July 2007 Archives

The NAB has filed a Reply to Opposition (PDF) with the FCC disputing Sirius-XM's proposed A La Carte packages.

But the notable part doesn't lie in the filing itself, rather in the fact that comments posted to Orbitcast are actually quoted in the filing. So before we continue, let's give a full round of applause for Joe, Flap Jackson, PFreak, JohnG, and Mr. FancyPants.

I think it's a testament to the strong community here, and the encouraged open format for accepting opposing views. That we'd ever see the ridiculous medley of screennames actually being cited in an FCC filing is deserving as well.

Satellite Radio TechWorld puts it perfectly, the NAB has just "immortalized" the commenters here with this filing. It's proof positive that they read, not only what I'm writing, but what you are writing.

And that's the most important of all.

[Satellite Radio TechWorld] 

Sirius Satellite Radio's music/action-sport lifestyle channel, Faction (ch 28) will be live from the Summer X Games all this week with exclusive shows hosted by Tony Hawk and Jason Ellis.

BMX pro Mike 'Rooftop' Escamilla will also host a special X Games edition of "Hostile Takeover" (that's Faction's weekly guest DJ show). 'Team Faction' will be backstage and behind-the-scenes throughout the week with complete coverage and special guest interviews.

Check out the full schedule after the jump...

I've been getting reports from readers that they're having troubles accessing the site. Not good.

I'm yelling at working with my current host to get this resolved (I'm almost 100% sure they're messing with me ever since we destroyed their servers when XM's satellite went down). And at the same time, I'm also in the process of migrating to a different, more robust, hosting platform.

Anyway, for those of you who can only access the site momentarily or can only hit the site when at home, here's a couple tips to stay up-to-date with the latest from The O.

1. RSS Feed - tried and true, you can always subscribe to Orbitcast using this the handy-dandy feed. Here, I'll even give you a big shiny icon to click:
   
   
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2. Email Updates - Some peeps just don't like RSS and rather stick to good ol' email. That's understandable, so if you want to receive The Orbitcast Daily Update, just click on this link. You'll receive an email every morning recapping the events of the prior day.
   
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Overall, if you need an instantaneous fix, your best bet is the RSS feed, but I'm trying to help out in anyway I can while I battle it out with my host. I do apologize for this, and trust me when I say that I'm working on it as best as I can.

Oh sure, there's a merger going on so everyone's one big happy family right? Not exactly. Everyone still wants to see how Sirius' and XM's satellite radio subscribers are stacking up against each other.

So here's some charts and numbers using the latest subscriber information to break it all down for you.

Total Satellite Radio Subscribers:

Sirius Satellite Radio: 7,142,538
XM Satellite Radio: 8,250,000

The above chart shows the total cumulative subscribers starting from the fourth quarter of 2001 and how both Sirius and XM subscribers have grown comparative to each other.

Quarterly Net Subscribers

Sirius Satellite Radio: 561,493
XM Satellite Radio: 338,000

Here you can see how Sirius and XM have added NET subscribers on a quarterly basis, going back to 2005. For the seventh consecutive quarter, Sirius has beaten out XM in net satellite radio subscriber additions.

Quarterly Gross Subscribers:

Sirius Satellite Radio: 1,002,145
XM Satellite Radio: 942,000

This chart shows the quarterly GROSS subscriber additions between XM and Sirius. I find that gross subscribers are a very important metric to track, because it eliminates variables (like churn) and shows the true market penetration. For the third consecutive quarter, Sirius has outpaced XM in gross subscriber additions. This even beats out the "Stern Effect" from last year.

Orbitcast is once again live blogging the Sirius Satellite Radio 2Q07 earnings conference call for those who can't tune in or who just want to read. Just keep hitting that 'refresh' button as I'll be updating this post frequently.

So let's begin:

• Listening to hold music (drinking coffee)
  
• OK! Should be starting shortly
• We're starting now... Scott Greenstein is traveling and will not be on the call

Sirius Satellite Radio (SIRI) announced their 2Q06 earnings results, showing a 51% increase in revenue year-over-year to $226.4 million, and strong subscriber growth of 561,493 new subscribers during the quarter.

Sirius ended the quarter with over 7,142,538 subscribers.

During 2Q07, Sirius added 561,493 net subscribers, comprised of 129,843 net additions from retail/aftermarket channels and 431,650 from the OEM channel. Sirius captured 62% of satellite radio segment share, marking the seventh consecutive quarter of leading subscriber growth in satellite radio.

Total revenue increased to a record $226.4 million, up 51% from $150.1 million YoY. Advertising revenue was $9.2 million. ARPU was $10.71. SAC was $108 for the quarter compared to $131 for the same period last year.

Sirius' net loss improved by 44% to ($134.1) million for the, from ($237.8) million for the same period last year. The adjusted net loss for second quarter 2007 (adjusted to exclude stock-based compensation) improved to ($117.1) million down from ($159.6) million for Q2 2006.

2007 Guidance:

• Total revenue approaching $1 billion
• Over 8 million subs
• Avg churn to 2.2% - 2.4%
• SAC approaching $100

The NAB has launched a radio ad campaign on some local DC-area radio stations against paying performance fees. The performance fees would require terrestrial radio stations to pay the same royalties that Internet and Satellite Radio pay.

The radio ad, which can be heard by clicking here, contains so many ironies that it truly borders on comedy. Please give it a listen so you can feel the same rage I feel right now.

Yes, welcome to the hypocrisy that is the NAB.

Notice how they position themselves as small "local" radio stations? That they're the ones fighting off the big-bad music giants? I hope that those in Washington see through this line, because it's the same one they're using against Sirius and XM. And it's complete bullshit.

Even the stations this ad is airing on are owned by big radio conglomerates: WMAL-AM (Citadel), WTNT-AM (Clear Channel), WWRC-AM (Clear Channel) and WTOP-FM (Bonneville). Wait, how's that "local" thing work again?

If anyone has a monopoly, it's terrestrial radio. They enjoy government protected localism, a free ride on performance royalties, and over the last 10 years the NAB has spent $55 million in lobbying expenditures to protect these "rights."

Yeah, poor radio.

[Listen to the audio via the NAB] 

The Parents Television Council (PTC) has once again publicly praised XM and Sirius satellite radio for the proposed A La Carte pricing as well as their "family-friendly" packages offered as a benefit of the two companies merging.

"This announcement by XM and Sirius constitutes the best set of parental controls we’ve ever seen to not only prevent children’s access to adult-themed programming, but to enable the marketplace to decide what it wishes to purchase and pay for," said PTC President Tim Winter.

"If the merger is approved and satellite radio gives its customers real choice in programming, it will be a groundbreaking moment for the future of subscription-based entertainment," Mr. Winter continued.  "There is no question that greater control of graphic content, combined with giving consumers the ability to have some control over packages and pricing is in the public interest and certainly in the interest of parents and families."

These are some hefty words, considering that the PTC is arguably the single biggest influence on indecency regulation in America. The PTC regularly launches massive campaigns to file complaints with the FCC over content they deem to be 'indecent' broadcasts.

"We call upon the cable and satellite television industries to follow the lead of XM and Sirius and give real choices to their own customers who are deeply offended by many of the channels families are forced to buy just to get access to the quality family programming available on cable," said Mr. Winter.

This isn't the first time the PTC has come out in favor of the merger thanks to the "block and rebate" programs. But the repeated strong show of support must have some weight with regulators. I'm not sure which group is more annoying to the folks over at the FCC: the NAB or the PTC?

From a personal standpoint, and as a parent myself, the best 'regulation' can also be called 'parenting.' (Crazy thought right?) But regardless, I really do agree with this final statement by Mr. Winter.

"Only a meaningful solution like this one will allow the marketplace to decide for itself what it wants and what it is willing to pay for."

And that's the truth.

Starting tomorrow, the new Dave Matthews Band "Live Trax" CD will be exclusively available at Starbucks locations throughout North America. The CD features recordings of Dave Matthews Band performances dating back to 1995.

As part of the launch, XM and Starbucks are kicking off a promotion to support the "Live Trax" release and to introduce customers to the newly re-launched Starbucks music channel on XM, Starbucks XM Café (Ch 45).

From July 31st through August 31st, Starbucks will offer customers the chance to win tickets, passes and a meet and greet with Dave Matthews at The Hollywood Bowl on October 2nd, among other prizes. All you have to do is sign up for a free trial of XM Radio Online.

Complete details will be available online starting July 31st (pssst, that's tomorrow, so don't click the link yet).

In addition to the in-store sweepstakes, XM will air special Dave Matthews Band programming on the Starbucks XM Café channel with special episodes of the music show "The Daily Grind," highlighting songs from the new album throughout the week.

"The Daily Grind" can be heard weekdays at 3pm ET on the Starbucks XM Café channel, with encores airing weeknights at 1am.

Dave Van Dyke, president of Bridge Ratings, yesterday wrote a fascinating entry in a recent blog post about the Sirius-XM merger and his personal take on its chances.

In it, he discusses how Bridge's research shows that sentiment for the merger has leaned more towards the positive side for current subscribers - but that non-subscribers still don't like it. This shows that Sirius/XM have done a good job of marketing the merger - internally. But that's hardly the interesting stuff in Van Dyke's post.

The meat and potatoes comes further into it, when he points that the NAB has essentially proven Sirius-XM's point about whether terrestrial and satellite radio compete.

"In the case of the NAB and Mr. Rehr in particular, he doth protest too much."

"...Mr. Rehr has firmly crystallized Mr. Karmazin's point that a merged satellite company is not a monopoly..."

Youch!

It's no secret that David Rehr has reluctantly become the champion for the Sirius-XM merger, but to hear it from someone within the radio industry? That's impressive. This isn't coming from a nattering blogger waving the Sirius-XM pom-poms (or even rogue bloggers who are trying to wake up the radio industry). This is coming from the head of a research firm that terrestrial closely follows.

"Was the approval of this merger terrestrial radio's to lose? I think so. The strategy was wrong. The NAB made the case for the other side."

The problem for Rehr and crew is that Dave Van Dyke is completely correct. But they've embarked down a path that is impossible to back out of. The damage is done. The NAB has no choice but to continue fighting as hard as they can (though they really do have bigger fish to fry). And the more they fight, the more they prove the opposing side's point.

[Navigate the Future] 

XM Satellite Radio and auto-enthusiast magazine publisher Primedia are kicking off the "Coolest Car Challenge" starting today at XMCoolestCar.com.

