February 2007 Archives

Mel Karmazin, gave some more light on the possible "A La Carte" packages and pricing at today's House Judiciary Committee Antirust Task Force hearing on the proposed satellite radio merger.

First, Karmazin clarified that at this time "per-channel" A La Carte packages is not possible in the current infrastructure. In other words, the ability to pick and choose a completely customized subscription (labeled a "consumer advocate's dream") won't be a reality right now.

But what is possible is the choice of tiers based on different consumer interests.

Karmazin also stated that the $12.95 per month pricing is currently the ceiling that is possible for a subscriber. There's "no scenario where we're raising that price," said Karmazin in his testimony.

"What we're also saying is that we'll provide the consumer with a choice to be able to get satellite radio for less than [the current price]," he added.

For instance, in the scenario of a "music only" a la carte package, the consumer could likely pay less than a current satellite radio subscriber does today. I can imagine a "family package" with children/family-friendly programming, a "sports package" with live play-by-play sports, and a "news/talk package" with only (wait for it) news and talk.

More choice, and lower prices. It's rare that you see a merger scenario with those possibilities becoming a reality. 

Mel Karmazin just told the House Judiciary Committee antitrust task force that if terrestrial radio is not competing with satellite radio, then "they are lying" to the SEC.

Just as a reminder to those who didn't catch it - several terrestrial radio companies have stated in their own SEC filings that satellite radio (as well as Internet radio, and MP3 players) directly competes with terrestrial radio. These statements constitute admissions by law.

I'm really happy that Mel has driven home this point. 

When questioned about the XM/Sirius merger in front of the House Judiciary Committee antitrust task force, Mel Karmazin was asked whether he would agree to pricing restrictions for the newly merged company.

"Yes," Karmazin flat out said.

When asked whether he would be able to agree to this for a four year period of time, Karmazin stated that he would be happy to discuss it with the necessary people. There was some joking back and fourth whether the timeframe would span within 2 weeks to 4 years, but in the end no timeframe was actually specified.

Karmazin was also asked whether he would agree to not transmit local content (local news/weather) and he clearly stated that they have no intentions of entering into the local market.

Gigi B. Sohn, co-founder and President of Public Knowledge, testified in front of the U.S. House Judiciary Committee antitrust task force hearing on the proposed XM/Sirius merger. Interestingly enough, Gigi was actually in favor of the merger.

...but on a few conditions:

1. The new company makes available pricing choices such as a la carte or tiered programming.

2. The new company makes 5% of its capacity available to non-commercial educational and informational programming over which it has no editorial control.

3. The new company agrees not to raise prices for three years after the merger is approved.
   

David Rehr, president of the NAB, testified in front of the House Judiciary Committee antitrust task force. He had five main points as to why this merger should not go through.

1. The national satellite radio industry is a duopoly that is looking to become a monopoly
2. It would violate FCC rules, precident, and anti-trust principles. "Ironically" Sirius was the one who asked for competition in the 1997 FCC SDARS license.
   
3. It would undermine audio content competition. In contract negotiations, the new entity could unfairly leverage their monopoly to maintain exclusivity or to reduce prices unfairly.
   
4. Two entities that have had a pattern of violating FCC rules cannot be trusted with monopoly power. The FCC mandated that an interoperable radio be developed - 10 years later, nothing has been developed. Both companies violated Part 15 rules. Both companies have violated repeater rules.
   
5. XM and Sirius are, by their own admission, not failing companies. And should not receive a government bail out.
   

The House subcommittee on telecommunications will hold a hearing next Wednesday, March 7th that will include a look at the proposed Sirius-XM merger.

Mel Karmazin will appear before the subcommittee to review the merger and the future of radio.

US Representative Edward J. Markey, a 16-term Massachusetts Democrat who heads the subcommittee (and who was chairman of it 12 years ago), said that over the next two years he will focus on fostering competition that will benefit consumers.

"We're going to go back to the beginning, to begin to talk about the whole nature of these" issues, Markey said. "Now, for the first time I have the gavel back again, and I plan to highlight competition."

Markey also said that under a Republican-controlled Congress and FCC, consumers have suffered with the slow spread of broadband and a lack of competition to telephone and cable companies.

Looks like there may be trouble coming next week.

[Reuters and The Boston Globe]

Mel Karmazin will testify today in front of a new House Judiciary Committee antitrust task force today at 3pm ET. The hearing will discuss the proposed XM-Sirius merger.

Also in attendance will be the NAB's President David Rehr, Gigi B. Sohn (co-founder and President of Public Knowledge), and Mark Cooper (Consumer Federation of America).

John Conyers Jr (D-MI) became chairman of the House Judiciary Committee after Democrats took control of Congress in the last election. He said he created the bipartisan antitrust task force within the committee to focus on antitrust and competition policy issues. It will have a limited term and operate only through the end of August.

A live feed of the hearing will be available here, or on CSPAN-3.
Thanks MB!

In Arbitron's Fall 2006 ratings survey, respondents were asked to indicate whether they're listening to satellite radio, Internet radio or AM/FM, for the first time. Arbitron found that the sum of all satellite radio channels listed totaled up to 3.4% of credited quarter hours.

Respondents listed 297 separate satellite radio channels with the highest share of quarter hours for an individual satellite radio channel was 0.2%.

In total, approximately 5.6% of the half-million respondents listed a satellite radio channel in their Arbitron diary. The analysis also showed that satellite listeners are heavy listeners to radio in general (surprise surprise).

Satellite listeners spent an average of 33 hours a week with radio, compared to the typical listener who listened for about 19 hours a week. Also, the findings showed that people who listened to satellite radio spent more time with AM/FM radio (14 hours) than they did with satellite radio (10 hours, 45 minutes) or Internet stations (8 hours, 15 minutes).

[FMQB] 

USA Today has a very nice feature with Sirius CEO Mel Karmazin on the XM/Sirius merger.

From questions about the merged company raising prices, to the sharing of XM-Sirius content, to dual receivers and what exactly the cost-savings are - the Q&A is quick and concise. And hopefully it will answer some of the questions that you all may have.

Obviously there's more questions, and probably not enough answers at this time. That's sort of the way it goes when you have a merger (anyone who's been through one can attest to that). But just remember that we're barely over a week through this... so give it some time.

[USA Today] 

The Orbitcast Smack Show is about to kick off (it starts at 3pm ET) and it looks like the Stiletto will be the first item up for grabs. If you haven't registered yet then you're missing out. (And once again, no, I don't make any money off anything you buy at this Smack event.)

Even if you don't plan on buying anything, come on down and join the chat. I'm there right now answering everyone's questions. Happy smackin'!

UPDATE: Wow, what an incredible turnout. Thanks all for showing up, and congrats to those who saw some incredible savings. Just to give you an idea of how much was actually saved from this event: a Stiletto went for 36.8% off, an Inno for 43.9% off, a Delphi XM repeater went for 48.8% off, a Sirius Conductor for a whopping 64.3% and an XM Mini-Tuner for an amazing 86.4% off!

Thanks again to all who participated! 

So now that we have the full data from both XM and Sirius for 4Q06, let's look at my favorite metric: gross subscribers. Again, the reason why I like looking at gross subs is because it shows an untainted view of market penetration. 

And what a difference a year makes.

Looking at 2005, it's clear that XM held the dominating position in gross subscriber additions. Even in the fourth-quarter of 2005, XM still held out past Sirius even despite "the Stern Effect" (now being referred to as "the Stern Bubble" by Sirius management). When 2006 rolled around, XM still continued to hold its own, but by Q4 Sirius made a massive jump.

For the first time in satellite radio history, Sirius outpaced XM in gross subscribers for the quarter. This is significant.

Sirius now is at nearly the same number of subscribers as XM was a year ago. In 2006, the reasoning behind XM's poor net subscriber additions was that churn restricted net growth. I'd be interested to see if Sirius follows this trend, or whether they will be able to learn from XM and keep churn in check.

Either way, it's clear that for the moment, the tide has turned.

Talkers Magazine every year comes out the with their "Heavy Hundred" list of talk radio hosts, and two of satellite radio most listened to talkers are in the top 20.

Last year Howard was #1 (even from "outer space") and this year he dropped down to #12 - a point that David Hinckley found to be very important. Still, Talkers refers to Stern as "the original hot talk superstar" and "the face of satellite talk entertainment."

Meanwhile Opie & Anthony have made the jump to #6 (I don't even think they were on the list last year). Talkers calls them the "leaders of the new generation of hot talk" and as "satellite pioneers now in national syndication."

Also of note, Neil Boortz ranked as #9, and Rusty Humphries placed #41. 

[Talkers Heavy Hundred 2007] 

XM Satellite Radio and the Knitting Factory have teamed up to create the alternative music performance series called "Live From The Knitting Factory on XMU" which will premiere on March 2nd on XMU (ch 43).

The weekly concert series will feature performances from both up-and-coming and established alt bands recorded at Knitting Factory clubs in New York and Los Angeles. XM and the Knitting Factory first announced their partnership back in April of last year.

Art Brut, Beauty Pill, Chin Up Chin Up, Georgie James and Portastatic, among others, will be featured during the first season of the series. The British duo, The Boy Least Likely To, will kick off the new series on Friday, March 2nd at 10pm ET on XMU.

Here's the schedule for "Live From The Knitting Factory on XMU" for March (all performances are on Fridays at 10pm ET):

March 9 - Art Brut
March 16 - Mazarin
March 23 - The Broken West
March 30 - Portastatic

To coincide with the launch of "Live From The Knitting Factory on XMU," music fans will have access to XMU throughout March on the AOL Radio Network.

As always, Orbitcast is live blogging the Sirius Satellite Radio earnings call. Just keep refreshing and this post will be updated in real-time.

• Mel Karamzin kicks it off
  
• 2006 was a "banner year" for Sirius
• in 4Q Sirius was 67% of all satellite radio net additions
  
• 4Q06 Sirius also captured the majority of GROSS subscriber additions for the first time in satellite radio's history
• Sirius achieved $30M of positive cash flow
  
• 2007 - expect total revenue to reach $1 Billion
• If that happens that will be the fastest growth to $1 billion "in the history of radio"
  

Sirius Satellite Radio has released their Q4 and full-year 2006 results. Here's the highlights:

• Sirius reported Q4 total revenue of $193.4 million, an increase of 142% YoY
• Sirius' full-year 2006 total revenue was $637.2 million, up 163% YoY
• ARPU was $11.01 in 2006 up from $10.34 in 2005
• SAC was $114 for 2006, from $139 in 2005
• Retail subscribers for the full-year were 4,041,826, an increase of 64% YoY
• OEM subscribers for the full-year were 1,959,009, up 138% YoY
• Sirius had a net loss of $1.1 billion for 2006
• Adjusted net loss was $656.0 million for the full-year
• Adjusted loss from operations for the full-year was $513.1 million
• Free cash flow loss for the full-year was $500.7 million
• For Q4, Sirius had a net loss of $245.6 million with adjusted net loss improved to $203.0 million and adjusted loss from operations improved to $166.8 million.

It looks like ReachMD has pre-announced their arrival on XM Satellite Radio for the Spring of 2007.

This is highly uncharacteristic of XM as most channel announcements usually come from them and not the content partner. But who am I to judge (can you say Radio Wasabi?).

Either way, ReachMD is supposed to be targeting the medical professional community with a 24/7 channel centered around general medical content as well as specialty content. It will also feature clinical research updates, policy reports, regulatory information, conference coverage, lifestyle segments and best healthcare practices.

Sounds, truly fascinating.

(Psst, can we please get a 24/7 TechTV-style channel? Seriously, there's a lot of geeks out there who would kill for the likes of Leo Laporte and Kevin Rose on satellite radio.)

As always SeekingAlpha has a transcript of today's earnings call. Here's a key quote from the call from Hugh Panero:

"XM and Sirius today are continuing to operate as separate businesses and we will do so until the merger is finished. I want to emphasize that we are running XM as if there is no merger and we will provide our customers with as great service today as we have in the past. No consumer will have an obsolete radio whether they signed up for service a year ago or sign up today or tomorrow."

Read the rest here. 

Hey remember that Orbitcast Smack Event I announced a couple weeks ago? Yeah, I know afterall the merger hub-bub we all forgot about the fun stuff. But the event is still on, and it's a great opportunity for folks to get some good deals (and perhaps have some fun while you're at it).

Just so you can get an idea of the savings, a Samsung Digimax SLR just went for 42.3% cashback and a Toshiba 30gb Gigabeat went for 38.8% cashback. So if you're in the market for a new Stiletto or an Inno, you might want to check out the event tomorrow. 

So go here and sign up (yes, it's free) and then go to the Smack shopping event tomorrow at 3pm ET for all the action. See you there!

XM Satellite Radio has issued an SEC filing that contains their current guidance for 2007. So you go:

• We will grow subscribers to between 9.0-9.2 million with higher seasonal growth in the latter part of the year.
• Subscription revenue should be in the billion dollar range.
• Adjusted negative EBITDA and CPGA will not improve on a year over year basis and will be flat to marginally higher due to merger related costs and effects, the need to continue stimulating the retail marketplace in light of the pending merger and the impact of OEM factory installed volume ramp-up before the subscribers come on as paying subs.
• While we will see improved cash flow from operations in 2007, the timing and interrelationship of the factors we just described means full year positive cash flow from operations will likely move into 2008.
• By the time of our next earnings call, we should have a better understanding of merger related costs and expect to come back with refined adjusted EBITDA guidance.

During the Q&A part of the earnings call, it was asked about the long-term guidance and whether the estimate for subscribers in "the high-teens" still stands. The "high-teens" number was confirmed, but no further long-term guidance was offered.

Considering that XM added 1.7M net subscribers in 2006, and expects to add 1.4-1.6M subscribers in 2007, you can understand why they're sticking to the "high-teens" estimate for 2010.

Orbitcast is live blogging XM Satellite Radio's earnings call. Just keep refreshing and this post will be updated in real-time.

• Joe Titlebaum kicks it off.
• Now to Hugh Panero...
• As of you know ("or should know") XM and Sirius announced the merger
• Under the merger they would become the premiere provider of audio entertainment
• It would be a combo with the long-term financial capability to compete
• XM and Sirius continue to operate as SEPARATE business
• XM is being run as if there is NO MERGER
• NO CONSUMER will have an obsolete radio

Now that we have the 4Q06 numbers, we can take a look at gross subscriber additions. The reason why gross subscribers are important is shows the exact market penetration of each company and how well they're attracting new subscribers.

