June 2007 Archives

Mancow was quoted in Inside Radio recently, criticizing satellite radio and uncensored content in general.

"Mancow says satellite radio is like a one night stand. He says uncensored content is 'kind of exciting — but you cannot have a substantial relationship with that kind of host.' 'Mancow,' [the creator of 'Drunk Chick Friday'] says the pressure for morning show hosts to push the envelope has been 'a cancer on our business' and he’s renewing his call for a less coarse content on radio."

As Mark Ramsey of Hear 2.0 points out, Mancow calling for "less coarse content" is like taking diet advice from trans fats.

I just find it funny that the guy who publishes a book about free speech is now saying that uncensored content is "kind of exciting." His entire career, until recently, has been based on coarse content.

But to associate satellite radio and its uncensored content with being a "cancer" in the business? C'mon, you need to try harder than that Mancow.

Either way, sounds like yet another attempt at publicity to me.

[Hear 2.0] 

Jimmy Schaeffler, Senior Analyst and Chairman for the Carmel Group, is quoted in The Denver Post as saying that a satellite merger makes "a ton of sense."

Now mind you, he's not talking about Satellite Radio... he's talking about Satellite TV (DBS). But that's precisely my point.

"All of a sudden with the telcos involved, you have competition," said Jimmy Schaeffler, senior multichannel analyst for the Carmel Group. "It (a merger) has always made a ton of sense. ... Look at the billions they spend in redundancies."

Note that The Carmel Group has said they have a record of opposing mergers that they deem as "anti-competitive" such as the proposed Sirius-XM merger. They point to their similar opposition to the DirecTV-EchoStar merger as an example of their historical stance.

The DirecTV-EchoStar merger was rejected just 4 years ago. And in this increasing fast-paced media environment, a lot can change in those four years.

Verizon is aggressively rolling out its FiOS TV service, and now has around 500,000 customers. AT&T's U-verse service has more than 40,000 customers in 23 markets. These are two companies that have a massive existing consumer base that they can easily upsell these new services to. With the telcos involved, Schaeffler now appears to see viable competition for both satellite and cable TV providers.

And that's video based services.

Audio services require far less bandwidth, and so the barrier to entry is much lower than video. Take a look at Muzak and DMX - and soon Slacker - who all utilize existing satellites to broadcast their audio content. A company doesn't need to launch satellites to be a satellite player. (That's ignoring the IP-based services from mobile providers... and is there really any difference between 1,300 HD Radio stations and DARS repeater towers?)

My point is that The Carmel Group took the position of opposing the EchoStar-DirecTV merger using the same short-sighted logic that they're applying to the Sirius-XM merger. (Let's not forget: they also took a completely different position on "competition" in a non-NAB commissioned report.)

So what happens in the years to come?

[The Denver Post] 

There's nothing I like better than leaked information, especially when it's about channel lineup changes. And it turns out that XM has a few changes coming down the pipe that have yet to be "official" yet. (oh goody!)

So I won't hype this up anymore than that, because the changes are pretty minor in the grand scheme of things.

First, XM Cafe (ch 45) is getting the boot, and Hear Music (ch 75) will be moving in its place. They're then renaming Hear Music to something a bit more intuitive, like Starbucks XM Cafe (The Sound of Starbucks).

Second, and far more exciting, is a new channel is moving its way onto the XM lineup: XM Exclusives (ch 2). XM Exclusives will be the exclusive home for exclusive programming airing exclusively on XM.

Mondays air Artist Confidentials, Tuesdays get Ludacris - Open Mic, Wednesdays have Bob Dylan's Theme Time Radio Hour, Thursdays welcome Tom Petty's Buried Treasure, and Fridays/Weekends are home to various "XM Stars."

(It's about time a channel was dedicated to this type of programming!)

Check out a super-secret leaked scan of the new XM channel lineup brochure (PDF), which also features a new look-and-feel. (Warning: it's fairly large.)

Sirius Canada, in collaboration with The Consulate General of Canada, New York, will host an exclusive music showcase event featuring up-and-coming Canadian artists to celebrate Canada Day.

The showcase event will be held at Joe's Pub in New York City on Sunday, July 1st, will feature some of Canada’s best up-and-coming musical talent including Serena Ryder, Peter Elkas and Wil. The performance will immediately follow the Canadian Consulate’s fourth annual all-star tribute to Canadian songwriting (itself part of the Consulate’s ongoing Upper North Side Canadian Music Series at Joe’s Pub) at 7pm.

“Thanks in part to our series with Joe’s Pub, the venue has become an important partner in presenting emerging Canadian musical talent to a New York audience,” says the Consulate’s Cultural Affairs Officer, Jeff Breithaupt.  “We’re thrilled that Sirius Canada is building on that momentum with what we hope will be another important Canada Day tradition in New York.”

Sirius subscribers throughout North America can listen to the concert live on Sirius' Iceberg 95 (ch 95) starting at 9:30pm ET.

iBiquity presented yesterday at the Radio Symposium 2007, and appears to be poised for a major push in services and offerings in the near future.

Bear Stearns analyst Robert Peck, in a recent note to clients, listed several key takeaways from the presentation:

New Services:

• HD Radio is planning on offering features like enhanced PAD data to show sports scores, stock tickers, and even text-ads.
  
• On-demand radio, including traffic and weather
• Time-shifting capabilities with pause, record and playback functionality
• The ability to purchase music
• Subscription or opt-in services

More Stations:

• There are currently over 1,300 HD Radio stations nationwide, covering 82% of the U.S. population
• iBiquity is expecting 5,700 HD Radio stations by 2011.

In an interview with The Washington Times, Sirius CEO Mel Karmazin said that XM Satellite Radio's Washington, DC headquarters will remain post-merger.

"It was very important for XM to continue, after the merger, to be headquartered in Washington, D.C.," Mr. Karmazin said.

XM's Eckington Place headquarters, fondly referred to as "The Eck" by those in the biz, is the work-place home to some 800 employees. The restored printing factory is also cheap compared to Sirius' rent at Rockefeller Center in NYC.

"We've even said we won't have less employment here in the District than we already have," Karmazin added.

That statement should cause a sigh of relief for many XM employees, but the fate of Sirius' headquarters (and employees) is still something of a mystery. The name of the merged company also remains up in the air.

[The Washington Times]
Thanks Robert!

XM Satellite Radio's flagship women's channel, Oprah & Friends (ch 156), has entered into an agreement with American Federation of Television and Radio Artists (AFTRA) for the nine hosts and one announcer on the channel.

AFTRA is a performer's union that represents personalities in radio and television, similar to the Screen Actors Guild (SAG).

"This ground-breaking agreement is the first contract that provides union salaries, benefits, and working conditions for talent on a program only carried by satellite radio," said Eileen Willenborg, AFTRA Chicago Local Executive Director. "I commend the producers at 'Oprah & Friends' for working together with AFTRA members to create a sensible and responsible agreement."

The deal covers compensation and benefits with provisions on union security, grievance and arbitration, dues check-off, non-discrimination, late penalties, and the right to participate in pre-tax savings plans. The contract is retroactive from January 1, 2007 and runs through August 31, 2009.

[AllAccess]

An extremely influential group has today announced its support for the Sirius/XM merger: the NAACP.

The the nation's largest and most widely-recognized grassroots civil rights organization, the National Association for the Advancement of Colored People (NAACP) today has officially endorsed the pending merger.

"We are extremely pleased to enjoy the support of such a well-respected and influential organization in the African American community," said Gary Parsons, Chairman of XM Satellite Radio and Mel Karmazin, CEO of Sirius Satellite Radio, in a joint statement.

In a letter to the FCC, NAACP Director Hilary Shelton affirmed, "We are convinced that the pending Sirius-XM merger will be a positive development for consumers. More diverse, accessible and appealing options at lower prices in satellite radio will help further expand the reach of this medium."

The NAACP also applauded both companies for maintaining "a strong commitment to diversity" and utilizing "significant resources to recruit and retain minority talent and leadership at all levels." Both XM and Sirius offer several music and entertainment channels (like XM's The Power (ch 169) and The Foxxhole (ch 106) on Sirius) which cater to the diverse tastes of African-Americans.

"We have no doubt that a merged satellite radio company would continue, and in fact, strengthen its commitment to diversity in employee recruitment and retention, while expanding its pool of diverse contractors and vendors," added Shelton.

While there have been a wave of groups supporting the merger, none have the level of recognition that the NAACP and its membership of over 400,000 nationwide holds. This is a huge achievement for merger supporters.

As part of a limited time promotion, Infiniti will be offering consumers 3-years of free XM Satellite Radio and XM NavTraffic service on the redesigned 2008 Infiniti QX56. All 2008 Infiniti QX56 models come with XM Satellite Radio and the Infiniti Navigation System (which features XM NavTraffic) as standard equipment.

To support the kickoff of the 3-year service offer, Infiniti has developed an integrated marketing program that includes television, print, online and billboard advertising.

Earlier this year, XM announced that every 2008 Infiniti model will have XM Radio available as a standard, factory-equipped feature. XM NavTraffic is currently available on the 2007 Infiniti G35 sedan, and will be available on the all new 2008 G37 Coupe (which is the new hotness, coming in August) as part of Infiniti's Nav package.

STMicroelectronics is providing the chipset for Sirius Backseat TV, which is set to be launched later this year in select 2008 model Chrysler, Jeep and Dodge vehicles.

Manufactured by Delphi, the core of the in-vehicle satellite video receiver is based on three ST chips:

• The STA210 RF tuner IC
• The STA240 channel, service and source decoder IC
• and the STA264 advanced hierarchical demodulator chip, which extracts the video stream and performs error correction on the received signal.
  

ST is also the chip supplier for XM receivers, in addition to Sirius, and is now the world's leading supplier of microchip components powering digital radio receivers.

[Sirius Uplink] 

On July 1st, XM will become the exclusive satellite radio home of the NHL. In September of 2005, XM announced signing a 10-year, $100 million dollar, exclusive, agreement with the NHL.

Just as Sirius is the exclusive satellite radio broadcaster of NASCAR and the NFL, XM will be the exclusive home of the MLB and NHL. The 2007-08 NHL season will mark XM's third season of NHL coverage and its first season as the exclusive satellite radio provider of the League.

XM airs over 1,100 NHL games per season to hockey fans across the U.S. and Canada. XM also offers the first and only 24-hour nationwide hockey radio channel - Home Ice (ch 204) - with news, commentary, interviews and play-by-play analysis from hockey experts like Phil Esposito, Bill Clement, Denis Potvin and Gary Green.

XM's first day as the exclusive satellite radio home of the NHL is the same day as Free Agency Day, the annual start of the free-agency period for NHL players.  Home Ice will provide round-the-clock coverage of the latest signings and negotiations.

As the exclusive satellite radio partner of the NHL, XM is officially rebranding the Home Ice channel to NHL Home Ice.