This contest puts 64 cars, ranging from the Ferrari 612 to the Toyota Prius, head-to-head in a tournament-style bracket. Contestants are asked to pick the best of the bunch (and all the cars available, of course, are XM equipped). The 'challenge' is to have your selections match up with the selections by the Editors at Primedia.

Primedia publishes some of the top auto-enthusiast magazines like Motor Trend, Automobile, Sport Compact Car, Hot Rod, etc.

Match the Primedia selections, pick for pick, and you could win $10,000 towards the purchase of an XM Coolest Car (winner will be announced on October 30th).

Along with sponsoring the contest, XM is buying about eight pages total in Motor Trend and Automobile, spread out from the September through November issues. It’s the first print buy in those titles in more than a year.

I think the concept of associating the XM brand with "cool cars" is a good one, but the execution on the website could be a little better. The copy is too self-loving (from both XM's and Primedia's side) and comes across as contrived. So you're reminded that this is all advertising, and it loses the fun of the concept. Tone it down a bit, and you're golden.

Criticism aside, auto-enthusiasts are definitely the right target market to go after though. Satellite radio needs to be associated with other "must have" features in the vehicle, and the best way to do this is to convert the influentials into believers.

[MediaWeek]

Here's a fun bit. The FCC has given two local television stations some fairly, uhm, unique call letters.

KUNT was assigned to a low-power digital television station in Wailuku, Maui. Yes, KUNT (they're not on the air yet). In Arizona, KWTF was the designated call letters.

Both were assigned to KM Communications who apparently missed the offbeat references in the sea of selections. The company offered a sincere apology "to anyone that was offended," said Kevin Bae, vice president of KM Communications, who requested and received KUNT and KWTF. It is "extremely embarrassing for me and my company and we will file to change those call letters immediately."

Giggle-inducing call letters aren't new, or relegated to television. KCUF-FM near Aspen, Colorado got its call letters in August of 2005 and has been on the air since December. (If you're scratching your head, just spell KCUF backwards.)

Then there's KLIT, the former call letters of a FM radio station in Fountain Valley, California. Which I think would make for some killer sweepers.

Let's just hope that Sirius/XM give their new name a bit more thought than some broadcasters do.

[Star Bulletin via TV Squad]
Thanks realwx!

Applied Media Technologies Corporation (AMTC) has signed on with Dunkin' Brands to provide Sirius Satellite Radio background music to Baskin-Robbins stores nationwide.

Baskin-Robbins currently operates more than 5,600 units in 40 countries.

AMTC, which provides of Sirius services to businesses, normally charges only $24.95/month for the commercial-free service (no contract required).

Baskin-Robbins was given special discounted pricing in their arrangement with AMTC. I'm sure tapping into the sheer volume of stores justified the price cut (not to mention Dunkin' Brands other endeavors... namely Dunkin' Donuts).

"The business of ice cream is nothing but fun, and our goal is to make sure customers of all ages smile," said Baskin-Robbins franchisee Jack Handy. "We are enjoying the freedom of being able to decide what kind of music we want at any given time, and we know our customers appreciate the difference a little music can make."

Baskin-Robbins will celebrate 62 years of business this year.

[Press Release] 

XM Satellite Radio's African American talk channel, The Power (ch 169) will soon be airing "The Al Sharpton Show," along with "2 Live Stews" and "The Warren Ballentine Show" according to a report.

The shows will replace "We Ourselves" and "Make it Plain," on The Power which were removed from the lineup according to the Redding News Review.

The new lineup which includes Sharpton's show starts on Monday, August 13th. "The Al Sharpton Show" will air from 1pm - 4pm ET, followed by "The 2 Live Stews" from 4 - 7pm ET, and Warren Ballentine will air mornings from 10am - 1pm ET.

“This is a major boost and I am excited that people will be able to hear it everywhere,” said Reverend Sharpton.

The Power is programmed by Radio One, which specializes in African American and urban radio formats. Syndication One, which is a joint venture between Radio One and REACH Media, will be providing the programming to the XM channel.

[Press Release via Redding News Review] 

NASCAR superstar Dale Earnhardt Jr. was at XM studios in Washington, DC on Wednesday to host a concert with Vancouver singer/songwriter Matthew Good. Matthew Good is one of Dale Jr's favorite artists.

The concert will air later on XM. Dates and deets will be announced soon.

Dale also was making the rounds at XM. First he dropped by XM Sports Nation (ch 144) studio to do a quick interview with the beloved Claire B. Lang, host of "Dialed In." Dale also met up with David Barker, who was lucky enough to buy an XM radio at Circuit City and won an all-expense paid trip to The Eck and the opportunity to meet Dale Earnhardt Jr.

Pictured above is a photo of Dale Jr with Matthew Good (note that he only hosted the concert, sadly, he didn't perform). After the jump, check out photos of Dale in the XMSN studio and with a very happy David Barker.

Sirius Satellite Radio will be given deadheads a sneak peek at their upcoming Grateful Dead channel from August 1st through August 9th.

Jam_On (ch 17), which normally is Sirius' home for jam bands, will be taken over by the Dead for this special preview (no worries, Jam_On's regular programming will return on August 10th).

The Grateful Dead Channel will officially launch sometime later this summer (which isn't too far away). The channel will feature music spanning the band's entire career with unreleased concert recordings, and special commentary from remaining members (Bob Weir, Mickey Hart, Phil Lesh and Bob Kreutzmann).

Other features will include memories and music from members of The Grateful Dead's tight-knit musical family tree, as well as rare archival interviews with Jerry Garcia himself.

[Grateful Dead Channel]

The FCC has no intentions of bringing back the Fairness Doctrine, said FCC Chairman Kevin Martin. And he cited satellite radio as one of the reasons.

The Fairness Doctrine was first instituted in the late '40s, but was finally put to sleep in 1987 when it was determined the doctrine was not in the public interest.

Several Democratic lawmakers suggested that Congress take another look at the doctrine after conservative radio talk show hosts aggressively attacked an immigration reform bill when it was on the Senate floor, contributing to its defeat. Representative Mike Pence (R-IN) and other Republicans in both the House and Senate countered by introducing legislation to bar the FCC from reinstating the rule.

But Martin effectively squashed the issue in a letter to Pence that was made public today. The FCC Chairman said that the Commission has no intensions of revisiting the doctrine, and that government regulation wasn't needed to ensure public access to a wide range of opinion.

"Indeed, with the continued proliferation of additional sources of information and programming, including satellite broadcasting and the Internet, the need for the Fairness Doctrine has lessened even further since 1987," wrote Martin.

And THAT is pretty cool to see.

[Breitbart]
Thanks espnjason!

When Sirius and XM submitted their plans for A La Carte pricing tiers earlier this week, they undoubtedly raised their chances of having the merger approved by the FCC. Chairman Kevin Martin has always had A La Carte on the top of his agenda, and the proposed Sirius-XM plans sets a precedence for the rest of the media industry. Moreover, it supports the thought that the merger is in the public interest, which is the main guiding factor the FCC considers in approving deals like this.

But what about the DOJ?

The Department of Justice has a less transparent process, but their decision to define the relevant market is the keystone to this whole deal.

Luckily. a recent report by Washington Analysis, a firm that conducts economic and political legislative and regulatory analysis, has provided some updates on the review process over at the DOJ. They are optimistic that the merger will be approved by the DOJ, actually going against the current consensus. Here's some key takeaways:

Document Gathering
The DOJ is still in the document gathering stage. Washington Analysis said they "have reason to believe that there are no smoking guns" as was the case in the Wild Oats-Whole Foods review. No news is good news.

Customer Support
The support of OEM auto manufacturers and retailers like Circuit City weighs heavily on the process. These partners have the most to lose if the merger wasn't going to move more units, and the A La Carte pricing should do just that.

Chief Economist
Last September, Professor Dennis Carlton was appointed Deputy Assistant Attorney General for Economic Analysis. According to Washington Analysts, Carlton is from the "dynamic market" school of thought and is likely to have a more expansive view of the audio entertainment sector. The relevant market in turn wouldn't be confined to two satellite radio companies.

Efficiencies
The merger was reviewed by an independent third party which concluded that there would be hundreds of millions in annual savings. Washington Analysis feels this is important in the DOJ review, because it supports the argument that rates would come down after the merger.

The DOJ is generally hard to gauge during interviews because they like to play devil's advocate for each party they talk to. If they think you're in favor of the merger, they'll ask questions that argue in opposition. If they think you oppose it, they'll ask favoring questions. I've talked to several who were interviewed by the DOJ, and they weren't able to determine which way the DOJ was leaning.

From a timing standpoint, you can expect the DOJ to make the first move, followed by the FCC. They didn't in the DirecTV-EchoStar deal, but they acted pretty close to each other (and both rejected the deal so it didn't matter anyway). We can probably expect the DOJ to make their move sometime in late-Fall.

Nothing's changed obviously, it's still a discretionary matter. But this report definitely has some interesting insight behind the process. And in the end, it's only a few more months before this madness is over.

NAB President and CEO David Rehr is once again writing a letter to FCC Chairman Kevin Martin about the Sirius-XM merger. This time he's pulling out the old "sow's ear" adage to prove his point.

"...Sirius and XM announced a series of pledges designed to dress up the proposed merger-to-monopoly as a benefit to the public. But you can’t make a silk purse from a sow’s ear," Rehr wrote.

Undoubtedly this is language that will sway Martin in the NAB's favor. If that doesn't cut it, then the remaining scathing 5-page letter regurgitating the same old argument should do the trick. The harder the NAB tries to claim that satellite radio doesn't compete with terrestrial, the more it appears that they in fact do. A bird in the hand is worth two in the bush don't you think Mr. Rehr?

Now, I don't see calling the first-ever A La Carte offering a "shameless attempt to curry the favor of government regulators," as rubbing Kevin Martin the right way. Martin, afterall, has had A La Carte pricing on his agenda from the very beginning - and this could set precedence for the rest of the media industry. Don't burn your bridges Mr. Rehr, because you can't get blood out of a turnip.

On a personal note, a part of the letter that I truly enjoyed was when David Rehr brought up the "nattering voices of self-interested Wall Street analysts and online bloggers."

Come on Mr. Rehr, was that necessary? I'm hurt! Afterall, you can catch more flies with honey than with vinegar. I can tell you from self-interested experience, when life gives you lemons, make lemonade! Don't worry, your comments are like water off a duck's back.