So in Q4 2006, XM added 1,064,887 gross subscribers (when compared to 1,373,876 in Q4 2005). For the full year in 2006, XM added 3,866,481 gross subscribers (compared to 4,130,437 in full-year 2005).

Above is a graph that illustrates the quarterly gross subscriber additions from the beginning of 2005 through the EOY 2006.

It's obvious that XM's momentum has slowed, even when you remove churn (people who have dropped the service) and just look gross subscriber additions, it's clear that XM's subscriber growth rate is softening.

The big hit comes from the retail side of things, where 4Q06 retail subs were 540,474 versus 935,707 in 4Q05, while OEM gross subscribers are actually up for the fourth quarter (524,413 vs 438,169).

XM Satellite Radio has released their Q4 and full-year 2006 results. Here's the highlights:

• XM reported Q4 total revenue of $257.1 million, an increase of 45% YoY
• XM's full-year 2006 total revenue was $933.4 million, an increase of 67% YoY
• Subscription revenue grew to $825.6 million, a 64% increase YoY
• Advertising revenue grew to $35.3 million, a 76% increase YoY
• For Q4, SAC was $70 (compared to $89 in the same period last year)
• For Q4, CPGA was $128 (compared to $141)
• For the full-year 2006, SAC was $64 and CPGA was $108
• XM reported an adjusted EBITDA loss of $69.8 million for the fourth quarter (compared to the EBITDA loss of $172.8M back in 4Q05)
• For the full year 2006, XM reported an adjusted EBITDA loss of $166.2 million down from the full year 2005 adjusted EBITDA loss of $403.7 million.
• Net loss for the fourth quarter of 2006 was $256.7 million, from $268.3M in the same period last year
  
• Full year net loss was $718.9 million, from $666.7M in 2005.

Both Sirius Satellite Radio and XM Satellite Radio are celebrating the Oscars with special programming surrounding the star-studded event.

On Sunday... 

First there's Sirius Variety News on the Los Angeles channel (ch 150) where you can tune in multiple times each hour all day on Sunday for up-to-the-minute breaking news and views on the Oscars, as well as a red carpet play-by-play including the night’s the winners and losers.

Then, at 7:00pm ET on Sirius OutQ (ch 109) join Frank DeCaro and Doria Biddle as they handicap the gay Super Bowl with a panel of "statuette polishers" and "red carpet munchers." Village Voice columnist Michael Musto, Broadway playwright Douglas Carter Beane, and movies.com critic Dave White join “The Queen” and “Little Miss Sunshine” for 60 minutes of bicoastal Oscar night fun.

On both Sirius and XM, starting at 6:00pm ET, E! Entertainment Radio (Sirius ch 107 / XM ch 162) hosts Ryan Seacrest and Guilianna Depani host live from the Red Carpet and give listeners all the Oscar scoop, plus the skinny and not-so-skinny, leading up to the big event.

Then on Monday...

Martha Stewart Living Radio (ch 112) will air the Morning Living special: “The Morning After” the Oscars at 7am ET. Joining host Lauren Pressley on the air are several very special guests: ABC-TV’s Sandy Kenyon reports live from Hollywood; Jaret Wieselman from In Touch Weekly offers complete Oscar® analysis; New York beauty expert and renowned hair and makeup artist Eva Scrivo talks about the hair and make-up of Oscar® night, and Jayne and Jennifer from A Fashionable Life Radio dish on the best and worst dressed.

Then at 10:15 am ET on Cosmo Radio (ch 111), Wake Up with Cosmo Radio Michael O’Rourke - founder of Sexy Hair Concepts and Carlton Hair International – joins host Taylor Strecker to discuss the good, the bad, and the ugly: the Oscar hairstyles and hair trends of the night.

Oh but the coverage doesn't top there on Cosmo Radio, because at 10:30am ET, celebrity makeup artist and creator of the LORAC makeup line Carol Shaw joins in the fun on Wake Up with Cosmo Radio to give listeners the full Academy Awards beauty recap.

Meanwhile, on XM, listen to Cinemagic (ch 27) all day for movie segments from Sunday night's Academy Award-winning films, as well as Oscar winners from the past.

XM Satellite Radio revealed in a recent SEC filing that they have held discussions with the FCC in regards to their terrestrial repeater network.

The FCC is concerned that the characteristics of some repeaters are different from the data that was originally submitted by XM. XM is currently seeking approval to continue running the network. However the final result may end up in XM paying a penalty or making "adverse changes" to its network of repeaters, or transmission towers.

If you'd like to learn a lot more details on XM's repeater troubles, Satellite Radio TechWorld has an incredible writeup explaining it all. 

[via FMQB] 

BusinessWeek has published an article about what the XM, Sirius merger "won't fix" in terms of the basic business model. Essentially they're saying that the model is flawed.

It's an unfortunate conclusion that many people seem to be taking as a result of this merger, and concern I voiced in the height of all the merger rumor hub-bub. The feeling is that the merger isn't in the pursuit of "synergies" but rather as a result of the business model being screwed up.

The notion, as stated in the article, that satellites are a "soon-to-be obsolete method of delivery" is absolutely ridiculous, but it does lead to a thought that I hope XM and Sirius realize. That they're both not in the "satellite" business, but rather in the "content" business. Who cares how it's delivered, just that it's delivered.

But... maybe that's the whole point of the merger.

[BusinessWeek]
Thanks to everyone who sent this in!

Michael K. Powell, the former chairman of the FCC, said that he believes the XM/Sirius merger could pass.

On CNBC, Powell said that he thinks the merger could make it through. He also felt there would probably have to be some concessions made, most likely in the form of price locks for a fixed period of time. Powell also noted that FCC's current chairman is tough on deals and tough on decency, and he thinks that it will not just be a rubber-stamping of an approval. According to 24/7 Wall St, this appears to be a far less critical stance than that of the AT&T/Bellsouth merger.

Powell also separately told the New York Times that the deal could get through.

"I do think it could get through, but I don’t think it’s going to be an easy one," Powell said. "It’s going to be incumbent on the companies to demonstrate that the analysis in EchoStar-DirecTV is different."

Michael Powell was the FCC chairman when the EchoStar-DirecTV merger was blocked back in 2002. He is now an advisor to Providence Equity Partners in private equity.

[via 24/7 Wall St]

RSS subscribers might have missed this one yesterday...

After some nasty server-wrestling, I've finally walked away victorious and with the database under my full control.

So there's a bit of catching up to do... I apologize for the downtime.

Dale Earnhardt, Jr. is merging with interviewing Daytona 500 winner Kevin Harvick on XM Satellite Radio today (February 22nd) at 7:30pm ET.

Kevin will appear on "Dale Jr. Unrestricted" on XM Sports Nation (ch 144) to talk about his victory at the Daytona 500 and his outlook for the season.

Unfortunately I don't think Jimmie Johnson will stop by so him and Dale can discuss their wrecks at Daytona (along with other favorites Tony Stewart, Kurt Busch and Matt Kenseth), but it should be an interesting show regardless. 

(...and don't worry, there will be plenty merger coverage to come, I just need to take a breather!) 

Regardless of whether you are for, or against, the XM/Sirius Merger (and it's obvious that a majority of you are for it), I'd like to get a sense as to how many of you feel whether or not the deal will actually make it through the regulatory gauntlet.

Why is this important? Because readers of this site are likely far more knowledgeable in the satellite radio landscape than most other websites. So go ahead and cast your vote.

Hey look, there's other stuff going on outside of the merger! Such as the unveiling of the Raymarine SR50 Sirius Satellite Weather/Audio receiver.

Sirius' Satellite Weather service was introduced last year on the Raymarine SR100 for their line of E-Series displays. Well now the Raymarine SR50 let's C-Series owners access their own slew of advanced weather information.

The SR50 allows boaters to view forecast info like WSI NOWRad weather radar, storm tracks, sea surface temperature, wind, surface pressure, wave heights, lightning and more.

All that and you can also tune into over Sirius Satellite Radio directly from your C-Series display, so you can rock out to The Catholic Channel while tracking lightning strikes.

The SR50 weather receiver module should be available in March 2007.

[Product Page] 

A new Congressional antitrust taskforce within the House Judiciary Committee will hold a hearing next week on the proposed merger of XM and Sirius.

Mel Karmazin, will testify at the hearing on February 28th.

"Digital music is at the cutting edge of technology and innovation," House Judiciary Committee Chairman John Conyers said. "We are holding this hearing to allow members to probe whether this merger will enhance or diminish competition in the digital music distribution industry."

Rep. Lamar Smith of Texas, the top Republican member of the committee, said the hearing will focus on the proposed merger's impact on consumers.

"This hearing will help determine whether customers will get higher or lower prices and more or fewer programming options with the proposed merger. In particular, the Committee will examine whether satellite radio competes against terrestrial radio, the Internet, or other emerging technologies," Smith said.

Rep Lamar Smith, interestingly enough, was the sponsor of last year's Copyright Modernization Act - which would have prevented XM or Sirius from offering radios that allow consumers to record satellite radio content for later listening.

Welcome to the political circus. Don't be surprised if things sloooow down from here on.

[Reuters] 

There's something I would like to briefly highlight from a previous post, that I think deserves a post of it's own. And that is that CBS Radio (and other broadcasters) actually have already defined the competitive landscape in their SEC filings.

Here's a snippet from CBS's 10-K (with emphasis added):

Radio Competition.
The Company's radio stations directly compete within their respective markets for audience, advertising revenues and programming with other radio stations including those owned by other group owners such as ABC Radio, Clear Channel Communications, Cox Radio, Emmis Communications, Entercom and Radio One. The Company's radio stations also compete with other media, such as broadcast, cable and DTH satellite television, radio, newspapers, magazines, the Internet and direct mail.

The radio industry is also subject to competition from two satellite-delivered audio programming services, Sirius Satellite Radio and XM Satellite Radio, each providing over 100 channels of pay digital audio services. Sirius and XM sell advertising time on some of their channels and compete with the radio industry for programming.

The Company's radio stations face increasing competition from audio programming delivered via the Internet and from consumer products such as portable digital audio players. These new technologies create new ways for individuals to listen to music and other content of their choosing while avoiding traditional commercial advertisements. An increasingly broad adoption by consumers of portable digital audio players could affect the ability of the Company's radio stations to attract listeners and advertisers. 

The statements made in these SEC filings would constitute admissions under the law. So they can't just go ahead and oppose a proposed market definition, or to just limit it to the satellite radio market (making it a 'monopoly'). They would look pretty damn silly if they try to contradict themselves.

The biggest "hurdle" in the merger is the definition of what is a "relevant market" and what constitutes a competitive marketplace. But CBS Terrestrial Radio has actually already adopted the same definition that XM and Sirius are advocating.

This is pretty big stuff in my opinion, and I hope the media picks up on it. 

UPDATE: Thanks to the work from several commenters, the 10-Ks from Radio One, Cox Radio, Entercom, and Clear Channel all also define the relevant market as including satellite radio as well as other audio entertainment sources like Internet radio and DAPs.

My favorite radio publication, Inside Radio, polled some radio CEOs about the Sirius-XM Merger. Guess what they had to say? Nothing but good things, of course...

Cox Radio CEO Bob Neil says "If it is approved, and I don't think it will be, it would be one of the most anti-consumer mergers ever allowed in business."

Triad's David Benjamin says "It further confirms that the business plan for satellite radio is just not working. No one was talking about a merger before subscriber targets and break-even points were being missed," Benjamin added "The two big winners in this are the investment bankers and the lawyers."

Connoisseur CEO Jeff Warshaw said "I can't imagine that it's in the public interest. It would be tantamount to a government bail-out of an industry (satellite radio) that has been ridiculously mis-managed. It is inappropriate for local radio to be disadvantaged by such a bail-out."

...yet the curious thing is that in SEC filings (e.g., CBS Corp's 10-K) made by terrestrial radio corporations, it's clearly stated that satellite radio is in direct competition with terrestrial; as is Internet radio and digital audio players. That opens up the argument that satellite radio is part of a greater audio marketplace.

Can't have it both ways boys. Either we're competition, or we're not. But since it's already in your filings, which constitute admissions under the law, then you've already defined the marketplace for us. So thanks.

Thanks Mark! 

The growing feeling on the probability of an XM and Sirius merger actually making it through the regulatory gauntlet appears to be less than originally expected.

Bank of America analyst Jonathan Jacoby highlights in a recent research note that while Management seemed confident that the deal would get approval, they didn't seem overly confident. "Words and actions make it appear to us that the managements believe the probability of getting the necessary approvals is good (say 55-60%), but far from certain," Jacoby wrote in the note.

Indeed, Bank of America believes that the probability of success is something less than 50%. And Wachovia Securities even believes that there is a 25% chance or less of obtaining regulatory approval with the deal in its current form and a 50% chance or less in any form.

An article in BusinessWeek goes through some of the possible downsides to this match made in heaven, one of which is most notably - a slowed growth in subscriber acquisitions.

Researchers at IDC had previously estimated the satellite radio industry to reach a combined 22 million subscribers by the end of 2007, but now with the widely publicized merger announcement they're concerned that they miss this target.

Subscribers may be less incline to sign up "given the uncertainty around the merger and availability of service on an ongoing basis," says Susan Kevorkian, an analyst with IDC.

Add to that, concerns for raising prices (as a "monopoly") might deter would-be subscribers.

But the slowdown may occur on the automotive adoption side as well. Satellite radio is an industry that is largely dependent on another industry, and if automakers hold off in adding additional satellite-equipped models, it could prove disastrous.

This last point is absolutely something within the control of both XM and Sirius though. The company's respective OEM departments are obviously working overtime to help keep automaker's concerns at bay.

But from a retail standpoint, a channel that has seen a 46% year-over-year decline in the month of December, it may be necessary to qualm the concerns of would-be subscribers. In fact, the upcoming season may be an opportunity for consumers to take advantage of the industry's response to concerns. Discounts and incentives could very well be on the horizon and retailers may want to promote the fact that these receivers would be "future compatible" with whatever service lies ahead.