Harold W. Furchtgott-Roth, a prominent economist and the former Commissioner of the FCC, released a study today exploring the economic considerations that government agencies should take into account when reviewing the proposed XM-Sirius merger.

The paper, "An Economic Review of the Proposed Merger of XM and Sirius," was prepared for XM and Sirius and was filed yesterday to the FCC as part of the companies' merger application.

Furchtgott-Roth, founded Furchtgott-Roth Economic Enterprises in 2003 and frequently consults on issues related to the communications sector of the economy. From 1997 through 2001, Furchtgott-Roth served as a commissioner of the FCC and he is one of the few economists to have served as a federal regulatory commissioner and the only one to have served on the Commission.

"After studying various economic factors and potential changes in competing communications services, I conclude that American consumers have a wide and rapidly expanding range of choices for communications services that compete with XM and Sirius," said Furchtgott-Roth. "Additionally, these competitive choices discipline the prices that XM and Sirius charge subscribers today and will continue to do so regardless of whether the firms merge.

"I believe that government agencies should afford these companies the flexibility to respond to rapidly changing market conditions."

[Read the full Furchtgott-Roth Report (PDF)]

...or check out the key findings from the report after the jump. 

You gotta love woot! Today's offering is a Delphi Skyfi2 XM receiver with Boombox and Car Kit for $55 ($49.99 + $5 shipping).

There's no trial subscription this time around, and the unit is a refurb, but it does come with a 90-day warranty. So get on it wooters!

[woot!] 

In a recent email sent to its members, the NAB has conceded that supporters of the XM/Sirius merger "are winning the war of words at the FCC."

Citing Siriusbuzz's FCC Comment Scorecard, the NAB asked their members to not let their members "win the war of words" and to "submit comments to the FCC opposing the merger!"

The NAB even said they are "working hard to derail the merger" but even so, they asked members to "enlist station personnel, friends and family" to aid their cause.

As of June 22nd, nearly 2,600 comments have been filed to the FCC regarding the Sirius-XM merger, and over 2,000 are in favor of it.

If you would like to submit your comments to the FCC, you can do so through the easy to use forms located on both XMmerger.com and SIRIUSmerger.com. They are definitely far easier to use than the FCC's own form.

The FCC has issued a Notice of Proposed Rule Making, which invites comments about whether the "rule" that prohibits XM and Sirius from merging should be waived, modified, or repealed.

In the Commission's 1997 Order, there is language that specifically prohibits one SDARS license holder from owning the other. Sirius and XM have said that the prohibition is a policy statement - and not an actual rule - because it was not codified in the Code of Federal Regulations.

The Notice of Proposed Rule Making opens this issue up for debate. Comments are due 30 days after publication in the Federal Register, with reply comments due 45 days after.

In a joint statement, Sirius and XM said:

"The companies are pleased that the FCC has outlined the full process for reviewing the SIRIUS-XM merger. This action puts all of the FCC decisions regarding approval of the merger on track. We remain confident that the merger is in the public interest, and continue to look forward to completing the regulatory approvals by year end."

Read the full Notice of Proposed Rule Making (PDF).

The Apple iPhone is coming, and starting this Friday at 6pm, the audio industry is going to change forever. It's not going to happen overnight of course, and everyone (including Apple) knows this. But kidding yourself if you don't think there isn't an evolutionary roadmap already laid out for future versions of the iPhone. This Friday is just setting the stage.

Even if Steve Jobs reaches his goal of 1% of the worldwide cellphone market (that's 10 million units by the way) in 2008 - and I fully expect that he will - the real impact will be felt in 2010 and beyond, when the mobile audio market has matured to something completely different than it is today.

Planned Obsolescence
Apple's slogan should be "We Plan Obsolescence" because they are absolute pros at it. They are masters are creating desire, and continuously getting consumers to plunk down enormous amounts of cash to feed that desire. There's some key features missing from the iPhone - most notably 3G - but I think this was done with a clear plan of making the device accessible to the public.

The early adopters will buy it no matter what, even with dog-slow EDGE and the lack of MMS. Because Apple sells "sex" like no other. The iPhone is sexy. It's also ridiculously expensive. The majority of the people who want the iPhone, can't buy it.

And that makes it even sexier. We always want what we can't have. The iPhone is the femme-fatalle of consumer electronics.

Over-the-air isn't important... yet.
The lack of 3G also allows for Apple to continue to feed it's iTunes business model. Apple has effectively said with this device that over-the-air downloads are not important... yet. The reality? They're right. And the 130 million MP3 players prove this. People have built up vast collections of music on their computers, and spent a lot of effort doing so... they're not willing to part with them just yet.

But when the 3G version comes out, all the early adopters will rush to buy that version. Remember,  she's the femme-fatalle.

Apple will then be able to sell the "old" iPhone for a lower price. Those who couldn't afford the $500 iPhone will jump to get it at $300. And just as Apple opened up the door for iPod owners by selling an MP3 player without a screen, they'll create an entry-level market for people who will lust after a 2.5G cell phone.

The 3G iPhone will subsequently set the stage for Apple's over-the-air music service. Apple will most definitely have a Mobile iTunes as a result of the iPhone. But they need the infrastructure to be there first. And the right terms.

Radio being "live" isn't always a benefit
Right now, the only saving grace for the radio industry - and that includes terrestrial radio and satellite radio - is that "live" content can be received while on-the-go. The reality is that most of the content we listen to isn't really "live" anyway (most folks on the West Coast know exactly what I'm talking about).

And in a time-shifted TiVo world, we've become more and more accustomed to consuming displaced content. For a growing number of people, "live" actually has a negative connotation... because there's no control. You can't skip commercials. You can't jump to the next section. You only consume "live" content because you forgot to schedule a recording.

Apple knows this (they've helped foster a time-shifted culture afterall) and that's why the iPhone is currently dependent on side-loading content. Eventually, it's not a hard leap of effort for Apple to allow you to access your iTunes library over a cellular network. Music, talk - and yes even news, weather and traffic - will easily be downloaded to the device, for listening in your own accord. It'll probably be a lot like Slacker, in that you're not listening to streaming content, just cached content.

And for most, there's little difference.

The only thing that being "live" contributes, is the ability for listener interaction. But with terrestrial radio listening on the decline, and the growth satellite radio slowing a little sooner than expected, it's obvious that the general consumer is willing to give up that interactivity for control.

But hey, that's all just pipe dreams. This Friday is the reality. As a big, keyboard-less, extremely-expensive, and slow-ass 2.5G device goes to market.

There's nothing to worry about from that... right?

Sirius Satellite Radio will celebrate the 3rd Anniversary of Elvis Radio - which launched back in July '04 - with a special one-hour broadcast hosted by Congressman Steve Cohen (D-TN).

Congressman Cohen will feature his favorite Elvis records and share his thoughts on the impact of Elvis Presley on pop culture. He'll also take a look at the influence the icon's music has had on Memphis, Shelby County, and the Tennessee-Mississippi-Arkansas tri-state communities.

Sirius Satellite Elvis Radio Third Anniversary Celebration kicks off live from Graceland July 1st starting at 2pm ET.

At the end of the broadcast, Cohen will be joined by Elvis Presley Enterprises CEO Jack Soden, to present a U.S. Congressional Proclamation declaring July 1st 'Elvis Radio Day' to life-long Elvis friend and Sirius Satellite Radio LIVE from Graceland host George Klein.

XM Satellite Radio will preview POTUS '08 (their channel dedicated to the 2008 presidential election) with an airing of the presidential debates held across the country this summer.

XM will preview POTUS '08 (ch 130) during the upcoming months with the following debates:

• The June 28th edition of "All American Presidential Forums on PBS," featuring the Democratic presidential candidates, hosted by Tavis Smiley at Howard University in Washington, D.C., and carried on XM through its partnership with PRI. XM will also carry the PBS forum for Republican presidential candidates on September 27th.
• The first CNN/YouTube debate, featuring the Democratic candidates in Charleston, South Carolina, on July 23. Candidates will answer questions submitted via YouTube videos. The CNN political team will choose the most creative and compelling videos sent to the YouTube web site. Hosted by Anderson Cooper, the debate will air live on CNN, as well as XM's CNN channel (ch 133), and it will replay for 24 hours on POTUS '08. XM will also air the CNN/You Tube Republican debate on September 17th.
• Presidential debates hosted by ABC News, featuring the Republican candidates on August 5th and the Democratic candidates on August 19th. Both debates will be held in Des Moines, Iowa. Iowa will hold the first presidential caucus in January.
• The AFL-CIO's town hall forum for Democratic candidates in Chicago on August 7th.

POTUS '08 is a "free to air" channel, meaning that even if you don't subscribe to XM, you can listen to it on your XM receiver (think cars that have let the XM trial expire).

The commercial-free, nonpartisan radio channel will officially launch in September with 24-hour news updates, candidate interviews, complete speeches, debate coverage, polling results, fundraising reports, and live call-in shows. The channel will also provide free airtime for presidential candidates to speak to voters and non-traditional media outlets, such as bloggers and podcasters, will provide content for the channel.

Walt Mossberg of the Wall Street Journal and David Pogue of the New York Times have both weighed in on the upcoming iPhone.

Mossberg's verdict:

"...despite some flaws and feature omissions, the iPhone is, on balance, a beautiful and breakthrough handheld computer."

Pogue's verdict: 

"As it turns out, much of the hype and some of the criticisms are justified. The iPhone is revolutionary; it’s flawed. It’s substance; it’s style. It does things no phone has ever done before; it lacks features found even on the most basic phones."

You can read Walt Mossberg's 2-week review here, and Pogue's here. Or you can watch Mossberg's video review:

What does this have to do with satellite radio? Everything.

And the hits just keep on coming. FamilyNet now has joined the growing list of organizations voicing their support for the Sirius-XM merger.

The Fort Worth, Texas based FamilyNet operates Sirius' Christian Talk channel (ch 161), and FamilyNet TV can be seen in approximately 29 million TV households.

"FamilyNet has found satellite radio to be an ideal medium for bringing our message to consumers," said R. Martin Coleman, COO for FamilyNet Radio, in a letter to the FCC. "We support any efforts, including the Sirius-XM merger, which will help satellite radio survive and continue to benefit the public for many years to come."

Coleman added that "merging with XM Satellite radio will allow our rich blend of family-friendly and faith-based news and entertainment to reach an even larger audience, many in remote areas who would otherwise not have access to Christian programming through traditional terrestrial radio.

The League of Rural Voters has released an analysis comparing the 2002 EchoStar/DirecTV merger attempt, and the proposed Sirius/XM merger.

The report argues that in the EchoStar/DirecTV case, the FCC determined that there were at most only two DBS providers. Opponents of the Sirius/XM merger (like the NAB) have tried to describe it in the same terms. But the LRV study thinks otherwise.

"Satellite radio is often the best source for music, news and talk in rural areas," said LRV Executive Director Niel Ritchie. "However, it is far from the only choice. Sirius and XM are two small pieces in a very broad market. Rural consumers have an array of audio entertainment choices today and will continue to do so after the Sirius-XM merger."