[Read the full letter (PDF)] 

XM Satellite Radio may potentially be getting access to more spectrum from cell-tower operator Crown Castle.

You might recall XM's failed attempt at acquiring WCS Wireless last year. XM had planned to buy WCS Wireless and its adjacent 2.3GHz band, under the assumption they would offer multimedia subscription services, including video and data. WCS pulled out of the deal and was later acquired by NextWave.

Now two XM investors - Telcom Ventures and Columbia Capital - have formed a venture to lease the 1.67-1.675 GHz spectrum in the top 300 markets from Crown Castle. The two companies had previously been investors in WCS Wireless, while Crown Castle once planned for a nationwide mobile-TV service for their spectrum (aka Modeo).

The leasing deal by the two XM investors gives XM another possible means of obtaining the additional spectrum, according to TWICE. That is... only if Telcom Ventures and Columbia Capital have no plans to pursue Crown Castle's mobile-TV initiative.

As part of the lease arrangement, Crown Castle will be the provider of the infrastructure for future tower sites needed by Capital and Telecomm. The $13 million annual lease (Crown Castle has about $10m in annual network costs) runs from July 23, 2007 until October 1, 2013, after which lessee gets the right to acquire the spectrum for $130 million, plus inflation, or renew the lease for up to 10 years at $14.3 million per year.

Interesting.

[TWICE]

Orbitcast will be live blogging the XM Satellite Radio 2Q07 Earnings Call. Just keep hitting that refresh button to see live updates as they come in. On with the show...

• In a holding pattern. Conference call to start at 10am ET...

XM Satellite Radio (XMSR) announced their 2Q06 earnings results, showing that net loss was down  $176 million from $229 million a year earlier. Revenue for this year's second quarter increased 22% year over year to $277 million compared to $228 million in the 2006 second quarter.

XM ended 2Q07 with more than 8.25 million subscribers.

In Q2 2007, XM had 942,000 gross subscriber additions and 338,000 net subscriber additions - compared to 926,000 gross and 398,000 net subscriber additions in the same period last year.

2Q07 SAC came in at $75 compared to $67 in 2Q06. Second quarter 2007 SAC includes $10 for inventory-related charges as well as a $10 increase as a result of continued OEM growth from increased production by our newer automotive partners.

CPGA in the 2007 second quarter rose to $121 compared to $112 in the second quarter of 2006.

Adjusted operating loss (formerly adjusted EBITDA) was $47 million compared to a loss of $46 million in the same period of 2006. This adjusted operating loss includes $4 million in expenses related to XM's pending merger with Sirius Satellite Radio.

Full financial report after the jump. Earnings call is scheduled for 10am ET, and as usual, Orbitcast will be live-blogging the call...

NAB President and CEO David Rehr wrote a letter to President Bush to "set the record straight" over performance fees that the music industry wants terrestrial to pay for.

The incident that Rehr is referring to occurred last week during Bush's visit to the Opryland Hotel in Nashville. Bush was asked about whether he would support changing the laws to let artists get paid royalties when their songs are played on over-the-air radio.

Bush's response? "I have, like, no earthly idea what you’re talking about."

Watch the video here:

It's a hilarious response. But one I think personifies how many Americans feel about performances rights. Most people don't understand how the system works. Most don't get it that performers don't get paid by radio stations when their songs are played. Nor should they, they just like to listen to the music.

I'm torn here, because it's like sleeping with the devil. On one side, SoundExchange is asking for ridiculous rates from Sirius and XM. But on the other side, I feel that artists should be compensated for their performances. If terrestrial was footing the bill, perhaps the burden of responsibility on satellite radio and internet radio would be less. Equal playing field. All broadcasters should be treated the same, digital or analog. There's no reason why terrestrial should be treated differently just because they dominate the market and are making a profit.

Rehr obviously doesn't see it that way. He sees it as a "symbiotic relationship" that has existed for the past 70 years. Even though these old laws put the United States up there with Iran, China, Rwanda, and North Korea (they don't pay performance fees either).

Isn't it time to rethink 70-year-old rules?

[Read full letter (PDF)] 

And along with the Sirius post-merger line up, here's the XM version. Pretty much the same concept (makes sense since they're merging) as Sirius' line up, but with the appropriate XM channels.

Again, the reason why you see "Select Sirius" channels is because the content agreements likely haven't been fully negotiated yet. Another difference that many will notice (and already have noticed) is the pricing of each services' shock jocks. Howard Stern is priced at an additional $6 while O&A are at $3.

Though note that Oprah is priced at $3 and XM's Sports Package is priced at $6, while Sirius' Sports Package is priced at $5.

Either way, that's not the point. Check out the rest of XM's post-merger line up after the jump...

For those who aren't into reading FCC filings, here's the proposed post-merger A La Carte package line-up for Sirius Satellite Radio.

It's pretty much self-explanatory, so g'head check it out here and after the jump...

Sirius Canada and Pana-Pacific have extended their relationship to distribute Sirius products exclusively to truck dealerships and outlets throughout Canada. Pana-Pacific and Sirius Canada had a previous distribution agreement, but now it looks to have gone exclusive.

Pana-Pacific, a division of the The Brix Group, lays claim to being North America's largest supplier of audio and electronics equipment to the trucking industry

Another interesting claim, which comes from Pana-Pacific's President John Trenberth, is that Sirius holds over a 90% marketshare among truckers in Canada:

"With more than 90 per cent market share to-date, Sirius has been the number one choice for satellite radio among truckers in Canada," said Trenberth in a statement. "Feedback from our retail partners has been that Canadian drivers prefer Sirius on account of its superior signal coverage and programming lineup."

Statements like that must really torque XM Canada's jaw. Remember, they're not so friendly with each other up north.

Thanks Tim!

Let me preface this by first saying that I pretty much can't stand Jim Cramer.

At one point in time, I actually enjoyed his banter and his advice seemed to make sense, but the circus that is Mad Money just continuously rubs me the wrong way. I just can't stand it. I even blasted him about a year ago, flat out calling Cramer an idiot about his persistent merger talk (oops).

But a recent video clip about the politics of the satellite radio merger really sums it up nicely. And I have to give credit where credit is due.

When we hear about how the political weight of some comments - such as those from 78 Congressmen - being stronger than the majority, Cramer explains it as such:

"All they really care about, a lot of these guys, is getting re-elected," Cramer said. "So the last thing they want to do is piss off a radio station in their town."

Cramer goes on to say that Sirius and XM really "have no defenders whatsoever in the Capitol, which is why they're willing to do the unthinkable, which is to unbundle and make it so that they can't make as much money per customer."

The "unthinkable" is generally bad business, as investors want to see corporations squeeze every penny from each and every subscriber. But for the customer, it's a pretty phenomenal deal.

Anyway, I think it's a good video to watch, even though I'm still not a fan.

[TheStreet TV Recap] 

The Chrysler Group has announced that they're looking to install Sirius Satellite Radio in over 70% of their vehicles for the 2008 model year. This is up from about 40% for the previous model year.

Sirius will be included as a standard feature in the premium and mid-level price classes on most Chrysler, Dodge and Jeep 2008 models year vehicles.

Sirius will also be a 100% standard feature - a huge plus - on the Chrysler Sebring and Aspen, the all-new Dodge Challenger (pictured) and Nitro, and the Jeep Grand Cherokee and Commander. Chrysler includes one year of Sirius service with each new vehicle, and Sirius comes pre-activated, so you can listen to Sirius immediately upon delivery of the vehicle.

In 2006, Chrysler Group had sales totaling 2,390,585 units according to Automotive News (note: this figure includes Mercedes-Benz). So as a rough guestimate, we're looking at a potential of over 1.6 million Sirius installs as a result of this announcement. This is definitely good news for Sirius.

Aston Martin and Sirius Satellite Radio have hooked up to offer Sirius as a factory-installed option, with a lifetime subscription included, on select Aston Martin vehicles.

The new models of the Aston Martin V8 Vantage and DB9 vehicle lines - available in the U.S. in August - will be the first models to reap the benefits of this deal.

Up until 2007, Aston Martin was part of the Premier Automotive Group, a division of the Ford Motor Company. On March of this year, the luxury automaker was purchased by a British consortium led by David Richards of Prodrive.

Aston Martin eventually plans to offer Sirius on all models in the near future. Presumably future Sirius offerings from Aston will also include a complimentary lifetime subscription. The lifetime subscription has become a more frequent promotion from Sirius, most recently they announced that the Mini Cooper and Cooper S will be offered with a lifetime subscription.

BREAKING: Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) have jointly filed their reply comments with the FCC.

The "Joint Opposition to Petitions to Deny and Reply Comments" is in total a 112-page document that includes more details on XM's and Sirius' A La Carte pricing plan, disputes the NAB's arguments against a combined satellite radio company, and argues Sirius-XM's case as to why the merger would be in the public interest.

This post will be updated as I read through the document. You can of course read it yourself here (PDF). UPDATE: Don't forget to read Appendices A (PDF) and B-H (PDF), some good stuff in there too.

XM Satellite Radio's Chief Executive Officer, Hugh Panero, will be leaving the company in August it was just announced by the company.

Current XM President & COO, Nate Davis will serve as President and interim CEO. Hugh Panero recruited Nate Davis to serve as President & Chief Operating Officer in July 2006. Mr. Davis has served as a member of the Board of Directors since October 1999.

"Hugh took satellite radio from a concept and turned it into the popular, mass market, consumer entertainment product it is today. I thank Hugh personally for his friendship, and professionally, for nearly a decade of industry leadership," said XM Chairman, Gary Parsons in a statement.

This should make XM's earnings call on Thursday verrrry interesting. You can definitely expect this to be a topic of conversation.

While it's impossible to say for sure why Panero quit, the word on the street has been that Hugh was playing a far less significant role at XM for quite some time. Even when I wrote up an entry calling for his resignation, there were whispers that his term at the company was nearing it's end. Panero was already scheduled to leave after the merger closed, this just is an accelerated plan.

If you've ever met Hugh, you know he is an extremely personable and down to earth man. He must be given a lot of credit for being a pioneer in the industry (especially through the incredible amount of personal hardship he and his family had to endure), for building one of the fastest-growing entertainment services ever - and for recognizing when it is time to pass the torch.