[BusinessWeek] 

Should the Sirius and XM merger not pass regulatory approval, both companies can still make it on their own, analysts told MarketWatch today.

Since both companies have been trading on the speculation of the merger alone, the value of the actual proposed merger has already been baked into the stock price. Let's face it, without the merger speculation, they'd be trading at much lower prices to begin with.

"The stocks have been trading on speculation about a deal rather than fundamentals," Tuna Amobi, analyst at S&P Equity Research, told MarketWatch.

But both companies were already on the road toward free cash-flow positive. Just not as quickly as once hoped.

"I think we'll see free cash flow from these companies on a sustained basis over the next two years," Maurice McKenzie, analyst Signal Hill Capital Group added. "These are still viable economic entities."

Pointing out that the decision to merge was clearly driven by economics, Don Hodges, manager of the Hodges Fund said: "You've got a couple of companies with extremely high overhead that realize that they've spent too much money, and that making a profit is way off in the future unless they're willing to cut some expenses.

In the event the merger is scuttled, neither XM nor Sirius would be dealt a fatal blow, according to Steve Mather, satellite analyst at Sanders Morris Harris.

"They're both going to have 10 million subscribers before long," he said. "And then 15 million."

[MarketWatch] 

XM Satellite Radio has issued several SEC filings in relation to the Sirius and XM merger.

Of them is a FAQ that very clearly outlines the proposed merger and it's implications. But since most of you are lazy clickers, here it is below:


Why a merger and why now? What is the strategic rationale for this transaction?
A merger of XM and Sirius will form the nation’s premier digital audio provider, creating a satellite radio company that will provide consumers across the country with more and better premium radio programming.

The merger is in the best interest of both shareholders and consumers. The combined company will be able to offer more value to consumers, while achieving significant synergies through cost efficiencies and technology-related benefits.

Satellite radio faces substantial competition from a broad variety of products and services. In addition to existing competition from free “over-the-air” AM and FM radio as well as iPods, Internet radio and cell phones, satellite radio will face new challenges from the growth of HD Radio and next generation wireless technologies. These factors have made a combination the best way to compete against the multitude of options available to consumers.

Is this a 50/50 merger?
Yes, this is a merger of equals.

Who will run the new company?
Gary Parsons will be the chairman of the combined company. Mel Karmazin will be the chief executive officer. Other positions will be decided upon in the coming months.

Where will the new company be headquartered?
The companies will work together to determine the location of its corporate headquarters prior to the closing of the transaction. The new company will have a significant presence in both Washington and New York City.

What will be the name of the new company?
Although we hope to close this transaction by the end of 2007, this process may well take as long as a full year. We will make a decision regarding the name of the new company as we get closer to closing.

What will the corporate governance structure be for the merged company?
The new company’s board of directors will consist of 12 directors, including Gary Parsons and Mel Karmazin, four independent members designated by each company, as well as one representative each from current XM board members GM and Honda.

How will the two companies bridge different cultures?
The two companies have a lot in common. The companies share the same spirit of entrepreneurship and excitement about innovation and are committed to providing the best content to their consumers and look forward to adopting the best aspects of each company into the combined company.

Can Sirius and XM succeed as stand-alone companies if the merger is not approved by regulators?
Yes. That said, we believe a merger is the preferred option for Sirius and XM, our shareholders and customers. The merged entity will be better able to manage its costs while driving innovation in this fast-moving competitive marketplace.

What is the timeframe for regulatory approval? Timeframe for integration?
We expect the transaction to be completed by the end of 2007. We will seek to integrate the companies and technology platforms as quickly as possible after regulatory approval, while supporting both Sirius and XM customers.

Is there a rule prohibiting the two satellite radio providers from merging?
No. No rule barring such a merger has been published in the Code of Federal Regulations. Satellite radio is subject to the same rules governing transfers of control as other FCC licensees when it licensed satellite radio service in 1997, the FCC was not asked to rule on whether a satellite radio merger would serve the public interest. In its original 1997 order, the FCC noted that it wanted two satellite radio providers because it thought the companies would compete primarily with each other. Thus, the FCC did offer its view, based on competitive conditions at the time, that combining the two existing satellite licenses would not serve the public interest. Since that time, the options for audio entertainment have expanded greatly and the FCC’s policy statement simply no longer reflects the reality of today’s audio marketplace. As former FCC Chairman Reed Hundt recently told the New York Times, “I think we did the right thing to begin with. You wouldn’t want to change it if it weren’t for the fact that it is so obvious that you can get content in so many different ways. That wasn’t really true then.”

When will the companies merge their operating platforms/networks?
No timeline has been set, however, we will seek to integrate the companies and technology platforms as quickly as possible, while supporting both Sirius and XM customers. We will be thoroughly evaluating all technology to ensure the best system for our customers is used going forward. Both companies are committed to ensuring the smoothest possible transition for customers who already have factory-installed satellite radio, and we do not anticipate any interruptions in service.

What will the merged programming lineup look like?
Once fully integrated, the new company plans to provide customers with access to a richer portfolio of diverse programming, including an enhanced lineup of commercial-free music channels.

In addition, a merger would ultimately allow the new company to free up bandwidth, which could be reallocated to enable exciting new services and expanded public interest programming, including more news and information. Additionally, bandwidth could be re-deployed to enrich underserved demographics and attract more diverse segments.

What does this mean for employees?
By driving stronger growth and being better positioned to compete against other entertainment platforms, a combined company will ultimately create opportunities for employees. While there will be some overlap in our businesses, we won’t begin integration of the businesses until this deal is closed. In the meantime, we will continue to operate independently.

As in all mergers, some positions in both companies are likely to be eliminated based on integration analysis. While it is too early in the process to speculate regarding any individual positions, we are taking steps to ensure that any employee whose position is eliminated as a result of the merger will receive appropriate separation benefits.

Again, it’s important to remember that the integration won’t begin until after regulatory approval and the deal is closed. In the meantime, everyone should focus on their job duties and our commitments to our subscribers, shareholders and partners.

Will I be asked to relocate?
We won’t be making any integration decisions, including decisions about potential job relocations, until later in the process – likely in 2008.

Will my job title or reporting responsibilities change?
There will be some overlap in our business that could, conceivably, necessitate job or title changes. However, we won’t be making any integration decisions until later in the process. For the time being, it’s business as usual and we will continue to operate independently until we receive regulatory approval.

Will my base pay, overtime or pay cycle change?
Pay and benefits that employees currently receive will not change for the time being. We can commit that pay and benefits packages will remain competitive.

I was expecting a bonus for my work in 2006. Will that change as a result of the merger?
No, we are planning to pay individual bonuses and award merit increases this year as we communicated to everyone who is bonus-eligible.

I’m used to receiving XM stock options/grants – will I continue to receive them?
The company anticipates following its normal annual practice by making a grant of stock/options in 2007.

Will there be changes to our health care benefits?
We are still in the early stages, and integration has not yet begun. We can commit that benefits packages will remain competitive.

I’m out on disability. Will my coverage be affected?
Disability coverage, as well as other pay and benefits that employees currently receive, will not change for the time being.

 

[Form DEFA14A] 

There's been a flood of emotions over this merger, and along with them comes a few misconceptions about what's to happen next. So I think that it's best to lay out exactly how this impacts you, the subscriber.

First thing's first, understand that for the immediate interim period - that is the period until Sirius and XM work to receive regulatory approval - nothing will change. I actually spoke incorrectly this morning when I thought that significant resources would be dedicated to the transition period. Due to anti-trust regulations, XM and Sirius will continue to operate independently of each other during this interim period.

So for the next year or so, absolutely nothing will change. Perhaps the boys at Interoperable Technologies will be working a bit harder than normal, but as it seems right now - it's "business as usual."

What about my current receiver?
Don't go selling your receiver just yet, because it's so far off before a new one will be needed (if ever?) that there's no need to freak out about it yet. Remember, you have at least a year before any transitions even begin, and beyond that XM and Sirius plan to maintain your current service for an indefinite period of time. Do you think they want to lose customers right now? Of course, not!

I'm thinking of buying a receiver, should I wait?
Absolutely not. For the same reason as above. There's so much time (and so many "ifs") that there's just no need for a knee jerk reaction. Go ahead and buy that new receiver and just enjoy yourself.

Are they going to kill my favorite channels?
NO! Again, predicting the death of channels on your presets right now is a little too crazy. Will there eventually be some dropping of channels as "synergies" are discovered? Of course, but again - that's such a LONG ways away that it just shouldn't even be in your vocabulary of concerns.

Great, now they're going to raise rates right?
For the next year? No. For the future after that? Doubtful. Mel Karmazin, who historically has seemed very much in favor of increasing rates, definitely seemed to soften on the subject this morning. Why? Because both Karmazin and Parsons see satellite radio as competing against a great marketplace - a marketplace that just happens to be dominated by free services. It's hard enough for consumers to grasp the concept of "pay radio" - so raising rates is probably not high up on their priority list. Staying in business is their highest priority.

Yeah well, "big bad Mel" is going to put commercials on my music channels, right?
Satellite radio's biggest draw is commercial-free music. As popular as Howard Stern is, it's the core offering of 100% commercial-free music that is the true basis behind satellite radio. While it's true that Karmazin is very well known for being an advertising guru, he's not about to shit on the core offering of this service. Your music channels - and their commercial-free status - are completely safe.

But wait, aren't you against the merger?
Deep in my bones I generally hate mergers because I believe in the beauty of competition. But I also realize that business is business. I don't think they would be attempting this merger if there wasn't a need for it. And from my view as a consumer, if my experience doesn't change - or is improved - and my costs don't go up, then I'm a happy man. This is a different landscape than that of the cable industry (they're competing against other pay services - satellite radio is competing against free services), so that makes it unique in that sense.

Rarely do you hear of a merger that actually opens up choices for the consumer. So in that sense, this very well might be a good thing. That said, I'll be the first one to go absolutely nuts if I detect that this infringes upon consumer rights.

But for now, the bottom line is: calm down. We've got a long road ahead of us... 

After today's conference call about the merger of the two companies, I felt it's necessary to break down the current strategy that I'm seeing both companies taking.

This merger needs to be positioned in a positive light, and most importantly it needs to be proven that this is actually in the best interests of the consumer. So here's 5 key points about how I think they're attempting to do this:

1. Satellite Radio is the underdog.
Both companies need to show that this merger won't create an evil monopoly, so they're positioning the satellite radio industry as a very tiny part of a global competitive marketplace. It's not "radio" at all, but rather "audio" - so anything that competes for the consumer's earshare is in essence competition. The nicest dig that I caught was using the example of HD Radio (a technology that terrestrial has introduced in response to Satellite Radio)

2. Times have changed.
It's not 1997 anymore. The audio marketplace has changed and this merger is needed in order to stay with the times. And we're in such a quickly developing technology boom right now that even unestablished threats (e.g., WiMAX) are a potential threat. This actually is a play towards point #1, because they can claim that the FCC couldn't have predicted the future and that sticking to the old rules is crippling in nature.

3. Satellite Radio is growing, but can grow faster.
Regardless of the competitive threats, the satellite radio medium has grown faster in the past 5 years than any other consumer technology (with exception to the iPod). This is a double-edged sword, because it could work against the "underdog" positioning, but it clearly shows that there's a public interest in this medium.

4. More choice for the consumer.
If you happen to be a Howard Stern fan and a baseball fan, you currently have to buy two receivers and pay two subscriptions. More importantly you don't have this choice as an integrated OEM solution when you buy a new car. A merged company allows you, the consumer, to get access to all the content your heart desires. Throw in the A La Carte option and it becomes all about choice.

5. Prices will be kept in check.
Karmazin purposely concentrated on the advertising revenue opportunity in the conference call because everyone wants to know the money side of it. Not just for the bottomline, but for consumers who are already jaded by subscriber based services (read: cable). Since they will have a larger base to sell advertising to (i.e., raise the ad rates), and are still competing in a great audio marketplace, the prices will naturally have to be kept low. Karmazin's stance on raising subscription prices definitely appears to have softened now that the merger is announced.

It seems that XM and Sirius will keep pushing on this points in hopes that they could get this passed by the FCC, DoJ and shareholders. But no matter what, it's going to be an uphill battle.

Let's get everyone initial gut reactions about the Sirius and XM Merger... voice in the poll below and then drop a comment stating why you voted that way:

(I'm live blogging the Sirius and XM Merger Conference Call for those of you who can't listen in. Just keep refreshing the page because this post will be updated in real-time.)

• Intros begin! Mel Karmazin, and Gary Parsons are on board for the call.
• Mel is kicking off the call.
  
• DOH! There seems to be some technical issues... back into the holding pattern.
• Ok we're back.
• Mel Karmazin begins...
• "We're all very excited about this announcement and the many benefits"

"I worry about stagnation," said Janco Partners analyst April Horace [via Washington Post]. "I worry that both companies will be more focused on regulatory issues than they will be on the consumer. My concern is that we are going to see less activity, less innovation."

And this might be the case as the boys in Florida shift their focus from a single receiver to a compact dual-receiver. For all intents and purposes, the deal is done, and now the majority of the folks working for both Sirius and XM (minus the lawyers and regulatory geeks) are concentrating on the transition process. That takes a lot of resources, and meaning there's less for working on business at hand.

So what becomes in the interim? This is a massively publicized merger - will the customer be more likely, or less likely, to choose to subscribe now?

Jonathan Jacoby of Bank of America said in this morning's note that contacts in DC maintain that "procedural hurdles could stop a deal from getting through the FCC" and estimates that the probability of getting regulatory approval before the end of 1Q08 is less than 50%.

Jacoby also added that the NAB could seek a legislative solution rather than lobbying the FCC.

Bank of America's contacts in DC believe that Congress could step in to block the merger. The question is whether they would even bother with the FCC, but instead lobby for an amendment to be added to the current bill already introduced to Capitol Hill.

The NAB could lobby Congress to block the merger on the grounds that it would harm localism, which the bill is meant to "protect" anyway.

Jacoby also added that the full realization of the synergies between the two companies, which eh estimates to be around the $5 billion mark, might not bear fruit until the end of the decade.

XM Satellite Radio's Chairman Gary Parsons said today that the merger agreement with Sirius carries a break up fee of $175 million.

What isn't clear though, is who exactly would pay this fee if the merger falls through.