The analysis, "Sirius/XM vs. EchoStar/DirecTV: A Fundamentally Different Merger for Rural Consumers," was filed recently in support of the companies' application with the FCC.

Here's what they found:

Distinct Market Definitions
The paper cites the 2002 FCC analysis of the EchoStar/DirecTV market, which specifically defined each local market as the two DBS providers and the local cable monopoly. This is in contrast to the "broad and competitive audio entertainment market in which satellite radio competes," that the LRV study found, a market that they consider to include terrestrial radio, Internet radio, iPods and other MP3 players, CD players and mobile phones.

The FCC also found there were significant barriers to entry in the DBS merger. This concern is moot in the satellite radio market, given the multitude of other competitors that have already entered the field and the anticipated release of future competitors such as HD radio and the Apple iPhone.


Different Impacts on Rural Consumers
The finding on the DBS product market gave rise to a number of concerns, including the reduction of viewpoint diversity and the creation of a monopoly in areas where there was no cable. "The FCC found that DBS operators contribute to viewpoint diversity by playing a 'gatekeeper role' that 'clearly affects' which entertainment and news programming is available," the paper says. "The audio entertainment market does not present the same concern, since it includes many different providers/editors."

Additionally, LRV's analysis concludes that the FCC's concerns in the EchoStar/DirecTV case do not apply to satellite radio because of its small saturation in a rapidly growing market, noting "...unlike the DBS merger reviewed by the FCC five years ago, the proposed merger between XM and Sirius comes at a time of strong and growing competition... In fact, in contrast to the DBS context, even a merged satellite radio provider would possess a slight market share and be constrained by the multiplicity of other media."

If you want to read the full report by the League of Rural Voters, check it out here (PDF).

The list of organizations filing comments with the FCC in support of the Sirius-XM merger continues to grow. This time around we have the Americans for Tax Reform, and the 60 Plus Association, who today filed a joint comment with the FCC supporting the satellite radio merger.

"This merger would create an appealing product for many consumers interested in multiple audio options," said Grover Norquist, President of Americans for Tax Reform. "The companies have broken new ground in offering consumers the ability to block channels and receive a credit for what they have blocked, without being forced by regulation to do so, therefore creating an alternative that will appeal to people of all age groups and sensibilities."

With the proposed a la carte offering (where subscribers can block channels they find offensive and receive credit back for that blocked content) Sirius-XM would be the first market-created a la carte system in the entertainment industry.

"The voluntary a la carte system these companies have pledged to implement is a prime example of the market working to attract new, family-oriented audiences," continued Norquist. "This is a testament not only to their commitment to families, but to the free market. No regulations were needed to impose this concept; it came about out of a void in the market they think exists.

Kudos to them for this interesting and bold step in a new direction not offered on terrestrial radio."

An advertiser on The Howard Stern Show - JEC Nutrition - is filing suit for $100 million after they say their product was trashed on the show during a live-read, resulting in a 20% drop in sales (according to JEC).

The CEO of JEC Nutrition, Kelly Lockwood, told Page Six that he paid hundreds of thousands of dollars to promote the I57 Ignite fat-burner. Crazy Cabbie was on the show to talk about how he's shed 20 pounds with the product.

But according to Lockwood, "The first thing out of Howard's mouth was, 'Geez, Cabbie, you look fatter than ever.' "

"Then, [Stern sidekick] Ralph Circella says to Cabbie something like, 'What the hell are you doing in here promoting a weight-loss product, you fat piece of [bleep]! Why don't you lose 60 more pounds and then come back?' This was horrendous for us." Lockwood told the Post. "Our sales have dropped more than 20 percent. In seven minutes, he undid all the good work we did."

Lockwood says the suit will charge Stern, as well as Sirius, with defamation. 

[New York Post] 

UPDATE: Many of the reports on this are misleading (causing this post to be misleading as well). It was not a live-read for I57 Ignite, and they are not a sponsor of The Howard Stern Show.

Sirius and VW have inked a deal to offer Sirius as standard equipment in all Touareg2, New Beetle, New Beetle Convertible, GTI, and GLI models starting with the 2008 model year.

Sirius Canada and Volkswagen Canada inked a similar deal earlier this year, offering making Sirius standard in the Toureg2 and the Triple White Beatle sold in Canada.

In March of last year VW selected Sirius as its sole satellite radio provider for vehicles sold in the U.S. through 2012. Volkswagen expects to equip approximately 80% of its vehicles with SIRIUS satellite radio receivers.

Volkswagen offers 3-months of complimentary service on Sirius equipped vehicles.

The National Council of Women’s Organizations (NCWO) recently called on the FCC to approve the proposed merger of XM and Sirius.

"Today, satellite radio is a mere 3.4 percent of the overall radio market – a market dominated by men.  A stronger satellite offering can increase the audience for satellite radio," said Susan Scanlan, NCWO Chair. "A more affordable and more diverse satellite radio market would be valuable not only to our members, but also to women across the United States."

The NCWO is a coalition of over 200 women’s organizations and representing over 11 million American women. They join other women's groups like Women Impacting Public Policy and Women Involved in Farm Economics in support of the merger.

"Expanding the audience and diversity of satellite radio programming would give women a better opportunity to access new sources of entertainment and enlightenment," added Scanlan. "Diversity in programming is a critical component of this merger, and should not be overlooked by members of the FCC Board as they begin their review process."

Jon Bon Jovi will sit down for an intimate chat on Sirius' The Pulse (ch 9) on Monday, June 25th at 8am, 5pm and 10pm ET.  

The interview will cover everything from the inspirations behind the band's new album Lost Highway (which was released on June 19th), to what it was like to work in Nashville. Bon Jovi also reveals some of the opening acts for a series of 10 historic concerts the band has planned to inaugurate a new arena in their home state of New Jersey.

Encores air on June 26th at 6pm ET and June 27th at 2am ET, also on The Pulse.

(Yes, I'm back from vacation! Thanks all for your patience while I recharged my batteries.)

Ah, sorry for not writing a note about this earlier. But I'm currently down at WDW (yes, the Happiest Place On Earth) with the family... taking a much-needed break from the world. Thanks to everyone who sent in emails of concern (it really speaks volumes of the personal nature of blogging).

Keep checking back, as I'll be sneaking in posts in between exhausting rides on "It's a Small World" and gazing out my window in awe. There's lots of stuff happening in the wild world of satellite radio (it's madness!) and I have full intentions of covering it all...

XM has officially taken the wraps off the Audiovox XpressR and XpressEZ receivers.

Of course, we've already known all about them for some time now (read my XpressEZ review here), but now there's a demo video out. And we love demo videos, so g'head and watch it for yourself here (sorry, can't embed the video right now... YouTube isn't working for me).

The Wall Street Journal's Sarah McBride (who is, by far, my favorite reporter in this beat) took an in depth look at the growing space of Internet radio and it's evolution into the untethered space.

Profiling devices like the Sansa Connect, to Pandora's deal with Sprint (and their Wifi device), and of course, Slacker - the WSJ article does a pretty damn good job at looking at this rapidly emerging market. Lest we forget that terrestrial radio isn't sitting idly by, with CBS having recently acquired Last.fm and accounting for some 20% of all online radio listening.

A good chunk of the article is devoted to profiling Slacker as well as their upcoming portable device and satellite-powered car dock. One thing that we learn (well, it's news to me) is that the Slacker satellite "radio" antenna will measure in at about 4-inches. Their satellite service, because it isn't necessarily streaming (more like caching), will not initially feature newscasts, traffic reports or sports scores.

It's a good read if you have a WSJ account.

[Wall Street Journal] 

More details have come in about the rumored user generated ad campaign that XM may be running next week. According to a source, XM's user generated ad campaign will be run on Current TV, and they'll be announcing it sometime "next week."

XM will supposedly be providing design elements that you can use in your ad, and viewers will be able to comment and vote on their favorite ads. So even if you're not into making the ad, at least you can participate in it.

Looking at the Current TV page, it looks like there's other campaigns currently running (like Toyota), and there's a prize of $1,000 per spot. The Current TV video also teases the potential of a $5,000 to $50,000 payout. Not sure about the prizes offered with XM's promotion, but even a grand would be nice.

More deets on this will be posted as they come in.

According to a source, XM will be launching a new user generated ad campaign sometime next week.

The campaign encourages fans to create their own ad spots about XM, and will involve some sort of prize for the winner. It's not clear whether this is a video or an audio campaign.

I hope it's a video-based campaign (audio/radio advertising would be sort of... pointless), and I really hope it's in the spirit of the spec ad spots we saw late last month. Listeners, describing why they love satellite radio in a personal one-to-one way - that's what really sells the service I think.

Anyway, details are still shady right now, but this comes from a trusted source. More info to follow as it comes in...

House Judiciary Antitrust Task Force chairman John Conyers Jr. (D-MI) and ranking member Steve Chabot (R-OH) sent a letter to US Attorney General Alberto Gonzales and FCC Chairman Kevin Martin asking for guidance on the Sirius-XM merger.

In the letter to the FCC and DOJ, Conyers and Chabot asked about the Service Order in the DARS licenses issued a decade ago that prevented the two satcasters from merging. They asked if "circumstances today are similar or different" from the original ruling.

Conyers and Chabot also inquired about the definition of the relevant market, which is the key question when it comes to the antitrust analysis.

"Some witnesses said the market should include local broadcasters, and some claimed the markets for local radio and satellite radio were different because local broadcasters are licensed for specific geographic areas while satellite radio providers have a national service footprint. Please explain what evidence the agency looks for when defining a 'relevant' market as part of its antitrust scrutiny," they wrote in the June 13th letter.

Referencing the failed 2002 DirecTV/EchoStar merger, the letter points to the FCC's finding "that the proposed EchoStar/DirecTV merger was inconsistent with the commission's long-standing policy of not permitting one entity to control all of the spectrum for a particular service." Conyers and Chabot then ask Gonzales and Martin, "Please explain how approval of this merger would be consistent or inconsistent with the finding in the EchoStar/DirecTV order."

While the FCC and DOJ will ultimately decide on the success or failure of the merger, the Congressmen said they would "appreciate" the "consideration" of the many questions presented in the letter.

Read the full letter (PDF)

While fans were well aware of the return of Opie and Anthony yesterday, many questioned whether the shock jocks would be censored by XM following their suspension.

DCRTV reported earlier this week that XM would impose a 3-second delay following the duo's return. Their sources said that the delay was supposed to allow XM to dump out of "overly offensive" subject matter - something the XM vehemently denied.

Opie and Anthony directly addressed the subject on yesterday's XM show, saying that it's "business as usual" and they will be "allowed to do the show that we know and love."

"They have given no content restriction," added lil' Jimmy Norton. "XM, they really do stand by being uncensored."

Read a full transcript of the conversation after the jump...

The much anticipated Sirius Echo Home Repeater System (SIRWRS1) is now available for consumer consumption for around $100. The Sirius Echo lets you distribute the Sirius signal throughout your house, so you only need one exterior antenna.

