiday shopping season, satellite radio receiver sales have not been as robust as expected. We believe that it is prudent to take a conservative outlook in our sales and earnings expectations for 2006, which still reflects a 41% - 45% increase in sales and a 60% - 67% increase in pro forma net income over 2005."

Darryl Hall (right) and John Oates (left) flank Sirius' Mark Goodman following their SIRIUS Christmas concert and interview at SIRIUS' NYC headquarters.
 
Goodman's interview with Hall & Oates will air on his Big '80s (ch 8) show on December 18th at 9am ET. The SIRIUS Christmas concert, featuring the Hall & Oates with a full band and 3-piece string section, will air on Sirius Holiday (ch 2) on December 22nd at 9pm ET, December 23rd at 9am ET and December 24th at 3pm ET

Claire B. Lang, the "first lady" of XM's NASCAR Radio channel has inked a new multi-year agreement with XM. Claire is respected among motorsports fans for her knowledge and passion, as well as her strong rapport with NASCAR drivers. 

She'll continue to do her daily three-hour NASCAR show on channel 144, which will become XM Sports Nation on January 1st. Claire's afternoon racing show airs from 4-7pm ET daily, and she'll expand her reach by hosting unique specials and in-depth features across the XM dial.

We saw the Delphi SkyFi3 Unboxed and now after spending some hands-on time with the unit (courtesy of The Radio Place) here's the full Orbitcast Review.

The Delphi SkyFi3 XM Satellite Radio is best described as a new "hybrid" plug-and-play receiver. OK so technically it's a plug-and-play receiver because in it's base form it can only receive the XM signal when docked, but it joins a growing category of receivers that offer on-the-go functionality.

Receivers like the Sirius S50 and Samsung NeXus come to mind instantly. Where the SkyFi3 differs is that it's primarily meant for vehicle use - where a majority of radio listening is done.

Bigwigs from both Sirius and XM will be at the UBS and Credit Suisse conferences during Media Week in NYC. Here's the agenda between the two in chronological order:

• Sirius Satellite Radio's Executive Vice President and Chief Financial Officer, David Frear at the UBS Global Media & Communications Conference: Wednesday, 12/06 at 11:00am ET. [Webcast]
• Sirius Satellite Radio's CEO Mel Karmazin will keynote at the Credit Suisse Media and Telecom Week Conference: Wednesday, 12/06 at approximately 12:30pm ET [Webcast]
• XM Satellite Radio's Chairman of the Board, Gary Parsons at the UBS Global Media & Communications Conference: Wednesday, 12/06 at 2:30pm ET. [Webcast]
• XM Chairman Gary Parsons will speak the following day at the Credit Suisse Media and Telecom Week Conference: Thursday 12/07, at 9:40am ET [Webcast]

Should be fun. 

American Jewish reggae artist Matisyahu will host the Festival of Lights on Sirius Satellite Radio's Reggae Rhythms (ch 32).

Starting on sundown ET on December 15th, and airing through sundown ET on December 23rd, the Festival of Lights is a special Sirius Hanukkah celebration.

Tune in as Matisyahu will share facts and his thoughts about this holy time of year several times a day throughout the eight-day Hanukkah holiday.

General Motors has said that they plan to build more than 1.8 million vehicles with XM Satellite Radio factory-installed in 2007. In August, GM said that they will reduce the price of the XM option from $325 to $199. GM currently has over 50 models featuring XM, and has sold over 4 million XM-equipped vehicles.

Last week Honda announced that they will build 650,000 XM factory-equipped vehicles in 2007. I would expect that these sort of announcements from automanufacturers will be more frequent in the weeks to come.

XM signed an exclusive agreement with FOX Sports, making them the sole satellite radio network for the BCS National Championship, Allstate Sugar Bowl, FedEx Orange Bowl, and Tostitos Fiesta Bowl.

The BCS broadcasts on XMSN begin January 1st, the same day that the channel makes the moves from channel 143 to channel 144.

The dates and times of the 2007 BCS games on XM Sports Nation are available after the jump...

The Sirius Stiletto 10 is now available, though currently "Out of Stock" on Sirius' website - RadioShack and Crutchfield have had them in stock for a lil' while.

As a refresher, the Sirius Stiletto 10 is pretty much a grey version of the oh-so-black Stiletto Stiletto 100, but sans the WiFi functionality, no MP3/WMA ability and it only allows for 10 hours of recording (versus 100 hours).

Still, if you're looking for a more affordable Stiletto (it's about $100 cheaper than it's big brother) this is a good option. It helps if you happen to live in a city with some sick terrestrial signal so you can listen while tooling around in your apartment or hiding the bushes at your local park.

[via Engadget]

Back in October a FCC filing was discovered showing a single picture of the new Audiovox XM2go (now set to debut in February). Unfortunately for us snoops there was a 45 day veil of secrecy on other aspects of the device - a veil that has now been lifted (thanks to Satellite Radio TechWorld).