Both Parsons and Karmazin told Reuters in a joint interview that they expect to be meeting with the FCC "shortly" to seek regulatory approval.

[Reuters] 

XM Canada and Sirius Canada each issued called the satellite radio merger both "exciting" and "great" news in statements issued today, though in separate interviews they indicated that it was too soon to know what would happen next.

Sirius Canada's official statement:
"With the exciting news coming from SIRIUS and XM in the U.S. today, SIRIUS Canada’s 300,000 subscribers will continue to receive the best news, talk, sports, entertainment and commercial-free music programming available,” said Mark Redmond, President and CEO, SIRIUS Canada Inc. “SIRIUS Canada’s board of directors and senior leadership team is working closely with SIRIUS Satellite Radio in the U.S., CBC and Standard Radio Inc. here in Canada to ensure the Canadian operation continues to deliver the best entertainment available."

XM Canada's official statement:
“This is great news for the satellite radio industry in North America and could offer further benefits to consumers, retailers, partners and shareholders,” said John I. Bitove, Chairman of Canadian Satellite Radio Holdings Inc. “As Sirius and XM seek U.S. government approval, we will diligently review the possible alternatives available to Canadian Satellite Radio to benefit our customers and shareholders.”

In separate interviews, Sirius Canada president Mark Redmond and chairman of Canadian Satellite Radio, John Bitove, both said this of the possible merger of the two Canadian companies:

"Obviously the U.S. companies have had numerous talks as it relates to this, so we're going to have to wait and see how that plays out and what kind of talks, if any, we need to have with Canadian Satellite Radio," Redmond said.

Bitove said XM had kept CSR "apprised" of the discussions they've had with Sirius but "obviously there was a limit to how much detail they could tell us."

"There's lots of options for Canada," Bitove said. "We have to wait to get more details from the States before we can decide what is the next step."

[CBC News]

The FCC Chairman Kevin Martin said today that the Sirius and XM merger would have a high hurdle to overcome before receiving the Federal Communications Commission's approval.

"The companies would need to demonstrate that consumers would clearly be better off with both more choice and affordable prices," Martin said in a statement following the announcement of the deal.

"The hurdle here, however, would be high as the commission originally prohibited one company from holding the only two satellite radio licenses," Martin said.

[Reuters] 

Well, that didn't take long. The NAB has issued a statement today in response to the proposed merger between Sirius and XM. NAB Executive Vice President Dennis Wharton had the following to say:

"Given the government's history of opposing monopolies in all forms, NAB would be shocked if federal regulators permitted a merger of XM and Sirius. It bears mentioning that regulators summarily rejected a similar monopoly merger of the nation's only two satellite television companies -- DirecTV and DISH Network -- just a few years back.

"When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems. Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bail-out to avoid competing in the marketplace.

(...and the kicker:)

"In coming weeks, policymakers will have to weigh whether an industry that makes Howard Stern its poster child should be rewarded with a monopoly platform for offensive programming. We’re hopeful that this anti-consumer proposal will be rejected."

So it looks like the NAB is going to play the indecency card on this one.  

A few of you want to know my thoughts about this whole deal, so I might as well just write it as a post for all to read and let others weigh in on their theories.

There's more questions than there are answers, but the thing that stands out the most to me is the timing of the announcement. The timing seems "curious" at best.

Why choose a day like today, President's Day when the market is closed, to pop this announcement? And why announce it a week prior to the earnings calls? It seems that it would be much easier to simply time this with the earnings calls themselves since they're just one week away. The whole thing almost seems... urgent.

And if this deal was in the works (presumably for a long time), then why the need for the added liquidity of ~$200M through the sale/leaseback of XM-4? Since they expect the merger to be finalized by the end of 2007, why does XM need all that cash in the bank?

The speed of closing the deal seems a bit crazy as well. End of year for the merger? That's much faster than Bob Peck estimated it would take (his guess was 12 - 15 months), and a lot faster than any of us would have thought regardless.

And what about the content and the impact on the customer? A La Carte sounds nice, especially to FCC Chairman Kevin Martin who is notoriously in favor of a la carte channel offerings. But not for pricing's sake mind you, he likes it for the control of indecency programming and the ability to setup "family tiers" of channels. I wonder if the new merged company is thinking of setting up something similar?

Speaking of tiers, that's most likely going to be how this will all be priced. When you've got 300 channels of content available, and you want to bring it to market by the end of the year, your easiest option is to setup content tiers and let the customer sort it out. Plus that reduces the number of people dropping the service since the perception is that they're not losing anything. At the top of the tier is an "all access pass" to the entire lineup and your "premium" content. That top "all access" tier probably won't be immediately available until the dual-chipset receivers are in stores though. In the meantime, current subscribers would be able to pick and choose a selection of channels from either service - up to a certain amount so you can manage bandwidth.

But we're probably getting too ahead of ourselves. There's still the FCC, and DOJ to get this passed - and let's not forget the alphabet soup of organizations that will be opposed to this like the NAB, RIAA, WCS, NRA and PETA. Oh it ain't a done deal yet, not by a longshot, just ask Echostar and DirecTV. We're in for a fun ride ahead.

...let the games begin. 

Gary Parsons, Chairman of XM Satellite Radio and Mel Karmazin, CEO of Sirius Satellite Radio share hands after the signing of the merger agreement.

Thanks MB! 

Tomorrow, February 20th, XM and Sirius will hold a joint conference call and webcast on at 8:30 AM ET to discuss this announcement.

The conference call can be monitored by dialing 800-573-4840 within the U.S. and 617-224-4326 for all other locations, passcode 29490052.

The webcast can be accessed on both Sirius' website or XM's website, as well as on both their satellite radio services by tuning to SIRIUS channel 122 and XM channel 200.

For those who cannot listen in, Orbitcast will be live-blogging the call so you can get your updates right here.

IT'S OFFICIAL

XM Satellite Radio and Sirius Satellite Radio have jointly announced that they have entered into an agreement to combine the two companies - in an all-stock merger - with a combined enterprise value of $13 billion.

Sirius' superstar CEO Mel Karmazin will head the new company as its CEO, and Gary Parsons will also retain his title as Chairman as the new company. The new company's board of directors will consist of 12 directors, four independent members designated by each company, as well as one representative from each of General Motors and American Honda.

Hugh Panero will continue in his current role until the close of the merger. Further management appointments will be announced prior to closing.

The combination creates a nationwide audio entertainment provider with combined 2006 revenues of approximately $1.5 billion based on analysts' consensus estimates.

Follow the jump to read what's in store for customers and investors under this new merged entity...

The Wall Street Journal (subscription req'd) is reporting that XM and Sirius are "in final merger discussions" according to a person familiar with the matter.

The two companies are nearing an agreement but have yet to actually ratify a definitive contract, this person said.

So, it's not a done deal yet.... 

[Wall Street Journal via CNN Money]
Thanks Scott!

While ABC News has supposedly "confirmed" that the merger between XM and Sirius will be announced today (clock is ticking!), their sources also indicate that this would be a "merger of equals."

That seems interesting considering that I can't see either company looking at themselves as an "equal" of the other. Yes, Sirius has the growth momentum and the retail marketshare, but XM has the balance sheet, technology edge and OEM share.

Regardless of the "equals" involved, ABC is also saying that Mel Karmazin would be in charge. And that seems to make sense.

ABC News is saying that they have "confirmed" the merger between XM and Sirius. ABC is also reporting that Mel Karmazin will run the merged company. Not sure what, if any, additional information they have...

I'm tracking this all day today (so much for a day off). 

Here's a thought:
What if this XM/Sirius deal is actually a part of a much larger buyout scenario? Maybe for either both of the companies, or for the combined entity?

I don't know, just a thought. Let's just call it random speculation for now.

Sirius Satellite Radio and XM Satellite Radio are expected to announce their planned merger today according to the New York Post.

While we've been down this path before - albeit the source of the rumor is only slightly more reputable (theflyonthewall vs the New York Post), there also seems to be a lot more details this time.

According to the Post, the transaction is expected to be structured as a merger of equals, but given Sirius' higher enterprise value, shareholders in the Mel Karmazin-led firm will likely come away with a larger percentage of a combined company. This goes against Bear Stearns' belief that that the split of the merged company would go 55% in XM's favor.

Also, the NY Post says that XM Chairman Gary Parsons will retain that title in the combined entity, with Karmazin likely taking the CEO role. It is unclear what role, if any, XM CEO Hugh Panero will play. 

[New York Post]
Thanks Karl!

The FCC today granted Sirius Satellite Radio a special temporary authority to setup 4 terrestrial repeaters in Alaska and Hawaii with power levels below 2,000 watts.

UPDATED: Satellite Radio TechWorld points out that Sirius has actually not been granted authority to operate the repeaters in Alaska and Hawaii. Rather the application is now in now in a comment period.

This is actually bad news in that it will be a while before the FCC can make a ruling. (And you can thank the NAB for that.) 

The application has been given the "permit-but-disclose" designation for the purposes of "ex parte communications." If you'd like to find out more about what exact this means, go check out Satellite Radio TechWorld for a detailed explanation.

Back in November, Sirius applied for the rights to broadcast in the two states.

Below are the proposed repeater location:

• Anchorage, AK
• Fairbanks, AK
• Juneau, AK
• Honolulu, HI
  

Hugh Panero has been XM Satellite Radio's CEO, as well as a member of the Board of Directors, for nearly 9 years now. But any good leader should know when it's time to step aside and let others take over.

In the early years, Panero made many determining decisions that were instrumental in driving XM's strong foothold in the marketplace. Two key examples: the decision to keep tech development in-house, and to bring in Honda and GM as investors as well as partners. These were significant in getting XM out to the masses and gave XM a headstart against Sirius, despite Sirius having launched their satellites first. Panero helped take an industry that had absolutely no XM-equipped vehicles, to now more then 5.5 million factory-installed XM vehicles on the road.

And everyone was happy... that is, before 2006.

XM's stock topped out in the 40s in late 2004, and at the time there was an elated level of excitement in the industry. Even 2005 wasn't that bad in terms of XMSR's price, though it never reached those levels again - and what wasn't known was that it was just setting the stage for a pummeling in 2006. After hitting a one year high of 24.57 in February of last year, XMSR dipped down as low as 9.63 in July. The stock has recovered slightly since, but doesn't seem to want to break the upper teens. XMSR only seems to jump on the basis of merger rumors (i.e., days like today). But speculation isn't a good way to drive a company's stock price, at least not for the long-term.

When Pierce "Jack" Roberts resigned, he warned of "a significant chance of crisis on the horizon." Of course, his public resignation didn't help stifle that crisis, but all-in-all his prediction wasn't too far off. It was clear that XM overreacted to the pending competitive threat (who could that be?) in late 2005, and worse yet, that overreaction barely effective.

And then there was the class action lawsuits. And then the revised reduced subscriber guidance, again, and again. And then XM missed that goal.

Along the way XM picked up Nate Davis who now handles the duties of President and COO. Davis took over marketing for both retail and OEM, product development, customer service, and finance. This was a step in the right direction, and Davis has been generally well received - but symbolically the fact Panero still retains his position to this day leaves a bad taste in everyone's mouth.

With a company like XM that has been so devastated over the course of two years - there just needs to be a change in management to regain shareholder trust. I think the biggest thing that ails XM is that just over a year ago it seemed like a company with so much potential and so much momentum. But last year it seems to have lost that luster and is riddled with doubt and skepticism. Even the most starry-eyed have become jaded.

And the only way to regain confidence is with a change in management.

Every leader knows that there comes a time when he/she will have to step down. Knowing when to do this is just as important as who will replace you. It's not a testament to your failure, but rather a testament to your dedication as a leader. Putting the company above yourself. Knowing when to say when.

I honestly don't have a problem with Hugh on personal basis (from the short time that I met him, he's actually a really cool guy), but this has nothing to do with him as a person. It's about regaining trust, renewing faith and showing a clear direction for the future. It's about ushering in a new era, and knowing when to let your baby go.

Mr. Panero, I'm sorry, but it's time to go now.

Apparently terrestrial radio isn't so happy about American Public Media's deal with XM Satellite Radio.

While the cornerstone shows "A Prairie Home Companion" and "Marketplace" are still going to be syndicated to terrestrial stations, the perceived problem is that they'll no longer be exclusive to terrestrial. Maybe someone should have told them that Prairie Home and Marketplace were available on Sirius' NPR Now (ch 134) for a while now.

But just to add some salt on the wound, Prairie Home Companion will actually air live on XM before some terrestrial stations get the West Coast feed. Now that's gotta hurt.

[Inside Radio] 

The CRTC has granted Canada's fourth largest cable company, Cogeco Cable, the right to distribute satellite radio services on digital cable.

Currently Cogeco distributes two pay audio services, Galaxie and Max Trax, but this decision means that Cogeco customers will be able to subscribe to Sirius Satellite Radio or XM Satellite Radio over their digital cable service.

This is similar to the CRTC's decision with Rogers Cable, though neither Rogers or Cogeco have made any announcements about when satellite radio would be made available.

[Digital Home Pipeline] 

Bear Stearns analyst Robert Peck put out a note recently that they think both Sirius and XM believe a proposed merger actually would pass regulatory approval.

But as we've all noticed, after the hype back in January, there appears to be very little buzz about the satellite radio merger as of late. This public slowing of the potential merger has hampered both stock prices (XMSR down about 25%, and SIRI is close to 52 week lows).

Peck further feels that the economics of the merged company is what is slowing down the public progress of the merger. But with the closing window of opportunity, both companies should "avoid quibbling over a few share points, to capture the much larger value of overall potential synergies."

The firm believes that the split of the merged company should go 55% in XM's favor, though of course both sides would probably argue over a higher percentage regardless, but this center point is appropriate "given the estimates in their model."

They think that upon the expectation of a successful deal, the ~$6-7B in synergies would take the value of XM's stock to ~$25, presenting significant upside potential.

[Notable Calls vs Seeking Alpha] 

Al Gore today unveiled a 24-hour concert series "Live Earth" which will debut on all 7 continents, in an effort to bring awareness to none other than: the dangers of global warming.

The concert, which is set for 07/07, is expected to reach an audience of 2 billion through concert attendance and broadcasts.

"Live Earth" is part of the Save Our Selves (SOS) campaign which was founded by Kevin Wall, who won an Emmy as Worldwide Executive Producer of Live 8.