Just install your Sirius antenna where you can get the best signal, and then connect it to the Echo transmitter. The Echo transmitter then beams the signal to the Echo receiver module (one of each are included in the kit), which you then connect to any Sirius radio. No more extension wires!

Here's a diagram from the manual:

Included in the Sirius Echo Home Repeater kit is one transmitter, receiver module, and power adapter. Additional receiver module antennas are available. They're in stock now from TSS Radio and Satellite Radio Superstore (disclosure: both TSS Radio and SRS are sponsors).

 Download the Sirius Echo manual (PDF) 

[via Sirius Backstage]
Thanks to everyone who sent this in!

XM is launching their own page on the growing social networking site Infield Parking. Infield Parking is a relatively new addition to the social networking scene, but is built specifically for NASCAR fans, and now includes over 35,000 members including 11 Nextel Cup drivers.

The site was co-founded by NASCAR superstar Dale Earnhardt Jr., who also serves as president of Infield Parking, and also has his own show on XM. (Got the connection?)

XM's Infield Parking page, which is launching today, will include:

• Information on driver shows and other on-air talent
• Links to information about XM
  
• Exclusive Offers on XM radios and service
• Q&A Section w/ chance for fans questions to be answer on-air
• Blogs from your favorite on-air talent
• Photos of drivers and other on-air talent
• ...and naturally more content to be added throughout the season

Word has it that this is part of a growing initiative at XM to target users online through social marketing. Let's see if it goes beyond just buying ad units on MySpace.

[View the XM Infield Parking page]

The New York Post dug through the Southampton town records and has released details on Howard Stern's custom-built mansion currently under construction (pictured).

According to plans filed with the town, the three-level oceanfront mansion measures just over 16,000 square feet, with eight bedrooms, 12 bathrooms, a great room, a media room, an attached cabana, a bowling alley and a wine cellar with a tasting room.

Howard Stern and his fiancee, Beth Ostrosky, will share a master bedroom of about 1,500 square feet with a private balcony, an office/study and his-and-hers baths with separate dressing rooms.

Stern reportedly paid $20 million for the vacant 4-acre Southampton property in May 2005.

The grounds will include a seaside pool, a spa and a large stone wall surrounding the house.

I'm jealous. 

[New York Post] 

Sirius Canada and Bell Canada have teamed up to provide Sirius' commercial-free music channels on Bell Mobility multimedia phones.

Streamed directly to Bell Mobility phones via the Bell wireless high speed network, the Sirius programming is available immediately for $8/month (Canadian) on multimedia-capable Bell Mobility phones, (like the LG Chocolate, LG Fusic, Samsung m610 and Samsung a900). The service is powered by mSpot.

XM and the Baltimore Symphony Orchestra have teamed up to broadcast eight performances from the Baltimore Symphony Orchestra’s 2007-2008 season on XM Classics (ch 110), starting in September.

The concert series will debut with a live broadcast on September 27th, the inaugural concert for Music Director Marin Alsop (pictured above - Photo Credit: Tracey Brown), who that evening will become the first female music director of a major American orchestra. Hosted by XM Classics Program Director Martin Goldsmith, the BSO series will feature insightful interviews with Marin Alsop, world-renowned soloists, BSO musicians, and many of today’s most distinguished composers.

The initial eight concerts, starting with the live inaugural concert at the Music Center at Strathmore in N. Bethesda, Md. - and followed the 2007-2008 season led by conductor Marin Alsop from the Joseph Meyerhoff Symphony Hall in Baltimore - will reflect the exciting and innovative programs characteristic of Alsop’s first full season with the BSO.

View the full schedule after the jump...

At 1pm ET today, various artists and music groups announced the launch of a new coalition: musicFIRST (Fairness in Radio Starting Today).

The group's members include Christina Aguilera, Michael Buble, Jimmy Buffett, Celine Dion, Toby Keith, Godsmack, Ludacris, Rihanna and Gretchen Wilson - over 100 artists in all, and growing at a rapid pace.

The coalition's goals are to ensure that all performers are paid a performance right when their music is aired on the radio. MusicFIRST wants to hold the multi-billion dollar radio industry to the same standards as its competitors.

Of course, the NAB doesn't agree.

"NAB will aggressively fight RIAA's proposed performance tax on local radio stations," said NAB Executive Vice President Dennis Wharton. "Congress has long recognized that radio airplay of music generates millions of dollars in revenue for record labels and artists. Were it not for radio's free promotional airplay of music on stations all over America, most successful recording artists would still be playing in a garage."

It's funny to hear the NAB talk about a level playing field, yet they don't pay the same performance fees as satellite radio or Internet radio (or Apple for that matter). It's not like terrestrial radio is a nascent industry either, they've been very profitable for many years. So terrestrial enjoys the monopoly of "localism" combined with cheaper-than-everyone-else royalties. All under the guise of "serving the common good."

How convenient. 

Now, don't get me wrong, there's no question as to the music industry's motivation here. But entertain this as a thought: if terrestrial radio was paying performance fees - just like everyone else is - perhaps the royalty fees of other broadcast mediums wouldn't be so high?

[musicFIRST] 

Sirius Satellite Radio will celebrate Father’s Day with a weekend of special programming which crosses all genres - including interviews, guest DJs and special remembrances all with a "Father's Day" theme.

Tune in for:

• A rare interview with Vernon Presley talking about his son, Elvis Presley
• Shooter Jennings lighting a candle in remembrance of his father, Waylon Jennings
• Trixie and Annabel Garcia sharing stories of their jokester dad, Jerry Garcia
• Shemekia Copeland reminiscing about her experience with her father Johnny ‘Clyde’ Copeland
• ...and a special 3 hour tribute from Nancy Sinatra honoring the music and legacy of her father.

Want to know the full schedule for the weekend? Follow the jump...

XM will now be carrying Big 12 Conference sports, starting this fall. The addition of the Big 12, now makes XM the official satellite radio network for all six BCS conferences in college sports.

XM will air select Big 12 football games each week, as well as the Big 12 football championship, starting in the fall. XM will also air select Big 12 men's and women's basketball games and full coverage of the Big 12 men's and women's basketball tournaments.

The new, multi-year agreement with ESPN Regional Television allows XM to appeal to the displaced sports fan who may not be able to Big 12 games locally.

Thanks Roland & Carlo! 

There's a new study out about the Sirius-XM merger by Thomas Hazlett. Hazlett is the former Chief Economist of the FCC, Professor of Law & Economics at George Mason University, and a principal in Arlington Economics.

The paper, "The Economics of the Satellite Radio Merger," which was prepared for Sirius-XM and sent into the FCC today, looks at the financial and strategic aspects of the Sirius-XM merger. It concludied that the merger has the potential to yield substantial efficiencies, and as a result, benefits consumers and enhance competition.

 Click to read the full paper (PDF)

Hazlett isn't new to writing about the satellite radio world. This article, from 2004 when XM launched its traffic/weather channels, shows his especially deep knowledge of the subject (it's about the ridiculous "localism" argument that the NAB is touting - well worth the read if you have the time).

On the Sirius-XM merger, Professor Hazlett said, "After a thorough analysis, it is my opinion that the merger of XM and SIRIUS will predictably enhance consumer welfare. The National Association of Broadcasters' (NAB) staunch opposition to the merger illustrates their similar expectation. The improved economic vitality of a combined satellite radio company would drive industry innovation, promote competition and enhance programming and pricing options for customers."

So understand that whether you're for or against the merger, this study comes from someone who really knows what he's talking about. My searches haven't found anything where he's contradicting his views here. Hazlett focuses primarily on the economics of the deal (he is, afterall, the FCC's former Chief Economist) and he might just answer the question of "how can a merger open up diversity?" that many are asking.

Follow the jump to read key findings of the study...

In a recent Op-Ed piece to the New York Times, FCC Commissioner Michael Copps questioned the public service interests of free broadcasters, and called for the FCC to reform its license renewal process.

"Our policies should reward broadcasters that honor their pledge to serve that interest and penalize those that don’t," wrote Copps.

He continued to call for a shortening of the license renewal process, currently set at every eight years (commonly rubber stamped), to a more frequent three-year renewal period. Copps also called into question broadcaster's intentions for providing children's educational programming, election coverage, and "improve the generally shoddy coverage of minority and other underserved communities."

"If you need convincing that something needs to be done, consider that only about 8 percent of local TV newscasts in the month before the last presidential election contained any coverage whatsoever of local races, including those for the House of Representatives," Copps wrote. "This low number is just one example of how poorly stations are serving their viewers."

XM recently announced POTUS '08 - a 24/7 channel providing election coverage - as well as covered, and is a lead participant, in the Children's Miracle Network $10 Million fundraiser. Both Sirius and XM broadcast CNN en Espanol, ESPN Deportes, a wide variety of Latin music channels, and many public radio channels nationwide. In 2005, Red Cross Radio was established during the Hurricane Katrina aftermath to provide free satellite radio based services to workers on the field during a time when local radio towers were simply not functioning.

Of course, NAB President/CEO David Rehr doesn't agree with Commissioner Copps. He fired back a letter to the New York Times editor disputing Copps' statements. Rehr feels that broadcasters go through "enormous lengths" to fulfill their public interest rolls. He specifically cited Amber alerts, disaster coverage and polls that say broadcasters "do a good job" of covering elections.

Yet, earlier this year, the NAB backed the "Local Emergency Radio Service Preservation Act of 2007" legislature that would prevent Sirius or XM from broadcasting Amber Alerts, as well as transmit local traffic, weather, and other public safety/emergency information. Funny, that seems to go against the public interest, and only serve the broadcaster's own monopoly of localism.

So, exactly who's interests is the NAB serving?

[NYTimes: Commission Copps' Op-Ed Piece]
[NY Times: Rehr Letter's to the Editor]

Women Impacting Public Policy (WIPP) has come out in support of the Sirius-XM merger, it was revealed in a recent letter to the FCC.

The organization, which advocates for over 500,000 members, noted that the merger will allow for more opportunities for both female and minority programmers and greater choices for all consumers. They also feel the merhger provides a number of important economic benefits for small businesses, clearly benefiting the public interest,

"WIPP believes approval of the merger between Sirius and XM will substantially enhance programming choices by creating a stronger satellite radio company." wrote Barbara Kasoff, President of WIPP. "In turn, it will elevate the quality and choice of other service providers allowing for the improved diversity and quality of an already robust and competitive market."

WIPP joins Women involved in Farm Economics (WIFE) as the second women's group coming out in support of the merger.

"Especially relevant to WIPP membership is the prospect of increasing the number of channels offering small business content, particularly issues of special interest to women and minorities in business," WIPP wrote.

[Read the full letter (PDF) via SiriuSBuzz]
Thanks Nathan!

Variety reports that Sirius CEO Mel Karmazin has proposed several possible pricing structures for the combined company in his informal talks with the Federal Communications Commission.

