March 2007 Archives

Elizabeth Edwards's public battle with cancer has inspired Hugh Panero to write a piece for the Washington Post providing insight into his wife's own struggle with leukemia.

It's an incredible read, especially for those who might not have known that Panero and his family were going through such a difficult time (during XM's 2001 launch even).

The strength to persist during such an emotional time - for Hugh, his wife Mary Beth Durkin and their children - is something that many can't truly understand. This article at least gives you a glimpse into that.

[Washington Post]
(And if you're inspired to help, visit marrow.org for info on the bone marrow donor registry)

Remember that resolution against the XM-Sirius merger that was passed in Alabama? Well it seems that several keen-eyed commenters have noticed that the chief sponsor of the resolution actually owns a terrestrial radio station as well as a production company.

Mike Hubbard, Alabama's House Minority Leader and the chief sponsor of a resolution against the Sirius-XM merger (HJR144) cites his own possible conflict of interest in his official bio:

"Hubbard’s company, Auburn Network, Inc., owns and operates WANI NewsTalk 1400, a commercial radio station in the Auburn/Opelika market as well as Studio 197, an audio production company serving the national broadcast industry..."

In his legislative bio, we also learn that Hubbard is a member of the Alabama Broadcasters Association which identifies itself as a trade association representing radio and televisions stations. The ABA itself has officially denounced the XM-Sirius merger, obviously using the strength of its 287 members (particularly one certain House Minority Leader) to push forward their agenda.

Conflict of interest? Nah, it's for the good of the people! 

[via The Port Chronicle]

It's Friday! Friday! Frrrrrrriday! Crack a beer and read some news bits... 

• XM channels changes are a-comin' - including some new sports channels and some rearranging [XM Channel Guide (PDF)]
• Radio World op-ed piece criticizes the merger. Favorite quote: "If satellite radio can’t exist in even a minimally competitive environment, perhaps it shouldn’t exist at all." (you'd like that wouldn't you?) [RW Online]
• Confirmed? Apple iPhone release date is supposedly June 11th - just in time for WWDC 2007 (though the source is a bit suspect) [Gizmodo]
  
• AutoNet - which turns your car into a WiFi hotspot using both 3G and 2.5G cellular networks - is launching with Avis on April 16th (newsflash for skeptics: in-car Internet radio is right around the corner) [AutoNet]
  
• Current crop of HD radios worse than analog models? (tee hee) [Engadget]

Thanks to everyone who sent in these news bits! 

XM is headed to the Augusta National Golf Club for some live play-by play coverage of the Masters golf tournament.

Tiger Woods and returning champion Phil Mickelson are among the top players in contention for the Masters title and the famous green jacket.

The tournament will air on XM's PGA Tour Network (ch 146) starting on Thursday, April 5th from 12-noon to 7pm ET all the way until the Masters ends on Sunday, April 8th. Highlights of each day’s action will air between 7pm and 8pm.

The on-site coverage begins on Tuesday, April 3rd, when a special Masters press conference show will air from 2pm to 8pm. The coverage continues on April 4th from 2pm to 7pm, with a tournament preview and interviews from the Masters' par 3 contest.

XM will have a team of nine broadcasters on the course covering the action. Jim Gray will be positioned at the 18th green to interview players. Jay Randolph, Jr. will host the daily broadcasts and Mark Carnevale will provide analysis from the 18th tower above the green.

...sadly, Marie and crew will probably not be there.

As we learned yesterday, a federal judge has dismissed the class action lawsuit alleging securities fraud against XM Satellite Radio Holdings Inc.

Judge Ellen Segal Huvelle of the U.S. District Court for the District of Columbia said the suit, "failed to identify any materially misleading statements or omissions" by XM Satellite Radio that would support a lawsuit.

A group of XMSR shareholders argued that XM executives predicted in mid-2005 that their marketing costs for subscriber acquisition would decline or stabilize. But early last year it was revealed that XM's marketing expenses had significantly increased - causing shares to drop about 28% - and these investors sought to recover these financial losses they incurred for stock or stock options.

But Huvelle ruled that the company's projections of its marketing costs were "forward-looking statements...accompanied by meaningful cautionary language" and therefore shielded from lawsuits.

The plaintiffs also failed to show that XM's statements "lacked a reasonable basis when made," Huvelle wrote.

[AP] 

Corporate Crime Reporter has revealed that C3SR - the consumer group that was created to oppose the merger between XM and Sirius - is in fact supported by the NAB.

Separately... and perhaps more importantly... in the recent Criterion Economics Study about the XM-Sirius merger there's a footnote  (on page 3) stating:
"The Consumer Coalition for Competition in Satellite Radio is a consumer group consisting of Sirius and XM subscribers. It is supported by the National Association of Broadcasters."

Consumer Coalition For Competition In Satellite Radio (C3SR) founding member Chris Reale actually works full time at Williams Mullen Strategies - the lobbying arm of the Williams Mullen law firm - whose communications practice is headed by Julian Shepard, who just happens to be a former assistant general counsel at the NAB.

When Corporate Crime Reporter confronted Reale about who is funding C3SR, he wouldn't say, but did admit that the NAB "supports" the group. Reale refuses to identify the nature of NAB’s support.

"If we were out there in the media telling people who funded us, it would detract from support from different groups," Reale said. "I didn’t think that was a wise course."

Read more on Corporate Crime Reporter.

Read the Criterion Study (PDF) ...and be sure to specifically check Page 3, Footnote 3.

UPDATE: Add some salt to the wound, a commenter has pointed out that C3SR even links to an NAB study in a blog post. I don't mind anyone opposing the merger, but aligning yourself with the NAB doesn't help your case.

The Alabama House of Representatives has unanimously passed a resolution opposing the proposed XM and Sirius merger.

House Joint Resolution 144 was introduced last Tuesday, March 20th, and will now go to the Alabama Senate.

The resolution stated "that the Attorney General of the United States and the Federal Communications Commission are encouraged to disapprove the proposed merger between the only two national satellite radio companies."

The resolution also says: "that the merger will result in consumers, musicians, and other entertainers being subject to a single company with unlimited market power to impose anti-competitive terms, conditions, and prices;" "the combination of these two satellite radio companies will potentially restrict programming, reduce diversity, and diminish creativity; each result negatively impacting the public interest;" and "unquestionably, a government sanctioned monopoly is harmful to consumers and the public and should be avoided and denied."

In a statement, the NAB said that "It is our hope that similar resolutions will be introduced in other states."

[FMQB] 

UPDATE: XM Satellite Radio has issued a statement about the Alabama resolution:

"The NAB’s unprecedented campaign against the merger demonstrates that AM and FM broadcasters vigorously compete with satellite radio. The more the NAB does to oppose the merger, the more it weakens their credibility."

The Class Action lawsuit that was filed against XM Satellite Radio Holdings Inc, on behalf of purchasers of XMSR common stock has been dismissed by the judge.

An SEC disclosure has been filed giving a bit more detail:

Securities Class Action Litigation Dismissed. On March 28, 2007, our motion to dismiss the previously disclosed securities class action litigation was granted and the case dismissed with prejudice. The court concluded that “plaintiffs have failed to identify any materially misleading statements or omissions that are actionable under Section 10(b)” of the Securities Exchange Act of 1934. 

Perhaps the most significant revelation about Sirius Backseat TV is the content partners. At CES we saw that Cartoon Network was a content partner, but the adding of Nickelodeon and Disney Channel shows that Sirius has a powerhouse of children's programming backing this effort.

That's huge, because Sirius has essentially covered all the bases for the leaders in children's television.

In a statement, Denise Dahldorf, Executive Vice President of MTV Networks Content Distribution and Marketing said, "like all of our MTVN brands, our goal for Nickelodeon is to be everywhere our audiences are, and the launch of Sirius Backseat TV gives kids and families even more screens to interact with us."

"Disney Channel viewers expect to be able to access their favorite shows and stars wherever they are on a wide variety of devices," said Ben Pyne, President of Disney and ESPN Networks Affiliate Sales and Marketing.

"Cartoon Network Mobile is a customized programming service designed for the on-the-go mobile lifestyle," said Coleman Breland, Executive Vice President of sales and marketing for Turner Network Sales. "This new venture with Sirius is one we think parents will see the benefits of and represents the next generation of back seat entertainment."

The one-year of free Sirius Backseat TV and free Sirius Satellite Radio is pretty significant as well. Just like satellite radio, I think the Backseat TV product requires consumers to first experience the product before they realize that they want the product. While $470 isn't a cheap offering - that price does include the full year of service as well as the hardware - which might make it an easier sell at the dealership.

My only concern with Sirius Backseat TV: there are tons of ways for a substitutive product to overtake them in the marketplace. Yes, it's live streaming content while on-the-go, but - as the iPod has shown us - people are just as accepting of a cached solution (especially if it's without a monthly charge). With WiFi-enabled households becoming nearly ubiquitous, what's to stop a device to download new programs while your car is parked in the garage? I'm not saying that Sirius Backseat TV doesn't have potential, but ignoring the competitive risks is silly.

But with Nickelodeon, Disney Channel and Cartoon Network on their side - as well as the key OEM partnership with Chrysler - Sirius might have a decent jump on the competition as demand for this type of service grows.

Sirius Backseat TV will initially be available in the new 2008 Chrysler Town & Country and 2008 Dodge Grand Caravan minivans. Sirius Backseat TV will also be available in the 2008 Chrysler 300, Dodge Charger, Dodge Magnum, Jeep Commander and Jeep Grand Cherokee.

These factory-installed options (MSRP of $470) will include the Sirius Backseat TV receiver plus a one-year subscription to Sirius Backseat TV as well as Sirius Satellite Radio. After the first year, the Sirius Backseat TV subscription price will run you $7/month (but you knew that already) with the regular Sirius Satellite Radio subscription price of $12.95. Sirius Backseat TV is only available to Sirius Satellite Radio subscribers.

An after-market version of the Sirius Backseat TV receiver is expected to become available this summer.

Content partners include Nickelodeon, Disney Channel and Cartoon Network. 

The Sirius Backseat TV service will be available to the rear-seats only while driving, but passengers in the front can listen to Sirius Satellite Radio at the same time. When the vehicle is in park though, passengers in the front-seat can watch the video programming if it's equipped with MyGig. Check out hands-on photos of Sirius Backseat TV from earlier this year.

[Sirius.com]
Thanks Nathan!

Directed Electronics has a lucrative distribution agreement with Sirius, but renewing that agreement may be difficult when the contract expires if the proposed XM-Sirius merger passes.

Under the agreement with Sirius, Directed distributes Sirius receivers, tuners and other accessories - comprising over 90 percent of Sirius' aftermarket volume. The deal between Directed and Sirius is set to expire in April 2008.

On Wednesday, RBC Capital Markets analyst Scot Ciccarelli cautioned that Sirius' issues may weigh on Directed's share potential.

"We were already concerned about the pending expiration of Directed's contract with Sirius given our expectation for a more difficult negotiation, but the pending merger of the two satellite operators has magnified our concerns," wrote Ciccarelli in a client note.

"XM and Sirius will push hard to get this deal done and maximize cost synergies without significantly raising their monthly fees (a possible requirement for regulatory passage) which will likely squeeze their respective business partners – including Directed, in our view."

Ciccarelli said there are also worries about changing market conditions and the satellite radio model begins to move from a retail to an OEM driven model.

Directed has already warned that's its Sirius sales could be slowing, with sales of its satellite radio products expected to decline between 11% and 22% in 2007. The company acknowledged that retailers were left with 30 to 90 days of excess inventory of Sirius products, depending on the dealer, at the end of last year. But dealers are now supposedly working through that inventory and some are beginning to reorder in larger quantities.

[Forbes] 

Year-over-year retail sales fell 33% in February, an increase from the 44% drop in January (and 46% drop in December). Remember that this time last year was when we were just beginning to slide down the Stern Effect, so YoY comparisons are going to get easier from this point forward.

The Quick Glance:

• Sirius February 2007 Retail Sales:
  Down 31% YoY
• XM February 2007 Retail Sales:
  Down 35% YoY

• Sirius Feb '07 Retail Marketshare: 56%
• XM Feb '07 Retail Marketshare: 44%

Sirius continues its lead in retail marketshare, gaining a percentage point from January (if your math is rusty: Sirius had 55% retail marketshare in January, while XM had 45%). Still, considering the dismal retail sales numbers from December (particularly for XM) any signs of improvement is good news.

Baring any unforeseen hickups in production, we can easily expect retail sales YoY numbers to rise in the coming months.

Bridge Ratings has continued their study about the impact of the XM-Sirius merger on consumer interest. It's probably going to be an ongoing study because, well, it's great media bait (hell, I'm talking about it).

As with an earlier study released back in February, Bridge has found that a majority of potential subscribers (people who expressed an interest in subscribing to either one or both satellite radio providers) would rather hold out until the merger goes through before making the jump.

That majority who will wait to see if the merger passes before signing up equals 58 percent even - that's up from the 55 percent of respondents last month. A lower number of people said they'll subscribe within 60 days anyway (19% this month versus the 24% last month).

This trending says to me that XM-Sirius need to do a better job selling their current service to customers and at the same time selling the possible future service to regulators (a hard feat since media interest centers around the merger).

An additional aspect of Bridge's study is the interest in Howard Stern by current XM Satellite Radio subscribers (again, media bait.). The thing that confuses me is that the results are absolutely unchanged from the previous report. Bridge doesn't indicate a timeframe for when they polled the 1,000 XM subs, so it's hard to say for sure (I would assume it's a different set of respondents?). Either way, a whopping 88% of XM subscribers seem to care less about the ability to listen to Stern, which might explain why they subscribe to XM and not Sirius.