There's an interesting article in Seeking Alpha today by M&A Researcher about the new pleading cycle involving the 1997 SDARS rule. But what really struck me was the comparison between the sheer number of FCC comments, versus the "weight" of other comments.

"The vast majority of analysts (professional and amateur) continually fail to accurately weigh the comments in terms of significance, instead falling into the trap of literally counting the supporter/opponent filings as if the FCC will do the same. While the FCC is surely aware of the tally, it is certainly much more interested in the nature of the comments, and more importantly, from whom the comments originate. It can not be stressed enough, even at this early stage, that the opponents involved so far have far more clout within the D.C. beltway than do the supporters. This too is subject to change in the coming months."

If you look at the FCC Comment Scorecard (courtesy of SiriusBuzz), you'll see how the "pro" comments are definitely outweighing the "anti" comments.

The point that M&A Researcher is trying to make (though they seem rather proud about it) is that the influence of the anti-merger camp outweighs the number of pro-merger comments.

Which, sadly, all goes back to politics. It's disgusting to think that pressure from politicians (who are only looking out for their constituents campaign contributors) would outweigh the opinion of the majority. But hey, it's all in the name of the "public interest" isn't it?

[Seeking Alpha] 

The 3rd annual Sirius NFL Radio Training Camp Tour is kicking off in two days, and Sirius Satellite Radio will broadcast live from all 32 NFL training camp sites around the country from July 26th to August 16th

Sirius' NFL Radio (ch 124) will give listeners with an inside look at the progress of each team as they prepare for the coming season, analyze the performances of veterans and newcomers, interview players and examining rosters with coaches and GMs.
 
On Thursday, July 26th, Vic Carucci and Gil Brandt host the tour's kickoff show live from the Dallas Cowboys training camp at the Alamodome in San Antonio, TX. Carucci and Brandt, whose nearly 30 years as the Cowboys' VP of player personnel (1960-89) allow him to dispense an unmatched perspective on his former team, will interview Cowboys players and coaches, as well as players and coaches reporting to other team camps around the country.

Other Sirius NFL Radio hosts also will be returning to the training camps where they once wore the uniform.

On July 30th, former Chicago QB Jim Miller will be on the sidelines of the Bears training camp and on August 1, former Cincinnati DB Solomon Wilcots returns to the Bengals camp.

On Saturday, August 4th, Sirius will present a full day of live coverage from the Pro Football Hall of Fame in Canton, OH for the 2007 induction ceremonies. Sirius' coverage will include live primetime coverage of the enshrinement of the class of 2007 -- which includes Gene Hickerson, Michael Irvin, Bruce Matthews, Charlie Sanders, Thurman Thomas and Roger Wehrli.

On Sunday, August 5th, Sirius will air the Pro Football Hall of Fame Game from Canton, featuring Reggie Bush and the New Orleans Saints vs. Ben Roethlisberger and the Pittsburgh Steelers. Sirius will provide the local radio broadcasts of the Saints (ch 126) and Steelers (ch 123), plus the CBS Radio Sports/Westwood One's national radio broadcast (ch 124).

Check out the full schedule after the jump... 

XM Satellite Radio's baseball talk radio channel MLB Home Plate (ch 175) will be live from Cooperstown, NY, for three days of coverage starting this Friday, July 27th. Tune in for the induction ceremonies on Sunday from 1:30pm to 4pm ET - uninterrupted and totally commercial-free.

Cal Ripken and Tony Gwynn will be inducted into the National Baseball Hall of Fame this Sunday, July 29th.

Ripken, who co-hosts the XM radio show "Ripken Baseball" with his brother and fellow major league veteran Billy Ripken, will interview current Hall of Famers Earl Weaver, Jim Palmer, Ryne Sandberg, and Fergie Jenkins on a two-hour edition of the program this Saturday.  This special edition of "Ripken Baseball" premieres on MLB Home Plate on Saturday morning at 8am ET - and if you miss it, an encore broadcast will air on Sunday at 8am ET.

XM will also premiere a special, one-hour interview with Tony Gwynn on the program "Baseball Confidential" this Saturday at 7am ET with an encore on Sunday at 10am ET. The Gwynn interview was taped in front of an audience at the MLB All-Star Week FanFest in San Francisco on July 10th.

The MLB Home Plate call-in show "Baseball This Morning" will be live from Doubleday Field in Cooperstown on Friday, and will broadcast from Cooper Park next to the National Baseball Hall of Fame and Museum on Saturday and Sunday.

The afternoon call-in program "The Show" will air from Cooper Park on Friday and Saturday. Their broadcast team will be live from the local festivities in Cooperstown throughout the weekend, culminating with a post-induction show on Sunday afternoon.

[View full schedule] 

National Public Radio has filed a 25-page Petition to Deny the proposed Sirius-XM merger with the FCC. At the same time, Senator Sam Brownback (R-DS) voiced his opposition in a letter to the FCC and DOJ.

NPR said in the petition (PDF) that the merger "would substantially harm the diversity of voices" on satellite radio. It also noted that a merged entity "might reduce the amount and quality of public radio programming" available on satellite, adding that the company would "be able to demand less favorable licensing terms, thereby forcing NPR and others to decide between program quality and carriage."

NPR has two channels on Sirius, though this isn't the only time that NPR has held an opposing position to the satellite radio industry.

Separately, Senator Brownback (R-KS) sent a letter to FCC Chairman Kevin Martin and Assistant Attorney General Thomas Barnett, suggesting that the proposed merger be rejected.

In his letter, Brownback writes, "The proposed merger may result in higher subscription prices and fewer programming choices, and yield monopoly power to purveyors of highly offensive, sexually explicit programming (emphasis added) that is inappropriate and harmful to our nation's families, thereby encouraging the airing of increased amounts of such programming."

Wow. That's quite the leap there Senator. 

[FMQB] 

The NAB has fired a shot across the bow in strict defiance against the Sirius-XM proposed A La Carte pricing plan, by issuing the following statement:

"Policymakers should not be hoodwinked by today's announcement, since nothing is stopping either XM or Sirius from individually offering consumers a more affordable choice in limited program packages. Moreover, after reading the fine print, one discovers that XM and Sirius customers have to buy a new radio for an undisclosed fee to reap the alleged rewards from today's announcement.

"The history of antitrust law demonstrates that two hotly-competitive companies will promise anything to become a monopoly. That, coupled with the brazen lack of candor displayed by both XM and Sirius in breaking FCC interference and terrestrial repeater rules, illustrates convincingly that this anti-consumer merger ought to be summarily rejected."

It's funny to see comments like the above one coming from the NAB. Ah, the hypocrisy.

"Nothing is stopping them" from offering A La Carte pricing now? Yes, it's called a business case. ARPU may go down as a result of this offering, but that's presumably a direct result of the merger synergies. Mel Karmazin at the NPC Luncheon today said that nearly every line on the P&Ls show a cost savings. Combine that with some economies of scale characteristics, and ta-da! you have a business case.

Then they talk about a "brazen lack of candor"? Oh lord. Here's six letters for you... P-A-Y-O-L-A.

[NAB] 

Sirius and XM have announced the details on the A La Carte pricing structure, which was a much needed step towards getting the merger approved by the FCC. But out of the 8 pricing plans that were announced, the majority of them are actually priced below the current subscription cost.

This is probably a necessary step - because the FCC's main goal is to look out for the "public interest" - and lowering the prices is always an attractive proposition. Then by offering multiple options, and the first-time-ever true A La Carte pricing... you pretty much seal the deal.

I think everyone, especially the NAB, was thinking that the A La Carte offering would be based off of the "block and rebate" plans - and I think many are pleasantly surprised. Now all the NAB's claims that A La Carte is impossible, look to be laughable. 

But if you check out the average price between all the packages, it comes out to under $12/month. And knowing how consumers behave, a large number of subscribers are going to opt for the cheaper solutions. So likely the average revenue generated is going to skew more towards the $6.99/month side of the scale.

So no matter how you cut it - even at the most conservative estimates - ARPU is going to go down. Looks like increasing the probability of a merger has its costs. Question is, will it pay off?

Shibuya Airwaves, an hour-long show featuring Japanese pop and rock music leading the Oricon music charts, is coming to WorldSpace and XM satellite radio on UPop (ch 29).

Shibuya Airwaves will also include regular commentary on the latest trends in Japanese pop culture and other topics. The show will highlight bands touring the U.S., interview special guests, as well as interact with listeners on-line and over the phone.

The weekly music show created by eigoMANGA "Shibuya Airwaves" has already grown in popularity for terrestrial radio listeners in San Francisco. Currently airing on KYCY in San Francisco as part of KYOU Radio (podcasts on terrestrial), Shibuya Airwaves has become one of KYOU Radio's top programs. Shibuya Airways has extended it brand into producing live concert events and television programming aimed at promoting Japanese music. These events and programs will now promote Shibuya Airwaves program and WorldSpace/XM's UPop channel.

The show will debut mid-August, and will broadcast live on Saturday nights beginning at 12am ET (9pm PT).

[Shibuya Airwaves] 

BREAKING: XM and Sirius have jointly announced the details on their A La Carte packages offered as a merged company. For the first time ever, consumers will be able to pay based on their individual preferences.

We're not talking "faux" A La Carte here. This is the real deal. 

There will be two a la carte options:

• A La Carte 1 - Customers can choose 50 channels from either XM or Sirius, for $6.99/month. That's a 46% reduction from the current price of $12.95. Additional channels will cost you only $0.25/each, but no one choosing this package will pay over the $12.95 price.
  
• A La Carte 2 - Allows subscribers to choose 100 channels for $14.99/month. Will let Sirius customers select from some of "the best" of XM's programming and vice versa. "Best of Both" packages will be available on existing radios.
  

• Best of Both package - Continue to receive your current existing Sirius or XM programming, plus get the option to add the "best of" channels from Sirius or XM, for only $16.95/month. That's a 34% savings to subscribing to both services today.
  
• Two Family-Friendly packages:
  
• An "XM Everything" or "Sirius Everything" family-friendly package - but with adult content filtered out - comes in at $11.95/month. This also allows you to block adult-themed programming and, for the first time, receive a price credit as a result.
• Add on a "Best of" package from either Sirius or XM, and the price goes up to only $14.95/month (a $2 savings from the regular "best of" package).
  
• Several other new programming packages:
  
• Sirius Mostly Music, or XM Mostly Music - $9.99/month for, well, mostly music.
  