"We've had a number of meetings since we announced the deal," Karmazin said. "We hope we can draft an offering that will be something the commissioners will see is in the public interest."

Among the proposed packages is a low-cost option, well below the $12.95 both charge, and a "best of" package that would be more expensive but include all of Sirius, including Howard Stern and the NFL, and parts of XM's big-ticket programming, including "Oprah and Friends" and the MLB.

With regards to the NAB and their relentless efforts to shoot down the merger (including a dreaded banner hanging) Karmazin said the organization "has pulled out all their guns" in their lobbying efforts.

"They have paid a lot of people to write letters to the Justice Dept. and the FCC against the merger and are a formidable body to compete with," Karmazin said.

Sirius isn't without its own big guns - having hired former FCC chairman Richard E. Wiley, one of the most influential telecommunications attorneys in Washington - to take up its cause. Incidentally, current FCC chairman Kevin Martin is a former member of Wiley Rein LLP.

"We've been taking a few slings and arrows here and there," Wiley said. "[We're] waiting for our turn at bat."

[Variety]
Thanks Richard!

The National Association of Broadcasters has been relentless in its opposition against the Sirius-XM merger. But now they mean business. Now they're going to show the nation that they're fighting the good fight. Now it's time to take off the gloves.

Now is the time... to hang a banner!

Oh sure, the NAB may hire the American Antitrust Institute who opposes media consolidation of all kinds (wait, isn't Clear Channel an NAB member? tee-hee!). But nothing shows opposition better than large amounts of vinyl, written in children's handwriting!

Along with their defiant banner-hanging, the NAB has officially launched their own anti-merger website (which was actually was unveiled back in early April, but was riddled with missing links) sporting the crafty URL xmsiriusmonopoly.com.

Admittedly it's a great name for a website, because it's so concise. Personally, I'm half considering registering thenationalassociationofbroadcastersisabunchofhypocrites.com, but I'm almost certain it's already taken. 

Sirius and XM have taken out a new full-page ad, in conjunction with their new merger related websites, to promote the diverse groups that support the merger. Here's the ad for your viewing pleasure:

This ad was published today in Communications Daily, The Hill, The Politico and Roll Call.

With the return of Opie and Anthony live to XM Satellite Radio coming this Friday, there has been wide speculation that XM will be looking to control the show's content in a post-Imus radio environment.

Yesterday, sources told DCRTV that XM is planning to implement a 3-second delay for the Opie & Anthony show when the duo returns following a month-long suspension.

"That way if they go into a rant about a particular subject that XM may find overly offensive, (XM management) can dump it. F-bombs, live sex, and the like will still be allowed, but no more rants regarding political leaders," sources told DCRTV.

But XM vehemently denies these reports.

"That is not accurate," XM spokesman Chance Patterson said yesterday. "We will not be censoring Opie and Anthony."

[Washingon Times] 

The Hispanic Federation (HF), one of the nation's largest Latino advocacy organizations, today joined a number of prominent groups in supporting the merger of Sirius and XM.

"We encourage actions that will provide our community with the benefits of competition, lower prices and more choices in a fair and equitable manner," said Lillian Rodriguez-Lopez, Hispanic Federation President. "We believe that the XM-Sirius merger will achieve these objectives and as such, we urge the Federal Communications Commission to grant a speedy approval."

The main gripe from the Hispanic Federation? Consolidation terrestrial radio. Large nationwide radio companies (like Clear Channel, who owns over 1,000 radio stations nationwide) has left minorities out of the programming loop.

"For the most part, the mainstream media companies offer very limited music and entertainment programming targeted to the Hispanic community," added Ms. Rodriguez-Lopez. "We believe that satellite radio provides expanding and vibrant platforms for news and entertainment for Hispanic Americans."

This adds one more name to the list of supportive organizations. Whether or not this is an attempt to pander towards the FCC's initiative to improve diversity in media is unknown, but as the Lasar Letter points out, "nobody's forcing these groups to support the merger."

Both Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) have launched individual websites that discuss the proposed Sirius-XM merger, as well as give users the ability to take action through various means.

SIRIUSmerger.com and XMmerger.com both allow users to easily contact the FCC to voice their opinion (in a far easier way than going direct to the FCC), spread the word about the merger related websites, and you can also contact them directly to voice your opinion about what you think on the merger.

Sirius' version features audio from CEO Mel Karmazin talking about the merger, while XM's version features Chairman Gary Parsons doing the same.

I especially like the "What people are saying" section that shows notable quotes from from various folks in Congress as well as from the many groups that support the merger.

(Side note, both websites also link to Orbitcast off the homepage. Effectively bringing a huge smile to my face this morning.)

The launch of both websites coincides with advertisements published today in Communications Daily, The Hill, The Politico and Roll Call, highlighting the growing list of organizations voicing their support for the XM-Sirius merger. Read the text of the ad after the jump...

NASCAR superstar Dale Earnhardt Jr. has called a press conference for tomorrow to make a long-anticipated announcement about which team he will drive for in 2008 and beyond.

Sirius willl air the Dale Earnhardt Jr. press conference live from the JR Motorsports shop in Mooresville, N.C. on Sirius NASCAR Radio (ch 128) at 11 am ET Wednesday.

XM will interrupt regularly scheduled programming on XM Sports Nation (ch 144) on Wednesday at 11am ET to bring live coverage of the news conference.

XM's sports anchor Claire B. Lang, who will report live from the press conference, is reporting that multiple sources have said they expect Dale Jr. to jump to Hendrick Motorsports (alongside Jeff Gordon and Jimmie Johnson).

ESPN is also reporting that Earnhardt will make the jump to Hendrick Motorsports Chevrolet in 2008. Rumors persist that NASCAR driver Kyle Busch will leave the Hendrick team.

Earnhardt is the host of the weekly XM show "Dale Jr. Unrestricted," which airs Thursdays at 7:30pm ET on XM Sports Nation.

Sirius is the exclusive satellite radio provider of NASCAR. Sirius broadcasts every NASCAR NEXTEL Cup Series, NASCAR Busch Series and NASCAR Craftsman Truck Series race, carrying the live feeds of MRN, PRN and the IMS Radio Network from Indianapolis Motor Speedway. Sirius also provides additional 24/7 coverage of NASCAR with exclusive programming.

Thanks Todd! 

(UPDATED to include Sirius content.) 

XM Satellite Radio is kicking off more than 30 hours of live coverage from the Bonnaroo 2007 festival, starting this Thursday.

Tune in to X Country (ch 12), June 14th - June 14th, from 2pm till 1am ET for a live multi-stage music experience.

Bonnaroo, held on a 700 acre farm in Manchester, Tennessee, is one of the nation's largest music festivals. The 'Roo first began in 2002 with a focus on jam bands, and has grown to include a wide range of music styles. Read more about the Bonnaroo music festival here.

Scheduled to appear are:

• Apollo Sunshine
• Charlie Louvin
• Clutch
• David Bromberg
• Dr. Dog
• Old Crow Medicine Show
• Richard Thompson
• Sam Roberts Band
• STS9
• Widespread Panic
• Xavier Rudd
• Ziggy Marley

[Bonnaroo on XM]

A non-profit agricultural association, Women Involved in Farm Economics (which creates the fascinating acronym: WIFE), today announced their support the Sirius-XM merger.

WIFE issued their comments to the FCC late last month.

"The farms and rural communities we represent have been well-served by satellite radio," said WIFE President Pam Potthoff, in their letter to the FCC. "Approval of the merger between SIRIUS and XM will ensure that our communities continue to receive important informational service via satellite radio, and also will provide our constituents with more programming choices at improved prices.

WIFE joins the League of Rural Voters as another "rural" organization in support of the Sirius-XM merger. The fair representation of rural voters was a key aspect when the FCC considered the DirecTV-EchoStar merger.

I've setup a "dogear" link throughout Orbitcast to give people an easy way to get to the FCC's electronic comment filing system. You'll see it in the upper-right corner (a screenshot is on the right for RSS/Email readers).

Just click, and enter in the number "07-57" under the "proceeding" area. Comments are due July 9th. 

Whether you're for, or against, the merger - you have the right to submit public comments to the FCC. Regardless on what my take on the merger is, I strongly believe in your right to voice your opinion.

Yes, the DOJ also plays a very significant part in this process, but this is a chance where you can actually - truly - be heard by government officials.

Now is the time to have your voice be heard.

[FCC ECFC Comment Form] 

Paris Hilton talked with Barbara Walters from behind bars on Sunday, and Barbara Walters is going to talk about the jail cell interview tonight at 6pm ET on Sirius Stars (ch 102).

The Barbara Live! format is a listener call-in show, giving callers the opportunity to interact directly with Barbara Walters. As a live broadcast series, the Sirius show focuses on varied compelling topics and major cultural events spanning the worlds of entertainment and politics.

Hilton told Walters that jail, and the furor surrounding her sentence, has made her realize her old ways no longer work.

"I feel as if I'm a different person. I've dropped my appeal. I don't want to cause any more problems," Paris told Walters in the phone interview [via ABC News].

"I'm not the same person I was," she said. "I used to act dumb. It was an act. I am 26 years old, and that act is no longer cute. It is not who I am, nor do I want to be that person for the young girls who looked up to me. I know now that I can make a difference, that I have the power to do that. I have been thinking that I want to do different things when I am out of here. I have become much more spiritual. God has given me this new chance."

"God," she said, "has released me."

The Federal Aviation Administration is looking to upgrade their ground-based air traffic control system, and three companies - Raytheon, Lockheed Martin and ITT - are bidding for the $15 billion-plus project.

Raytheon has taken an unusual approach with their bid, and actually went beyond the FAA's request, by proposing a faster, and less expensive, system using the infrastructure from partners Verizon and XM Satellite Radio.

While all three bids are using both ground stations and GPS satellite signals for air-traffic-control data, Raytheon's system offers up XM's XMWX Weather architecture to make weather data directly available. Raytheon would also utilize Verizon's 30,000 cell towers for the ground system.

The FAA said cost and speed are the deciding factors for the modernized air-traffic system, which they said needs to go online no later than 2020. Raytheon said its system could provide universal coverage from almost the first day.

According to Wall Street Journal sources, Raytheon's proposal took Lockheed by surprise as they had been considered a favorite due to participation in a pilot program in Alaska.

The winner of the contract would help set standards for air traffic control for the next 30 years. The FAA plans to pick a single contractor in August.

[Wall Street Journal] 

Canadian Satellite Radio (aka XM Canada) announced this morning that they have reached 270,000 subscribers as of May 31st.

Along with the announcement, XM Canada was sure to boast that the NHL will be going exclusive with XM on July 1st. The NHL contract with XM is effective for the next eight seasons. 

Last week, President and COO of XM Canada Steven Tapp resigned to "pursue other opportunities." Canadian Satellite Radio has not announced a replacement yet.
 