Read the full report on Bridge Ratings. 

In an effort to reduce/eliminate comment spam, I've implemented an accessible CAPTCHA for anyone who isn't signed into TypeKey. It's easy, all you need to do is type in "orbitcast" before you post.

This'll prevent all the ridiculous spambots from bombarding me, and again, it doesn't apply to peeps who are signed in via TypeKey.

More features coming soon... 

In a post XM-Sirius merger scenario, would the red headed stepchild of satellite radio - WorldSpace - step in and start covering the U.S. market? Maybe so, if the FCC required the newly merged company to relinquish one of its SDARS licenses.

"We would love to look into that if that’s available," Worldspace Chief Executive Officer Noah Samara said on Monday. "We’ve always felt seamless global coverage is something the planet needs."

WorldSpace, of course, isn't banking much on this hypothetical. A heck of a lot needs to happen before broadcasting in North America becomes a reality. But it's an interesting possible side-effect if XM and Sirius are successful in merging. (Though, something tells me they rather have that second license even post-merger since using the combined spectrum is sort of the whole reason behind merging.)

[Examiner]
Thanks Rob!

Sirius is now available as standard equipment on the 2007 model year Range Rover and Supercharged Range Rover Sport. Add to that, Sirius will now be a factory installed option on the all-new LR2 that goes on sale here in the States next week.

This makes Sirius as either a factory-installed option, or as standard-equipment, on all Land Rover vehicles (including the LR2, the LR3, Range Rover Sport and the Range Rover).

"Land Rover is delighted to offer Sirius as a standard feature or a factory option on all of our vehicles in the US," said Richard Beattie, Executive Vice President of Marketing & Sales Land Rover North America. "Land Rover can take you anywhere and with Sirius you can listen to your radio wherever your Land Rover may take you."

Land Rover is part of the Ford Motor Company's Premium Auto Group (PAG) which includes Volvo, Jaguar and Aston Martin as well as Land Rover.

Clear Channel Radio and mobile entertainment provider mSpot have entered in a content agreement, allowing for music programming from ten Clear Channel stations to be heard on mSpot's radio services.

Clear Channel Radio is providing mSpot with Contemporary Hits Radio (CHR) and Urban programming from five of its most popular terrestrial stations: WHTZ (New York), WWPR (New York), KHHT (Los Angeles), WGCI (Chicago) and WMIB (Miami).

Spanish-language content from four Latin channels and a playlist of Hip-Hop hits (from Clear Channel Radio's Format Lab) also are now all available to mSpot subscribers commercial free.

If that's not bad enough, next month mSpot expects to distribute live broadcasts from almost 100 Clear Channel Radio stations.

"Wireless carriers, entertainment and media companies are working hard to make new and compelling content available to a variety of mobile phones," said mSpot CEO and co-founder Daren Tsui. "Radio programming is among the most requested mobile content, so we're thrilled to be able to offer Clear Channel Radio's top-rated and original music channels to mSpot users."

mSpot announced yesterday that they've reached 1 million subscribers since going live with their first service in 2005.

[via FMQB] 

The suit charges Worldspace as well as several of it's executive officers, with violations of federal securities laws.

The plaintiff claims that Worldspace had made false and misleading statements concerning the company's operations and financial performance that caused the WRSP stock price to become artificially inflated.

If you purchased Worldspace stock or options, you're not required to have sold your WRSP stock or options in order to claim damages. 

[Press Release]

Here's a separate firms' filing (PDF). 

The former president of CBS' radio division, Dan Mason, will replace Joel Hollander as CBS Radio's president and chief executive on April 16th.

Mason left CBS Radio back in 2002 but has been a consultant and adviser for CBS Radio, as well as a variety of clients. Dan Mason worked closely with iBiquity as part of his consulting gig, and his focus will likely be to grow the HD Radio segment of CBS Radio.

"Part of this will be about the core business, making sure we're making the right decisions from a programming standpoint as well as a sales standpoint," Mason told the Wall Street Journal. "The second part is to nurture digital efforts."

Mason echoed a similar statement for the New York Times, "To grow our business, it is a combination of two things: executing for our listener and to explore all the new things that high-definition radio will bring."

So what's to become of Joel Hollander? His departure wasn't unexpected - though a bit sooner than expected - as he told the suits at CBS that he planned to leave when his contract expired at the end of the year.

Rumors abound that Hollander might be making the move to Sirius to sit alongside his mentor Mel Karmazin, but Inside Radio thinks those rumors have little merit. Time will only tell.

WorldSpace Satellite Radio (remember them?) has announced their fourth quarter and full-year 2006 results, where subscribers have grown to a whopping 199,000.

In Q4, WorldSpace added 22,274 net subscribers ending the quarter with 199,105 subscribers worldwide, 73% higher YoY. In India, WorldSpace added 23,945 net subscribers during 4Q06, ending the year with 162,010 subscribers in India, 117% higher YoY.

It's not all peaches and cream in India though. WorldSpace continued to experience high churn rates in Q4 in India as 3-month trial packages came up for renewal. About 59% of subscribers that came up for renewal during the year had actually renewed their subscriptions to a higher pre-paid package. Youch. The good news is that WorldSpace has phased out the 3-month package and hoping to reduce churn numbers in favor of longer term prepaid plans.

Interestingly enough - WorldSpace has delayed their earnings call - citing "negotiations for a potential financing transaction" as a reason.

[Press Release] 

Uh oh, somebody's got a case of the Mondays... well, here's some news bits:

• HD Radio gets an in-depth profile in the Grey Lady [New York Times] 
• EV-DO Rev B to debut this year at a breakneck speed of 9Mbps [Gizmodo] 
• The new Samsung Upstage music phone from Sprint. Double-sided, touch-sensitive, stereo Bluetooth, built-in speakers, and microSD expansion. [Engadget] 
• New Sony-Ericsson phones. One is the first 3G phone for the US, the other is a slider Walkman phone with a built-in FM radio [CrunchGear] 
• RIAA sues a 10-yr-old girl. Mom is disabled living on Social Security disability assistance. [Boing Boing]
  

David Rehr, President/CEO of the fan-favorite NAB, did his best to position terrestrial radio as struggling local broadcasters fighting the good fight in his Congressional testimony. But yet in his recent letter to the FCC, Rehr talks about how a merged satellite radio threatens national radio.

February 28, 2007 - Written testimony (PDF) in front of the House of Representatives Committee on the Judiciary Antitrust Task Force:

"...media industry observers have agreed that '[s]atellite radio is a national platform,' thereby clearly differing from locally-licensed and locally-oriented terrestrial broadcast stations."

March 22, 2007 - David Rehr's Letter (PDF) to FCC Chairman Kevin Martin:

"A satellite radio monopoly will also thwart program access by other media, especially regional and national radio networks."

So which is it? Local or National? Hopefully someone else is picking up on these inconsistencies.
Thanks Tim! 

Well, it was pre-announced last month, and now it's here: the ReachMD channel for medical professionals is now available on XM Satellite Radio (ch 233).

The ReachMD channel features roundtable discussion, breaking medical news and special programming - available 24/7. Since it's targeting the busy healthcare professional, the channel offers short-form programming, and provides new information every 15 minutes.

To coincide with the channel launch, ReachMD will be exhibiting at the American College of Cardiology's 37th Scientific Meeting, March 23-27th, 2007 in New Orleans, Louisiana.

As demand for smaller and smaller devices rises, it's become increasingly apparent that the buttons and knobs needed to control these devices are getting in the way.

Valuable real estate is eaten up, and without those pesky buttons the devices could be thinner, smaller and sexier. That's where the beauty of touchscreen interfaces come into play, the layout of the "keys" can be dynamically changed to match different actions.

Unfortunately touchscreens have an inherit problem: there's no tactile feedback. So navigating without your eyes focused on the device (afterall, you should be looking at the road while you're driving) will cause annoying mistakes.

But what if the "keys" weren't based on a location on the touchscreen? What if they were based on something could instantly feel? Something like... your fingers themselves.

Enter XM Satellite Radio's finger-sensitive touchscreen patent application.

This concept creates the ability for "data input using finger or fingerprint recognition." Instead of mapping different locations on the touchscreen to different functions, it maps the functions themselves to your fingers. It's an amazingly revolutionary concept, and one I think would be very easy to get the hang of (after a little bit of practice).

To illustrate what this patent entails, here's an artfully drawn image from the application itself.

In Figure 5, each of the fingers on the right hand are mapped to channel numbers. So if you wanted to type in "202" you would tap once with your index finger, twice with your pinky, and once again with the index finger. In Figure 5, your thumb is the mute button, your index finger is the menu button, and the remaining fingers are different channel presets. This can be further refined as multiple fingers can be mapped to different functions.

But what if your wife uses the car as well? Hey no problem, the interface will recognize her fingers as being unique from yours, and will map the controls to her liking. Different fingers, different menu items.

The possibilities are pretty unlimited. Now you can have that thinner, smaller and sexier touchscreen device - and you can navigate your way around the dial anywhere on the screen - all without taking your eyes off the road.

Sign me up.

[Patent Application #20060284853 (PDF)]

Sirius Satellite Radio's application for repeater towers in Hawaii and Alaska has brought on the ire of the NAB, and yet the WCS Coalition (who traditionally opposed anything regarding satellite radio repeater towers) is not opposing it.

Sirius' application for repeaters in Hawaii and Alaska are currently in a comment period where other organizations have the right to oppose or support the FCC special temporary authority application.

Traditionally, we've seen the WCS Coalition oppose these STAs, yet they've delivered a shocker and stated that they would not oppose Sirius' request for the Alaska/Hawaii repeaters - nor would they oppose 15 other repeaters. Even more crazy, the WCS Coalition will in fact no longer oppose any repeaters below 2,000 EIRP.

Yet the NAB has filed a petition opposing the repeaters. Why? Not because of any interference concerns. Nope. Their reasoning is that the original 1997 DARS license intended the repeaters to "re-transmit the information from the satellite to overcome the effects of signal blockage and multipath interference" - and that's bad. See, the NAB doesn't mind if the repeaters are used to improve satellite signal, but they don't like it if it extends the signal.

Sounds reasonable right? I didn't think so.

It's good to see that the NAB is always looking out for the public interest.

[NAB Petition to Deny (PDF)]
[Satellite Radio TechWorld]

Yeah, I might be a little late with this one, but I still think its cool. The XM Satellite Radio race car placed first in its class at the opening race of the 2007 American Le Mans Series last Saturday at Sebring, Florida.

The XM car (powered by Acura) took first in the LMP2 class at the historic Twelve Hours of Sebring race. The Twelve Hours of Sebring is one of the most renowned endurance races in the U.S. bring in teams from around the world to take part in the event. Over 140,000 people attended the race, and it also aired live on SPEED Channel.

The race marked the first time that XM has sponsored a vehicle in an American Le Mans Series race. It also was Acura’s debut in the series.

The XM vehicle was driven by the Andretti Green Racing team’s Bryan Herta, Tony Kanaan and Dario Franchitti.  For the past three years, Bryan drove the Honda-powered XM vehicle in the IndyCar Series. After Saturday’s win, Herta described it as "probably the most special victory of my career."

Even if you're not a gearhead, check out several photos of the XM-Acura racecar and crew with the XM Satellite Radio logo prominently displayed throughout...

NAB President/CEO David Rehr opened up his heart and wrote in a 4-page letter to the FCC Chairman that the "two satellite radio providers has served consumers well."

Sadly the love-fest ends there (just as I was getting warmed up to Mr. Rehr), as he goes on to state - once again - that the XM-Sirius merger "violates the antitrust laws and established FCC rules." Rehr also used his favorite line saying that approving the merger would create "a government-sanctioned monopoly," etc etc etc.

Sound repetitive? You betcha, David Rehr even uses the word "monopoly" a dozen times (not including the one time he used the word "monopolistic").

But I just want to ignore all that, throw away all these hateful feelings and focus in on these kind words:

"Each [satellite radio] provider has differentiated itself with unique programming and equipment offerings."

Aw shucks Dave, that's so sweet!

[FMQB and Radio Online] 

Both Sirius and XM Satellite Radio have issued the following statement on the FCC giving their blessing to HD Radio, and essentially adopting new rules for digital audio broadcasting:

"The FCC decision underlines that HD radio on the AM/FM bands provide a real alternative to satellite, and that the current audio entertainment market is broad, robust and competitive. The decision will raise competition to a new level by stimulating the growth in HD radio stations (now 1200), enhancing its offerings to consumers and establishing a process for free radio to offer a paid subscription service for the first time."

It's good to see XM-Sirius working the public relations front with this. It's a weird spot that both PR depts are put in, now that they're charged with the responsibility to actually bring attention to the competition (a faux pas in the PR/Marketing world).

[Press Release] 

At the recent House and Senate hearings on the XM-Sirius merger, it's amazing to see how little is understood about the next generation of multimedia delivery options. A lot of the focus seems to be on WiMAX - maybe because it's a fun buzzword - but the reality is that WiMAX is still a ways off in the distance... and yet mobile phone services (particularly 3G) are here already.

In the first House hearing, the NAB constantly noted that satellite radio is the only "nationwide, multichannel mobile audio programming service" available on the market. My instant thought was that mobile phone services were (intentionally) completely ignored, and I felt Mel Karmazin didn't seem to push that opposing view hard enough.

In the second and third hearings, Karmazin did a better job of highlighting the multimedia abilities of mobile phone networks, but he also lumped in WiMAX into the picture. But WiMAX is completely nascent, and (funny enough) the Congressmen seemed to confuse it with Wi-Fi.