• Sirius News, Sports and Talk programming or XM News, Sports and Talk programming - again, also $9.99/month and pretty self-explanatory.
• XM Everything or Sirius Everything - $12.99/month gets you a similar package to what you're receiving today. The current $6.99 multi-receiver packages will still continue.
  

A la carte programming will be available starting within one year following the merger, and the other programming options will be available beginning within six months after the merger.

"Mel and I are very excited about being able to offer a la carte programming," said Gary Parsons, Chairman of XM Satellite Radio. "These plans will further demonstrate why this merger is overwhelmingly good for consumers and in the public interest."

Both Sirius and XM will file joint reply comments with the FCC tomorrow detailing all these packages for regulators.

[View A La Carte Details (PDF)] 

UPDATE: Note that the A La Carte packages will only be available to people who buy the next-generation satellite radio receivers. This is why the timing is set to further out than the other packages. Thanks ChrisM!

Following in their U.S. counterpart's footsteps, Sirius Canada and Audi Canada have inked a deal to offer Sirius Satellite Radio as standard-equipment in key 2008 Audis. The deal is similar to the Sirius/Audi deal announced back in April, but the models with factory standard Sirius are slightly different.

Sirius will be available as factory standard equipment on all Canadian model year 2008 Audi S4, A6 4.2, S6, A8, S8 and Audi Q7 4.2 models. Audi Canada will also offer Sirius as factory standard equipment in the all-new R8 mid-engined sports car (pictured). 

A 3-month subscription to Sirius will be included with each vehicle.

Currently, Sirius is available only as a factory option in a large number Audi Canada vehicles including the Audi A3, the A4 sedan, Avant and Cabriolet models; the RS 4, the A6 sedan and A6 Avant; the Audi Q7 SUV; and the new TT Coupe and Roadster. Now Audi Canada is bumping up the offering with Sirius as a factory-standard equipment.

Andrew Wilkow and his Sirius Satellite Radio show, The Wilkow Majority, will hit the campaign trail starting this fall and leading up to the 2008 presidential election. Wilkow will journey to college campuses, small town caucuses, and the Republican National Convention next summer, where he will broadcast his Sirius show.

Former House Majority Leader Tom DeLay will serve as campaign analyst for The Wilkow Majority, and join Wilkow for speaking engagements at college campuses across the country (some of which will be broadcast on Sirius).

"I am a proud member of the Wilkow Majority and it's about time we take our message to college students who have to deal with liberal professors and uneducated peers who drown the Majority's message out," said Tom DeLay. "We're going to bring a positive message to students who deserve to know the full truth about our political landscape."

The Wilkow Majority airs live Monday through Friday from 12 - 3pm ET on Sirius Patriot (ch 144).

CNN and YouTube will host the first of two presidential debates on Monday, July 23rd. The Democratic contenders go head-to-head on Monday night, and the GOP hopefuls will spar on September 17th. All the questions are being submitted by regular folks (well, almost regular) in the form of YouTube videos.  No journalists. No panelists. No crap.

CNN's political team will pick the most creative and compelling videos to pose to the candidates. Peeps can submit a video through Sunday, July 22nd, at youtube.com/debates. You can then hear the debate live on CNN - on both XM (ch 122) and Sirius (ch 132) - on Monday at 7 pm ET.

After the debate airs on CNN, it will be rebroadcast for 24 hours on XM's POTUS '08 channel (ch 130).

Well surprise surprise, a shiny new Audiovox XpressR XM satellite radio just arrived for me to grope and fondle it for a bit. (Sadly, I don't get to keep any review units.) Of all the plug-and-plays on the market, the XpressR is arguably the most advanced, so I can't wait to give a thorough workover and review.

But for now, here's the unboxing available for your mass consumption after the jump... 

XM's gone completely crazy with the unveiling a new "Christmas In July" microchannel on XM Live (ch 120), set to air from July 25th through July 26th.

Featuring classic holiday hits from Nat King Cole, Bing Crosby, the Ronettes, Amy Grant, Harry Connick, Jr., and many other yule log favorites, the "Christmas In July" channel will give us a taste of what's to come... 5-months from now.

The Holiday madness is spilling out onto other XM channels as well. Radio Classics (ch 164) is featuring Bing's Christmas, and Miracle on 34th Street, at various times throughout the week. And XM's '70s channel (ch 7) - which is one of XM's most popular channels - will feature Casey Kasem's American Top 40 from December 1973, with a Christmas song countdown.

Check out the Christmas In July microchannel page, and join in on the confusion. 

Under fire from various groups, Clear Channel has revised its online contract for Indie artists and labels who want to submit their music to be considered for broadcast and digital downloading.

The Future of Music Coalition (FMC) has been relentlessly fighting a public war against Clear Channel condemning the license. FMC even filed a petition with the FCC on the issue earlier this week.

FMC claimed that Clear Channel was in violation of a settlement agreement reached after an investigation of alleged payola, and that the agreement itself was a form of payola.

If a radio station plays a song because it has accepted some type of payment (whether it be money, a gift or "valuable consideration"), then it needs to announced who has sponsored the song. Otherwise, it's considered payola. 

To give a quick bit of background:
Earlier this year, the FCC and the four major radio broadcasters settled the payola investigation by agreeing to pay $12.5 million in fines. As part of a side deal, the broadcasters also agreed to air 4,200 hours of local and indie music. Now the contract in question asked Indie artists to waive their digital performance rights, effectively "replacing one form of a payola with another" as the FMC claimed on its blog.

The Future of Music Coalition isn't the only one fighting the good fight. Clear Channel had been contacted directly by the American Association of Independent Music (A2IM) and the Recording Artists Coalition (RAC), sources told Billboard.biz. Both A2IM and RAC have been working with Clear Channel on acceptable, revised contract language, according to a letter being sent by the three parties to the FCC and obtained by Billboard.biz.

The hooplah prompted Sen. Russ Feingold (D-WI), to send a letter to Clear Channel, CBS Radio, Citadel and Entercom, questioning their commitment to ending payola in radio.

And now Clear Channel has revised the agreement, stating very clearly that "Clear Channel shall be subject to and pay for all applicable current and future statutory royalties as well as public performance royalties."

[Billboard.biz & FMQB] 

Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) are scheduled to release their 2Q results within the next two weeks, and analysts are offering up their predictions of what's to come.

And the news ain't that bad. (surprised?)

Bear Stearns analyst Robert Peck projects that Sirius will add 920,000 gross subscribers, while net subscriber additions will come in at 477,000. For XM, Bear Stearns projects gross additions of 950,000 and net additions of 323,000 subscribers.

Bank of America's Jonathan Jacoby is a bit more bullish on subscriber additions, stating that Sirius "will easily top" BofA's estimates of 441,000 net subscriber additions, "and could beat the Street consensus estimate of 470K by as much as 25K." Jacoby also estimates that XM will also "easily top" the Street consensus of 310k net subscribers, and may even best his more aggressive estimate of 345,000 net subscribers.

The comps are hard though. For the same period last year, XM came in at 398,012 net subscribers (926,281 gross subs) and Sirius topped the scale at 600,460 net subscribers (830,571 gross subs).

Even if XM and Sirius beat out the more bullish estimates, they still likely won't beat 2Q06's numbers... albeit by a relatively small amount. But with the merger on everyone's minds, will it even matter?

The New York Post today featured an op-ed piece by Edward Cardinal Egan, where he throws in a "good word" for the pending Sirius-XM merger.

Cardinal Egan starts off the article by discussing the unexpected benefits and influence that The Catholic Channel on Sirius has brought. From first-time visitors to Saint Patrick's Cathedral inquiring about Monsignor Ritchie (who he heard on the Sirius channel), to a Jewish woman expressing to Cardinal Egan how much common ground our faiths share (because she was listening to the channel).

Then he segways (artfully I should add) to the Sirius-XM merger, and voices his support for the corporate marriage.

"From my perspective, however, [the merger] offers a unique opportunity to extend the reach and breadth of religious programming," wrote Egan. "It is also an unmatched opportunity to strengthen this new medium and position satellite radio to compete with the ever-growing list of audio entertainment providers."

Egan also points that The Catholic Channel isn't the only religious programming on satellite radio.

"Both Sirius and XM offer a range of religious shows and channels - and they've promised to offer consumers more choice at lower prices after the merger," added Cardinal Egan. "Service offerings that let subscribers pay less would permit even more Americans to experience satellite radio."

[New York Post] 

Jamie Foxx will welcome top ranked tennis player Serena Williams live on his channel, The Foxxhole (ch 106), tomorrow (July 20th) at 2pm ET on Sirius Satellite Radio.

Williams will grant Foxx one of her first interviews following dramatic Wimbledon performance and her controversial comments following her loss.

The international tennis superstar reached the quarter finals at Wimbledon before losing in a dramatic performance against Justine Henin. Following the match, Williams (who was battling injuries during the tournament) created a bit of a stir by saying that she would have won the match had she been healthy.

Serena Williams has won eight Grand Slam singles titles and an Olympic gold medal in women's doubles. She is the last player, male or female, to have held all four Grand Slams at the same time. She is the younger sister of another former world no. 1 professional female tennis player, Venus Williams, the reigning Wimbledon ladies' singles champion.

A spokesman for XM and Sirius told TWICE that the companies will present more details on a pricing plan for satellite radio service under a merged Sirius-XM in the near future.

Bear Stearns analyst Robert Peck said in a client note earlier this week that he expects more concrete proposals in XM/Sirius' reply. He specifically cited proposals including "a la carte, price guarantees, block and rebate, reduced pricing for basic packages, as well as pricing for the 'best of both' [package]."

Analyst April Horace of Janco Partners noted, "Clearly the concept of lower price or giving a more basic package will be appealing to the FCC. Using the words 'a la carte' [programming] will be appealing because the FCC has been pushing the cable industry for that."

She continued, "So the question is … will the FCC make the conditions of approval so onerous that the merger may not make any sense?"

[TWICE] 

Sprint and Clearwire are teaming up their efforts to bring WiMax nationwide. And it's something that satellite radio, and terrestrial radio for that matter, should keep a close eye on.

The deal is huge. The two companies said today they'll collaborate on products, services, infrastructure, marketing and distribution. Both will build out their WiMax networks independently, but will enable roaming between territories. Sprint will focus on covering 185 million people in the 50 largest markets, while Clearwire will focus on 115 million people elsewhere.

Additionally, Clearwire and Sprint will exchange selected 2.5 GHz spectrum in order to optimize build-out, development and operation of the network.