On Friday, the FCC issued the much anticipated public notice seeking official comment on the Sirius-XM merger. Within the next 30-days, interested parties can submit comments to the FCC - allowing the public to gauge the level of opposition against the merger. Currently it's been over 75 days worth of lobbying, Congressional hearings and of course, rhetoric - but now we get opportunity to assess how strong the opposition to the merger truly is.

"The DOJ process is not as transparent," wrote Bear Stearns analyst Bob Peck in a recent note. So with the FCC official pleading cycle, industry followers will best be able to watch how the sentiment towards the merger unfolds. This will be an important 30 days.

This also kicks off the informal "shot clock" for the FCC, which likes to make a decision like this within an 180-day timeline. This brings the latest the FCC would make a decision to sometime in December.

"The FCC can 'stock the clock' if it determines that it needs additional information," said Bank of America analyst Jonathan Jacoby in a note. "Realistically, we believe that the earliest a decision might come down is in early 2008, assuming there are no clock stoppages."

I'm sure we'll see a heightened level of activity from the NAB, as well as from Sirius and XM, who just recently hired bi-partisan lobbyists Quinn Gillespie & Associates to support their case.

If you support or oppose the merger, now is time to have your voice heard. Go to this url and fill out the form (make sure to include docket number 07-57) and your opinion will be officially submitted.

After what seemed to be an eternity to me, the newly redesigned Orbitcast was launched over the weekend. There's a ton of new features, so here's a summary of what's new (RSS/Email readers should click through for the full effect):

Snap Shots

You'll notice now on any external link within a post, a little "chat bubble" icon next to that link. If you mouse-over that chat bubble, you now can access several features without ever having to leave the site.

For instance, any links to a Wikipedia entry (such as this one) will show the Wikipedia article directly within that window. A link to a stock page (like, oh say, SIRI or XMSR) brings the stock quote embedded within the popup window. Even links to YouTube videos, like this one or this one, show the video directly within the page.

Sphere It

In the bottom of every post, you'll see a "Sphere It" link that brings up an embedded window with related articles to that post. It's an easy way for you to see what other blogs or major media outlets are saying about similar subject matter. And it happens all automagically right within the page.

MyBlogLog Community

You'll notice on the right-hand side a list of recent readers, powered by MyBlogLog. If you have a MyBlogLog profile setup, you'll show up there as well. It's a fun way to connect with fellow Orbitcast readers, and you can also join MyBlogLog's Orbitcast Community and find others that have the same passion.

Orbitcast Polls

Also on the right-hand side, you'll notice a poll has been setup (right now it's asking about the redesign... which I hope you like!). I'll be keeping that poll updated on a constant basis, so keep checking it out.

Featured Posts

For the readers who don't check the site everyday, keeping up-to-date with key developments can sometimes be a challenge. So I've added a "Featured Posts" section - also on the right. The Top 5 featured posts will be displayed there for easy access.

New Design: Cleaner, Stronger, and more Girth!

Orbitcast has gotten wider so now more stuff can be seen on page. I've removed many of extraneous items from the pages. And there's now a new spacey theme and logo. But... you probably already noticed that.

So what's your thoughts on the redesign? Officially it's the 5th version of the site, and I'm constantly tinkering and refining to make things as nice as possible around here. (And yes, there's still some glitches being worked out.)

Sound off in the comments and let me know what you think.

XM Satellite Radio has sent out an email to subscribers, as well as posted a message on their website, about the return of the Opie & Anthony show on XM, starting tomorrow. 

During Opie and Anthony's suspension, they continued broadcasting live on CBS Radio - something that the XM Nation didn't get to hear. Starting tomorrow, XM will begin broading a compiled "Best of" for O&A's CBS shows from the last few weeks.

Starting on Monday, June 11th through early morning Friday, June 15th, XM air these “Best of” O&A CBS shows at multiple times throughout the day. Ron and Fez also air live, and with encores broadcast throughout the day as well.

The on Friday, June 15th at 6am ET, the Opie and Anthony show will return live to XM, and the regular schedule will resume.

For any fans pests that canceled their subscriptions as a result of the suspension, XM will waive the reactivation fee (by calling 1-800-XMRADIO) through June 30th.

Check out this week's revised schedule for The Virus (ch 202), after the jump...

[The Virus]
Thanks Plum! 

Some hopefuls were praying that XM Radio Mobile, which provides 25 XM channels to AT&T wireless, would be an included application in the upcoming Apple iPhone. Details were shady on whether AT&T's MEdia Mall would be included which then left open the possibility of XM Radio Mobile being included. But...

It turns out that a (supposedly) leaked Sales Training Workbook reveals that MEdia Mall, MEdia Net, MobiTV and Cellular Video will not be included. So that closes the book on that one.

Hope you weren't surprised.  

Besides the fact that the iPhone is only EDGE enabled, and XM Radio Mobile requires a large amounts of bandwidth to be usable. That still leaves the door ajar for XM Radio Mobile inclusion in the next 3G enabled iPhone (which is rumored to already be in the works).

[Engadget] 

In May, Interoperable Technologies filed a patent application detailing a the separation of a radio controller from the receiver, all the while using periodic authentication.

What the heck that does mean? Essentially its the componentization of the control head from the receiver section - but they throw in authentication into the mix. Doesn't help? Think of a detachable faceplate from your car stereo. That faceplate is pretty much the control head - where you press the buttons - and where the info about what you're listening to is displayed.

Now with satellite radio, which requires a subscription, you need to periodically authenticate with the system to determine that you're actually a subscriber.

An example used in the patent app is pretty much the faceplate analogy. The actual receiver is installed somewhere in the car, so the controller can be much smaller and mounted pretty much anywhere in the car.

Another example described is a wireless controller than can be passed along from person to person while in wireless range of the receiver. (Very cool!)

It's an important step towards interoperability between Sirius and XM. With a small, portable control head (faceplate) you can then allow the receiver side to be much large, with the ability to receive both Sirius/XM signals.

The question is, has Interoperable Technologies already created such a device? If so, that surely would rub the NAB the wrong way.

[View Patent Application (PDF) via Satellite Radio TechWorld] 

The Federal Communications Commission has announced the public comment period for the Sirius-XM merger application has started. Comments/petitions are due July 9th, 2007 and responses/oppositions are due July 24th.

The clock has started. 

Sirius and XM have issued the following joint statement regarding the announcement:

"The FCC public comment period is an important step in the regulatory review of our merger and brings us closer to its completion.  The combination of our companies will lead to more choices and better pricing for consumers, and result in a stronger competitor in the rapidly evolving audio entertainment market.  These benefits explain why the merger already has received the strong support of a wide array of minority, consumer, women's and rural organizations.  We are confident that the comments filed with the FCC in the weeks ahead will continue to reflect these significant public interest benefits.

"We look forward to working with the Commission to demonstrate that this merger is in the public interest, will have no anti-competitive effects on the market and to making any appropriate changes in its 1997 licensing order."

[View FCC Announcement (PDF)]

Oh yes. Orbitcast is riding the Twitter bandwagon now. If you happen to be on Twitter, or maybe you're just curious about the all the hooplah, g'head and check out the official Orbitcast Twitter stream (OrbitTweets?).

But wait, what the hell do you get?

• Never miss a thing: For those who just can't get enough Orbitcast news, I'm now syndicating Orbitcast posts straight to the Twitter stream. (You can also try subscribing to the RSS feed, or get email updates)
  
• Anywhere, anytime: That means you can be notified via IM, or by SMS text message (or... just on Twitter) when a new post has been made. If you're on-the-go a lot and can't miss a thing, this is your dream come true (admit it, it is).
  
• Post overflow: Interesting, semi-related tidbits that I discover while researching the next post. Now they have a place to shine rather than disappearing forever.
  
• Personal updates: Sometimes, it's just personal stuff.

We'll learn as we go along about what works and what doesn't, but just consider it like the ADHD Edition of Orbitcast. More than anything, it's yet another way to get your fix.

Oh, and I'll be your friend.

(psst... this is only the beginning) 

Sirius Satellite Radio has signed on Grammy Award winner Steve Earle to host his own show, on Outlaw Country (ch 63).

"The Steve Earle Show: Hard Core Troubadour Radio," airs on Saturday evenings at 8pm, and is of course hosted by Earle himself - who is seen by many as a savior of country music.

An admitted drug user, Earle produced his first Grammy Award nominated album, "Train A Comin," in 1996 after a jail term. He was also the subject of "Just an American Boy," a documentary about Earle's life struggles. Earle also received a Grammy Award for the album "The Revolution Starts Now" in 2005.

Steve Van Zandt, creator of Outlaw Country, said, "I created Outlaw Country because too many important artists were being ignored by contemporary mainstream country radio and not fitting into the existing, 'accepted' formats. One of the artists I would always use as a prime example was Steve Earle.

"He will fit right in with the rest of our rogues, renegades, and roustabouts."

Encore broadcasts of Earle's show air Sundays at 1am ET then later again on Sundays at 9am ET and again on Mondays at midnight ET.

[via AHN]

The National Association of Broadcasters (NAB) president and CEO, David Rehr, sent a 3-page letter to Sirius Satellite Radio CEO Mel Karmazin over comments made at a conference last week.

Karmazin had called the NAB "disgraceful" because of its opposition to the merger, and added that the NAB paid organizations and individuals to write letters urging regulators to block the combination.

The resulting letter from Rehr said that he was "disappointed" by the comment, adding that the NAB "serve the public interest with distinction." (Keep in mind that the purpose of the NAB is not to serve the public interest, it's sole purpose is to advocate for its members.)

Rehr continued to explain to Karmazin how the technology of satellite radio works, and that Sirius and XM use "incompatible delivery systems." The NAB president proclaimed to Karmazin that "the laws of physics would seem to prohibit a monopoly Sirius/XM from being able to free up any channels," apparently because Rehr knows the inner-workings of Sirius better than Mel does.

The rest of the letter simply parrots the NAB's rhetoric, which is likely why it was made public to begin with.

Hollywood Reporter points out that it's unusual for the head of a major trade organization to send a personal communication during a merger dispute.

"Mr. Rehr's actions speak more clearly than his words. Anyone so determined to stop the Sirius-XM merger must fear the competition that will result," Sirius spokeswoman Kelly Sullivan said. "We're thrilled to have the support of such a wide range of diverse groups, representing rural, African-American and Latin consumers. Given how traditional media has historically underserved these constituencies, it is disappointing but not surprising that NAB would try to be dismissive of the significance of their support."

[Read the full letter here (PDF)] 

The President and COO of XM Canada, Steven Tapp, will be leaving the company on June 15th to "pursue other opportunities" the company revealed today.

John Bitove will continue to lead as CEO of the company.

"I would like to thank Stephen for his contributions during our major milestones including the licensing, creation of our programming lineup, launch of our service, development of our studios, build-out of our repeater network and our launch," said John Bitove, chairman and CEO of Canadian Satellite Radio Holdings Inc. "Stephen's skills in business startup ensured that XM Canada was launched successfully in November 2005."