The real threat comes from mobile phone services, and specifically on 3G where the speeds really begin to make a difference. The importance here is that the technology currently exists, and is a high priority by wireless carriers. There's also a massive existing subscriber base (I believe in the realm of 75% of the U.S. population) and so they have an incredible platform to build upon.

Then there's those content agreements. Sprint has a deal with the NFL and the MLB, not to mention other services like MobiRadio which offer ESPN Radio and Radio Disney through several wireless carriers. And that doesn't even include various over-the-air music offerings.

Regardless of all these offerings, the general public (and likely government officials listening to these arguments) don't think of their cellphone as a music device. A cellphone's primary function is to make phone calls. But once a company is actually able to figure out how to meld the function of making phone calls, with that of a quality listening experience, then the general public's opinion will evolve.

...did I forget to mention the iPhone?

No, a $600 touch-screen phone isn't going to instantly change the world overnight. But it's a stepping stone, and one that Apple no-doubt understands. Just like the iPod, they're not the first to come to market with this concept (music + phone), but they'll be the one to properly execute on it. And as the critical mass evolves to accept the iPhone, Apple will evolve along with it - bring wireless over-the-air services to the iPhone - at breakneck 3G speeds.

And Apple will use it's already established relationships with auto manufacturers as a stepping stone as well. Before long, there will be a cradle that you can snap your iPhone into, and have your own person tunes mixed with over-the-air wireless music and live events. The ubiquitous cellphone, and the ubiquitous iPod, will combine to become the next generation of ubiquitous radio. A nationwide multichannel audio service on a device that is globally accepted.

It's not the immediate future. But it's also not the too-distance future either.

So the next time the NAB points the finger at Satellite Radio as being a unique service - ignore the fact that they syndicate programming across hundreds of stations nationwide (and really, is that any different than using repeater towers?) - but just hand them a list of the wireless carriers and give 'em a big smile.

The National Music Publishers Association has filed a lawsuit against XM Satellite Radio claiming that XM engages in massive copyright infringement through the ability to record satellite radio broadcasts.

According to the NMPA, the suit was filed after months of discussions between NMPA and XM regarding the satellite radio company's obligation to compensate creators for the songs it distributes. The plaintiffs in the suit are Famous Music, Warner/Chappell, Sony/ATV and EMI music publishers.

"Filing a lawsuit was our last resort, but we felt that we had no choice," NMPA president and CEO David Israelite said. "We want new technologies to succeed, but it can't be at the expense of the creators of music. All that we ask is that music publishers and songwriters be fairly compensated for their efforts."

Yet amazingly enough, XM already pays licenses for compositions from performing rights organizations ASCAP, BMI and SESAC. XM dismissed the lawsuit as a bargaining chip.

"The lawsuit filed by the NMPA is a negotiating tactic to gain an advantage in our ongoing business discussions," says a spokesman for XM.

The complaint seeks a maximum of $150,000 in statutory damages for each work infringed by XM.

"XM has been profiting at the expense of others," said Debra Wong Yang of Gibson, Dunn & Crutcher Llp., the lead attorney on the case. "The XM + MP3 service constitutes pervasive and willful copyright infringement to the overwhelming detriment of copyright holders, legitimate online music services and, ultimately, consumers."

XM contends that the NMPA failed to mention that the company pays millions in royalties each year.

"XM pays royalties to writers and composers who are also compensated by our device manufacturers," the company said. "We are confident that the lawsuit is without merit and that we will prevail."

[The Hollywood Reporter] 

XM Satellite Radio's Americana channel, X Country (ch 12), will be featuring a special show all about our favorite herb: marijuana. That’s right, the "420" show is an annual tradition over at X Country, and it's one that spotlights our favorite country-rock songs all about the ganj.

Some of the songs from the show will include: Commander Cody's “Down To Seeds and Stems Again,” Cross Canadian Ragweed's “Americana Rhymes With Marijuana,” and Dash Rip Rock's “Let's Go Smoke Some Pot,” just to name a few songs of the hour long set (there were others... but I forgot).

Ironically, the "420" show will debut during the week of April 16th (yes, if I'm reading that right, they're celebrating 420 even before 4/20). But keep that bowl packed, because there will be encore replays of the "420" show throughout the week. 

Sirius Satellite Radio will feature Priscilla Presley as the guest host Elvis Radio (ch 13) live from Memphis in celebration of the 50th Anniversary of Graceland - this Friday, March 23rd, at 3pm ET. Elvis Radio is the only all Elvis all-the-time radio station that broadcasts live from Graceland.

Elvis purchased Graceland for his home in March 1957 and Priscilla Presley is visiting Elvis Radio as a special guest host to commemorate this event.

As part of the celebration, Priscilla will also welcome internationally renowned artist, Thomas Kinkade to Graceland - and as a guest host for Elvis Radio - for the unveiling of his latest masterpiece portrait, “Graceland, 50th Anniversary.”

In the FCC application for the merger of both satellite radio companies, XM-Sirius state that no existing Commission rules bar the one entity from buying the other.

This differs greatly from what we've all thought to be the case, particularly the "Transfers" section of the 1997 DARS license.

"The Commission’s published rules do not prohibit one satellite radio licensee from acquiring control of the other," Sirius-XM said in a joint filing.

"The Commission noted in its 1997 order authorizing satellite radio as a service that satellite radio 'licensees, like other satellite licensees, will be subject to rule 25.118.' That rule, now Section 25.119, implements the statutory requirement that the Commission grant transfer applications if doing so is in the public interest, and sets forth the basic procedures for filing an application."

Note the requirement of "the public interest" again. Defining and ultimately deciding on the public's interest is a very subjective procedure and can be accomplished by a number of concessions (i.e., the "more choice, lower prices" mantra). 

"While the Commission stated in the same order that 'one licensee will not be permitted to acquire control of the other remaining satellite DARS license,' this language was not codified in the Code of Federal Regulations and thus is not a binding FCC regulation. To the contrary, it is merely a policy statement reflecting the Commission’s view, based on the evidence available in 1997, that two satellite radio licensees were needed to have enough competition in the audio entertainment market."

So they're pushing that the merger in fact in the public's best interests (a la carte pricing, lower entry point, interoperable receivers) and that XM-Sirius indeed compete with a greater audio entertainment marketplace (competing with terrestrial radio, time-shifted MP3 players, Slacker-style devices, mobile services, upcoming WiMAX initiative - all making lines of "distribution" blurred).

If they are able to convince the FCC that these two aspects are the case, then they look to have a good chance to getting this to go through. The first aspect (public interest) seems easier to accomplish than the second (relevant market) in my humble, and completely uneducated, opinion.

[via The Washington Post] 

Sirius Satellite Radio's channel dedicated to the professional truck driver, Road Dog Trucking Radio, will broadcast live from the 2007 Mid-America Trucking Show in Louisville, KY on March 22-24.

The entire on-air team of Road Dog Trucking Radio (ch 147), will be joined by special guests, like Charlie Daniels and Tony Stewart, to bring listeners three days of the best trucking radio.

On March 22nd at 3pm ET, Charlie Daniels - the legendary entertainer and “official voice” of Road Dog Trucking Radio - is scheduled to appear on-air with his old buddy Carl P. Mayfield.

Tony Stewart, 2-time NASCAR Nextel Cup Series champion and host of "Tony Stewart Live" on Sirius NASCAR Radio (ch 128), is also scheduled to appear at 3pm ET - his appearance will be followed by an autograph signing session. NASCAR Nextel Cup driver Kasey Kahne will also be making an appearance at the same time.

On March 23rd at 2pm ET, Joey Holiday, trucking music performer, joins DJ RigRocker for a special edition of "HammerDown Radio."

Then on March 24th at 2pm ET, Members of the Chrome Shop Mafia (stars of CMT’s Trick My Truck) will be on "Freewheelin’ with Meredith Ochs and Chris T."

Other guests scheduled to appear include Brock Ray and Don Kirk from the Interstate Sportsman cable television show; Jessica Chornesky, the director of Alligators on the Zipper, a new film about women in trucking; biodiesel expert Dale Decker of Decker Truck Line; trucking nutritionists Don Jacobson and Pam Whitfield of Roadcookin’; and award-winning trucking journalist Tim Brady of Write Up the Road publications.

Yesterday, both Sirius and XM filed the required FCC application to transfer their licenses held by both companies for the merger .

In it Sirius-XM state their case for proposing the merger - ultimately arguing that the proposed merger of the two is in the public's interest. For those of you following these merger proceedings, you may notice that the term "Public Interest" keeps popping up - this is essentially the gold standard that the FCC uses when determining changes in policy. Proving that your actions are in the public interest can be done many ways, and XM-Sirius go into details spelling this out for the FCC.

For industry-watchers like myself, there's actually little "news" that comes from reading the application. But there's some fun snippets that should be highlighted (especially for those who don't feel like reading the whole thing). 

Juan Pablo Montoya, former F1-turn-NASCAR driver, has signed a marketing and advertising pact with Sirius Satellite Radio to promote their NASCAR programming offering through various outlets.

Montoya had already signed with Sirius to host "The Juan Pablo Montoya Report" as part of the "Sirius Speedway" talk show on Sirius' NASCAR Radio (ch 128).

Montoya will be featured in Sirius' advertising and marketing efforts - obviously promoting NASCAR and Sirius' live NASCAR coverage - and will be included in an extensive promotional campaign at retail locations around the country.

"Barely a month into his first full season Juan Pablo has established himself as one of NASCAR's most intriguing personalities," said Scott Greenstein, Sirius' President, Entertainment & Sports. "With performances like his win in Mexico City and his top-five finish in Atlanta, he is capturing the attention of fans everywhere. We are very pleased he has chosen to affiliate himself with Sirius, both on our air and in our marketing efforts.

Montoya won the NASCAR Busch Series Telcel-Motorola 200 in Mexico City earlier this month, a controversial win as he had tried to make a pass on teammate Scott Pruett (which resulted in Pruett spinning out). Montoya also stirred the pot up a bit earlier this year when he called F1 champion Michael Schumacher a "nobody" after he questioned Montoya's move to NASCAR.

Is it a good move for Sirius to partner with Montoya? You betcha - there's nothing like controversy and excitement to help drive attention to a brand.

To celebrate the start of Major League Baseball, XM is launching a special channel called Play Ball!, featuring a mix of music and vintage audio that "captures the spirit" of Opening Day. Play Ball! will start next Friday, March 30th and air to April 2nd on XM Channel 200.  

For Play Ball! XM is digging deep into their musical library for gems like Ruth Brown’s R&B stomp "Baseball Boogie" and Steve Goodman’s folk novelty record "A Dying Cubs Fan’s Last Request," as well as favorites like Terry Cashman’s "Talkin’ Baseball" and John Fogerty’s "Centerfield."

Listeners will also hear spoken-word treasures like Abbott & Costello’s "Who’s on First," James Earl Jones’ dramatic reading of "Casey at the Bat," and archival recordings of classic baseball calls.

The channel will play the baseball-themed episode of Bob Dylan’s XM show "Theme Time Radio Hour," (which in 2006 was added to the archive of the National Baseball Hall of Fame) as well as XM’s "Baseball Confidential," featuring candid conversations with legends of the game.  
 
XM's Chief Creative Officer Lee Abrams describes the channel like this:

"Play Ball! is a potpourri of sound so baseball-centric that you will smell the fresh-cut grass through the speakers.  It’s a ‘theater of the mind’ celebration of the national pastime. You’ll hear a seamless collection of music and spoken-word content with ‘announcements’ from a P.A. system to give you the sonic feel of the ball park."

In response to the NAB's latest anti-XM/Sirius merger ad, a Sirius Satellite Radio spokesperson called it "deliberately misleading and hypocritical" and that one of the two quotations in the ad was "taken totally out of context."

"The NAB ad is deliberately misleading and hypocritical coming from people who say one thing to the Congress when they oppose our merger and the opposite in radio consolidation proceedings before the FCC and in SEC filings by their member companies," Sirius said in response to a query made by Radio & Records.

In question is the second quote in the ad, which supposedly came from Advertising Age. Sirius says the quote was taken out of context, and to prove it, they've provided a transcript of the Q&A:

Ad Age: There are questions about whether this market can sustain two players. What happens there?

Mel Karmazin: I certainly wouldn't rule out anything that is in the American public's best interest. You are dealing with two companies -- it would be great if there was a monopoly, but the second best thing is a duopoly. If the market is as big as we think it is, you're going to get two very profitable companies. There is nothing inherent that would preclude the companies from having interoperable radio or shared content. It's not the current business plan, but nothing would stop that.  

Two questions later in the “Advertising Age” interview, Karmazin is asked if he is opposed to the notion of a merger with XM:  

Ad Age: You're not opposed to it?

Mel Karmazin: The business model we are following is that we are an independent company. We don't need to combine with anybody.

[Radio & Records] 

Major League Baseball fans - it's time to get excited - because you'll be able to listen to every game, for every team, anywhere in the country on XM Satellite Radio. XM will air every one of the 2,400+ MLB games, from Opening Night to the final game of the World Series.

Opening Night kicks off on April 1st, when the World Series champion St. Louis Cardinals will host the New York Mets at Busch Stadium.

Fans across the country can hear the hometown broadcasts for each team and the ESPN Radio broadcast on three separate XM channels. The day before, XM will air the inaugural Civil Rights Game in Memphis, an exhibition game featuring the Cardinals and the Cleveland Indians.

In addition to the full schedule of games, XM has the nation's only 24- hour talk radio channel devoted to baseball. MLB Home Plate (ch 175) covers every aspect of the sport all year long with call-in shows, 24-hour news updates, and exclusive interviews.