It's not a short-term partnership either. The two companies are hooked up for 20 years, with three 10-year renewal terms.

Coverage of 100 million people is expected by 2008. Also, Intel plans to embed WiMax on its chips by the end of 2008.

I wonder if, in 5-years, we'll be referring to "radio" in an entirely different way?

[Press Release vs ZDNet] 

For those who missed Artie on Conan the other night, here's the video. I guess he is wearing a lot of make-up, but I would have never noticed otherwise.

(Side note... what the heck do you do with a sponsor who refuses to pay you?)

Former FTC Chairman James Miller filed a statement with the FCC this week addressing the notion that satellite radio is a luxury item.

Calling the predicate "false," Miller said that a large portion of satellite radio subscribers have "relatively modest" incomes, and that "for many of them the service is more essential than luxury."

"To most, perhaps, loss of satellite radio service would not affect their lives significantly," Miller wrote in a 4-page comment. "But for others, loss of satellite radio, or even paying more for it, would be a matter of serious concern."

He concluded that if the merger was approved it would "foreclose many of lower incomes who otherwise might be consumers of the service in the future."

Miller was retained by NAB to examine and offer his assessment of the proposed satellite radio merger.

[Read Comment (PDF) via Radio Online]

The Opie and Anthony Traveling Virus Comedy Tour is opening its doors to the U.S. military in a special tribute to our troops. For all remaining tour dates, anyone with a valid military ID can get into the shows for free.

Tickets will be made available for pick-up prior to show day to anyone presenting a valid military ID in Detroit (August 4th), Bristow, VA (August 18), Holmdel, NJ (August 25) and Camden, NJ (September 15). The tickets will be distributed on a first come, first serve basis while supplies last.

"We have so much respect for our troops both here and all over the world. We just want to do our little part to show those men and women we are completely behind them," said Gregg 'Opie' Hughes.

"These guys are going to be busting their asses all summer, and we just want them to take a little break and have a bunch of laughs and enjoy a great comedy show for one night," said Anthony 'Anthony' Cumia.

Jim Norton, who will be one of the many comics featured on the tour, encouraged anyone attending a Traveling Virus Comedy show to buy his new book "Happy Endings: The Tales of a Meaty-Breasted Zilch" now available in stores.

More details are available on the Traveling Virus MySpace page.

As you already know, Mel Karmazin will be speaking at the National Press Club this upcoming Monday, July 23rd at 1pm ET. There's several ways you can watch Karmazin's speech:

In Person: If you're lucky enough to be in the area, you can attend the National Press Club event at 529 14th Street NW in Washington D.C. Cost is $16 for NPC members, $28 for guests of members, and $35 general admission. Lunch will be served at 12:30 pm, prior to the speech at 1:00 pm. Tickets can be reserved by calling (202) 662-7501.

On the Web: A live webcast of the speech will be available online at SIRIUSmerger.com and XMmerger.com as well on the investor section of Sirius' website - if you miss it, don't worry, the replay will be available in 2-hours following the speech.

On TV (maybe): You can also watch the event on C-SPAN television or on the C-SPAN website. The network's Monday schedule will not be posted until Friday afternoon, and so is subject to change based on the day's news. I'll update this post to confirm which C-SPAN channel will carry the speech.

Now that Phase One of the FCC comment period is over, analysts have been weighing in on the prospects of an XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) merger going through.

Bank of America analyst Jonathan Jacoby, who has been a bit of negative-nancy over the merger as of late, increased his odds on the merger in a recent note. BoA's D.C. contacts peg the probability of a merger passing regulatory approval to around 35% (up from under 30% about 3-months ago).

Bear Stearns analyst Bob Peck, who tends to lean on the more positive side of the merger, issued a note earlier this week stating that the merger would be approved based on merits. Peck seems to think that Sirius and XM will provide more concrete details on a combined company "drawing regulatory focus towards the tangible consumer benefits that will arise from the merger."

Cowen & Co. analyst Thomas Watts said negative sentiment toward the Sirius/XM merger are reversing. Ever since the FCC comment period opened up in early June, "sentiment for XM's merger with Sirius has shifted from negative to positive with more than 3,500 diverse supporters contacting the FCC," Watts wrote in a client note Wednesday. Watts thinks there's a better than 50% chance of the merger going through.

Credit Suisse analyst Bryan Kraft also felt that the Sirius-XM merger has a better than 50% chance of passing regulatory muster. He puts XMSR at $12.50 on a standalone basis and $18 if the merger passes, but in 12-months he thinks those values would go to $14 and $20 respectively.

Sirius-XM really need to provide more details on the A La Carte pricing, pricing for all packages (basic, standard, and "best of" packages), and any price guarantees for the years to come. Simply repeating the mantra "more choices, better prices" is no more effective that the NAB's "merger to monopoly" line. There needs to be details to back it up. The ball is in XM-Sirius' court, so let's play.

The NAB yesterday asked the FCC to move forward in releasing information related to XM and Sirius's violations of FCC rules involving their FM modulators and terrestrial repeaters.

"The information at issue here is inextricably linked to the pending application of XM and Sirius to merge," that NAB said in yesterday's 8-page filing (PDF).

Earlier this year, the NAB filed a Freedom of Information Act request with the FCC seeking information related to the satellite radio companies' various rules violations.

"XM and Sirius may operate above the Earth, but they are not above the law. Their continued reluctance to fully disclose key facts related to past violations is yet another example of why these two companies should not be trusted with monopoly power," said Dennis Wharton of the NAB.

What is funny in this debacle is that the information isn't "secret" to the FCC. And the FM modulator and repeater tower issue garnered significant media coverage, so the only organization who benefits from this "unveiling" is the NAB. And the reason? As stated in an earlier letter to the FCC, the NAB wants to evaluate Sirius and XM's "character qualifications."

BIA Financial Network recently came out with a report showing the level of HD Radio adoption throughout terrestrial radio. And the pace at which these companies are switching over to HD is pretty surprising (at least to me).

By far the highest number of HD Radio stations on the air is Clear Channel, with some 375 stations now in HD. The runner up is CBS Radio, with 84 HD Radio stations.

In terms of percentage, almost 90% of Bonneville stations are on the air with HD Radio. Greater Media has 70% of its stations in HD, Emmis has 65%, and CBS Radio is at 60% of HD Radio.

Multicasting is where stations have sub-channels, and again Clear Channel leads the pack with 274 stations broadcast HD2 or HD3 channels.

Clear Channel (an NAB member) isn't just concentrating on the broadcast side, they're also focusing on the content side. Last year Clear Channel unveiled their Format Lab initiative. Format Lab, which employs over 200 programmers, offers HD Radio stations content that they can then rebroadcast. The content offering looks surprisingly similar to satellite radio's, with Urban, Christian, Spanish, Comedy, Country, and Gay-themed programming.

Nah, that's not competition.

[BIA Financial]

View a chart showing the adoption of HD Radio across the top 25 Radio Groups, after the jump...

The Reverend Al Sharpton, who arguably played a significant role in the eventual firing of Don Imus, told RADAR that he would not oppose Imus's return this fall.

That is, if he returns this fall. It's just all rumors and speculation right now. But if the September date is an accurate one, that would be a whoppin' 5-months of unemployment.

"My position is that we never called for him to be permanently barred from being on the air," Sharpton told Radar. "We'll see when he comes back, and if he comes back, what are the boundaries and what is the understanding."

Now, not to mince words or anything (though, that's exactly what was done to Imus) but what exactly is this "understanding" that Sharpton is referring to? It's fascinating to see that since the Imus incident, Al Sharpton has become the head decency-cop for all talk radio. Even to the point where he had to weigh-in on the Opie & Anthony suspension (and had an on-air debate over it).

"We'll be monitoring the situation, but we wanted him to pay for being a repeat abuser, and he paid. We never said we didn't want him to make a living," Sharpton added.

Kind and forgiving words from Al, but all the more reason why Imus should seriously consider any sort of satellite radio offering. The level of scrutiny that he would endure after being re-hired would no doubt be ridiculous. I actually don't think XM or Sirius would need to pay a significant premium over his CBS Radio contract (though, it's always nice) considering the benefits of broadcasting on unrestricted airwaves. And I also don't buy the argument that hiring Imus would add unnecessary scrutiny to the pending Sirius-XM merger. Imus' reputation is no worse than Howard Stern's or O&A's.

The fact is, the majority of people didn't find the Imus firing to be justified. So hiring Imus doesn't make satellite radio out as a wretched hive of scum and villany, but instead a haven for listeners to hear the content of their choosing.

Oh and as for the claim that Imus is seeking a black comedian to help along any racial humor, Sharpton says, "A sidekick is not cover. What he needs to give him cover is his own conscience and whether he'll live up to the apology he gave those Rutgers girls."

[Radar Online]
Thanks Jeff!

Representatives Bart Stupak (D-MI) and Steven LaTourette (R-OH) have written to FCC Chairman Kevin Martin and Assistant Attorney General Thomas Bennett, regarding the proposed XM/Sirius merger.

Stupak and LaTourette asked that both organizations deny the proposed satellite radio merger.

The letter seems to repeat the NAB's mantra, referring back to the original 1997 SDARS license that stated that there must be at least two satellite radio providers. The FCC is currently seeking public comment regarding this exact language in the license.

The Congressmen also say that XM and Sirius are different from terrestrial radio and iPods.

"There is currently no existing audio service or product that qualifies as a viable substitute for satellite radio that could constrain the behavior of an XM-Sirius monopoly," Stupak and LaTourette wrote.

Stupak and LaTourette concluded by asking that the DOJ and FCC "preserve national radio competition, and safeguard the interests of American consumers by denying this merger."

This opposition comes on the heals of a separate letter, signed by 72 members of the House, asking to have the merger denied.

[Read full letter (PDF) via FMQB] 

Ah there's nothing like political controversy to get your name in the media. Especially when it's something like a channel name that is causing the uproar.

Watch the video below to see where Sirius ranked in yesterday's Countdown with Keith Olbermann "Worst Person" segment:

[via Crooks and Liers]
Thanks Kevin!

Just got back from an Audiovox media event in NYC. Small event, nothing crazy, and all the products shown was stuff we've seen before (either at CES or shortly after).