Live Earth will feature performances from 100+ artists including: Pharrell, Red Hot Chili Peppers, Foo Fighters, Snoop Dogg, Lenny Kravitz, Bon Jovi, Paolo Nutini, Sheryl Crow, AFI, Melissa Etheridge, John Mayer, Damien Rice, Corrine Bailey Rae, Duran Duran, Snow Patrol, John Legend, Black Eyed Peas, Akon, Enrique Iglesias, Fall Out Boy, Mana, Keane, Kelly Clarkson, Korn, Faith Hill w/ Tim McGraw, Ray LaMontagne, Robin Thicke and Kenna. 

So where does Sirius and XM come in? Well, according to the press release, both Sirius and XM are partnered with SOS, along with NBC-Universal and its networks, and the BBC in the UK. Details on what exactly is Sirius' or XM's involvement is unknown at this time.

More info on this as it comes in... 

XM Satellite Radio will be airing Tony Kornheiser's new radio show originating from Washington Post Radio (WTWP), weekdays from 9am-11am ET on XM Sports Nation (ch 144).

The sportswriter, columnist, ESPN commentator, humorist, and author will also host special shows exclusively for XM's audience on a regular basis.

"Tony is a superstar with a huge following across the country," said XM's E-Lo, "XM puts Tony's new radio show on a national platform."

Kornheiser is a columnist for The Washington Post, the co-host of ESPN's "Pardon the Interruption," and an analyst for ESPN's "Monday Night Football." He previously was part of the XM lineup before.

"The Tony Kornheiser Show" is the latest addition to what appears to be a rapidly growing XM Sports Nation channel.

XM Satellite Radio is adding two popular American Public Media programs "A Prairie Home Companion" and "Marketplace," (actually, they're adding a bunch of "Marketplace" shows) to XM Public Radio (ch 133), starting in March.

Starting March 3rd, "A Prairie Home Companion" will air live every Saturday from 6pm to 8pm ET, with replays during the week. Now in its 33rd year of production, "A Prairie Home Companion" consists of 32 live shows broadcast from across the country, as well as comedy sketches, music, and the signature monologue, "The News from Lake Wobegon" by best selling author Garrison Keillor.

The XMPR schedule also will include “Marketplace,” an entertaining high-energy program on business and finance. One of the most popular series in the public radio news line-up, "Marketplace" will start airing weekdays, at 7pm ET starting Monday, March 5th.

And then there's "Marketplace Money," an hour-long weekend program focusing on personal finance, and "Marketplace Morning Report" which will also be added to the XMPR schedule.  “Marketplace Money” will air Saturdays at 9pm ET starting March 3rd while “Marketplace Morning Report” will air weekdays beginning March 5th.
 
But wait, there's more! American Public Media is also adding a schmorgusborg of other public radio programs like “The Story,” “Weekend America,” “Sound Opinions” and “Performance Today Weekend” - all joining the XMPR lineup sometime this spring.

• Actress and writer Annabelle Gurwitch talks about her documentary film and companion book called Fired!: Tales of the Canned, Canceled, Downsized, and Dismissed. Gurwitch was inspired after she was dismissed by her idol Woody Allen, who added, "You look retarded." (Tues, Feb 20th)
• Billy Bob Thorton who plays a family man pursuing a lifelong dream of building his own rocket in the film "The Astronaut Farmer." (Wed, Feb 21st)
• Michael Apted, director of “49 Up,” “Coalminer's Daughter,” and dozens of other films.  His newest movie, “Amazing Grace” tells the true life story of William Wilberforce, a leader of the British abolition movement and his fight to pass a law to end the slave trade in the late 18th century. (Thurs, Feb 22nd)

Sirius is opening up the archives of The Howard Stern Show and showcasing the most memorable musical performances from the past 25 years.

Starting on Friday, February 16th at 3pm ET and running all weekend long, Howard 101 is airing performances from music's biggest names, with commentary from musicians who have stopped by the show, along with memories from Howard and his cohorts, plus bits from inside the studio and off-site parties and road shows.

You'll hear the in-studio performances by legends such as James Taylor, Elton John, Stevie Wonder, AC/DC, Jethro Tull, Aerosmith, Alice Cooper, and Willie Nelson as well as classic performances by superstars like Dave Grohl, Alanis Morissette, Sheryl Crow, Counting Crows, and Stone Temple Pilots, among many others.

Recorded musical performances from 25 years of birthday shows, international shows and road shows will also air. Highlights include songs from Lenny Kravitz, David Bowie, Tom Jones, The Wallflowers, Sting and Bryan Adams.

And to add to the coolness, over the past 2 months interviews were conducted with artists (like Jon Bon Jovi, Dave Grohl, Steven Tyler, Rob Zombie, and Perry Farrell) to accompany their performances, and their commentary about their songs and experiences will also air.

Howard will also share which musicians and moments stood out to him from this remarkable collection. Robin, Fred, Gary, Artie, Scott the Engineer and Jackie "The Joke Man" Martling are just a few of The Howard Stern Show crew that will also reveal their favorite stories and memories.

There have been some truly great performances over the years, and this sounds like something that shouldn't be missed by any past or present Stern fan.

[Press Release]
Thanks Lee!

Related:

• A look at Stern's deal with Sirius
• Bubba The Love Sponge to air Friday mornings
• Howard Stern engaged to Beth O

Analysts seem split over XM's decision to sell and leaseback XM-4 in an effort to add some coin to the bank.

Bank of America analysts Jonathan Jacoby said XM is now funded until the second half of 2008, when they're expected to turn a profit. On the otherhand, Morgan Stanley analyst Benjamin Swinburne was "mixed" on the deal, saying that this could show XM's opinions about future cash flow as well as on price increases.

"We believe this transaction also likely speaks to management's view on raising prices in 2007," Swinburne said. "We believe Sirius will move to raise rates in 2007, but that XM is less inclined to follow suit."

[Forbes] 

Legendary NASCAR driver Dale Earnhardt, Jr. will have a very special guest for his first XM show of 2007: The defending Nextel champ Jimmie Johnson.

Earnhardt and Johnson will chit-chat about the upcoming season which opens this weekend in Daytona (think of it like the AFRO show of racing). Dale's show airs Thursday night at 7:30pm ET on XM Sports Nation (ch 144). And Jimmie, of course, has his own XM show which airs the same night at 7pm ET as part of XMSN's Engine Block.

Jimmie’s guest for the season opener will be fellow NASCAR driver Casey Mears, who recently joined Jimmie as a member of the Hendrick Motorsports team.

Sirius Satellite Radio's "Blog Radio" show on Left of Center (ch 26) has been awarded the 2007 PLUG! Music Award for "Specialty Show of the Year."

Music lovers participate in the PLUG! Music Awards, which are held every year to celebrate the best in independent music. Writers, DJs, bloggers, artists, filmmakers, managers, indie retailers and fans gather for PLUG! to celebrate indie artists.

"Blog Radio" airs weeknights at 10pm ET and is hosted by influential music bloggers who provide insight into the indie rock scene. Brooklyn Vegan, one of the contributors to "Blog Radio," also won the PLUG! Music Award for "Best Music Blog." Fellow contributors/blogger Gorilla vs Bear and My Old Kentucky Blog were nominated in the same category. Sadly, it doesn't seem that Product Shop NYC (another Blog Radio cohort) was nominated for anything.

Congrats to Sirius and to all the bloggers involved. It's well deserved. 

Last week I had the thought that there should be a Jellyfish Smack event for satellite radio, and now I'm proud to announce that Orbitcast and Jellyfish have teamed up to do exactly that.

On February 27th at 3pm ET, an Orbitcast Smack Shopping Event kicks off, making many of the latest satellite radios available to readers at ridiculously discounted prices.

So you're wondering what the hell a Smack event is? Think of it like Woot! on steroids, but instead of one product in one day - it's several products in an even shorter amount of time. My wife is totally addicted to this thing because it's more of a game than just "shopping online" and you can find some incredible deals while you're at it (I missed out on a Slingbox Pro at almost 30% off today).

Here's how it works. In the beginning of each event, the cash back amount increases every second until a hidden quantity of items is sold out (or until the cash back amount reaches 100% - at which point, it's free). The deal gets better every second that goes by, but if you wait too long the product is gone forever and the deal is over. (Think of it like "Deal or No Deal" for shopping.)

Another cool thing about the Smack events is that there's a chat going on at the same time, plus games and other contests that keep it fun, even if you don't buy anything.

So anyway, enough reading... go check out jellyfish.com/smack/orbitcast and get ready for the event on February 27th. I've hand picked all the satrad products myself, so you know there'll be something there that you'll like. Plus, you never know what other surprises we might have in store for you.

(And no, I don't make any money off the Smack events.) 

The Bubba The Love Sponge show will start broadcasting live Friday mornings on Sirius' Howard 101, starting on February 23rd.

Bubba will continue to host his regular daily show, Monday - Thursday from 3pm-7pm ET on Howard 101, but his new timeslot on Fridays mornings is now 6am-10am ET.

Replays on of the Friday morning show will air in the afternoon, from 3pm-7pm ET.

Sirius Canada has been busy today. They've just announced that Sirius Canada has signed a distribution agreement with Toyota Canada to make Sirius as a dealer-installed option, starting in June 2007.

The dealer option will be available in a number of vehicle models from the Toyota and Lexus brands, though at this time we don't know exactly which models will apply.

Thanks Gary! 

Sirius Canada and Mazda Canada have signed a multi-year deal to offer Sirius Satellite Radio as a factory-installed option in Mazda vehicles in Canada.

At this time there are no additional details on the launch schedule or model availability. These will be announced in the coming months. So there you go.

Hey now! Last night Howard Stern popped the question to long-time girlfriend Beth Ostrosky, Stern announced the news this morning on his show.

The very naked Howard produced to (an also very naked) Beth O a 5.2 carat emerald-cut diamond ring, after which she said "yes" to his proposal. No wedding date has been set as of yet (we should prepare for a very long engagement). 

More details and discussion on Stern Fan Network here.

Congrats to both Howard and Beth! 

UPDATE: Check out a sketch of Beth O's ring, as rendered by the talented Lisa G. 

Sirius Satellite Radio will air the legendary Daytona 500 live this Sunday (February 18th), with 15 hours of coverage from the track from 9am to midnight, on Sirius NASCAR Radio (ch 128).

From Wednesday, February 14th through Sunday, February 18th, SIRIUS will broadcast live from the infield at the Daytona International Speedway, providing news, expert analysis and interviews. Sirius NASCAR Radio will also broadcast Friday's NASCAR Craftsman Truck Series race, Saturday's NASCAR Busch Series race and Sunday's Daytona 500 live, providing full pre- and post-race coverage produced in conjunction with Motor Racing Network.

On top of carrying the broadcast from Motor Racing Network (MRN) Sirius is broadcasting the driver-to-crew chatter on 10 additional channels. When the team members are not on the radio the audio of the live race broadcast will come up allowing listeners to follow the entire race uninterrupted.

Follow the jump to see the full in-car audio lineup, as well the full NASCAR programming schedule...

There were rumors of a possible sale-leaseback deal, and they appear to be true. XM Satellite Radio has entered into a sale-leaseback deal with Satellite Leasing LLC, bringing a total of $288.5 million in cash to XM.

The deal, which involves the selling of the XM-4 transponder (not the satellite itself) and subsequently leased back from Satellite Leasing, was finalized yesterday (February 13th) after months of negotiation and prep work. It follows some extensive in-orbit testing of XM-4 in January, and some additional insurance that was placed last week to get the deal to go through.

The sale-leaseback deal allows XM to add some quick liquidity on something that previously was not liquid, as well as to reap the tax benefits of owning the XM-4 satellite itself. XM has already paid off $44 million for outstanding mortgages on their property. The lease term is for 9 years, and XM will retain full operational control over XM-4 during the term. 

[View SEC Filing] 

The NAB has renewed their plea to the FCC to issue a complete recall of "unlawful" satellite radio receivers.

Last year the NAB whistled the same tune in a similar letter to the FCC, and later a letter to both Sirius and XM. Apparently causing XM and Sirius a massive disruption in production isn't enough for NAB president David Rehr. No, now we need an all out recall of all satellite radios that are "interfering" with FM.

In his letter, Rehr is particularly concerned with listeners of public and religious programming being subjected to explicit and "unwelcome" programming - particularly "The Howard Stern Show." And as expected, Rehr referred to a recent New York Times article to back up his claims that this is going on.

It's obvious that the NAB is quite pleased with themselves with what they were able to pull off last year, and they're not going to stop pressuring the FCC for more drastic measures. Afterall, who needs to compete in the marketplace when you can just use political pressure to get the job done for you?

[View Letter (PDF) via MediaWeek] 

(For you lazy clickers, you can read full text of Rehr's letter after the jump...) 

Yesterday, legislation H.R. 983 - backed by the National Association of Broadcasters (NAB) - was introduced in Congress by Representative Gene Green (D-TX). The legislation was co-sponsored by Representative Charles W. "Chip" Pickering (R-MS).

The purpose of the legislation (given the title of the "Local Emergency Radio Service Preservation Act of 2007") is meant to "preserve local radio broadcast emergency and other services and to require the Federal Communications Commission to conduct a rulemaking for that purpose."

Interesting since currently, satellite radio services transmit local traffic, weather, and public safety information nationally, to all subscribers, regardless of location. This bill would prevent satellite radio from transmitting these local services - including public safety/emergency information.

A great example of the benefits of satellite radio - the public benefits - was during the Hurricane Katrina aftermath when XM and the Red Cross both setup Red Cross Radio. This allowed relief workers, shelters and aid stations to receive vital information during a time when local terrestrial radio was knocked out of service.

In response to H.R. 983, XM Satellite Radio has issued this statement:

"This special interest legislation would prevent satellite radio from broadcasting local traffic, weather, and emergency alert information on our national platform so that all of its more than 13 million subscribers can hear it.  Why doesn't the NAB want satellite radio to be able to broadcast local Amber Alerts?  Because of their selfish desire to avoid competition in the marketplace.  Congress should reject this outrageous attempt to stifle competition and harm consumers."

Kudos to XM for taking a stand against this. It's amazing to me that the NAB, and those on Capitol Hill, would even consider the prevention of local emergency broadcasts, like Amber Alerts, to be a good idea. 