Cal Ripken, Jr., who will be inducted into the National Baseball Hall of Fame in July, hosts the show "Ripken Baseball" on MLB Home Plate with his brother and fellow major league veteran Billy Ripken.

XM also offers Spanish play-by-play game coverage and baseball talk on the channel MLB En Espanol.

"Major League Baseball is the ultimate radio sport, and XM is the ultimate place to hear all the games on the radio," said Eric Logan, executive vice president, programming, XM Satellite Radio. "For people who love the sport like we do, XM's got the games, the news, and the analysis you can't hear anyplace else."

At today's Senate Judiciary hearing, Mel Karmazin stated that not only would they not raise rates from the $12.95, but they will in fact offer a lower price to receive satellite radio.

Rates of $8.95 or $9.95 were mentioned, but no definitive pricing structure was outlined (and I wouldn't expect it to be at this point). 

Both XM Satellite Radio and Sirius Satellite Radio will be broadcasting live from the 2007 Winter Music Conference in Miami's South Beach. Sirius' coverage begins today (March 20th) at 9pm ET on Area 33 (ch 33), and XM's coverage kicks off on Thursday on The Move (ch 80) at 3pm ET.

The Winter Music Conference, in its 22nd year, is the dance music industry’s biggest global forum, attracting professionals from more than 60 different countries.

Sirius listeners will hear live DJ sets from Sirius' own Paul van Dyk and Paul Oakenfold - as well as other electronica gurus like Bob Sinclar, and Robbie Rivera among others - plus exclusive "behind the turntable" interviews with a slew of superstars. The coverage on Area 33 (ch 33) kicks off tonight at 9pm ET at the sultry South Beach spot Mokai with DJ Behrouz.

Three XM dance channels - The Move (ch 80), BPM (ch 81) and The System (ch 82) - will be dedicated to the event, with three days of electronic music performances by the likes of Ferry Corsten, Carl Cox, Kaskade, and more, during live broadcasts from the Remix Hotel, The Catalina Hotel and Beach Club, and Ultrafest.

Check out the schedule highlights from both services after the jump...
(...or browse through photos from WMC on Flickr, trust me, this place is crazy)

Sirius and XM placed this ad in RollCall, The Hill, Politico and Comm Daily. Why let the NAB have all the fun? This is the second ad (that I know of) from Sirius-XM, fighting for the merger.

View it after the jump...

Inside Radio is spinning reporting that XM Satellite Radio's COO Nate Davis mentioned at a recent conference that the pricing of a combined XM+Sirius service might possibly run at $18-$20 a month.

Inside Radio called this "the real cost of satellite" in a recent email subject line. And here's a direct quote showing how they're trying their best to try to smear satellite radio:

"The same day Mel Karmazin was wriggling around the pricing question at the House Anti-Trust Task Force two weeks ago — XM COO Nate Davis was giving the Bear Stearns conference a better fix. He was ballparking the “best of both worlds” XM+Sirius lineup at perhaps $18 to $20 a month, and that may be more than some folks on Capitol Hill expect."

If you'll recall, Mel Karmazin told a House telecom subcommittee - when asked if a combined service price discount would be either $10 or $2 - that it "looks closer to ten than to two."

So let's do some math. Dual-service subscribers currently pay $26/month, so a combined price of $18-$20 is in fact $6-$8 less expensive. Now, is that actually closer to $10 off than it is to $2 off? (gasp!) Why yes it is!

Now let's see, is this approach of using XM/Sirius Execs words against each other in anyway similar to the NAB's recent ad campaign? No it can't be - a legitimate publication like Inside Radio would never do something like that!

[Inside Radio] 

Since MasterCard wasn't too happy over the NAB stealing their brand identity (ironic?), the NAB has put together a new anti-satellite radio ad campaign. Just in time for today's hearing, how convenient.

This time around, they're using quotes from Mel Karmazin to push their agenda. See below:

The Senate's Subcommittee on Antitrust, Competition Policy and Consumer Rights is holding a hearing on the XM-Sirius merger, today at 2:15pm ET.

Witnesses scheduled to attend include, of course, Mel Karmazin (from the Sirius camp), Mary Quass (from NRG Media, also on the NAB's Board of Directors), David Balto (anti-trust guru), and Gigi B. Sohn (President of advocacy group Public Knowledge).

There's a summary of Public Knowledge's position on the merger available here. Personally I'm in full support of all the terms PK is suggesting.

At first glance there doesn't appear to be a webcast of this hearing. If anyone knows of one, please let us know.
UPDATE: CapitolHearings.org should have a webcast, or check C-SPAN 2 (via Sirius Uplink)

Yesterday it was discovered that Keystone Autonics was suing both XM and Sirius, but a quick search didn't help in locate the actual patent number. But thanks to a comment on Engadget, patent # 7,165,123 looks to be a winner.

The unfortunate thing is that this patent seems to apply to pretty much anything involving a mobile computer with a unique ID (so yeah, the GPS boys will probably be next on the lawsuit list). In fact, that's the title of this lovely patent: "Apparatus and method for I/O management in a mobile environment wherein access to data from a wireless signal is restricted based on a persistent unique hardware identification."

It seems ridiculous that this patent would be granted considering the amount of prior art already on the market, but hey I'm no lawyer, so who am I to critique the workings of the US patent system.

Download Patent # 7,165,123 (PDF) 

Here's some fun news bits and pieces for this Manners Monday...

• A message from the RIAA: Suing you college students is "necessary" damnit! [Gizmodo]
• The faces behind the RIAA (phone numbers included) [The Consumerist]
• PRI/WNYC teaming up to compete with NPR's "Morning Edition" (set for early '08) [New York Times]
• FCC Chairman Kevin Martin makes some changes in his personal staff [Radio Ink] 
• HD Radio hits airwaves, but no one's listening (waaahhh) [San Diego Union-Tribune] 
• SmartWeb project uses P2P network to communicate road conditions to surrounding cars (next-gen NavTraffic?) [Engadget] 

TheStreet is reporting that Keystone Autonics is seeking an injunction, damages and legal fees against both XM and Sirius satellite radio over their patented technology.

The patent in question was awarded to George Hindman of Keystone Autonics in January. It applies to specific input and display processing of wireless data for satellite radios. The patent is actually a modification to an earlier patent (conveniently also held by Hindman) that applied to radios and CD players.

The lawsuit asserts that the patented technology, among other things, helps enable mobile features like global positioning system, or GPS, location services, as well as crash and theft detection functions. 

[TheStreet] 

Enter the Toshiba Gigabeat U-series. Available in 1GB and 2GB sizes, the Gigabeat U at first glance looks like your standard issue cutesie digital audio player. Oh, but it's not.

The Gigabeat U has a built-in FM transmitter and receiver, allowing you to essentially rip and share tunes on-the-go. Using the receiver, you can record FM broadcasts direct to MP3. And then using the FM transmitter, you can broadcast your recordings to other digital audio players around you that receive FM (which is pretty common nowadays).

Rip, Mix, Share. Welcome to the (new) Social.

It's just under 12mm thick, sports a 1.1-inch display and rocks out with a 20-hour battery life. The Gigabeat U will be launched in Japan on April 7th with a price of about $118 for the 1-gigger and $142 for the 2-gigger.

[Engadget] 

Did you miss Artie Lange's appearance on Jimmy Kimmel Live on Friday? No problem. Just watch it below.

Part 1:

Part 2 is available after the jump... 

A recent article in the Washington Post brings to light an open question about a merged satellite radio service: given the limited bandwidth available from either XM and Sirius, how will they be able to handle transmitting each other's content?

Subscribers who have been around for a while have seen channels get dropped in favor of additional channels. The Washington Post article illustrates this with the example of C-SPAN getting the axe. It's a reality of the situation - both XM and Sirius have a limited amount of bandwidth allocated that they can pipe content through.

So when if the merger goes through, and Sirius starts offering a "best of XM" selection of channels (and vice versa for XM subscribers) - what channels will this be at the expense of? While there's duplicate genres across both services, analysts question how many XM or Sirius channels can be dumped before subscribers begin to feel they are getting fewer options, not more.

And that leads me to our biggest fear regarding the merger.

[The Washington Post]
Thanks to everyone who sent this in!

We're starting to see more and more satellite radio powered solutions for on-hold music/background music business, but this is the first time I've seen a company that's providing this service using both XM and Sirius.

Folks, allow me to introduce you to Dynamic Media.

Dynamic Media lays claim that they're the nation's leading provider of satellite radio and music-on-hold messaging for business applications. They provide both XM Satellite Radio and Sirius Satellite Radio for background music, as well as on-hold messaging and in-store promotional announcements.

I had the chance to ask a few questions of Dr. Ryan Santangelo (who founded Dynamic Media back in 2003) to learn more about himself, the business and about their inner workings. And here's what was learned.

Dynamic Media is a direct partner with both XM and Sirius, and is the only company in the U.S. licensed to provide both Sirius Business and XM Business service. On top of satellite radio, they provide a full suite of on-hold and in-store message products, focusing their strenghts in the engineering, design, and integration of advanced professional audio systems.

They also have a network of over 8,000 SBCA (that's acronym-speak for "Satellite Broadcast Communication Association") certified technicians. With that kind of reach and expertise, Dynamic Media can install and support complete audio systems for any size business - from small retail stores to entire stadiums - in every zip code in the United States.

National clients include: H&R Block, Marriott Corporation, Compass Group, Zeppe’s Pizza, Aurora Healthcare System, Regency Beauty Institute, Diabetes Center of America and a great number of hospitals and surgery centers across the country.

Right now they're doing a number of specialty deployments for extremely large national corporations - but thanks to some pesky NDAs - I couldn't get the goods on what exactly they're involved in. What we do know is that these deployments are some of "the largest and most creative applications of satellite radio that the industry has seen to date."

Sounds great. Can't wait to see what they're cooking up. In the meantime, it's great to see a dual-service provider like this making some waves.

[Dynamic Media] 

The NAB's new anti-Sirius/XM merger ad - which parodies the MasterCard "priceless" campaign - has reportedly brought the complaint of copyright infringement from MasterCard.

The ad features a big "credit card" with XM-Sirius over MasterCard's familiar red and orange circles.

Underneath it the ad copy reads:

Howard Stern = $500 million for five years
Major League Baseball = $650 million for eleven years
National Football League = $220 million for seven years
Oprah Winfrey = $55 million for three years
Martha Stewart = $30 million for four years

Asking for a government bailout after making bad business decisions... PRICELESS.

In an NAB memo, the NAB's EVP/Marketing & Communications and Regulatory Affairs Michelle Lehman wrote that the ad "has already garnered a buzz on Capitol Hill and some earned media hits -- reporters really got a kick out of it!" (like OMG!) Lehman added that "MasterCard was not so amused" and NAB assured them that "the ad would go no further."

[Radio Online]

(I'm trying to find the ad, if anyone has it please email me.) UPDATE: Well that was fast. Check out the NAB "Priceless" ad after the jump. (Thanks Tim!)

TWICE writer Bob Gerson feels there's a better than 50/50 chance that the FCC will approve the XM-Sirius merger. At least that's the indication he got from the mouth of the horse, in the form of FCC chairman Kevin Martin.

During Martin's appearance with Gary Shapiro (President/CEO of the CEA) at CES, Martin was asked how he would view an XM-Sirius merger. He said the FCC's investigation would likely follow the same script they took when reviewing, and ultimately turning down, the proposed merger of DirecTV and Dish Network.

And as we all know, the DirecTV/Dish merger was turned down because a lack of competition, especially in rural areas. But Martin added that with phone and utility companies challenging cable as TV content carriers - the FCC might now take a different view. (I've always felt that the problem with the DirecTV/Dish merger is that it came 5 years too early.)

The competitive environment is completely different in radio. And as Kevin Martin indicated, technology is blurring the lines of how services are being delivered. In other words, delivery is becoming less of a factor rather it's the consumer experience that determines what's competition and what's not.

[TWICE]
Thanks MUSCLE13!

Sirius Satellite Radio will air the exclusive world broadcast premiere of Larry The Cable Guy’s new comedy album, Morning Constitutions, on Blue Collar Radio (ch 103).
 
On this Sunday, March 18th, at 3pm ET listeners will be the first to hear the full album.

Recorded live in Minneapolis, Morning Constitutions will land in stores on April 3rd.

Git 'er done!
 
Blue Collar Radio which was launched back in March of last year, features comedians like Jeff Foxworthy, Larry The Cable Guy, and Bill Engvall, as well as many others.

The boys over at Crave had the chance to fondle the new Slacker player and were kind enough to snap off a few shots of the molestation in progress.

While the Slacker device seems oddly large for just being a flash player, Crave has also learned that the boys over at Slacker are talking to other device manufacturers to make its service (both free and paid) available to all.

Now imagine that... opening up your service to all those willing to support it? Crazy talk I tell you.

[View Slideshow] 

Hear 2.0 got ahold of an insider who spilled the beans on the initiatives behind a merged XM-Sirius.

I have a few issues with this "mole" and the information being "leaked" - primarily that each bit of info is surrounded by snarky commentary which raises an eyebrow as to any ulterior motives - so go ahead and read the post first and then come back here for my take.

...you back? Sure you are. So let's pick this apart shall we?

First, the whistle-blower says that the "pricing itself will resemble the tiered approach that cable exploits so well ... It's simple - lower subscriber fees will come with less programming choices attached." -- is this a revelation? How else are tiered subscription packages offered?

The entry level tier will consist of a "basic and limited representation of satellite radio programming: news, talk, music, and some public service" with "probably no high profile programming" like MLB, NFL, etc. This premium content will be attached to a... wait for it... a premium tier. Yet another brilliant revelation by this mole.