I hadn't had the chance to play with the upcoming top-o'-the-line XpressR before, so it was nice to fiddle with the interface a bit: split-screen, 6-lines and all. One interesting thing to note is the five-way tuner knob does take a little getting used to, but in about 5 minutes I pretty much got the hand of it. Both the XpressR and the CommanderMT seem to have this same knob, while the XpressEZ has a much more simple interface.

As a power-user, I'd go with the XpressR hands-down. The dual-screen feature just seems so much more natural to use. Hopefully this is will be a trend throughout more receivers. 

But really the main thing that I was excited to play with was the Jensen Rock 'n Road (pictured above). My only criticism is that the name doesn't give the device justice ("Rock 'n Road" is cute and all but... ehh). Regardless, if you read my writeup on it from CES, you'll know that I was a fan of this device from the get-go. It just makes sense. And the lack of satrad involvement in the GPS market was something I ranted about a while back.

The Jensen's touchscreen interface is slick and, more importantly, extremely easy to use. The 4-inch display is really beautiful, though I have yet to see it in extremely bright conditions. The fact that it supports the XM Mini-Tuner earns it tons of points. And apparently they bumped up the internal memory from 8Gb to 12Gb, so that's always nice. Throw in the optional back-up camera, and instantly anyone can upgrade their vehicle with features only found in luxury vehicles. All that, and it's portable too.

Accessing the booming GPS market is key for satellite radio in my opinion. But both XM and Sirius (who has their own Sirius-enabled GPS in the works) need to understand that people buying a GPS aren't necessarily looking for satellite radio - so they need to run promotions to allow these users to sample the service. But hey, at least these devices are starting to hit the streets (expect to see the Jensen in August).

UPDATE: If you've been wondering whether the Jensen Rock-n-Road supports XM NavTraffic with the XM Mini-Tuner - the answer is yes. It can receive XM NavTraffic updates in up to 50 markets nationwide. Again, the big draw to this unit is that it brings features currently found in luxury vehicles, to a much more accessible price to us regular income folks.

Space Systems/Loral this year has turned 50. Founded back in 1957, SS/Loral was a pioneer in communications satellites and today remains as a leader in the industry of high-powered commercial spacecraft.

The company was founded as the Western Development Laboratories division of Philco Corporation in 1957 and started construction of the first building on its current campus in Palo Alto, California that same year. It became Philco-Ford in 1966, having been purchased by Ford Motor Company in 1961, and later was renamed Aeronutronic Ford and finally Ford Aerospace. The latter's space division took the name Space Systems/Loral when it was acquired in 1990 by Loral Space & Communications and a consortium of international partners. In 1997, Loral became the sole owner of SS/L, and today it remains SS/L's parent company.

Space Systems/Loral (at that time Philco) launched its first communications satellite, Courier 1B, in 1960. Courier was the world's first active repeater satellite, and to highlight this new technology, it was used to transmit a message from President Eisenhower to the United Nations.

Today, SS/L now has about 2,200 employees and a campus of more than 25 buildings in Palo Alto, California. Clients include both Sirius Satellite Radio and XM Satellite Radio, as well as both DISH Network and DirecTV (to name a few).

[Space Systems/Loral History] 

The multi-talented Larry Whitt, who also serves senior production director at XM, put together this video (as well as yesterday's Smashing Pumpkins vid) showing a quick behind-the-scenes look at broadcasting Live Earth. Watch the video below...

While the TV ratings for Live Earth were absolutely dismal - averaging a meager 2.7 million viewers (a rerun of "Monsters, Inc." beat out Live Earth with 3.3 million viewers) - the MSN reported over 9 million internet streams of the concert.

And what about the satellite radio side? Lee Abrams threw a bone on his blog by saying, "XM listener ship was high."

Whatever the numbers, the video is pretty neat to watch just because putting together such extensive live coverage just can't be an easy job.

Don Imus may be returning to the airwaves in September, according to to private eye Bo Dietl, who was a regular on the "Imus in the Morning" show.

Page Six is reporting that Dietl said on Post State Editor Fred Dicker's Albany radio show, "I'm not supposed to say, but... if he was to be coming back, I would look to September."

When Dicker asked if he meant satellite radio, Dietl replied, "Broadcast."

Another source says Imus has been scouting comedy clubs looking for a black sidekick who will take the sting out of any future racial cracks like the one that got him booted off the air.

Personally, I think Imus on satellite radio would be a great move. But neither XM or Sirius, or their investors, are looking to sign any big-name contracts anytime soon.

[New York Post] 

Channel title controversies aside, Former Republican Majority Leader Tom DeLay will guest host on Sirius Satellite Radio's "The Wilkow Majority" on Sirius Patriot (ch 144).

DeLay will be filling in for conservative talk host Andrew Wilkow tomorrow, July 17th, from 12pm - 3pm ET.

The show will focus on "what the mainstream media won't tell you" about the Iraq War.

DeLay's guests scheduled to appear are Duncan Hunter, Richard Perle, Kate O'Beirne, Richard Miniter, and Lt. Col. Thomas Harris.

mSpot, the ever-growing mobile entertainment company, announced today that they've added the Fox Sports Radio Network channel to its lineup.

Fox Sports Radio Network offers several shows hosted by nationally syndicated talent including JT "The Brick," Andrew Siciliano, Jorge Sedano, Steve Czaban, Craig Shemon and James Washington, among others.

"Teaming with mSpot allows Fox Sports Radio to bring the ind-depth and interactive coverage that our network is known for to the mobile phone platform," said Andrew Ashwood, vp and general manager of Fox Sports Radio.

Last week, mSpot announced a partnership with ABC Radio Network, and they've signed similar content deals with the likes of Clear Channel, CBS Radio, NPR, etc.

But of course, this isn't competition right? Combine this service with cellphones sporting built-in FM modulators, and you've got yourself a pocket-sized (and useful) plug-and-play radio. (For the record, the LG Muziq doesn't support mSpot Radio, as far as I can tell, but the Muziq does support Pandora Radio.)

And before I hear cries of "burgeoning" technologies, remember, mSpot already has 1 million subscribers. Competition indeed.

[MediaWeek]

The NAB has given Douglas Wiley the newly created position of executive vice president of Administration and Agencies. Wiley, who was previously the NAB's executive vice president of Government Relations, will serve as the NAB's chief advocate before the Cabinet and federal agencies.

"Doug has spent more than 20 years in Washington advocating on behalf of the communications industry," said NAB President and CEO David K. Rehr. "His experience working with both the Administration and federal agencies will be of immense benefit to our public policy work promoting local radio and television broadcasting."

The twist comes when you discover that Doug Wiley holds the same namesake as non-partisan Washington powerhouse Wiley Rein LLP. In fact, Doug Wiley is the son of former FCC Chairman Dick Wiley, who also heads up Wiley Rein.

And Wiley Rein, naturally, represents Sirius Satellite Radio in the Sirius-XM merger.

[via Radio Ink]

In late June, the Federal Communications Commission invited public comments on whether the 1997 SDARS license prohibited a merger between Sirius and XM.

The specific aspect that is in question is whether on whether the language in the license that prohibited the transfer of control of one satellite radio licensee to the other, actually constitutes a binding Commission rule. The FCC is seeking comment on whether they should waive, modify or repeal the transfer prohibition. In their Notice (PDF), the FCC said that the comments, and reply comments, would begin in 30 and 45 days respectively.

Well, that clock has begun.

Comments must be filed on or before August 13, 2007, and reply comments must be filed on or
before August 27, 2007. Use the same Docket Number as before (07-57).

[Read Public Notice (PDF)] 

So this is a pretty neat behind-the-scenes video of the recent Smashing Pumpkins "Artist Confidential" appearance on XM Satellite Radio. (Email/RSS peeps will probably need to click-through to view.)

While Opie and Anthony were suspended by XM back in May, the blonde counterpart of the dynamic duo was busy closing on a $3.35 million condo in the West Side of Manhattan.

According to city records, Gregg "Opie" Hughes closed on a Trump Place apartment on June 14th - the last day before the XM suspension was lifted. The 40th-floor apartment, located on Riverside Boulevard, measures in at 2,088 square feet - which in Manhattan is enormous.

Ironically, Opie's new building - which features a private spa center, club lounge and year-round lap pool - is of course one of Donald Trumps' properties. The same Donald who swore he would never appear on O&A again, and additionally calling O&A "two slobs," in an interview with the New York Post.

[New York Observer via Luxist]

Over the weekend, several liberal bloggers exploded with outrage over the naming of the Sirius Left channel. To be more precise, it's not the name of Sirius Left, but instead the name of its conservative counterpart channel: Sirius Patriot.

It all started with a blog post by Rick Perlstein, who was a guest on Mike Feder's show, when he discovered that the liberal channel is entitled "Sirius Left" while the conservative channel is given the "Sirius Patriot" moniker. Perlstein called the discovery "deeply, deeply offensive."

"SIRIUS Satellite Radio doesn't think you're patriotic," added Perlstein. "This is an obscenity."

As a result, Perlstein called for a campaign to contact Hillary Schupf (Sirius' PR rep for talk radio programming) to relay their feelings. Several other bloggers echoed the sentiment, and the outrage quickly grew throughout the blogosphere.

Sirius Patriot was actually named Sirius Right until it underwent a name change a little over a year ago. I don't see Sirius changing the name back, but I also don't see much harm in changing the name of Sirius Left to something like Sirius Liberty (as suggested by Taylor Marsh). It might be a nice way for Sirius to show they're "listening to the listeners" and to flip some negative publicity into something positive.

[Campaign For America's Future]

Read related blog posts here, here, here, here, here, here, and here.

Blue Man Group recently visited XM's NYC studios at Jazz at Lincoln Center for the taping of an especially offbeat episode of "Artist Confidential."
 
The founding members talked about how the group came into being, and brought along some well-oiled members of the NYC team to partake in the enjoyment. Blue Man performed on some highly modified musical instruments, combined with a good dose of electronics and added in some vocals from Tracy Bonham as icing to the cake. The show was apparently a Vegas-quality show (which is actually a good designation nowadays), and I’m curious to hear how it translates to the radio.

Fun fact:  Members of the Blue Man Group were among the first XM subscribers.

The airdate is TBA, but I've got some photos featuring the Blue Men themselves with Lee Abrams (who talks about the show at length in a recent blog post) and the always lovable Lou Brutus who also hosted the show. Both Lee and Lou are making some hilarious faces, well worth checking out after the jump...
 