First off, while the Audiovox XG2-100 would seem to imply that this device has 100 hours of recording capability - it doesn't. The Audiovox XM2go user manual (PDF) filed with the FCC clearly indicates that this only has 50 hours of recording, just as it's earlier Pioneer Inno and Samsung Helix predacesors. In fact, there seems to be little differences between the X2G-100 and the prior 2nd-gen XM2go family.

The only functional difference that I can find is that this XM2go comes with a set of antenna headphones (ala the Sirius Stiletto) - but doesn't come with a car kit or a home kit. The user manual indicates that the Car Kit (X2G-100CK) and the Home Kit (X2G-100HK) are sold separately, but that the XM2go player w/ antenna headphones (X2G-100B) is sold as a single package.

From a design standpoint, it looks like we've finally found the fabeled "Black Inno" (err... or "Black XM2go"). The earlier speculation that the "BK" in the upcoming GEXINNO2BK meant "Black" was incorrect (the "BK" stands for "Base Kit") - instead it looks like Audiovox is one going Black. Both the GEXINNO2BK and the X2G100B will include the XM SureConnect FM transmitter system.

I do have to question why Audiovox has decided to enter into the 2nd-gen XM2go market this late into the game - but with little advances in the function? The Pioneer Inno was unveiled at CES nearly a year ago, and I would have hoped that when Audiovox joins the fray they would have done a bit more to differentiate themselves.

[FCC Filings via Satellite Radio TechWorld] 

Sirius Satellite Radio today lowered their year-end subscriber guidance from 6.3 million, to a new range of 5.9 - 6.1 million.

Mel Karmazin stated that "this year's retail sales results since the Thanksgiving weekend have not been at the pace we had anticipated." Mel essentially hinted towards this move late last week at the Reuters Media Summit in New York.

In August, Sirius increased their year-end subscriber guidance from 6.2 million to 6.3 million net subscribers. To meet this they would have needed to exceed last year's Q4 subscriber additions. Sirius now needs to add 800,000 to 1 million net subscribers to meet this new guidance.

Sirius reiterated that the company's first quarter of positive free cash flow, after capital expenditures, may be reached as early as this quarter.

Oh sure, there were rumors about this back in August, and yes XM sponsored her Indy car, and hell, the rest of the Andretti Green Racing team is hosting a show on XM anyway - but up until now there was no word that Danica Patrick herself would be on the air. Well she is.

Danica Patrick is now officially joining her AGR teamates to co-host "The Andretti Green Racing Hour" which is kicking off in February. The weekly one-hour show now will feature Marco Andretti, Dario Franchitti, Bryan Herta, Tony Kanaan, Jaime Camara, Jonathan Klein and Michael Andretti, as well as Danica herself.

"I am thrilled to become part of both the Andretti Green Racing and XM Satellite Radio teams," said Danica Patrick. "My experiences as the newest member of AGR are guaranteed to be interesting."

Too bad we only get to listen to her.

"Offstage with Yoko Ono" is set to premiere today at 6pm on The Loft (ch 50) as part of XM Satellite Radio's ongoing "Offstage" original music series.

The exclusive multi-part special will feature Ono with complete creative control selecting the music of her choice and speaking openly about whatever she chooses. In conjunction with the show’s debut, XM will be hosting an event during Art Basel at Social Miami at Sagamore.

The first installment of "Offstage with Yoko Ono" will debut today (12/4) at 6pm ET with encores airing throughout the month. New installments will premiere in the coming months.

According to Inside Radio, the HD Radio Alliance is going on the offensive and will start promoting new in-car converters that can transform any radio - including both XM and Sirius receivers - into an HD Radio.

A recent press release notes that the new automotive converters were recently showcased at SEMA. These plug-in and dockable units can turn any automotive radio – including satellite radio – into an HD radio.

These HD Radio Converters are now expected to be in stores by Christmas, and are being manufactured by Directed, Dice, Metra, AAMP/Peripheral and Visteon.

XM Satellite Radio has officially announced it's new dedicated Jewish music and culture channel: Radio Hanukkah. Word of the new channel first surfaced a few weeks ago in XM's programming guide, though at the time little details were known. So here they are.

Radio Hanukkah will kick off on Friday, December 15th (25th of Kislev) and run through December 23rd on XM channel 108.

The new channel will will feature specials focused on contemporary and traditional Jewish music, in addition to comedy, and children's programming. The Barenaked Ladies, Matisyahu, Al Franken, Kinky Friedman, Neil Sedaka, Dr. Ruth and Larry Miller are some of the Jewish celebrities who will be participating in XM's Radio Hanukkah programming.