(Recap: So far we've learned that a basic tier will be offered, with a limited selection of programming. And a premium tier might be offered with premium programming. I hope you're still in your seat at this point.)

In all fairness, it does get somewhat interesting from this point forward:

"What's also been lost is the fact that once an aspect of the service goes to a premium teir, eventually payments to that service provider also rise."

This seems obvious as well, but not something that has been talked about much. Content providers that have a rev-share deal in their contract will see an increase in money owed to them because they're in a "premium" tier. The writer goes on to challenge the notion that subs will pay premium rates for premium content -- which seems contracting to his previous statement. Either way, premium content providers will be asking for more money, regardless of what the NY Post seems to think.

Then the mole goes on to talk about the music channels. "XM has 69 commercial-free channels. Sirius has 69. Does that mean a merged company will have 138 music channels? Of course not. A combined company would need only 70-75 music channels to cover most of the audience's appetites. And even if you plead that a merger should create more choices and end up adding another 25 channels you'd have to tack on a big number to cover the rights fees."

This obviously was my biggest fear regarding the merger. In an attempt to keep those royalty fees in check, those music channels would have to be limited. We all know that DJs don't make that much coin, but those royalty fees will be the focus of the number crunchers.

...and now the clincher. You ready for this?

"Assuming each music channel averages 40kb bandwidth, the approximate net gain from the channel consolidation is 1520kb of bandwidth. Most of that would go toward premium services.

So what's the true killer app for premium services? Video, of course. Once satellite radio starts pumping video into the backseat of OEM vehicles, the real gravy will start to flow. Their automotive partners already know this is the new frontier. Satellite radio will need to come along if they plan to be part of the brave new dashboard because OEM is the future of satellite radio."

This, I have a problem with. First, the thought that bandwidth would suddenly be opened up as a result of this merger is not realistic - at least not for the short term. The 1+1=2 concept doesn't work. And I have a problem in thinking that a mole who is so "informed" would see the bandwidth benefit as such a simplistic equation. Both networks will continue to operate independent to each other for the next decade or so, and while some of the newer satellites have cross-network capabilities, these would initially be done at the chipset level. The legacy receivers would continue to be supported, meaning that XM content would essentially be simulcast to Sirius receivers, and Sirius would simulcast content to XM receivers. Can you say bandwidth hog?

So fine, the Backseat TV receivers would have the cross-network chipsets built-in, allowing for better bandwidth. Great. But I have a problem thinking that Backseat TV is the savior of satellite radio. Is Backseat Video really the roadmap for success that a combined XM-Sirius have in store? Please. I don't think XM-Sirius even have a concrete plan themselves (they still need to get the deal approved, oh and there's that little anti-trust/collusion thing), so how this informant knows the next "killer app" is beyond me. Sounds like another over-zealous fan-boy who's looking to be Internet-famous.

No, I'm calling Bravo Sierra on this "mole" and demand that he be tarred and feathered for "leaking" information that we pretty much already know. Sorry buddy, you've been called.

[Hear 2.0] 

News bits and bites for this semi-slow Thursday...

• Congress lambasting the FCC may be seen as a "subtle negative" for the XM-Sirius merger [Forbes] 
• Om Malik on the problems that Slacker will face (such as Apple, Napster, Urge, Real Networks, Creative, SanDisk, Microsoft, Pandora and Last.fm) [GigaOM] 
• The New Yorker gives an in-depth take on why the XM-Sirius merger should be approved [The New Yorker] 
• iTunes to everyone: sucks to be you [Ars Technica] 
• Google execs confirm Google Phone is one of many R&D projects in the works [Engadget] 
• XM's Kevin Straley (aka Stray-lo) gets promoted to Senior VP of news, talk, and sports programming [DCRTV] 
• AMTC signs Zizzo’s Coffee for SiriusBusiness music [SSG] 
• NPR is pissed! Leading the change to reverse Internet Radio royalty rate decision [Consumerist] 

Your input is appreciated! Send in news bits that you think are worthy and I'll send you a hug.

NASCAR driver Michael Waltrip is joining XM Satellite Radio to host a new weekly talk show starting this Tuesday, March 20th.

"Michael Waltrip Out Loud" will air on XM Sports Nation (ch 144) every Tuesday night from 7-7:30pm ET with replays at 11pm ET and other times throughout the week.

"My XM show will be fun," said Waltrip, a two-time Daytona winner. "I love that I have the opportunity to talk about the sport I am so passionate about. There is also a whole world of athletes and entertainers who love this sport and I think it will be great to have them as guests and get their feelings as well."

Dale Earnhardt, Jr. will host a special call-in version of his own XM show “Dale Jr. Unrestricted” the same night from 8-9pm ET also on XMSN.

XM will also become the primary sponsor of Michael Waltrip Racing's No. 99 Busch Series car driven by David Reutimann for the Chicagoland race July 14th.

Yesterday it was reported that Sprint Nextel was dropping Sirius from the Vision and Power Vision plans. This is incorrect.

Sprint Nextel is simply dropping a single channel, but is retaining the full $6.95/month service. The relationship between the two services is fine and healthy.

The original RCRWireless News article indicated the "Sirius Hits streaming music service" was being dropped - which was the source of the confusion (who the hell calls a channel a "service"? oh well, no excuses). After further inquiry with Sirius I learned that it was indeed just one channel and not the entire service that was being affected, so I want to ensure that this is cleared up for everyone.

You may commence critiquing... now. 

Sirius Satellite Radio's co-founder, Robert Briskman, has been awarded the 2007 American Institute of Aeronautics and Astronautics Aerospace Communications Award. The Aerospace Communications Award will be presented at the 25th AIAA International Communications Satellite Systems Conference in Seoul, South Korea on April 12, 2007.

The Aerospace Communications Award is presented for an outstanding contribution in the field of aerospace communications. This year, Briskman is honored for his efforts in developing the Satellite Digital Audio Radio Service (SDARS) - most people tend to call it "satellite radio."

For over 70 years, the AIAA has been the principle society for aerospace engineers and scientists, and its members have achieved nearly every milestone in modern American flight.

Robert Briskman co-founded Sirius Satellite Radio back in 1991. He was Chief Technical Officer and Executive Vice President, Engineering of Sirius and has been involved with communication satellite systems since their inception. As the technical innovator of mobile satellite radio services, he was responsible for the development, implementation and operation of Sirius' broadcast distribution system.

His technology development responsibility included design of low cost satellite receiving terminals for automobiles and of broadcast sound programming, earth station, terrestrial repeaters and satellite control facilities.

During 2000, Briskman supervised the launch of three Sirius satellites into a unique operational orbital constellation which he designed.

President Bill Clinton will appear on XM Sports Nation (ch 144) tomorrow (Friday, March 16th), to talk about college basketball with James Carville and Luke Russert.
 
A hardcore hoops fan, Clinton will size up the teams in this year’s NCAA tournament, including his beloved Arkansas Razorbacks.
 
Check out Carville and Russert's hour-long XM sports talk program "60/20" on Fridays at 8am ET - with replays at 11pm ET and several other times through the weekend.
 
Carville told the US News & World Report that he thinks Clinton "might be leaning toward Georgetown," his alma mater.

Carville also said Clinton has no secret to making accurate hoops picks other than studying the stats. "I think he's a knowledgeable fan, but my guess is that even when you're the president, you're not much better than the secretary who somehow always wins the damn thing."
 
This is the second time that Clinton is making an appearance on the Carville-Russert show (he was their first guest when it debuted back in March '06).

News bits, links and all-around malarkey for this Wednesday...

• FCC Chairman Kevin Martin appeared before a House subcommittee on telecommunications today. (Did anyone watch this? Holy snooze-fest. That's time from my life that I will never have back.) [FMQB]
  
• Video: Why an XM / Sirius Merger Doesn’t Even Matter (Warning: extreme cheese ahead... but he does have some good points) [Gizmo Cafe]
• Slacker's No Slouch - Forbes gives their take on the whole Slacker situation. [Forbes]
• UBS think iPhone touchscreen technology is a stepping stone "mega-platform" (i.e., will spread to iPods, iMacs, Tablet Notebooks). I think they're right. [AppleInsider]
• XM Satellite Radio Acura 2007 Twelve Hours Of Sebring Fact Sheet [Auto Racing Daily]
• "The most trusted news in radio" seems to think there's no new-media competition  [Hear 2.0]
• Opie and Anthony Traveling Virus 2007 kicks off at the Hard Rock Hotel & Casino in Las Vegas [FoundryMusic]

Sirius Satellite Radio will celebrate St. Patty’s Day with special music programming on March 17th.

First on Sirius Disorder (ch 32), Larry Kirwan, from Black 47 and The Irish Tenors perform on "Celtic Crush" on March, 17th at 12-1pm ET. Missed it? No worries, the replay is on the same day at 10pm ET, and if you missed it again it'll be on again at March 20th at 10pm ET.

The fun doesn't stop there as Paddy Maloney, from The Chieftains, drops by Sirius Disorder for a performance also on March 17th at 3pm ET (catch the replay at 11pm ET).

If Sirius Disorder isn't your flavor, drop by Sirius Faction (ch 28) as Flogging Molly hosts a special St. Patty’s Day "Hostile Takeover" where you'll hear Celtic punk-rockers. Broadcast airs on March 16th at 7pm ET with the replay on March 17th at 1am ET (...if you're not passed out by then). 

XM Satellite Radio taped their first Latin edition of “Artist Confidential” featuring Puerto Rican pop singer Noelia.
 
Noelia performed for fans inside the intimate XM Performance Theater in DC, where XM on-air host and senior programming director Jesus Salas interviewed the international artist and took questions from the audience. Channel and date of this Latin episode of “Artist Confidential,” will be announced.
 
The pop star discussed her life as a celebrity from a very young age, her inspirations, and how she initially found success in Puerto Rico, Latin America, and now around the world.

Sirius Nextel told its customers in a billing insert that they're dropping the Sirius streaming music service for Vision and Power Vision data subscribers.

Sirius Music is apparently getting the boot in favor of 10 "genre-based channels" of mobile music.

UPDATE: More has been learned about this, read about it here.

Sprint Nextel will also be expanding their basic Sprint TV service with additional content from CNN, The Weather Channel, E!, NFL Network and Fox Sports.

A Sprint Nextel spokesman had nothing further to say other than what was already revealed in the billing insert.

If this is the case, it obviously won't have a major impact on subscribers (the act of Sprint dropping Sirius indicates that it was a less-than-stellar success... surprised?). But it was an important foothold for the future when mobile music gains acceptance by the masses.

[RCRWireless News via Sirius Uplink] 

Oprah has launched a new original online video series - Oprah's Expert Minutes - featuring info and advice from the likes of Dr. Mehmet Oz and Jean Chatsky. Dr. Oz and Jean Chatsky frequently appear on The Oprah Winfrey Show and are on-air hosts on XM Satellite Radio's Oprah & Friends channel (ch 156).

No, this doesn't completely negate the value of the Oprah & Friends channel to avid Oprah fans (as the name makes painfully obvious, "Expert Minutes" are very short form snippets, and aren't available as a podcast - so not available on-the-go). But these are a clear opportunity for Harpo to add in a "learn more and listen to my show on XM Satellite Radio" which is being ignored overlooked. Even a link on each Expert Minute page would help tie in the relationship between Oprah's "Friends" and the XM offering, but maybe that's asking too much.

The lack of promotion enthusiasm from the Harpo camp continues to amaze me.

[via Huliq]

NAB president David Rehr has so vehemently opposed the XM-Sirius merger to such a level that it has helped solidify the point to some lawmakers that satellite radio and terrestrial radio directly compete.

Well, now it seems that Rehr is trying to do some damage control. He has written a letter to Congressman John Conyers, chairman of the House Judiciary Antitrust Task Force, to help clarify his points.

And amazingly enough, David Rehr is now stating that satellite radio is not in the same market as terrestrial radio is. Somehow, miraculously, satellite only competes "one way" with terrestrial radio. It's a fabulous attempt to backpedal, especially since many of the NAB's members have already declared satellite radio as a competitive threat in their own SEC filings (which constitute admissions made under the law).

Rehr also goes on to say that iPods, Internet Radio and Cell Phone Music services don't compete either, because they don't have comparable sound quality, aren't conveniently accessed in vehicles.

It's truly an amazing attempt at damage control, but you have to hand it to Rehr... he's a fighter.

[View Full Letter (PDF)] 

For you lazy-clickers, the full text of the letter is also available after the jump... 

Avis Rent A Car and Budget Rent A Car will be the first rental services to offer XM Canada.

Starting now, XM will be included in full-size, premium, vans and SUVs GM vehicles, at Avis and Budget locations throughout Canada.

These XM-equipped vehicles will be available at corporate-owned rental locations across Canada and by late spring, a significant portion of the GM fleet will have the XM Canada service package.

The XM Canada service is available free of charge.

[Press Release] 

The first question, at least to avid readers here, is how the heck is Slacker able to broadcast audio content over satellite? Well the folks over at WIRED got the scoop.

The company that owns Slacker - Broadband Instruments - is actually leasing portions of the Ku-Band (think Satellite TV) to send the content to the Slacker receiver. Who exactly they're leasing the bandwidth from is unknown.

The reason this has not been attempted before is that the receivers required to pull the signal down were too large (have you seen the KVH TracVision A7?). Apparently Broadband Instruments has developed a smaller receiver - about the size of XM and Sirius receivers - to add satellite reception to the optional docking stations/receivers for the car and home.