This isn't the first that that Rep. Gene Green and his cohort Rep. Chip Pickering have tried this. Back in 2004 they tried to introduce the "Local Emergency Radio Service Preservation Act" which failed, and amazingly enough they've actually tried to introduce this legislation three times in the past.

So why does Rep. Gene Green and Rep. Chip Pickering seem so intent on preventing these public services from being delivered to you? Perhaps a look at their campaign contributors (here and here) might answer that. Or better yet why contact Green and Pickering find out for yourself?

Sirius Canada said they have surpassed 300,000 paying subscribers with more than 100,000 of those subscribers joining since November 22, 2006.

According to NPD Group, Sirius was the preferred choice for satellite radio this holiday season with nearly 8 out of 10 satellite radio shoppers choosing Sirius in December.

Since January 2006, Sirius has led the satellite radio industry in Canada with 75 per cent market share, within NPD's measured channels.

A merger of Sirius and XM may not be necessary right now says Mark Wienkes, analyst at Goldman Sachs.

"We believe that the consensus perception that this merger must be attempted sooner rather than later is misguided," he said in the note.

"Rather, since a large portion of the potential synergies would not likely be realized for three to four years, we think the companies have the opportunity to work together in the short-term to save money on common expenses like marketing and promotion."

So instead of merging immediately - try working together instead? Sounds like a no-brainer, but the egos involved need to be considered.

These two companies have been at war with each other for such a long time, it seems unlikely that something as simple as "working together" would ever happen. Ego is also a huge aspect that doesn't seem to be a consideration to merger-hopefuls. Still, considering the hurdles (and expenses) involved with an actual merger, perhaps working together would be the most cost-effective approach in the near term?

Wienkes added that the companies may be able to "wait out some of the regulatory uncertainty and maximize the expected value of a merger to shareholders."

(Read: Hype it up a bit since that seems to be the leading thing driving the stock value.) 

[via Forbes] 

UPDATE: Jim Norton's book is now available.

Jim Norton, host of the popular "Norton & Friends" show on XM Satellite Radio's The Virus (ch 202) and occasional stand-up comedian, has inked a book deal with Simon and Schuster, according to the New York Post's Page Six.

The book is described as a 'tell-all' by a Simon and Schuster rep, who is quoted in the Post as saying it covers "everything from Norton’s affinity for hookers, stalking Black Sabbath and Alan Alda, and always getting stuck with the hot girl’s fat friend."

Norton says of the as-yet-untitled tome, set for a July release, "It's ironic that many of the stories revolve around prostitution, because that's where all proceeds from this book will be going. Actually, that's probably more disgusting and creepy than ironic."

Sources familiar with the deal tell Orbitcast that an audiobook is expected to accompany the release of the print version, allegedly voiced - in perfect diction - by the executive producer of Norton's show. More details to follow.

[New York Post Page Six via FMQB]

UPDATE: Jim Norton's book - Happy Endings: The Tales of a Meaty-Breasted Zilch - is now available from Amazon.

The "Best in Show" hour of the will be broadcast live from Madison Square Garden on Sirius' Martha Stewart Living Radio (ch 112).

Tune in on tonight, from 10pm – 11pm ET as "Best in Show" is the most coveted award at the most famous dog competition in the world. Established in 1877, The Westminster Kennel Club is America’s oldest organization dedicated to the sport of competitive dogs. USA Network is televising the Westminster Kennel Club Dog Show, so if you want to catch the best Herding or Hound dog, you'll have to watch it. But if you're on the road and don't want to miss the "Best in Show" award, Martha Stewart Living Radio will deliver.

Strap in kids.

Sirius Satellite Radio is allowing NASCAR fans to determine which driver-to-pit crew communications they want to hear each week.

The feature, called "Fan's Choice" will air on one of Sirius' 10 channels that carry driver-to-pit crew communications, but it's the fans that will be able to vote on which driver they want to hear.

Before NASCAR NEXTEL Cup Series race, fans can log on to vote for their favorite driver. The driver with the most votes, gets to be aired on Sirius "Fan's Choice" channel - Sirius channel 140.

A lineup of drivers and their associated channel will be available at sirius.com/driverfeeds before each race.

Satellite Radio OEM installations are growing this year (afterall, it is the year of the OEM), and TWICE gives us some numbers to help support this, courtesy of Edmunds.

For the 2007 model year, satellite radio service is available in 218 vehicle models. That's up from 183 vehicle models in the 2006 model year, according to Edmunds.

For those who like to pit Sirius versus XM: model availability for each service has grown from 107 (Sirius) and 112 (XM) models in the 2006 vehicle year, to 123 (Sirius) and 117 (XM) models in the 2007 vehicle year.

Unfortunately, HD Radio appears to be making some headway as well, with availability in 51 different models from nine automakers for the 2008 model year (according to the HD Digital Radio Alliance... not Edmunds). BMW is paving the way, who started off with HD Radio factory-installed in the 6-series and 7-series Bimmers. But come March, BMW is making HD Radio available - as an option - in all of their U.S. models.

Optional equipement is great... but, standard equipement - that's where the money's at.

[TWICE]

Crutchfield and the HD Digital Radio Alliance (great name guys, seriously, very impressive) have taken the wraps off of the first-ever retail availability of a car radio add-on that turns your existing car radio into an HD Radio.

Radio Ink seems to call this thing the "HD Car Connect Radio" from Directed Electronics, but everywhere else I see it labeled very eloquently as the Directed Electronics DMHD-1000.

Either way, it's HD Radio's the first device to allow consumers to keep their existing car stereos while gaining access to HD Radio stations. It's essentially a universal add-on HD Radio tuner, similar to the XM Commander MT.

The Directed Electronics DMHD-1000 MSRP's for a mere $199.99. Check out an in-person photo from CES after the jump...

[Product Page via Radio Ink] 

Scott Riggs, driver of the #10 Valvoline/Stanley Tools Dodge Charger in the NASCAR Nextel Cup Series, has teamed up with Sirius Satellite Radio to host his very own "Riggs Report."

Riggs' weekly spot will air on the Sirius NASCAR talk program, "The Driver's Seat," which broadcasts Monday through Friday from 11am to 3pm ET, on NASCAR Radio (ch 128).

"The Driver's Seat" is hosted by veteran broadcaster John Kernan along with an all-star crew of co-hosts including Buddy Baker, Johnny Benson, Randy LaJoie, Ron Hornaday, Ricky Craven, Phil Parsons and John Andretti.

Listeners can catch the "Riggs Report" with Scott Riggs and John Kernan every Tuesday from 1pm to 1:15pm starting on February 13th, where they will be discussing previous and upcoming races as well as current topics in the sport.

[Backstretch Motorsports] 

Ah the game of cat-and-mouse continues as Sirius Satellite Radio has just announced the schedule for their own earnings call. Sirius will announced and discuss their 2006 financial and operating results on February 27th at 8am ET.

You'll be able to hear a webcast of Sirius earnings call online. (2/27 @ 8am ET)

UPDATE: Yes, and I will be live blogging Sirius' earnings call as well. So anyone who can't listen in, will be able to get the play-by-play right here.

XM Satellite Radio has (finally!) scheduled their earnings call for Monday, February 26th, at 10am ET to announce and discuss their Q4 and full year 2006 financial results.

To listen to the conference call via phone, call: (877) 265-5808 or try the local call-in number: (706) 679-7931

Or tune into the XM earnings call webcast here. (2/26 @ 10am ET)

UPDATE: Yes, just like last time I will be live blogging XM's earnings call for those of you who won't be able to tune in.

Motley Fool has put together a Fuck, Marry, Kill list (ok, so they called it "Date, Marry, Kill" - but we know what they're talking about) and their choices, in order, are: Sirius, Apple, and XM.

The Fool selected to "date" Sirius because they're at their 52 week low right now, even though Sirius has fewer subscribers, a heavier market cap, and posted steeper losses than XM. Still, Sirius has a lot of momentum behind it and the Fool seems to like the prospect of Sirius Backseat TV should it take off.

Apple was the one to marry because, well, because they're profitable. And they've got the iPod, of which they've sold 90 million units (compared to "only" 13.6 million satellite radio subscribers). It doesn't hurt that Apple has topped Wall Street's estimates for 16 straight quarters. Oh right, and then there's the iPhone.

XM on the otherhand got killed. Why? Because of the fading merger speculation, the RIAA lawsuit and losing massive retail marketshare to Sirius. The Fool isn't necessarily convinced over the whole "OEM is the future" thing either (because of iPod jacks).

[The Motley Fool] 

I don't know if I buy this one, but Forbes is reporting that Sirius and XM may both report earnings as early as Monday, according to a UBS report. This would be unprecedented, and most likely will send the merger speculation soaring if it is in fact the case.

Either way, only time will tell. Check out the video here. 

Thanks Steven! 

Sirius Satellite Radio has patented an antenna that improves both satellite and terrestrial signal reception. This "modular patch antenna" involves three parts:

• The first section uses a "metal plated radiating layer" optimized for satellite reception;
• The second part is a dielectric layer for optimized for terrestrial reception;
• And the third layer is a metal plated ground layer.

The first layer and third layers could be made of any number of metals including Silver, Gold, Copper, Nickel and Aluminum. The second layer would be made out of Teflon, polytetrafluoroethylene (say that 3-times fast), glass, ceramic, aluminum, a polymer, silica, and quartz.

In short, the antenna would be more gooder, and Sirius patented it.

[Download Patent (PDF) via Satellite Radio TechWorld] 

XM Satellite Radio has filed for a patent that specs out a system for geosynchronous satellites that follow in an elliptical orbit, creating a "figure-eight" ground track.

Some Sirius folks may notice that this orbit pattern looks familiar.

Now before we go getting all up in arms about that this is a possible shift in XM's plans for their satellite configuration. I just want to point out this line from the patent application:

"This application is a continuation of U.S. patent application Ser. 10/171,619, filed Jun. 13, 2002, which is a continuation of Ser. No. 09/433,849, filed Nov. 4, 1999, now issued as U.S. Pat. No. 6,442,385."

So this isn't necessarily anything new, just a patent that XM has been working on for a while and this is simply the continuation of it.

Either way, it's "interesting" to say the least.

[via Satellite Radio Techworld] 

Sirius Satellite Radio's NASCAR Radio (ch 128) revs up the NASCAR race season live from the Daytona International Speedway with coverage of the 2007 Budweiser Shootout this weekend.

The excitement begins tomorrow, February 10th, at 4:30pm ET when Sirius delivers pre-race coverage of the exhibition (no points) event. The actual Budweiser Shootout race then begins at 8pm ET. If that's not enough, get your post-race coverage after the race until 1am ET.

Then on Sunday, February 11th, Sirius will broadcast qualifying for the Daytona 500, which leads up to the actual madness that is the Daytona 500 race on February 18th.

Since Sirius and XM both have participated in woot! events, why not do something in a Jellyfish Smack Shopping event? My wife is totally addicted to Smack (...like Artie?) and it looks like woot on steroids, might be a good way to generate some interest.

Has anyone else seen these Smack shopping events? Here's their blog that shows different events.

Snuggle up with that special someone this Valentine's Day, while you sip fine wine by the fire, and have Sirius in the background setting the mood.

This V-Day, Sirius is going to get you all mushy inside with a slew of Valentine's Day programming. From "Trailer Park Love" on Outlaw Country (ch 63) to "Deepak Chopra Kama Sutra II" on Sirius Stars (ch 102), Sirius plays your wingman while you turn on some sweet looove.

But if you're more into professing your love to the satellite nation, forget naming a star after her and let Sirius' Jam_ON (ch 17) say it for you, by sending a Jam-Gram to your heart's desire. Or send out a Valentine's Pledge on Sirius Love (ch 3) where you can pledge your love to the one you love over the air. Grrrr...

[Sirius' Valentine's Day Schedule] 

XM Satellite Radio's Grammy Radio has begun on XM Live (ch 200) starting today through Sunday night.

In addition to the Grammy coverage on XM Live, XM's 20 on 20 (ch 20) is now broadcasting live from Los Angeles through Sunday. You’ll also get to hear reports from Grammy events on Ethel, Squizz, Watercolors, The City, Suite 62, Flight 26, Hitlist, Raw, and other channels.

Plus, tune in as XM Raw (ch 66) will have full coverage of the Post Grammy Party with Ludacris and Queen Latifah on a special edition of Ludacris’ weekly XM show “Open Mic with Ludacris” on Sunday night.

[View Full Schedule (PDF)]

It looks like Sony has unveiled some high-end home integration audio / video equipment at the International Builders Show this week.

At the top of the line is the Sony NHS-3030. It provides audio and video entertainment in up to 13 rooms, incorporating an ES A/V receiver and six sources. These include a DVD manager with 400-disc changer (yikes), along with a music storage and a management server. The remaining sources range from XM Satellite Radio to secondary DVD players (in case you have more than 400 DVDs you want to access). Up to three additional HD or standard-definition components can be added to the system.

Sony's NHS-2030 and NHS-1030 have similar capabilities, including XM support, just with less rooms (6 rooms instead of 13). Your content is either navigated on your TV, or through LCD touchscreens or wall remotes.

At the bottom of the ladder is the Sony NHS-330, which gives you A/V support in up to 3 rooms, each with independent volume control. The NHS-330 includes an ES system, and three sources - which can be anything from XM Satellite Radio to a DVD changer.

Cost? Oh right, these badboys will run you only $10,000 to $50,000 (that's installed, thankfully). You better start saving your lunch money kids, because they're expected to be available this Spring. 

[Product Announcement via Engadget]
Thanks to everyone who sent this in!

So this is funny. While it was recently announced that HD Radio inked a deal with Sharper Image, there looks to be a bit more motivating the partnership than meets the eye.

Sure, HD Radio gets another retail outlet (with prominent placement in stores and catalogs), but the reality is that Sharper Image gets to piggyback on the $250 million HD Radio ad campaign. Something they desperately need.

Now, it's not that barter is a new concept. Just that this isn't the grand success that terrestrial is making it out to be. If this was such breakthrough technology, it would be something that retailers would be seeking out - not bartering over.

(Kudos to Hear 2.0 for figuring this one out.) 