XM will also feature nightly broadcasts of the traditional Hanukkah candlelight blessings which will air at the appropriate times for both the Eastern and Pacific time zones.

The Mobile Media NAV420 SIRIUS-Ready Portable Navigation System by Directed Electronics is a GPS, a media player and a SIRIUS capable device all in one.

First and foremost the Mobile Media NAV420 is a Portable Navigation System that sports all the latest database and technologies. The 20GB hard drive turns it into a capable personal media player. But wait, there's more. You can also snap it into the optional SIRIUS cradle to access your favorite satellite radio programming. So you'll never get lost, or miss the hum of the Sybian, ever again.

No clue on pricing and availablity, but it will be on display at CES.

[Mobile Whack]

XM Canada has apparently inked a deal with Hyundai Canada to install receivers on two of their models. UPDATE: The two models with XM Canada factory-installed are the 2007 Hyundai Sonata and the 2007 Hyundai Azera. More models will be announced soon.

John Bitrove told the Globe and Mail that XM Canada will have an 80% share (which is an estimate 300,000 to 500,000 units) of the factory-installed satellite radio market for new cars in 2007. Sirius Canada says it sells about 70% of the receivers sold through retail.

[The Globe and Mail]

The HD Radio Alliance has said they will increase their advertising budget in 2007 to $250 Million. This is sure to add to the costs losses incurred for each HD radio sold (currently at $1,000 for every $300 radio sold).

I only hope that they'll do something similar to the "Radio, you shouldn't have to pay for it" ads... because, you know they were so effective.

Also in 2007, the Alliance promises new devices and lower prices (woohoo!) as well as more HD programming in top markets. They also expect to expand HD Radio installations in vehicles, once the 2008 model year cars roll out - though no new deals to do so have been announced.

Good luck, bro.

[FMQB] 

We had some database madness over the weekend and as such no posts or comments were able to get through. Everything appears to be up and running now, thanks to the good folks at 1&1, so we can resume our regularly scheduled programming. Gracias.

Here's the one and only Jerry Lee Lewis, with SIRIUS Satellite Radio programmer Jeremy Tepper at the Baldwin piano in SIRIUS' Studio A at Rockefeller Center. This was taken following interviews "The Killer" had with Tepper and Cousin Brucie yesterday. 

Bridge Ratings is reporting in their latest Satellite Radio Consumer Trend that that Thanksgiving Weekend retail sales are down 31.5% from the same period in 2005.

Bridge did say that they expect the coming weeks to improve comparatively, but that YoY retail sales will likely fall very short of 2005's final results. Bridge estimates that retail will be off 23% - 25% for 4Q06 sales when compared to the same period last year.

As for Stern's influence: Bridge found that Stern influenced 52% of Sirius subscription decision, between October 2005 and November 2005. Last week, Bridge Rating's interviews found that only 14% of Sirius subscriber decisions were influenced by Stern - and has fallen to the lowest point in months for this week: only 10%.

They also conclude that November's free Sirius Internet Radio offer did not impact retail sales, but appears to have impacted Internet sales.

Read the full report here. 

Sirius Satellite Radio says they are Sprint Nextel's more popular audio entertainment service, according to CEO Mel Karmazin.

"If you were to speak to Sprint they would tell you we are (the most popular) of all the audio choices," Karmazin said yesterday at the Reuters Media Summit in New York.

While he didn't say how many Sirius subscribers the wireless provider has signed up, Karmazin did say that, "It doesn't move the needle."

On the topic of other future wireless provider partnerships:
"It depends on the deal and what the economics are. We're only interested in doing a good deal," Karmazin said.

[ZDNet] 

Sirius Satellite Radio is now expecting to offer a live satellite video service in cars by late 2007 Chief Executive Mel Karmazin said at yesterday's Reuters Media Summit.

Karmazin told Reuters the mobile video service, now likely to be available in 2008 model lines, would be geared towards children, and that deals with content providers may be set as early as January.

"We have three content deals that are very close to being finalized. I don't know if they will be done by CES, but that is what we are shooting for," Karmazin said. "We will have video in the rear seat of the car up and running."

Sirius subscribers who want the new video service would have to pay an additional charge to their regular subscription, Karmazin said, but he declined to give the exact price or the cars in which it may be offered.

"The investment is already made and the benefit for us is (average revenue per user)," Karmazin said. "You want to get more subscribers and increase your ARPU and ... one of the ways is with some other services, and video is one of them."

Sirius has been promising video since early 2004, with an expected mid-2005 launch date. In September 2005, Sirius' Bob Law had said that Sirius Video was on track for mid-2006 - a timeline that he later updated in April, stating that it would launch "shortly" after CES 2007.

As recently as August, Mel Karmazin had stated that the Sirius Video initiative is "well under way" and would be available by the end of this year. Now it appears we're looking at late 2007.

[Reuters]