Leaving to "pursue other opportunities" generally doesn't have a good connotation behind it. And considering how much Sirius Canada has bested the efforts of XM Canada, it's an understandable move.

The challenge to Bitrove is to find leadership that can push the company forward at the pace that it needs to stay competitive. Having big plans is one thing, it's executing them that matters.

Sirius is honoring Black Music Month with special programming throughout the month of June. All month long, three of Sirius' channels - Heart & Soul (ch 51), Soul Town (ch 53), and Backspin (ch 43) - will celebrate the music and artists that have shaped American music.

Guest hosts Jamie Foxx, LL Cool J, Kelly Rowland, Isaac Hays, Lionel Richie, Ashford & Simpson, Charlie Wilson, Heather Headley and Anthony Hamilton will spotlight and celebrate some of the great artists, songs and personalities that have influenced African-American music culture.

Since 2002, President Bush every year has proclaimed June to be Black Music Month. This special tribute month is dedicated to celebrating the contribution of African- American artist and culture to the American musical landscape.

Check out the full Black Music Month schedule after the jump... 

XM is airing coverage of the 2007 U.S. Open golf tournament live from Oakmont Country Club, starting next Tuesday.

Play-by-play U.S. Open coverage and expert commentary will air on XM's PGA Tour Network (ch 146) - from Thursday, June 14th to Sunday, June 17th - each day starting at 12-noon ET to 7pm ET, followed by a 30-minute recap show.

Pre-event coverage from Oakmont begins Tuesday, June 12th, at 2pm ET with press conferences featuring Tiger Woods, Phil Mickelson, Ernie Els, and defending champion Geoff Oglivy, among others. XM will then air an extensive preview show on Wednesday, June 13th, starting at 2pm ET with interviews with many of the competitors in the top-flight field.

Spectators at the U.S. Open can pick up portable XM radios for the day and hear the XM coverage, as well as keep up with the action throughout the course. The first 1,000 people to sign up at the XM booths each day will be able to listen to an XM radio for one day at no charge.

NPD Group reports that music enabled phone sales, and the usage of the MP3 player functionality of these phones, is up dramatically since Q2 of last year.

Sales of music enabled cellphones has grown from 18% in the second quarter of 2006, to more than 38% in the first quarter of 2007. That's a growth rate of 111% in under a year.

Of course, simply selling an MP3-capable mobile phone means nothing if no one is using it. But that's not the case either. MP3 player functionality usage is now at an all-time high – up 82% since the second quarter of last year. In Q1 2007, about 7% of subscribers used their phones as MP3 players.

If the behavior of the market can grow this quickly in just under a year... what will it be like in 2010? Sirius/XM, are you watching this?

[The NPD Group]
Thanks Tim!

In an ongoing trend of minority groups coming out in favor the Sirius-XM merger, the New York State Federation of Hispanic Chambers of Commerce (or NYSFHCC) today added its voiced in support of the merger.

"The Hispanic marketplace is expanding at an unprecedented rate not only in large metropolitan areas, but in every remote corner of the nation," said Alfred Placeres, Esq. NYSFHCC President. "We firmly believe that alternative news sources found in satellite radio have played a role in fueling this economic growth and we strongly urge the merger's approval."

"With expanded choices and better prices, satellite radio will be an even more attractive option for consumers, and this ultimately benefits our Chamber members and the two-million Latino-owned businesses in the U.S.," added Placeres. "Our community is more informed and better prepared to make important business decisions as a result."

One of the largest statewide advocates for Hispanic-owned businesses, the NYSFHCC serves as an umbrella organization and network for more than 40 organizations.

The NYSFHCC joins a host of organizations including The Latino Coalition, The League of United Latin American Citizens (LULAC), National Black Chamber of Commerce, Hispanic Federation and League of Rural Voters in supporting this merger.

The American Antitrust Institute (AAI), a Washington-based advocacy group, shocked the nation today by filing comments with the FCC opposing the Sirius-XM merger.

In the letter (PDF), the organization wrote:
"...AAI believes that the Commission should address the merits of repealing the Commission’s rule forbidding a single satellite DARS licensee from acquiring control of the other licensee in a rulemaking proceeding before the Commission considers the transfer application."

Question is, what mergers has AAI ever supported? It's my sense that AAI is pretty much just anti-merger in general. So it's not necessarily all that surprising that they are not in favor of this one. It's pretty much what they do.

[Read full letter (PDF) via FMQB] 

While women and minorities comprise two-thirds of the population, only one-eighth of full power radio stations are controlled by the same groups. Welcome to Big Radio.

The report, Off the Dial: How Media Consolidation Diminishes Diversity on the Radio gives details on exactly how bad the situation is:

• Women own just 6 percent of all full-power commercial broadcast radio stations, even though they comprise 51 percent of the U.S. population.
• Latinos own just 2.9 percent of all U.S. full-power commercial broadcast radio stations, but they comprise 15 percent of the U.S. population and are the nation’s largest ethnic
  minority group.
  
• African-Americans own only 3.4 percent of this country’s full-power commercial broadcast radio stations, but account for 13 percent of the entire U.S. population.
  

"This study presents fresh and challenging evidence about the lack of female and minority ownership in the radio industry," FCC Commissioner Copps said. "My fervent hope is that we can harness the shame of our failures and recommit ourselves to creating a media that reflects the diversity of the American people."

"Women and people of color have been left off the dial because the FCC has pursued policies that are far off the mark," said Commissioner Adelstein. "It is our legal and moral obligation to promote diversity in the public airwaves."

"Latinos own less than 3 percent of U.S. radio stations but make up 15 percent of the population," said Brent Wilkes, national executive director of the League of United Latin American Citizens (LULAC) who recently came out in favor of the Sirius-XM merger. "These alarming statistics suggest that women and people of color have very few stations available to serve the needs of the community. LULAC urges the FCC to do better."

[View the full report here (PDF) via Free Press] 

In less than 10 days, Opie and Anthony's suspension will be lifted and they'll be back on the air. That's the assumption of course, even amid rumors of their impending firing (rumors I was never able to validate myself).

The question remains as to the "state" of the show following the suspension. Will O&A be neutered as a result of the suspension? In a post-Imus world of radio scrutiny, it's hard to say. Sources at the company have said that the suspension was actually not a result of the pending Sirius-XM merger. Afterall, Howard Stern's high profile show, and contract, has more than enough reputation with conservative regulators that suspending O&A over "indecency" is a moot point. Regardless, a neutered show is just not the right approach.

Will XM throw O&A fans pests an olive branch with a 24-hour Ron & Fez channel? Now that XM has had the chance to test the waters of the popularity of an R&F-only channel (minus is mind numbing replays), it may be a good effort to regain some of the disenfranchised - not to mention offer an alternative to O&A for that demo. The hardest of hardcore fans may never return to XM, but Ron & Fez now have had exposure to the morning drive audience, and this is a good opportunity to gain some additional traction.

All in all, there really is no such thing as bad PR (especially for O&A, who can now can lay claim to being the only "shock jocks" who went too far in unregulated territory). The level of online buzz driven by the suspension of Opie and Anthony was astounding last month, and it would be silly not to maintain the momentum.

Either way, on June 15th, the XM Nation will be listening.

Sirius Satellite Radio has received a cash infusion of $250 million from Morgan Stanley under a senior secured term loan. The term facility matures in 5.5 years and has covenants similar to Sirius' existing 9 5/8% Senior Notes.

But Bank of America analyst Jonathan Jacoby feels that more financing might be needed if the merger doesn’t go through.

Jacoby noted that there is a risk that Sirius isn't fully funded. Bank of America's models show that, prior to this $250M announcement, Sirius' cash balance would dip to roughly $80M before they achieve consistent positive free cash flow in late 2008.

Bear Stearns analyst Bob Peck wrote in a recent note that they felt the liquidity concerns were overblown. Bear Stearns' own models showed that Sirius needed about $200M, in addition to refinancing the $300M that Sirius owes in early 2009.

In a related point, Ant & Sons points out that there are several catalysts that need to occur before the sentiment on Sirius improves. That despite the fact that Bear Stearns, Barrington and UBS have all upgraded SIRI since late April.

In part two of the continuing plug-and-play series (part one covered color displays), let's explore what I consider to be the "new" plug-and-play on the market. And it may just surprise you, because... well, it doesn't involve a satellite radio at all.

Take a look at Amazon's Bestsellers in the Electronics category. Consistently, GPS receivers are always in the top 25. Consistently. (In fact, at the time of posting this, it was #1.) And here we thought that the U.S. consumer doesn't like to have a suction cup'd device stuck to their windshield? Turns out consumers really don't mind... as long as there's a need.

The portable GPS is now the new "plug-and-play."

It's not really all that surprising. Everybody wants a nav system in their car. Even if you don't do much driving, a GPS is one of those "good to have" items (especially with the OEM versions are still running as $1000+ options). The prices of portable GPS receivers have dropped significantly over the years, and the interfaces have improved substantially.

So plug-and-play satellite radio receivers aren't just competing for mindshare and earshare... they're now competing for windowshare (I'd say "cigarettelightershare" or "12voltaccessoryoutletshare" but they just don't roll off the tongue... you get the idea).

But, wasn't this was something XM and Sirius anticipated? Both announced their traffic services well ahead of the curve. XM NavTraffic and Sirius Traffic seemed like a way for both to get their foot in the door and establish some great GPS relationships. But something appears to have fallen apart, because even with all the satellite radio data services available, the likes of Clear Channel and Microsoft are snapping up the partnerships instead.

Don't get me wrong, I'm not ignoring the progress already made, but we've only just started to see satellite radio integration in nav systems creeping into the market. The Rock-n-Road looks fabulous (integrated XM Mini-Tuner slot? gasp!) and the Scout Sirius-ready nav unit also looks extremely promising. And yes, Garmin (who by far is the market leader) has a suite of XM-enabled nav systems, but there's only a limited number available in a consumer-targeted price range (and for most, you need to buy the add-on in order to enable satellite radio... it should come with it!).

But take it a step further. Don't just integrate with the GPS devices (though, that's a start) - offer free trials with each one sold. Apply the OEM model to Retail. Only rather than trying to do it alone, ride on the coat tails of the portable navigation device market. It's a value added for manufacturers - allowing them to differentiate themselves from the growing competition - and it's a way to access consumers who are actively looking to upgrade their in-vehicle experience.

Gartner analyst Thilo Koslowski forecasts that U.S. sales of portable navigation devices will grow from 3.5 - 3.6 million in 2006... to an incredible 7 million units for this year alone. (And some are even whispering about sales of 8 million units this year.)

The growth rate is astounding and real, but can Sirius and XM ride this wave?

Melodeo, a service that delivers Web-based audio clips to phones, is currently testing a service that streams music to cell phones based on a customer's iTunes playlist.

The new Melodeo service will let consumers listen to their digital music libraries on the go without a portable player. It also lets listeners access songs from their library on more than one PC.

Mind you, Melodeo is not selling copies of songs you to store on your phone - it simply plays the songs contained on your iTunes playlist. That means Melodeo would only have to pay Internet radio usage fees (a tenth of a cent per song play).