Slacker will be able to offer 10,000 tracks per day through this pipeline. The songs will be cached on the Slacker device and checked against your preferences to make sure you don't hear any songs you've banned.

Remember, the service is alot like Pandora in that you can "heart" or "ban" songs to tweak the music to your preferences. Your voting preferences are saved both online and on the device, which then is applied to the channels that you're listening to.

Anyone wanna make some bets that this will be brought up at the next antitrust hearing? Smells like legitimate competition to me.

[via WIRED Blogs] 

A new satellite radio company? But how? The FCC only granted two licenses right? According to CNET, Slacker's radio service is powered by their own proprietary technology that takes advantage of unused commercial satellite signals to send data. A soon to be released car-kit enables the listener to receive the satellite signal which works together with the Slacker portable device (pictured).

Former Rio CEO turn president of Slacker, Jim Cady, said that at first, the company considered a "more satellite-radio-specific (model) as a direct competitor with Sirius and XM. But it morphed into something much broader than that."

Here's some bits of related news for today...

• A profile of David Rehr, leader of the NAB, trying his darnedest to kill the XM-Sirius Merger. [Washington Post]
• Viacom sues Google/YouTube for $1 billion for "unauthorized use" of their programming. [FMQB]
• Clear Channel delays buyout vote on $19 billion deal. [Reuters]
• HD Radio having a big presence at SXSW with performances, listening stations and giveaways. [MediaBuyerPlanner]
• WorldSpace Q4 and Full-Year results will be released on March 27th [Press Release]
• Flying with XM WX Weather [Flying Magazine]

XM Satellite Radio, in a partnership with the Concord Music Group, have released a new 12-track compilation CD "Watercolors: Red" available exclusively at Circuity City.

"Watercolors: Red" features performances from the best artists in contemporary jazz such as David Benoit, Lee Ritenour, Sergio Mendes, Poncho Sanchez and more. Each song paints a spectrum of tropical jazz hues.

The track listing is available after the jump... 

Sirius Satellite Radio - for its third straight year - is airing every game of the 2007 NCAA Division I Men's Basketball Championship. Sirius will be the only radio broadcaster to air every game of the championship in its entirety.

Starting with the Opening Round game on March 13th from Dayton, Ohio and ending with the national championship game on April 2nd at the Georgia Dome in Atlanta, the site of the 2007 Men's Final Four.

Sirius will air the game broadcasts from each tournament site completely uninterrupted.

Games will air on Sirius channels 119, 122, 125 and 126. Sirius host Steve Torre will anchor the coverage on these channels, giving up-to-the-minute scores and highlights during game breaks and directing listeners to other games around the dial.

Sirius will also carry Westwood One Radio's coverage of the NCAA Division I Men's Basketball Championship, anchored by Tommy Tighe with cut-ins to live game action, on SIRIUS Sports Action, channel 123, throughout the tournament.

Check out the Opening/First Round schedule after the jump... 

Ah yes, the lovely new Daylight Savings Time (thanks to the 2005 Energy Policy Act) has not only caused your IT department to lose their hair, but has affected satellite radio receivers as well.

Yes, it's amazing that we can launch multi-million dollar satellites into space, but we can't seem to fix a simple DST change. (Remember when we had to change the clocks by ourselves? Yeesh! How did we ever survive?)

Thankfully, the Pioneer Inno (as well as the Helix/Nexus) have a firmware update to fix your clock so it follows the new Daylight Savings Time crazyness. Oh, it adds a couple more things as well. Like support for Audible content (OMG!) and the ability to skip ahead in more than 5-second intervals (OMFG!).

Oh, and for you Stiletto owners, Sirius has issued a technical update about the DST issue with a temporary workaround. S50 owners are in the clear.

Click to download the Inno/Helix firmware or follow the jump below for the full firmware update features...

Sirius and XM have disclosed in SEC filings that they've filed the required Hart-Scott-Rodino "Notification and Report Form" effective on March 13th.

The filing essentially just describes the proposed transaction for the FTC and DOJ. Now we have a 30-day waiting period that allows regulators to request further information in order to help them assess whether the proposed transaction violates the antitrust laws.

Read more about the Hart-Scott-Rodino Antitrust Improvements Act of 1976 here.

WorldSpace Satellite Radio CEO Noah Samara will speak at the Mobile Satellite Forum 2007 conference on March 20th in London.

Samara will join executives from SES Global, Alcatel and other industry leaders on the "Mobile Broadcasting" panel, and discuss strategic issues facing emerging business models for satellite-delivered broadcasting.

Samara will specifically address the path to success for satellite radio in the UK and Europe.

The music. The music scares me.

I'm actually not so concerned about the prices. Hell, I never really expect the current rates to stay where they are anyway - like death and taxes - subscription services are destined to squeeze the subscriber as much as possible. The good news? If the two companies merge, the government will actually get the chance to lock-in prices (for at least a few years).

I'm definitely not concerned about my receiver(s) not working either. Sirius and XM need to stay in business afterall, and usually that doesn't mean alienating half of your subscriber base. I know my current hardware will do just fine in the years to come. And I'm actually happy about the thought of reducing the number of wires I have everywhere (which will make my wife happy too).

And I'm really not concerned about commercials. I don't see commercials suddenly creeping into my music channels. That's the core of satellite radio's business. Getting rid of commercial-free music would be like Victoria Secret's getting rid of the sexy. Like Jose Cuervo without the alcohol. If they ever do introduce commercials, it'll be as part of a free service - at which point I won't care - because I'll continue to pay for not hearing them.

Nope, it's those "synergies" that scare me.

XM Satellite Radio is dropping the clutch on yet another year of Indy coverage with the broadcast of
the 2007 IRL IndyCar Series season opener, which is - appropriately - The XM Satellite Radio Indy 300.

The XM Satellite Radio Indy 300 will air live on XM's IndyCar channel (ch 145) from the Homestead-Miami Speedway, Saturday, March 24th. The entire 2007 IRL racing season, including the Indy 500 on May 27th, will be broadcast live on XM 145.

A special edition of the XM motorsports show “Powershift” with Joe Castello will air direct from the track 6-7pm ET on XM Sports Nation (ch 144) March 24th, featuring Indy drivers Danica Patrick, Tony Kanaan, Dan Wheldon and Scott Dixon.

On top of the race itself, XM is also sponsoring a one-day festival, the “XM Satellite Radio Speed Jam,” to kick off the IRL IndyCar Series season before the race. The festival will feature a concert performance by the Australian rock band Jet starting at 5:30pm. If you're going to be at the Indy 300, no worries, the festival fee is included in your ticket.

(...and yes, any post about the Indy season is always a great excuse to post photos of Danica Patrick.)

Sirius has renewed their long-term agreement with NPR to continue broadcasting two NPR-branded channels as well as featuring a variety of shows from NPR, other public radio producers and NPR Member stations.

On top of that, Sirius will be the exclusive satellite radio home of a new morning news and information program for Adults ages 25-44 that NPR will launch in September.

Terms of the renewal were not released, but it's described as a "long-term" agreement. (Hmmm, if I was a content provider, would I want to renew my contact prior to the merger? You betcha.) 

Sirius has signed on the fan-favorite pet psychic Sonya Fitzpatrick to do a new a animal advice and call-in talk show on Sirius Stars (ch 102).

Sonya Fitzpatrick will help pet lovers understand and connect with their pets-both living and passed on, in her weekly show, entitled "Animal Intuition." Formally from Animal Planet's "Pet Psychic" Sonya supposedly has the ability to communicate with animals and to teach people how to see things from the pet's point of view.

On "Animal Intuition," Sonya will use her special telepathic gifts and healing talents to counsel pet owners on resolving common behavioral problems such as scratching, chewing, soiling, barking, and more.

Should make for some captivating radio.

XM Canada is adding more channels to their lineup, including several music and talk channels - as well as additional Canadian channels - starting on April 1st.

With the new music channels, XM Canada can now boast that they are offering the most music than "any other satellite radio provider" in Canada.

The two Canadian channels will be sports channels: XM Scoreboard and Calendrier Sportif. These are being described as the "perfect addition" as the NHL will be going exclusive with XM in July, and XM will be carrying every single game.

Follow the jump to see the other new channel additions...

Pioneer has been slowly snuggling up to both XM and Sirius recently. So it doesn't come as not much of a surprise that rumor has it that they're developing their own wearable receiver just for Sirius.

With their latest uber-headunits (like the AVIC-D3), not to mention their dual-service-loving A/V receivers, Pioneer definitely has been playing both sides of the fence. Even the AVIC-Z2 sports both Sirius/XM support.

But unfortunately, there's little additional that this tipster can reveal. All that is known is that Pioneer is working on a device "similar to the Inno" (whatever that means) for Sirius. 

So there you go. Wallow in that speculation for a while. 

From the not-in-my-backyard department. While the Copyright Royalty Board has issued an absolutely ridiculous decision to dramatically increase Internet radio royalty rates to a per-song/per-listener basis, it seems that the NAB has now turned into the defenders of new technology.

Commenting on the CRB's proposal, NAB spokesman Dennis Wharton said, "It's a disappointing decision. If it stands, there will be less music choice for consumers, and a technology will get stifled in its infancy." 

Ain't that the most hypocritical noble statement ever?

[via Radio Ink]
Thanks Roger!

Danica Patrick will be joining XM this month to co-host the "Andretti Green Racing Hour" on XM Sports Nation (ch 144).

But on March 24th, Danica will also be debuting as the newest member of the AGR team at the XM Satellite Radio Indy 300 in Miami.

And a new team means a new uniform. And the XM logo is featured on her new threads (as well as her new ride). And that's a good enough reason to post these photos of Danica in my book. Check 'em out after the jump...

The Washington Examiner has a very interesting piece on the NAB is so gung-ho against the XM-Sirius merger. While NAB is crying that the merger would create an unfair competitor, the numbers just don't add up:

• Sirius and XM have a combined annual revenue of $1.49 billion.
  
• Clear Channel, the largest member of the NAB, raked in a whopping $1.97 billion in revenue... last quarter.
• Sirius and XM have nearly 14 million subscribers combined.
• Clear Channel boasts 110 million listeners.

So a single member of the NAB (an organization with a $20 million building in downtown DC and an $7 million annual lobbying budget) earns more money than the entire satellite radio industry combined, and nearly 10x as many listeners.

And yet, the NAB is saying that a merger would harm the "local" broadcast industry. (The term "local" is used to make them out to be "the little guy" - but we all know that terrestrial radio is far from "local" - *cough* voicetracking *cough*).

While the NAB is calling the merger a “a government bail-out to avoid competing in the marketplace,” The Examiner thinks it might be more accurate to say that the NAB is asking for government protection against competition.

[Washington Examiner via The Liberty Papers] 

Combining the likes of AM/FM and a CD player - as well as XM Satellite Radio - in 5.1-channel surround sound is just the very beginning. The Bose Media System also supports DVD (audio and video), Super Audio CDs, MP3s, AAC and pretty much all formats available on recordable CDs and DVDs.

It also features a built-in GPS navigation system, Bluetooth, a USB 2.0 input and of course iPod connectivity and control via the display. Oh right, and a built-in hard-drive that allows for 200-hours of playback time. (No word on whether it has XM NavTraffic - it would seem appropriate.)

...and then there's the interface.

The familiar two-knob interface is the center of the whole system, once control one aspect (like volume, and channel selection) and you know how to control it all. With a built-in proximity sensor, as soon as you go to reach for the outter knob, the system sense your hand and changes to show only the most relevant info.

The Bose Media System also features a "uMusic" intelligent playback system. As you listen to tunes off the harddrive, just press the button to indicate your mood, and the system will learn and adapt to fit your emotions.

Price? If you have to ask, then you can't afford it. But the Bose Media System debuts this year in the Ferrari 612 Scaglietti, so just bag one of those and save yourself the trouble of installation.

[Product Page via Engadget] 

XM Canada has just announced that they've reached 237,500 subscribers as of the end of its second quarter ended February 28, 2007.

In what appears to be a media relations tit-for-tat, XM Canada's press release clearly highlights that they hold an 80% marketshare of factory-installed satellite radios in the automotive sector and that XM will be available in 115 different vehicle models in 2007.

Sirius Canada had highlighted that they commanded a 70% marketshare when they announced reaching over 300,000 subscribers.

Also, XM Canada has now changed how they are reporting subscribers, in an effort to align subscriber numbers "more closely with industry norms." XM Canada's subscriber numbers now include vehicles factory-activated when automakers have agreed to pay for a portion or all of the trial period service.

So what was 147,000 subscribers back in January, is now over 237,000 subscribers today. 

Bad blood? Nahhh. 

Remember XM's whole thing with the RIAA over the Pioneer Inno? Sure you do. Well, what would happen if XM and Sirius merge?

Mel gives us a possible glimpse:

"We're implementing my viewpoint at Sirius. We have made an accommodation with the various music labels," said Karmazin. "After the merger, I will be the CEO, and all I can say is you know my views on the subject."

Karmazin said he couldn't comment on XM's legal case, nor did he know whether the matter would be resolved by the time the merger would be completed. But we sure do get an idea of where he stands.

I'd rather that he take the we-don't-bend-over-for-nobody approach, but I can also understand why this may not be the time/place for such a stance. Maybe if the merger goes through they can play hardball? (It just irks me to imagine that the RIAA may actually 'win' over this thing.)

And if you're curious as to why the RIAA has been so quiet during this whole merger madness, GigaOM has a very nice theory behind it.

[via MarketWatch]

XM Satellite Radio's Oprah & Friends channel (ch 156) will be honored with two national 2007 Gracie Allen Awards.