XM has extended their contract with public radio guru Bob Edwards, in a new multi-year deal, to continue hosting the XM Public Radio (ch 133) flagship show, "The Bob Edwards Show."  
 
Edwards joined XM in 2004, and has interviewed hundreds of notable personalities such as William F. Buckley, Jr., Jimmy Carter, George Clooney, Matt Dillon, Nora Ephron, Al Gore, Philip Seymour Hoffman, Arianna Huffington, Jeremy Irons, Robert F. Kennedy, Jr., Bob Newhart, Edward Norton, Anna Quindlen, Dan Rather, Arthur Schlesinger, Jr., Ricky Skaggs, Gore Vidal, Forest Whitaker and many others.

"The Bob Edwards Show" airs weekdays from 8-9am ET, with encores at 7am, 9am, 10am and 8pm ET.  In 2006, XM debuted "Bob Edwards Weekend," a two-hour highlights program that also is the first satellite radio show made available on terrestrial radio. "Bob Edwards Weekend" is syndicated nationally to public radio stations across the country through Public Radio International (PRI). 

Terms of the deal were not announced.

(TWO Bob Edwards posts in a single day? The sky must be falling.) 

Oh sure, Sirius owned XM by luring NASCAR away, but XM is letting us all know that they still have NASCAR coverage. And it's revving up soon.

First up is Jimmie Johnson's "Not What You Expected" who makes his second-season debut on February 15th at 7pm ET, with encores airing at 10pm ET, on XM Sports Nation (ch 144). Every week, the defending Nextel Cup champ gives his personal perspective on the sport with co-host Marty Smith.

Then there's "Dale Jr.'s Unrestricted" which kicks off its second season the same night at 7:30pm ET (replays: 10:30 pm ET) also on XM Sports Nation. Earnhardt and best buddies Josh Snider and Steve Cris offer a candid look at what's happening on and off the track each week.

Fan favorite Claire B. Lang has her three-hour racing show "Dialed In" weekdays on XM Sports Nation from 4-7pm ET. Next week, Claire will be live in Daytona, to report on the official start of the season. Following Claire's show is "Power Shift" with Joe Castello airs weeknights 8-10pm ET (together, along with other motorsports coverage, is known as the "Engine Block" on XMSN).

But wait, there's more.

XM Sports Nation has added the popular Performance Racing Network (PRN) show "Sunday Drive" to its lineup, along with returning PRN favorites "Fast Talk" and "Alltel Pit Reporters." (Interesting side note: PRN is also partnered with Sirius for their NASCAR content.)

"Sunday Drive" airs Sunday nights at 8-9pm ET on XMSN. The one-hour call-in show is straight from Lowe's Motor Speedway and features host Stephanie Durner who is joined by driver analysts including John Andretti, Geoff Bodine, Mike Wallace and Buddy Baker.

"Fast Talk," is a one-hour NASCAR-themed motorsports call-in show, returns to XM Monday nights, 7-8pm ET. The show is co-hosted by Doug Rice along with some of the biggest honchos in racing.

"The ALLTEL Pit Reporters" with veteran broadcaster Brett McMillan features some of the nation's top racing media in an hour-long roundtable discussion of the issues facing the sport. McMillan's show airs Wednesdays at 7pm ET through March 21st, and then makes the move to Fridays at 7pm ET.

So says Forbes in their The Best-Paid Talking Heads feature. The $302 million payout for Stern of course includes stock, bonuses, and salary all lumped together in a big ball of cash.

That total figure beats out Oprah Winfrey's meager $225 million over the course of last year, which includes the money she made from her XM deal in 2006. Further down the totem poll is David Letterman, raking in $40 million, who still earns more than rival Jay Leno. Sadly, neither Letterman or Leno have anything to do with satellite radio.

24/7 Wall St. is quick to suggest that Stern's pay may not be worthwhile since Sirius earned $167 million in revenue last quarter, has an operating loss of $154 million and is still walking around with over $1 billion in debt. (Something tells me that 24/7 isn't very bullish on SIRI.)

There's no question in my mind that 2006 was a rocking year for Sirius, and Stern obviously deserves his due credit for contributing significantly to this feat. I'm just curious about the year ahead (and an earnings call might help).

XM Satellite Radio is supposedly negotiating a sale and leaseback deal for their XM-4 satellite, according to UBS analyst Lucas Binder.

The deal could yield up to $300 million in cash for XM and would remove the need for the company to access its revolving credit line. It would also provide liquidity from a previously non-liquid asset, said Binder.

He also said the deal should be structured as a capital lease.

[Barron's Tech Trader Daily via SSG] 

Bob Edwards will assume the duties as President of the American Federation of Television and Radio Artists (AFTRA) following John Connolly stepping down from the position.

Bob Edwards, who currently serves as the AFTRA First National Vice President, will assume the duties of the President until the next session AFTRA's National Board.

In only slightly related news, next Tuesday on XM's "The Bob Edwards Show" (XM Public Radio, ch 133), a new four-part “Frontline” series debuts called “News War: Secrets, Sources and the Future of the News.”

Correspondent Lowell Bergman will take a look at the political, cultural, legal, and economic forces challenging the news media today. Something that I personally will be tuning into (since y'know, bloggers hate main stream media, and vice versa). It may be something of interest to others, so check it out 8-9am ET on February 13th.

The boys at CNET have given the XM Mini-Tuner a thorough once over and the verdict is, well, generally good.

As CNET points out, the big deal with the XM Mini-Tuner is that your subscription is no longer tied to a single device. Sure you can use a plug-and-play, but there's wires and kooky docking stations involved with such a setup. The Mini-Tuner solves this issue.

CNET also highlights that the XM Mini-Tuner is in it's 3rd iteration of a name, having gone from the XM Passport, to the XM Pass and finally resting on the XM Mini-Tuner. (Side note: it was rumored that the name change from "Passport" was due to a disagreement with the guys at Escort, though there's no official word on that.)

What CNET doesn't like - and I have to agree with - is that the XM Mini-Tuner, while tiny in the world of satellite radio, is a behemoth when measured against items like the clip-on iPod shuffle and itsy-bitsy MicroSD cards. Of course, those don't do nearly as much as the Mini-Tuner does - but some geeky consumers may wrinkle their noses at it. And even though it's still ridiculously small, it's not small enough to enable devices like the iPod to receive XM.

They also bring up the fact that the XM Mini-Tuner right now doesn't really have too many compatible devices on the market right now. Another issue, albeit a temporary one, is that some of the early-gen XM Mini-Tuner capable devices will require a small dongle (wow, haven't heard the term "dongle" since 1990). They are quick to point out that newer devices will have a built-in slot (like the drool-inducing Jensen NVXM1000 GPS - I want one).

Overall they gave it a 7.7 rating. Is that a fair rating? You tell me.

[CNET] 

Want to get your hands on a brand spankin' new Sirius 8” powered Subwoofer (SIR-PS1) for an affordable price? Then check out Woot! today. They've got it going for about $60.

Now, the Sirius SIR-PS1 doesn't require a subscription to use it (the RCA jacks allow it to be connected to your Sirius unit, or any radio for that matter). But now you're wondering why this Sirius Subwoofer even has a Sirius logo on it? That's because along with the built-in 80 watts RMS amp (160 watt peak power), that same Sirius badge also lights up with a cool blue LED. And that makes it all worthwhile.

[Woot!] 

I sure do love a good fakery. Just under a year ago Orbitcast was anonymously handed a "photo" of XM's upcoming portable satellite video player, which I'm convinced was the work of a handy Photochopper. (Though, I must note, there was a working prototype out there... just not the one pictured.)

Today, it goes a step further. Now we've got video of the... video player. The verdict? You tell me:

(Pssst... to the guy with the video editing skillz: You may want to consider a white background next time. Just a thought.)
UPDATE: The video was pulled and replaced, now with the artifacts around the video player removed. Phew! Now we can all believe that it's real.

We all know who the King of All Media is, but Howard Stern wants to make it official. So what better way than to trademark the term?

Last September, Howard applied for the trademark, and yesterday it was approved for publication. In about two months, the trademark for "King of All Media" will be published for opposition.

It ain't over yet, there's a long arduous road ahead in becoming the true and official "King of All Media." Thank goodness too, because we'd likely see "King of All Blacks." "the Limo Driver" and "the Stockbroker" all up for trademark as well.

[via Satellite Radio TechWorld] 

The folks over at Applied Media Technologies Corp (the providers of SiriusBusiness) have unveiled their new Sirius Business Equipment Kit which include three upgraded components.

First up is the Sirius InV SV2 receiver, which is significantly smaller and lighter than the previous satellite radio receiver provided by AMTC. Using a newer chipset, the Sirius InV emits much less heat making it more reliable for the continuous use that it would get in a business environment.

The new kit also includes 100' of 3GHz sweep-tested, low-attenuation coaxial distribution cable. This new cabling allows for a more reliable signal transmission (which is always a good thing). AMTC’s 10.5” commercial-grade outdoor antenna has also been modified to accept this new cable.

The Sirius Business Equipment Kit retails for $239.  

Sirius Satellite Radio and Frank Sinatra Enterprises are teaming up to create a new channel dedicated to the music, time and spirit of Frank Sinatra: Siriusly Sinatra. A move that wrestled the Sinatra namesake away from XM last month.

Entitled "Siriusly Sinatra" the channel is the only on the radio that is produced by the Sinatra family. Featuring a weekly show hosted by Nancy Sinatra, rare live concert performances, and special programs of archived material.

Another incredible feature on the Siriusly Sinatra channel will be "The Chairman's Hour," which is hosted by Frank himself out of on archival material both spoken word and music.

Siriusly Sinatra will also air other artists from the big band, swing and traditional pop genres.

[Press Release] 

UPDATE: According to the NY Daily News, Nancy Sinatra will be at Sirius today for the official unveiling of the channel (which will happen at Sirius' studios in Rockefeller Center).

Nancy also said the arrangement with XM was made "when there was only one network operating." Though Jonathan Schwartz, PD for XM's High Standards (formally "Frank's Place") said there will be no change in the Sinatra content of XM's channel.  

For over half a century since we've been launching ourselves into space, we've been leaving behind space junk (or "orbital debris"). Now the federal list of detectable objects - comprised of dead satellites, spent rocket stages, or whatever else that measures four inches or larger - has reached over 10,000 objects.

What doesn't help is China's test last month using an anti-satellite rocket that destroyed an old satellite into nearly 1,000 detectable pieces at over 18,000 miles an hour. This is chalked up as the worst debris causing event (since 1996 when an abandoned American rocket engine exploded in 713 bits and pieces).

The problem, scientists agree, is that the amount of debris in Earth's orbit has surpassed a critical mass, or "critical spacial density." This is building to a point that it'll kick off a cascade, a chain reaction, where colliding debris smashes into larger objects, creating more debris, reeking havoc in the heavens.

So who cares? Anyone who's business involves launching satellites into space does. While XM's or Sirius' satellites aren't in immediate danger, there's an underlying issue. The theory (know as the Kessler Syndrome) is that as the debris becomes so dense that launching satellites would become harder and harder - and more expensive. The good news? This worst-case scenario is probably centuries away.

[NY Times]

Garrett Hart, former Program Director of Rock at WRQK/Canton, OH, has joined Sirius Satellite Radio as a Format Manager.

Hart will be overseeing music channels Sirius Gold (ch 5) and '60s Vibrations (ch 6). He will also handle Sirius' broadcasts from the Rock & Roll Hall of Fame in Cleveland.

[FMQB] 

Apple's CEO Steve Jobs has released an open letter calling for the major labels to abandon digital rights management.

Jobs writes:

"Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy. Though the big four music companies require that all their music sold online be protected with DRMs, these same music companies continue to sell billions of CDs a year which contain completely unprotected music. That’s right! No DRM system was ever developed for the CD, so all the music distributed on CDs can be easily uploaded to the Internet, then (illegally) downloaded and played on any computer or player."

Engadget's Ryan Block poignantly points out that Apple and Microsoft together have the power to change the digital music rights ecosystem - and the labels know it. All that's needed is a concerted effort to change things, and we - the consumer - will follow.

[Steve Jobs: Thoughts on Music via Engadget] 

Nothing makes that special someone get all hot and bothered more than a dancing Lovebear (grrr).  Those 3D robotic kind are just so passe though, that's why XM has put together this customizable XM Lovebear (grrr) ecard. 

Pick and customize your own very special dancing bear (grrr), pick the music you want it to rock out to, and even put together your own personalized message (and don't worry, if you can't think of anything you can just select one of their many choices).

I personally like the Disco Fever bear (grrr).

It's all part of XM's Valentine's Day promo - oh, but who cares about that - it's all about the bear!

[Grrrr] 

Sirius Satellite Radio's OutQ channel (ch 106, soon to be ch 109) lesbian radio show host Romaine Patterson said on the air that she and her partner are having a baby.

Patterson, cohost of the "Derek & Romaine Show" will carry the baby, due in July. Romaine Patterson's partner, Iris, chose to use a sperm bank to "father" the baby.

You can read more about the pregnancy on her website. (Congrats!)

[via The Advocate] 

From the seen-but-not-heard department, apparently there's an internal meme being used by Sirius management in reference to their listeners: SPERM (Self Proclaimed Experts of Radio & Music).

Of course, the source that leaked SPERM (sorry, couldn't resist) is the recently fired Sirius OutQ guru John McMullen, who goes into great detail about what transpired behind the walls of the McGraw Hill Building. McMullen was eventually let go due to "violating the company's code of conduct," which he claims is not true.

A grain of salt is required when taking in this information, because irate former employees generally don't paint the picture to be in favor of the company. But still, there's some real goodies in there like the snubbing of the SBS crew, a poster that offended Joe Clayton, Ben Sparks' shenanigans at Sirius, and much more.

That said, the term SPERM is highly entertaining, and to some it might be slightly offending.

Something tells me that Sirius wouldn't be adopting a Digg for Radio concept anytime soon.

[Sirius Backstage]

TheStreet.com columnist Doug Kass is reporting that he's hearing that a combination of Sirius and XM is "imminent." Of course, further details are lacking. Bummer.

Amazingly, even though this "report" was published at 9am this morning on Street Insight, it didn't seem to do much in terms of moving either stock. Perhaps investors are looking for a bit more than just a hunch nowadays?