"We're doing everything we can to follow the current legal guidelines and standard industry practices where the legal guidelines are not crystal clear," said David Dederer, Melodeo's vice president for music services.

Revenue could come from monthly fees for the service, software download fees, or even audio advertisements, added Dederer.

They expect the first version of the service to launch in 6 to 12 weeks, according to Dederer, who said he hopes to be able to announce a carrier deal by then. (Melodeo currently is partnered with AT&T and Alltel Corp.)

[Billboard.biz]
Thanks Tim!

Sirius and XM have tapped the high-profile firm Quinn Gillespie & Associates LLC to lobby the federal government on their proposed merger, according to a disclosure form filed today.

The firm was founded by Jack Quinn, who served as counsel to President Bill Clinton from 1995 to 1997, and Ed Gillespie, a Republican Party strategist who served as the Republican National Committee chairman during the 2004 election cycle.

In addition to Quinn and Gillespie, who are registered to lobby on behalf of the companies, several other veteran former Capitol Hill and White House officials are listed in the disclosure form.

They include: Jeff Connaughton, who worked as special assistant to the counsel to President Clinton in 1994 to 1995; Kevin D. Kayes, who most recently served as chief counsel to Senate Majority Leader Harry Reid, D-Nev.; Allison Giles, who served as chief of staff to the House Ways and Means Committee under then Chairman Bill Thomas, R-Calif.; Elizabeth Hogan, who worked as special assistant to the Commerce Department; and, Christopher McCannell, who was chief of staff to Rep. Joseph Crowley, D-N.Y.

[AP Newswire] 

Louisiana State University (LSU) has been added to XM's sports line-up of Southeastern Conference (SEC), starting this fall.

Kicking off with the Tigers' football season opener against Mississippi State on August 30th, XM plans to carry every LSU regular-season football game, the vast majority of LSU basketball games and other LSU athletic teams.

James Carville, the renowned political consultant, LSU alumni and co-host of XM sports talk show "60/20 Sports" called this "a marriage made in heaven."

LSU is the latest member of the SEC conference to join XM's roster. Earlier this year, XM announced a 5-year deal with the SEC, but LSU wasn't on the list of schools. That now has changed.

Last month, ICO Global Communications announced a partnership with Alcatel-Lucent and Hughes Network Systems to launch a mobile video network in two US cities, starting in Spring of 2008.

The "Mobile Interactive Media" service includes in-car video, broadcasting 8-15 channels plus interactive navigation, and other information like emergency voice and test messaging. The mobile video offering will be delivered via satellite and repeater network, and will be offered at a month subscription charge (hmm, sound familiar?).

ICO plans to roll out a more extensive repeater network (somewhere between 1,600 and 2,500 repeaters) with a goal to cover 74% of the US population, in up to 100 US metropolitan areas, starting in 3Q07. Note that ICO isn't targeting the handheld video player market - only the in-vehicle market.

TMF Associates analyst Tim Farrar wrote in a recent report that, "ICO will face competition from Sirius, which already plans to launch a three channel mobile video service later this year, and could conceivably face competition from MediaFLO, as that company builds out its national footprint."

Farrar also considered other potential services that ICO could participate in like "a next generation OnStar service (with an addressable market of several million vehicles) or provide interactive navigation services (again with a potential opportunity of perhaps several million vehicles given the level of competition from other providers)."

TMF estimates that the costs would run up to $100k per repeater (or $250M for the 2,500 repeater network)... which is peanuts considering what XM/Sirius have spent.

But many influentials will go out and buy the iPhone on that day. The people who give tech advice to their friends. The ones who everyone turns to for advice on the latest gadget. Those influentials will be waiting on line for a $600 phone, and will love every minute of it.

Sirius and XM are not in the radio business, they're in the desire business. And when thousands of influentials with their iPhones in hand hit the streets, and show their friends what they can now do, there will be one device that people will desire.

On June 29th, the mobile industry will be forced to react to the iPhone, and as such will be releasing their own convergence devices (they're already working on them, in fact). All these new music players/smartphones will try to take it a step further than Apple... and that includes seamlessly integrating into your car.

And it's less than four weeks away. Don't think it'll be disruptive? Watch these commercials and tell me otherwise.

[via Engadget] 

In a note to clients this morning, Bear Stearns analyst Bob Peck refers to a short story by Sir Arthur Conan Doyle, Silver Blaze, as one of the positives regarding the Sirius-XM merger.

One of the major clues in solving the mystery for Silver Blaze is that the watch dog didn't bark while the act was taking place. And so the dog must have known the perpetrator.

Peck uses this analogy for the merger, because unlike the DirecTV-EchoStar merger, "the Washington dogs aren't barking." Aside from the independent NAB-funded reports, there really hasn't been much in a wave of negative outcry.

Peck also felt that the "delayed" FCC clock may actually be a benefit as well, because if the FCC was out to kill the deal, then "they would have already started the clock." The FCC's own stipulation that 'there can be only one' satcaster most likely is the reason why the clock hasn't started yet, and this shows an incredible level of poise.

Personally, I think the fact that none of the auto manufacturers (nor any of the big box retailers for that matter) have come out against the merger - plays in favor of the merger as well. If GM, Ford or Honda came out screaming against it, saying that a merger would have them by the throat, then the deal would be dead. And that says a lot.

David Rehr, CEO and El Presidente of the NAB, bestowed his wise words of wisdom regarding the Sirius-XM merger at the first in a series of Wachovia conferences last week.

Rehr said that he believes the deal would create a "merger to monopoly" because essentially no viable competitors would be left in the satellite radio sector. Rehr also feels that there's a good chance the merger will be blocked, thanks to the NAB's aggressive lobbying.

Rehr also continued to say that Mel Karmazin's "salesman persona" has worked against the satellite radio companies' efforts.

In Rehr's opinion, Karmazin will only receive approval for the merger if he convinces the DOJ that it is not a monopoly. (And I actually agree with him on this. The DOJ's definition of the relevant market will make or break the discussion with the FCC.)

[Radio Ink]

San Diego-based Slacker has raised $40 million in Series B funding, led by Centennial Ventures and Rho Ventures, and repeat investment from Austin Ventures, Mission Ventures and Sevin Rosen Funds.

This comes on top of a $14.5 million Series A round announced earlier this year. 

PEHub points out that Last.fm raised $5 million, and was subsequently sold to CBS for $280 million (not a bad flip), so how much will Slacker flip for?

Of course Slacker's ambitions are a bit higher, combining their online player, desktop radio and soon a Wifi enabled Slacker Portable and a satellite powered car dock.

So judging by what Slacker wants to do, I think this will be the first in many cash infusions for the company.

[PEHub via Mashable] 

Few more bits of news for the weekend that might be of interest...

• In-depth interview with Debbie Wolf, founder of PAC. Best quote: "There’s nothing wrong with [XM] saying, 'We are listening; we hear you and we now see that this isn’t what you wanted and we’re responding.'" [FMQB e-QB]
• AMA exec to become new CEO of satellite radio's ReachMD [Chicago Tribune]
• Lawmakers Air Concerns About XM-Sirius Merger [Center for Public Integrity]
• Amp'd Mobile files for bankruptcy.  [mocoNews]
  

Here's some quick news bits for your pre-weekend reading:

• FCC Finalizes IBOC Rules [Radio World]
  
• Learning to Love Radio Again (hidden message: Sirius/XM need to get more interactive) [TIME]
  
• Apple embeds your account info in DRM-free music (so don't share that song) [TUAW]
  
• Sirius is sucking a lot less [Forbes]
  
• Webcasters ask appeals court to delay 'Net radio royalty increase [Ars Technica]
  

Sirius DJ and the official MC of Tony Hawk’s Boom Boom Huckjam Tour, Jason Ellis, is hosting two week-long broadcasts from the tour on Sirius Faction (ch 28).

"Ellisman" will be joined by a crew of all star skaters including Kevin Staab, Jesse Fritsch, Sergie Ventura, Lincoln Ueda, Kevin Robinson, Drake McElroy, Matt Buyten, Greg Garrison and of course - the birdman himself - Tony Hawk.

The shows will air June 4-8 and June 11-15 at 8pm ET.

When I first received a pre-production unit of the Audiovox Xpress EZ a few weeks ago, the thing the struck me the most about the unit was it's level of simplicity. Understanding that the target audience for the XM radio is "entry-level" consumers (read: newbies), I did what every other entry-level user would do... I didn't read the manual.

And to my surprise, I didn't have to.

Unlike most plug-and-play receivers, the Xpress EZ went the ulta-minimalistic approach, featuring only three buttons and a single knob to control the interface.

As a seasoned power-user, I was skeptical as to the level of control that this would allow. But after only a couple days of use, I learned to love the Xpress EZ's approach to channel surfing.

The Sirius-XM merger faces a "high hurdle" because a rule bans the combination, FCC Chairman Kevin Martin told reporters yesterday after an FCC meeting.

"I think this is an unusual merger and I think it faces a high hurdle," Martin said.

The agency hasn't started reviewing the deal because it is still debating the substance of the rules with Sirius and XM, Martin also said.

"It's a little gray whether there's a rule or there isn't a rule," said Sirius CEO Mel Karmazin at a Lehman Bros. conference yesterday.

When the FCC granted licenses to the satellite radio companies 10 years ago, the FCC made a "statement," he said.

"If you go to the rule books, I'm not sure you'll find a rule," said Karmazin.

Karmazin also called the NAB "disgraceful" because of its opposition to the merger. He said the NAB paid organizations and individuals to write letters to agencies and Congressmen urging them to block the combination.

In a statement, Sirius and XM stated that they still "expect the transaction to be completed by the end of 2007.''

[Bloomberg]

Sirius Satellite Radio will launch a new show today at 1pm ET, on Playboy Radio (ch 198), called "The Bridget & Wednesday Friday Show."

The show is hosted by Hugh Hefner's girlfriend and co-star of E! Entertainment TV's "The Girls Next Door," Bridget Marquardt, and co-hosted by her Pekingese, "Wednesday." Yes, that's right. Her dog is a co-host. (The female black Pekingese is named after "Wednesday" from The Addams Family.)

Bridget will give listeners details of life at the Playboy Mansion as well as her adventures with Hef, Holly and Kendra. And Wednesday will do, well, whatever.

"I'm sure the new radio show will be a ton of fun. And Wednesday will be a great addition, especially on radio," said Hugh Hefner.

Bridget Marquardt actually earned her Master's degree in Communications from the University of the Pacific in Stockton, as well as a BA degree in Communications from CSU Sacramento.

A class action lawsuit has been filed against XM Satellite Radio for the outage in service experienced late last month.

The two folks from Alabama who filed for the class action are seeking damages for being charged for the service while it was down. Yet, uhm, XM has already offered credit for the downtime, resulting in an 87-cent refund.

Brilliant.

[Consumerist]
Thanks Nathan!