Both "The Jean Chatzky Show" and Harpo Radio producer Katherine Kelly will be recognized at the 32nd Annual Gracie Awards Gala being held on June 18th at the New York Marriott Marquis.

"The Jean Chatzky Show" is being recognized for "superior quality in writing, production and programming." An award-winning journalist, bestselling author and motivational speaker, Jean Chatzky is a regular contributor to “The Oprah Winfrey Show” and an exclusive contributor to Oprah.com.

Katherine Kelly, a producer for Oprah & Friends, will be awarded a Gracie Allen Award for Individual Achievement – Outstanding Producer – Entertainment.

The AWRT's Gracie Allen Awards recognize media and entertainment programming created for women, by women and about women.

Thanks Matt! 

XM Satellite Radio has added Chicago Public Radio's s long-running global affairs program "Worldview" talk show to the XM Public Radio (ch 133) lineup.

Worldview, hosted by Jerome Mcdonnell, will air from 1-2am ET on Wednesdays through Saturdays. And starting on March 19th, Tuesday will be added to the roster as well.

It's very interesting to see the recent growth in both XM Public Radio and XM Sports Nation. XM appears to be trying to foster in-house sub-brands.

[via AllAccess] 

In the recent arguments against the XM-Sirius merger, the NAB continuously is trying to smear the satellite radio industry as being "unlawful" companies.

Afterall, they can't go ahead and say that satellite radio isn't competing with terrestrial (see why here). So they instead need to frame satellite radio as being an irresponsible industry not capable of handling the responsibility of being a 'monopoly' (something that terrestrial radio is well versed in).

Take for example their recent ad campaign, where the NAB highlights troubles with satellite radio repeater towers, and receivers with over-emitting FM modulators. These are items that are either already resolved or that XM/Sirius are working with the FCC to resolve.

Yet, as Mel Karmazin poignantly highlighted at yesterday's hearing, four major terrestrial radio companies are settling payola charges with the FCC. What did the pot say to the kettle again?

David Rehr, the NAB's cabin boy Chairman, stated in his testimony to House Judiciary subcommittee that XM and Sirius haven't complied with an "FCC rule to develop a device that works with both services" -- but yet, they have. The 1997 FCC license simply states that XM/Sirius must develop an interoperable receiver - not bring it to market. Mel Karmazin yesterday explained that while a radio capable of receiving both XM and Sirius exists, it doesn't make financial sense to subsidize a radio that can receive another company's signal.

But is all this whining working?

At the recent Bear Stearns Media Conference, where FCC Chairman Kevin Martin Keynoted, it was stated that the FCC would be serious about enforcing rules, but that past infractions do not necessarily have "character implications."

A recent note from Robert Peck at Bear Stearns, highlighted that Chairman Martin stated that the key issue would in fact be defining the market and that concessions would depend on the harms identified.

And when it comes to "defining" the market, well then, terrestrial radio has already done that for us. 

Since the House has had a bite, now it's the Senate's turn. A hearing on the XM-Sirius Merger is scheduled to kick off on March 20th at 2:15pm ET for the Senate's Antitrust Subcommittee.

The hearing, artfully entitled "The XM-Sirius Merger: Monopoly or Competition from New Technologies" will be presided over by Sen. Herb Kohl, (D-WI).

And while a witness list isn't yet available at this time, I'm pretty sure Mr. Mel Karmazin will be making an appearance. Fun fun.

Thanks Rob! 

In a post-merger world how much would a subscription cost? It's a question that plagues subscribers, consumer advocates and FCC Chairmen alike. But today in front of a House telecom subcommittee hearing, Mel Karmazin sought to clear the matter up.

"If our merger is approved, we will offer consumers a much more attractive choice -- the best of each service on one radio at a price well below the cost of the two services today," Karmazin said in a prepared remark.

Further into the hearing, Karmazin further elaborated, "There will be a significant discount." When asked if the discount would be either $10 or $2, Karmazin said it "looks closer to 10 than to two."

[Reuters] 

Well that was fast. Barely a moment has past since the NAB unveiled their anti-satellite radio merger ad, and XM-Sirius have launched their own pro-merger campaign of their own.

Check it out after the jump... 

XM Satellite Radio will be launching a new channel for St. Patrick’s Day - XM Green: Radio Ireland - on XM channel 200. It'll be made available on XMRO as well.

The channel debuts next Friday, March 16th through Sunday, March 18th and will feature the true sounds of Ireland - from traditional music by The Clancy Brothers to contemporary artists such as Celtic Thunder.

Listen for popular hits from artists like The Pogues and Flogging Molly will also be showcased. XM Green will also air Ireland's old-style songs and traditional performances by artists such as Dennis Day, Irish Weavers, Frankie Gavin and more.

(And hopefully there'll be some Irish drinking songs mixed in there as well. There's nothing quite like screaming singing 'Wild Rover' while clinking beers at the local pub.)

The NAB has taken out an ad in the Congress Daily and other political publications that highlights the XM-Sirius Merger. Anyone want to guess which (ironic) position they take?

View the ad after the jump...

Geeks rejoice! Leo Laporte will now be heard on XM Satellite Radio's Extreme XM (ch 152) starting this last weekend.

"Leo Laporte: The Tech Guy" - a fairly new radio show hosted by the TWiT host, former TechTV superstar and all-around geek extraordinaire - can be heard on Saturdays and Sundays from 2-5pm ET, with replays on the weekends at 8-11pm.

(Did XM listen to my plea for more tech-centric programming? Doubtful, probably just one of those crazy coincidences again. Either way, great news.)

[via The Life of Leo]
Thanks Don!

UPDATE: Looks like Leo Laporte's show actually aired last weekend. The great folks over at XM411 have the scoop.

Dr. Andrew Weil, pioneer of integrative medicine, will be having his own show on Sirius Satellite Radio's Lime Radio (ch 114) starting on April 11th.

His show is headlining Lime's change to a live, call-in programming which starts this month. LIME will feature renowned hosts talking with listeners on a variety of topics such as alternative healthcare, healthy food, eco-lifestyle, and life coaching.

Dr. Weil's show will be joined by other experts in the health and wellness category including Josh Dorfman, Dave Foreman, Phil Lempert, and Mel Robbins.

Dr. Weil one-hour show will air weekly starting April 11th at 6pm ET.

Mel Karmazin is scheduled to appear in front of the Subcommittee on Telecommunications and the Internet (a subcommittee of the House Committee on Energy and Commerce), today at 2:30pm ET.

The hearing is on "The Digital Future of the United States: Part II– The Future of Radio" headed by Rep. Edward J. Markey (D-MA) who was chairman of the subcommittee 12-years ago.

"Now, for the first time I have the gavel back again, and I plan to highlight competition," Markey said earlier last week.

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.

Peter Smyth, President and CEO of Greater Media, is also scheduled to enter the fray. Smyth is the only commercial broadcaster on the list (too bad, I would've liked to see David Rehr again).

[View a live video Webcast of the hearing] 

Earlier this week it was learned that even though John Ashcroft sent a letter blasting the XM/Sirius merger, his lobbying firm had originally contacted XM offering his services to their side instead. The only gray area was that this claim came from XM, while the NAB said they were "not aware" of any prior discussions.

Now it seems that The Ashcroft Group has admitted to shopping their services to both sides of the merger, and unsurprisingly, they're defending their actions. 

A spokeswoman for Ashcroft, Juliana Glover Weiss, explained how the Ashcroft Group went from contacting XM about representing it in the merger, to publicly opposing the deal just over a week later.

Apparently an Ashcroft Group representative had friends at both the NAB and XM, and contacted both groups supposedly within five minutes of each other. The inquiry, according to Glover Weiss, was whether their team was “strong enough” for the upcoming fight in Washington.

How this inquiry of "strength" led to XM turning down Ashcroft's services is unclear. 

“We had a very good idea where we would be most useful within two and a half hours,” she said. (Of course you did, XM turned you down.)

She described this as a standard practice of the Ashcroft Group, which typically is in contact with several potential clients when a major corporate announcement is made. (Read: We jump the fence all the time, this isn't anything new.)

Glad we cleared that up.

[The Hill] 

The New York Times is reporting that FCC Chairman Kevin Martin has - in private conversations - questioned Mel Karmazin's statements about price increases, at last week's Congressional hearings.

In question is Karmazin's promise to not raise prices beyond what subscribers currently pay. What was not clear to the FCC Chair is whether Mel meant beyond the $12.95 pricepoint, or the combined cost of $25.90/month.

When the New York Times questioned Mel Karmazin, he stated that his testimony was not misleading and that he meant to say two things: subscribers wanting to keep their existing service would not face a price increase, and listeners who wanted the best of both services would pay less than the combined rate of $25.90.

Mr. Martin was also contacted by the New York Times and said that he was not questioning the motives or candor of Mr. Karmazin but that there was “a need for greater clarity” over what was being proposed for fees and programming. Mr. Martin added that the hearing left those issues unclear. “When they talk about freezing rates and lowering rates, are they talking about it in terms of the current rate of $12.95 for each service, or are they referring to the combined rate of $25.90?”

The two people who had the private conversation with Mr. Martin (and apparently leaked this information to the NY Times) said that Martin seemed skeptical about both the deal, and how it was being sold to Washington.

Karmazin told the New York Times that he thought he had been clear that to get the best of both XM and Sirius, consumers would have to pay more than the monthly rate of $12.95, but less than the combined rate of $25.90. Consumers who just want to stay with their existing lineup would be guaranteed the same price, he said.

“If the merger is approved there will be lower prices and more choice,” Mr. Karmazin said. “If the merger is not approved, there is no discussion on price and there is no discussion about more choices.”

Mel Karmazin is scheduled to appear before a second Congressional panel today.

The college basketball tournament action tips off on XM this Wednesday, March 8th, with the opening of the Big East and Pac-10 men’s basketball tournaments. The SEC, ACC, and Big Ten tournaments will open on Thursday, March 8th. 

Games will air on XM’s college sports play-by-play channels 191 through 201.
 
“For college hoops fans, it’s more than fifty games in five days,” said Kevin Straley, XM's VP of talk programming. “Displaced fans who live far away from their favorite schools can hear the tournaments on XM.”
 
On top of live coverage, XM Sports Nation (ch 144) will broadcast shows from Madison Square Garden in New York, the site of the Big East tournament, March 7-10. and the Georgia Dome in Atlanta, the site of the SEC tournament, March 8-11. Plus, XM Sports Nation will have on-air reporters at other tournament sites across the country.

This on-site coverage is part of a new series called "XM Sports Nation Total Access," which puts the listener in the middle of all the action, directly from the venue on the day of major sporting events.

Legendary entertainer, comedian and purveyor of Jello Puddin' Pops - Bill Cosby -  will join Sirius Satellite Radio host and comedian Jim Breuer for a rare, hour-long conversation on Sirius Raw Dog Comedy (ch 104).

Cosby will discuss significant moments from his life and career, including insight into his creation of Fat Albert, bigotry he witnessed as a child, and the importance of storytelling in comedy. Cosby also discusses some of the comedians he admires most such as Redd Foxx, Lenny Bruce, and Jonathan Winter.

"For me, as a comedian, talking with a legend like Bill Cosby was fascinating," said Breuer. "I feel like I touched a god of comedy, it was phenomenal."

The hour-long interview airs Thursday, March 15th at 6pm ET on Raw Dog Comedy Uncensored. Breuer Unleashed airs every Monday through Friday from 4pm ET - 6pm ET, also on Raw Dog.

XM Satellite Radio has signed a five-year agreement with the Southeastern Conference (SEC) to broadcast SEC football, basketball and other sports.

XM will air complete coverage of SEC championships, starting with the SEC Men's Basketball Tournament live from the Georgia Dome in Atlanta March 8th - 11th on XM channel 201. XM Sports Nation (ch 144) will also broadcast live from the Georgia Dome.

Starting this fall, XM plans to carry live regular-season football games for six SEC schools: University of Arkansas, Georgia, Kentucky, Mississippi State, Ole Miss and Tennessee. University of South Carolina joins XM in fall 2008, and University of Florida joins XM in fall 2009. 

XM will also carry the SEC football and basketball championships, the vast majority of regular-season basketball games for participating schools, and other SEC sports on dedicated SEC channels. 

Rights for the four other SEC schools are currently not available for the 2007-2008 season, but when those schools play against the schools that are joining XM, you'll get to hear those games. So in other words, when Tennessee plays Auburn, XM will carry the game. 

As part of marketing push, SEC fans can go to xmradio.com/sec for a special offers. Special deals on XM radios will also be offered this week at the SEC men's basketball tournament and the SEC FanFare in Atlanta.  

The Bear Stearns Media Conference 2007 kicked off in Palm Beach, and terrestrial radio bigwigs Les Moonves (CEO, CBS Radio) and Bob Neil (President/CEO, Cox Radio) presented today.

Les Moonves essentially steered clear of the satellite radio subject, simply stating, "We're local and [satellite radio is] not." (Les should win an award for that statement, because it's truly perceptive.)

Bob Neil on the otherhand took the subject head on, comparing the XM-Sirius merger to the game of Monopoly (get it?) and equating the merger to the owning of Park Place and Boardwalk with hotels on them.

"It's just too tempting when you have the monopoly," Neil said. "It's just never in the interests of consumers to have a monopoly in one space."

Hello, Pot... meet Tea Kettle. Guess what color you are?

While the NAB whines about the "irresponsibility" of satellite radio companies, terrestrial radio is not without problems of their own. Four major terrestrial radio companies, Clear Channel, CBS Radio, Entercom and Citadel, are all expected to be making a major payola settlement with the FCC.