Or maybe - among frenzied iPhone service rumors (yes, from the same source) - the proof is in the pudding? Either way, I'm just psyched we can talk about a rumored merger again!

[TheStreet]
Thanks Jonathan!

The boys at Sirius Uplink have learned from a "reliable source" that there's going to be some lineup channels in the works, though admittedly a time-table is apparently lacking.

First up is Reggae Rhythms, which supposedly will be taking the place of the beloved The Who Channel at channel number 98. Then Sirius Disorder will reportedly move into Reggae Rhythms' spot at channel 32.

And then the good news (because I know you're still crying over The Who Channel), a new channel - supposedly a 90s Alt-Rock channel - is rumored to be arriving on channel 24. So turn that frown upside-down Frank, everything's going to be alright.

[Sirius Uplink] 

Here's a thought: take the high paced social-centric approach of Digg, and combine it with the interactivity of requesting songs on the radio. What would you have? Digg for radio.

I've been thinking a lot about the interactivity of satellite radio. How feedback from listeners is received by both satcasters and how this experience can be better applied online. Right now the communication is mostly one-way: coming from either Sirius and XM, and "pushed" to the listener. The closest example of seamless interaction from the listener is found on XM's Top 20 on 20 channel (which I think is great idea, just poorly executed online). The idea of course could be easily adopted by Sirius (or regular radio for that matter, but... regular radio sucks).


Control
Part of the attraction of the iPod is the sense of control. You can customize, rank, and make the playlist "yours." But part of the attraction of satellite radio is it's ease-of-use. Those same control abilities that the iPod allows, are (quite honestly) a pain in the ass to many music listeners. Let's be realistic, it takes a lot of time to build an extensive music collection - and even more time to customize it all to your liking.

With control comes effort. And sometimes it's nice to just sit back and have the music flow to you. Some people prefer absolute control, others don't. I think it's fair to split these two types of listeners up into two defined groups.


"Passive" vs "Active"
Some people listen to music in the background. Some people listen in the foreground. These could be labeled as "passive" and "active" listeners. Passive listeners will just turn on a channel (or pick a playlist) and play it at a low volume while they're doing something else. Active listeners will crank up the volume and groove out to whatever is on, dancing and singing along with the songs.

But both listeners will inevitably get frustrated at some point with what they're hearing.

Passive listeners will get frustrated with repetition, or with a string of songs that are annoying. Even though they're passive, they're still hearing what's coming in - probably over a long period of time. So if they hear the same songs over and over again, guess what? They take action. This is the problem with the iPod. No matter what, you're almost guaranteed to have heard the songs on your iPod before. There's nothing new. These listeners will rather just listen to the radio, as long as it matches their music tastes.

Active listeners get frustrated when the song on "sucks" or doesn't match the current emotion they're feeling. This also applies to songs that they've heard TOO many times - it can move from a favorite to the Suck Category pretty quickly. Active listeners with huge MP3 collections will most likely suffer from "iPod A.D.D." (listen to the first five seconds of a song, acknowledge it, click "next" - wash, rinse, repeat). These hyperactive listeners want the most control, but that doesn't mean that they don't yearn for new music. In fact, the Active listener would want to ensure that they're on top of the latest music of their genre (and this doesn't necessarily mean "pop" btw).


Improving Interactivity
Phoning in a song request is just so 90s. Sure, it's nice - and necessary - when you're on the road or at the job site. But this 2007, and if you're not enabling the online user, you're being ignorant.

That's where this "Digg for Radio" concept comes in. You can engage both the Passive and Active listener, and automate the process while you're at it. Allow users to vote, and immediately see the result is satisfying. But for every voter, there's a hundred "watchers" who just want to see what's going on. You get to appeal to these people as well. The watchers are keeping in tune with the trends, and having a little fun while listening to the radio.

With this concept the channels could appeal to both types of listeners. It's actually not much of a change to the current "song request" system, just adding a higher level of interactivity.

And while you're at it, why not add a deeper sense of community to the votes? Why not allow listeners to comment on the song they just voted for? By soliciting feedback from their listeners, you learn a bit about your audience while you provide them with an outlet. Plus listeners get to connect with those who share similar music interest.

It's just a thought, and maybe just a pipe dream. Thoughts?

It's a road trip! XM Satellite Radio is headed down to Durham, North Carolina, to broadcast live coverage of the Duke-UNC men’s basketball game from the Duke University campus on February 7th. Wednesday’s game will mark the latest chapter in one of the fiercest rivalries in sports.

Starting Wednesday at 6am ET, XM Sports Nation (ch 144) will broadcast live from an XM booth in front of the Duke's athletic center, next to the tent city “K-ville” where students camp out for game tickets. XM’s T.J. Rives will tip off the broadcast in the morning, and Ed Forcey will take over the booth for the afternoon and the post-game show. This 'round-the-clock programming is dubbed "XM Sports Nation Total Access."  

Duke coach Mike Krzyzewski (Coach K) will host a special edition of his weekly XMSN show at 2pm. His guests include ESPN analysts Hubert Davis, who played for UNC, and Jay Bilas, who played for Duke.

But this isn't just about sports coverage. XM's indie-rock channel XMU (ch 43) will also be broadcasting live from the athletic center starting at 4pm ET. XMU on-air host Tobi will interview students and take requests on the air. I dig the cross-channel programming concept (more please?).

The two teams’ local broadcasts of the game will air on separate radio channels at 9pm ET. The Duke broadcast will air on XM 191, and the UNC broadcast will be on XM 192.

As part of XM’s coverage of Duke/UNC on Wednesday, XM is also running two blogs - one by a UNC junior, the other by a Duke senior - providing a student's perspective on the rivalry and the week’s game.

[View Schedule] 

The sleuths over at Boston's WBZ have learned that Sirius Satellite Radio doesn't "seem to care if your unit is stolen."

WBZ did a test to see what would happen if they reported a Sirius receiver stolen, and then had a separate person try to reactivate it a couple days later. Apparently they pulled it off without a hitch. 

Brookline Police officer Tom Shea, who runs juststolen.net (a free website to help track and recover stolen property) explains, "we have learned that Sirius will reactivate those stolen radios."

The reason? Officer Shea recalls his conversation with Sirius: "She told me that they delete all the old records, and when I expressed my concern that law enforcement could very easily identify the person that is in custody of a stolen radio, they don't care."

A Sirius Satellite Radio spokesperson acknowledged that when someone calls to report a radio stolen, they close that account. But they don't flag the receiver as stolen because an innocent person could have bought it on EBay and they don't want to victimize that new customer.

Sirius admits they only mark a radio as stolen if a customer goes through a two step process: First, the customer must report it to the police. Second, the police have to subpoena the company's records.

(Ahh, the Internets: the perfect medium to teach a would-be thief how to pull a profit.)

[WBZ via Digg] 

According to Sirius Uplink, five DJ are gone from Sirius Satellite Radio's Jazz Cafe (ch 71), leaving one DJ left.

Jocks Paul Cavalconte, Deborah Howlel, Maria Von Dickersohn, and Tanya Simpson are no longer listed on the channel's webpage, leaving Jeff Lorber as the sole DJ for the smooth jazz channel.

Last week it was rumored that a total of three channels would be following this "jockless" strategy, include Sirius Gold and now it appears Jazz Cafe. If my math is correct (I'm using my fingers), that leaves one channel left. Any guesses?

[Sirius Uplink]
Thanks Steven!

Every year, Edison Media Research features their selections for the "most intriguing stations" for the year. This year, Sirius Satellite Radio's pop-hits channel Sirius Hits 1 (ch 1) was selected as part of the proud few.

Interestingly enough, Edison's Sean Ross felt that both satcaster's Top 40 offerings weren't all that interesting in the infancy of satellite radio. "In the last 18 months, however, both satellite Top 40s have become more adventurous," he wrote in his article.

Acknowledging Sirius' departure from traditional Top 40 templates and use of cross-media platforms "from MySpace (early support of Hellogoodbye) to Country to TV (re-adding 'The Grease Megamix' to tie in with 'You're The One That I Want')," he also selected Sirius Hits 1 because of it's widely visible platform.

[Edison Media Research]
Thanks Matt!

Remember that "XM Fan Enhancement Program" I told you about yesterday? Well, here's Marie Atkinson, who heads up that at the FBR Open and at other PGA Tour events.

Tell her Ryan sent you!

(...and don't forget to go check out the golf.) 

I'm curious about what service you're all listening to. So feel free to participate in the poll below, and then leave a comment making fun of everyone who didn't vote like you did.

While everyone's twiddling their fingers waiting for the earnings call announcements to come in, investment analysts are busy running models and coming up with subscriber estimates for the year.

This morning, UBS analyst Lucas Binder wrote in a client note that he expects XM to end 2007 with 9.1 Million subscribers, adding that about 1.5 million of the subscriber additions will occur by the second half of 2007.

“We believe the difficult retail environment and slower than expected rollout for original equipment manufacturer (OEM) factory installs will push positive net additions growth toward the second half of 2007 when we may see subscriber recovery,” Binder wrote.

[Forbes] 

Just when you thought that every possible sport could be covered on satellite radio, Sirius goes ahead and signs a multi-year deal with the National Lacrosse League (NLL) making Sirius the exclusive Official Satellite Radio Partner of the NLL. A marketing agreement is also associated with this deal.

Starting today, Sirius will air the NLL "Game of the Week" show live throughout the season plus the Champion's Cup Playoffs. Sirius will also broadcast a weekly one-hour show later this season that will feature highlights, news and analysis.

The NLL coverage is exclusive to both Sirius Satellite Radio and Sirius Canada.

[Press Release] 

Of course we're talking about the FBR Open (sorry Lee), dubbed "The Greatest Show on Grass," it's also the best-attended PGA Tour event of the year. And it opens today in Scottsdale, Arizona where spectators can pick up free XM radios for use each day through the weekend.
 
Pulling in over 500,000 spectators, the annual FBR Open takes place at TPC Scottsdale today through Sunday (though the on-site partying actually began on Monday). Phil Mickelson, Vijay Singh and Chris DiMarco are among the golfers set to compete.
 
XM is carrying the tournament live on the PGA Tour Network (ch 146). Each morning, XM is offering 1,000 radios for spectators to use throughout the day, and fans can also opt to buy XM receivers on site. This marketing effort at PGA Tour events is known as the "Fan Enhancement Program," and it’s the first one of 2007.
 
If you are one of the half-million people who happen to partake in the enjoyment, look for the very lovely (and talented) XM product "specialists" stationed at the XM booths, one located west of the Hayden Road bridge and another adjacent to the practice putting green.

The Detroit News published an article today, Ads invade satellite radio, that talks about commercials being played on satellite radio. Specifically commercials on XM's music channels... ok you say, last year's news.

And indeed it is, the article gives us little in 'news' other than it irritates some subscribers and doesn't irritate others. Wow, earth shattering revelations. But the fact is, advertising revenue is something that will feed both satellite radio services' bottomline. Even Mel Karmazin predicted that Sirius will reach $100 million in ad revenue in 2007... that's not small potatoes.

One key difference between terrestrial and satellite radio is that the satellite model will never be dependent on advertising as it's sole source of revenue. So you won't reach the situation where genres are axed in favor of more ad-friendly genres.

But then there's this post in Hear 2.0 about how XM should run commercials in their XM Radio Online internet radio service (uncanny timing there Mark). Rather than giving away a 3-day trial, they should give XMRO away for free, but instead run commercials in the online stream. Curious thought. Let's entertain it for a bit.

Under this concept, the online stream would run commercials in the music channels - and rather than losing marketshare/mindshare to other Internet radio stations - they would be a player among them. Exposure to the product would skyrocket, because... well, it's free for an unlimited time. Mark suggests that subscribers won't care about this change because they're two separate brands.

Ok, so that last point is where I disagree. We subscribers are paying for the content, whether it's online or not, we don't care. There's a monthly charge, and we want what we're paying for. BUT, that doesn't mean there can't be a free Online Satellite Radio radio service with commercials.

(Keep reading, I'm developing an idea here.) 

So in "the beginning" when XM and Sirius developed the 3-day online trial, it had a two-fold purpose. One was to get people to experience the product (a key to converting to satellite radio), the other was to get people to hand over their email address for lead generation.

But is 3-days enough? Is one-month even enough? I think there's a reason why the OEM trials, at their minimum, extend for 3-months. Satellite radio is an immersive process. Get the consumer to hear the content and they eventually subscribe.

Also, back "then" there wasn't nearly enough advertising inventory to fill up all the online channels, and to make it a profitable undertaking. It's easy to just say "dude, just add commercials!" but there's a whole eco-system that needs to be nurtured in order for that to pull in a decent amount of revenue.

And then there's cannibalization and attrition. How many people would rather listen to a free commercial-laden version, over those who pay for the online-only versions? I'm not sure, but I can bet that the revenue driven by XMRO and SIR is meager at best. And would churn increase if a free version was available? Quite possibly. There's a value-added by being able to access XM and Sirius everywhere (i.e., via satellite), but there's probably a large number of those who listen over the computer at work. You will most definitely see those who pay for the online-only versions leaving for the free version in hoards.

Ok, so we need to keep churn in check. Here's how:

Create two online services. One is the commercial-laden free version. The other is the subscriber-only, commercial-free version. The free service may even exclude some premiere content that is only available to subscribers. In addition to increased advertising revenue (greater reach = high asking price, more sponsors, etc), both services have the ability to run spots touting the benefits of becoming a subscriber. It's like an online infomercial.

Add to that the exposure to the content. Shows that otherwise wouldn't see the light of day outside of the services would get exposure - and a following. Want to get it in your car? Pay up cheapskate.

Not sure if it would work as obviously the bean counters have a greater sense of the numbers, but while it's true that satellite radio is in the subscription business, they're also in the content-business. And getting that content heard by as many people as possible, with the tease of exclusivity, is the road to conversion.

Thoughts? 

So this is pretty neat. Two of XM Satellite Radio's on-air hosts - Mike Marrone of The Loft (ch 50) and Jonathan Schwartz of High Standards (ch 73) - were recently invited by BusinessWeek magazine to write regular music columns for the publication.

Here is Mike's recent review of the Beatles' "Love" album, and Jonathan's recent review of the new Tony Bennett album.

BusinessWeek has a circulation of about 1 million.