The broadcasters have agreed to a tentative settlement which would pay out $12.5 million to the U.S. government, according to Business Week (via FMQB).

The companies' stations will also offer 8,400 half-hours (which I assume totals to 4,200 hours) of free airtime to independent and local artists. FMQB has confirmed that the time devoted to independent artists would be required to air between 6am and midnight.

FCC sources told Business Week that the final language of the agreements have yet to be approved, and that the payment deal is separate from the airplay agreement. 

Wal-Mart has agreed to start selling HD Radio receivers, giving a boost of confidence to the terrestrial digital radio camp.

"When America's biggest retailer steps up, it shows we've really reached prime time," said Peter Ferrara, president of the HD Digital Radio Alliance, a coalition of major radio companies that support the technology.

Starting today, Wal-Mart will start selling a $190 car-radio model made by JVC in nearly 2,000 of its 3,500 stores and on their Web site (currently listed as "Out of Stock"). Wal-Mart will also help support consumer education and other promotion for HD Radio.

The fact that HD Radio is a free service will appeal to Wal-Mart's generally cost-conscious market, but I don't see it as being the panacea that will launch HD Radio to super-stardom. Plus, merger-hopefuls will likely see this as a move that helps solidify HD Radio, and Satellite Radio, as being in the same market.

[Wall Street Journal] 

When XM and Sirius first announced their proposed merger, they stated that the merged synergies ranged from $3 billion - $7 billion (that's quite a spread isn't it?). But that wasn't based on their own analysis, that was based on Wall Street's. Since then, Mel Karmazin narrowed it to between $5 billion to $6 billion during a conference call.

But what exactly are these synergies? Their forecasts are very light on the specifics, and that's troubling. Where do they expect the cost cuts to come from? How much do they expect to save in the first or second year after the merger?

Karmazin said that the cost-reductions will come from "every single line of the income statement," blaming antitrust concerns for the lack of specifics, but also saying that there is "no question about the fact that these synergies are real, they are significant and they are realizable."

I can understand that antitrust limitations prohibit the two companies from looking at each other's books - so they theoretically have no more information than Joe Investor does - but even EchoStar/DirecTV gave more specifics in their own merger. Then again, XM/Sirius may want to be coy and leave the synergy estimates in Wall Street's hands in hopes to not disappoint... a move that doesn't really help to instill confidence.

It's something that bothers analysts as well: Oppenheimer analyst Thomas Eagan said he's "skeptical" about synergies reaching the $5 billion to $6 billion range. Similarly, Wachovia Securities analyst Jeff Wlodarczak, said in a report that a level of $7 billion in synergies is "extremely unrealistic."

With XM and Sirius together pulling in more than $2.7 billion in operating costs (excluding depreciation and amortization) last year, it's a question that will continue to plague them. And until they can provide some more cost and revenue details based on their own estimates, I suspect that there will continue to be an eyebrow raised by many.

[Chicago Tribune]

It wasn't only the royalty rates for XM and Sirius that expired in 2006, the Copyright Royalty Board has announced its decision on Internet radio royalty rates as well. And the decision could spell doom for most webcasters, and be a sign of bad things to come for XM/Sirius' own negotiations.

The Copyright Royalty Board has basically adopted the proposal as presented by SoundExchange (a digital music fee collection body created by the RIAA). This is the same board that will rule on satellite radio royalties.

The ruling is on a "per play" basis - so Internet radio stations will have to pay the cost of one song to one listener - effective retroactively for 2006. There's also an additional fee of $500 per channel per year - but there's no clear definition of what a "channel" is (which could mean big problems for a service like Pandora which creates custom playlists for listeners).

The rates to be paid are:

2006 - $.0008 per performance
2007 - $.0011 per performance
2008 - $.0014 per performance
2009 - $.0018 per performance
2010 - $.0019 per performance

Note the rapid increase from 2006 to 2009. RAIN estimates that the royalty rate decision (for the performance alone, not even including composers' royalties!) is in the in the ballpark of 100% or more of total revenues. 

The ramifications of this decision are astounding:

• Internet radio as we know it will likely disappear (at least for those based in the US). Pandora and Live365 will be driven out of business, and Yahoo! and AOL Radio will be constrained severely.
• Smaller terrestrial radio stations will probably abandon online streaming as they'll be paying more for online streaming then they will for regular broadcasts (and for far less of an incoming revenue stream). This applies just the same for HD2 streaming.
• While there's no word on how this affects XM and Sirius' own online streaming, the decision by the CRB does show how they're leaning in decisions with SoundExchange, since they accepted the proposal at face value (despite the arguments put up by webcasters).
• The death of Internet radio, and the damage done to HD Radio, could affect federal regulator's decision for the merger and the definition of the relevant market.

John Ashcroft, who was the head of the Justice Department for four years, apparently approached XM in the days after the Sirius/XM merger announcement - offering his firm's consulting services, according to a spokesman for XM.

XM declined Ashcroft's offer to work as a lobbyist for the company. He was subsequently hired by the NAB, who vehemently opposes the merger. Ashcroft sent a letter recently to his successor Alberto Gonzales blasting the proposed merger

"After the merger was announced, Mr. Ashcroft's firm contacted us about hiring him to assist us," said Nathaniel Brown, a spokesman for XM. "We declined. Apparently the National Association of Broadcasters opted to pay him to parrot their views."

NAB executive director Dennis Wharton said, "NAB approached former Attorney General Ashcroft to review the proposed XM-Sirius merger and offer his honest opinion as an antitrust expert. We are not aware of any alleged previous discussions between Mr. Ashcroft and officials at either satellite radio company."

The Ashcroft Group, had revenue of $2.34 million in 2006, according to opensecrets.org.

The thought Ashcroft was shopping his services to both sides may raise some doubts as to how in-depth his review on the merger. Simply being hired by the NAB alone calls into question Ashcroft's "insight" on the merger. But that he approached both XM and the NAB? Well, that just speaks volumes.

[Wall Street Journal] 

Former Attorney General John Ashcroft has attacked the Sirius/XM merger, saying the combination would leave only one provider in the market.

Ashcroft was hired by the NAB to "examine" the merger.

In a letter sent earlier this week to his replacement as attorney general, Alberto Gonzales, Ashcroft compared the deal to the attempted EchoStar/DirecTV merger.

He also questions Sirius/XM's "hope that the Department will define the market so broadly as to include all terrestrial radio and a number of nascent cutting-edge technologies - the potentials of which remain without full development and deployment."

I would hardly call the iPod a nascent technology or without full deployment - but hey - I can understand that Ashcroft is looking out for his employer's interests.

Ashcroft also feels that XM/Sirius are the only two companies providing their product, which he calls "nationwide mobile mobile multi-channel audio content." (What's HD Radio? What's about IP-based services like Verizon Vcast or Cingular Music? Oh right, these are "nascent" technologies.)

He also brought up the point that in 1997, both XM and Sirius promised to bring to market an interoperable receiver that would receive both services. A promise that they have yet to fulfill (and one that the FCC has yet to truly enforce). Yet given the market conditions, this could be one of the strongest points for the merger - and for serving the public's interests - but that wasn't Ashcroft's point.

Ashcroft's letter was also forwarded by the NAB to lawmakers on the House and Senate Judiciary Committees.

We all know that the NAB opposes the merger, but now they're bringing in the big-guns. It's just sad to see that someone like John Ashcroft, who served as head of the Justice Department for four years, can be bought out so easily.

[Read Full Letter (PDF)] 

FCC Commissioner Robert McDowell said on Thursday that the proposed Sirius/XM merger depends a lot on "how the market is defined."

So far none of the FCC commissioners have spoken out on whether they would vote to waive the condition stating that there can be only one holder of the SDARS license.

"A lot is determined on how the market is defined," said McDowell at a NAB meeting. "I will be asking a lot of questions... If we are saying that satellite radio competes with free over-the-air radio then how do we define the markets, and how does that affect our current broadcast ownership regime? If we say XM and Sirius should not merge because there is not sufficient competition, does that mean there is not sufficient competition overall?"

And it's an interesting point. The kind of precedent that this merger sets will weigh heavily on both the FCC's and DOJ's decision, and could be one of the biggest obstacles.

[via FMQB] 

Sirius Satellite Radio has launched a national print and retail advertising campaign today, which sets forth the "Sirius Guarantee."

The guarantee clearly states that no Sirius radios will become obsolete as a result of a merger with XM.

Customers who sign up now for Sirius will have their subscription rate honored by the merged company.

Following the merger, Sirius expects to offer "the best of both services" in a mix of programming. But they're assuring customers that 100% commercial-free music, as well as top on-air personalities like Howard Stern, Martha Stewart, Cosmo Radio, Playboy Radio and others will continue to be offered.

It's nice to see both XM and Sirius individually making these commitments to subscribers, though I doubt it will have much of an effect on those who are generally cynical of the deal.

Until we know what channels make the cut - something we won't know until the deal gets approved - there will always be the shadow of doubt looming. This will need to be a continual PR/Marketing effort throughout the year until the deal is finalized.

In what seems to be an odd move, and even odder timing, XM Canada has notified their customers that they will soon be paying for XM Radio Online.

XM Radio Online (XMRO) is currently a free service provided to both XM Canada and the US version of XM Satellite Radio. But starting on September 1st of this year, XMRO will cost new subscribers an additional $9.99 (Canadian) per month. Existing subscribers will start off by paying $1 extra a month in September and the full $9.99 per month in September of 2008.

So when all increases are said and done with, an XM Canada customers who used to pay $12.99/month, will be paying a whopping $24.98/month $22.98/month for essentially the same service.

In a time when Sirius Canada has the clear advantage in marketshare, and the uncertainty of the proposed merger is even more uncertain in Canada, raising rates - especially for a previously free service - just does not seem like a smart move.

XM Canada is in the content business, they need to understand that they have to promote the use of this content as much as possible... not punish it.

[Digital Home] 

XM Satellite Radio today put a stake in the ground to remain focused on existing consumers and prospective subscribers by announcing the XM Customer Promise.

The XM Customer Promise, signed by Chairman, Gary Parsons, CEO, Hugh Panero, President and COO, Nate Davis, reiterates that existing XM radios will continue to work before and after the merger.

In an open letter to XM customers published in today's USA Today, XM said: "As long as you are an XM subscriber, your XM radio will continue to receive XM's great programming. Following the merger, XM expects that the existing radios will be able to receive a mix of programming from both services."

The letter also states: "XM's programming, including Major League Baseball, Oprah & Friends, Bob Dylan, Opie & Anthony and commercial-free music channels will not be interrupted by the merger. In the future, we will be able to offer the best of both companies' programming."

There's also a new section on XM's website that will keep subscribers up-to-date with XM's business and the happenings of the merger process. 

[Read the entire XM Customer Promise]

Sirius Satellite Radio stated in a filing with the SEC today, that a licensed manufacturer and distributor of Sirius radios, "has commenced an arbitration proceeding" against them - seeking a total of $48 million.

The company, U.S. Electronics Inc., alleges that Sirius breached their contract, failed to pay money owed under the contract, interfered with U.S. Electronics’ relationships with retailers and manufacturers, and withheld information relating to the FCC’s inquiring into Sirius radios that include FM modulators.

As a result, U.S. Electronics is seeking $48 million in damages.

Sirius believes that $41 million of these damages are barred by limitation of liability provisions within their contract, and said they will "vigorously" defend this action.

Bridge Ratings, our favorite little research group (only because they make a good amount of data available for free) has put together a survey to figure out the impact of the propose satellite radio merger.

As par for the course with many Bridge surveys, there's some inconsistencies in the methodology that should be noted. The survey was conducted largely prior to the official announcement - instead respondents were polled while rumors of the merger were mounting. Bridge interviewed satellite radio consumers at retail outlets, as well as via telephone to "current and potential subscribers."

With that said, the results are not really surprising (especially considering the extreme lack of information at the time of being surveyed... arguably, there still isn't enough information being made available - but that's another post).

Of the major concerns among consumers: raising rates, increased hardware costs, decreased number of channels, reduced programming costs and increased number of commercials on music channels; ranked the highest.

And as you can see from the chart below, consumers took up a "wait and see" attitude when it comes to the purchase decision:

But what would a survey be, without a question about Howard Stern? As you can see from the chart below, Bridge decided to ask XM subscribers how likely they would be to listen to Stern if he were offered on XM, free of charge:

These respondents were polled via telephone during 8/1/06 - 2/23/07 (remember, the merger was announced on 2/19/07). Based on these numbers, and XM's subscriber base of 7.6 million, Howard Stern's audience would potentially increase by nearly 1 million listeners.

[More on Bridge Ratings] 

Sirius Satellite Radio's on-air host du jour, Mojo Nixon, has expanded his reach from country music and political programming, to now NASCAR.

Nixon, who joined Sirius back in 2004, will continue to host "The Loon in the Afternoon" on Sirius Outlaw Country (ch 63), as well has his political-talk show conveniently entitled "Mojo Nixon's Political Talk Show" on Sirius Stars (ch 102).

But now Mojo Nixon will now also host "Manifold Destiny," a weekly NASCAR talk show airing Saturday afternoons on Sirius NASCAR Radio (ch 128). This Saturday, March 3rd, "Manifold Destiny" (get it?) will air live from 3-6pm ET.

Future air times can vary depending on Sirius' live NASCAR race coverage. 

“As a die-hard NASCAR fan, I want Manifold Destiny to be the radio version of the infield at Talladega,” said Nixon. “Imagine a bunch of fans hanging around a BBQ pit arguing about NASCAR drivers, teams, tracks, manufacturers, having a lot of fun and a few cold ones. To get paid to talk NASCAR, politics and music is a dream come true.”