Photo credit: Larry Busacca/Wire Image © 2007

Living legend Dave Brubeck received the BBC Jazz "Lifetime Achievement Award" yesterday. And in a historic live simulcast, The Dave Brubeck Quartet performed "Take Five" and "Blue Rondo" from the Sirius Satellite Radio's studios in Rockefeller Plaza New York accompanied by the BBC Orchestra at The Mermaid Theatre in London.

Dave Brubeck, regarded by many as a pure genius in his field, is one of the most well known jazz pianists of all time. Brubeck employs a wide range of style and much of his music is known for its unusual time signatures. Well into his 80's, Brubeck continues to write new works and explore new avenues in composition and performance.

The award was presented by Sir John Dankworth to Brubeck’s Son, Darius Brubeck, in London. Previous BBC Jazz Lifetime Achievement Award recipients have included Quincy Jones, Oscar Peterson, George Melly and George Shearing.

Highlights of the event will be broadcast on BBC Radio 3's Jazz Line-Up on Saturday and BBC Radio 2 on Monday. I'm still trying to find specific airdates on Sirius.

The LG Muziq, available next month from Sprint, will be able to download music wirelessly and transmit it directly to your FM radio. Mobile Audio in your car just got easier.

Available for a mere $99, with 2-year Sprint contract and rebate, the 3-ounce Muziq comes with a MicroSD card slot, allowing for fully scalable memory expansion (MicroSD cards max out at 2Gb right now).

As a music player, the battery will run for up to 10 hours, or about 4 hours in talk time.

You'll be able to sideload your digital music to the LG Muziq, or download music from Sprint's Music Store. And with a built-in FM transmitter, you'll be able to listen to it anywhere.

So what happens to the mobile audio landscape when Sprint rolls out its WiMAX service later this year?

[New York Times]

July 15th is coming. That's the deadline before Internet radio royalty rates are changed, and the industry suffers a major blow that could put many out of business. Unfortunately they've hit another roadblock.

The U.S. Court of Appeals for the D.C. Circuit has denied a "motion to stay" for the rate hike. An appeal, along with the motion to place a hold on the CRB's decision, was filed back in May. But the court announced yesterday that the parties didn't meet the standards required for a stay to be granted.

"We are pleased by this decision, which vividly demonstrates that the Copyright Royalty Judges got it right when they set royalty rates and terms for the use of music on Internet radio," John Simson, Executive Director of SoundExchange, said in a statement. "This is a major victory for recording artists and record labels whose hard work and creativity provides the music around which the Internet radio business is built. Notwithstanding this victory, we continue to reach out to the webcasting community to reach business solutions."

Save Net Radio is urging webcasters, artists, labels and Internet radio listeners to contact members of Congress to push an immediate vote on the Internet Radio Equality Act. Congressman Jay Inslee (D-WA), who co-sponsored the Internet Radio Equality Act, asked Congress for help earlier this week.

Saying that Internet radio as "ingrained in a lot of Americans' daily lives as a cup of coffee and the morning newspaper," Inslee added that "this guillotine will come down on July 15 if either Congress doesn't act or an agreement is not reached."

[FMQB]

Sirius Satellite Radio's action sports/music channel, Faction (28), is giving full behind the scenes coverage of America's music and extreme sports touring festival: the Vans Warped Tour.

The 13th annual Vans Warped Tour line-up this year includes Bad Religion, Coheed and Cambria, Paramore, The Red Jumpsuit Apparatus, Circa Survive, Hawthorn Heights, Pennywise among many others.

Pro skater and musician Mike V will be Faction's onsite reporter with daily updates and weekly wrap-ups. He'll also be skating in a custom-built half-pipe and performing with his band Revolution Mother in his spare time.

"Warped Weekly" airs Sunday's at 7pm ET and "Warped Weekly" airs... everyday. Tully (Faction's daily afternoon host) is also broadcasting live backstage from select cities.

Coverage airs all summer long through August 25th.

Starting today, XM will begin airing encore broadcasts of all 23-episodes from Oprah Winfrey's "Soul Series," her weekly show on Oprah & Friends (ch 156).

Every Thursday throughout the summer, two back-to-back episodes will air featuring stories, theories and revelations by a variety of authors and guests delving into issues about living and loving "soulfully."

Included among Oprah's guests are:
Gary Zukav, author of Seat of the Soul and Soul Stories; Dr. Brian Weiss, author of Many Lives, Many Masters;  Dr. Tobin Hart, author of The Secret Spiritual World of Children;  Esther Hicks, co-author of The Law of Attraction: The Basics of the Teachings of Abraham;  Michael Losier, author of Law of Attraction: The Science of Attracting More of What You Want and Less of What You Don't;  Susan Chernak McElroy, author of Why Buffalo Dance: Animal and Wilderness Meditations Through the Seasons;  Dr. David R. Hawkins, author of Power vs. Force: The Hidden Determinants of Human Behavior;  Kathy Freston, author of The One: Discovering the Secrets of Soul Mate Love;  Laura Day, author of The Circle: How the Power of a Single Wish Can Change Your Life and Welcome to Your Crisis: How to Use the Power of Crisis to Create the Life You Want.

Tune in as Oprah and her special guests delve into everything from auras to soul-mates to the "secret behind The Secret".

Oprah's "Soul Series" will air two half-hour episodes back-to-back each week, with new encore episodes airing Thursdays at 4am, 10am, 4pm and 10pm ET. Additional encore broadcast will air throughout the week.

Sirius Satellite Radio (SIRI) has scheduled their 2Q07 financial results conference call for Tuesday, July 31st, at 8am ET.

Sirius will announce its second quarter 2007 financial and operating results just prior to the call.

You will be able to listen in online.

Ah remember the days when research firms were forecasting 30+ million satellite radio subscribers by 2010? It actually wasn't that long ago, but now it seems unlikely that number will be reached - let alone XM's own 20 million in 2010 long-term goal (have they ever adjusted that? I don't believe so... at least not publicly).

Well, the tide is turning, because the 800-pound gorilla is WiMAX, and her time is rapidly approaching. Yankee Group is forecasting 28 million WiMAX subscribers by 2011. Research firm In-Stat says WiMAX infrastructure equipment and devices will become a $5 billion market within four years, up from only $177 million today.

Maybe that's why so many of you investors are watching Clearwire so closely.

And If you think this statement is resonating a lot today: "Why should I get satellite radio when I already have an iPod?"

Then imagine what that statement will be in 4 years. Sprint is set to roll out its WiMAX service later this year, and Clearwire boasts 250,000+ subscribers already. The future is coming fast, and with FCC chairman Kevin Martin calling for "openness" for the upcoming auction of the 700 MHz band, it's only going to come faster.

It's time to step up SatRad. Now isn't the time for "slow and steady wins the race" strategies. The landscape is changing way too fast for that approach. Times are 'a changing, and if the industry doesn't evolve to keep up, people will just... unsubscribe.

[Business 2.0 via Hear 2.0]

• Seattle on July 12th
• Los Angeles on July 21st
• St. Louis on August 6th
• New Jersey on August 16th
• Philadelphia on August 22nd

Since April of last year, Bridge Ratings has shown overall "brand interest" in satellite radio to be on a significant decline - as is obvious from the above graph - but the good news is that in the latter part of Q2, consumer interest has improved.

After a slight uptick in interest during 4Q06, interest in satellite radio among consumers fell to its lowest point this spring - falling below the 5.0 point for the first time ever. (see chart) A "Brand Stimulation Score" of 4.8 indicates that as a group, those Bridge interviewed were just as likely not to consider subscribing as were.

The comps are difficult though: in the first half of '06, the average Brand Stimulation Score was 7.3, assumably as a direct result of the Stern Effect. The "brand stimulation" then slid to 6.0, reflecting the soft consumer interest during the middle part of 2006. And though the full Q2 average fell to 4.7, Bridge's numbers show a flattening occurring. As Bridge puts it, "It is possible that consumer apathy for satellite radio has bottomed out."

Bridge's study also shows that consumer hestitation due to the pending Sirius-XM merger has dropped significantly as well.

Bridge Ratings Q1 data indicated that 52% of potential subscribers would wait longer than previously expected before subscribing thanks to the merger. But their Q2 data shows that number has dropped to 40%.

The key takeaway here is that satellite radio appears to have lost its original appeal, but is showing signs of recovery (during a generally slow time of the year even). This is good news, but how do they stimulate this momentum further? One big factor, in my opinion, is the style and design of satellite radio retail products.

It's the overall experience of the medium that ultimately drives recommendations from friends (aka word-of-mouth) - which leads to consumer interest - and that includes the clunky device sitting atop your friend's dashboard.

[Bridge Ratings]

XM Satellite Radio (XMSR) has scheduled their 2Q07 financial results conference call for Thursday, July 26th, at 10am ET.

They'll announce the second quarter 2007 financial results just prior to the call. You can listen in online, or here's the call in info:

Number: (877) 265-5808
Local number: (706) 679-7931
Conference ID#: 6562974

Primosphere was one of the four companies who bid for the SDARS licenses back in the late-90s, and as you can tell, they lost.

Now, as a result of the pending Sirius-XM merger, they want back in.

In 1996, Primosphere Limited Partnership bid $68 million for a SDARS license, stating that they intended on restoring music genres no longer available in major radio markets. The service would have essentially been ad-supported satellite radio. But they lost, and in 1997 the FCC officially dismissed their application.

But Primosphere didn't give up. They filed a series of petitions between the time their application was dismissed, all the way into 2004 when Primosphere submitted a motion to withdraw the Application for Review.

But the FCC never acted on the motion to withdraw. And in February, right after the Sirius-XM merger was announced, Primosphere decided to withdraw its withdrawal. (Yes, you read that right.)

The reason?

Because the FCC stated that they would "re-auction the [SDARS] license among the other existing applicants" should one of the licenses be otherwise denied. And if Primosphere is still one of the existing applicants, then they are still in the running.

So Primosphere requested that if the Sirius-XM merger is approved, that the other half of the S-band spectrum available to be given to Primosphere.

Primosphere has said they will construct and launch their own satellites (they've in fact already paid the launch fees for the other two satellites they originally proposed), and expect they can be up and running with their own service within 5 years.

"A better way to avoid the anticompetitive effects of the proposed XM/Sirius merger would be to have a new competitor in the SDARS who could begin operating immediately," Primosphere wrote in a FCC filing (PDF).

Fast forward to July 3rd, and Primosphere is now asking the FCC (PDF) to consolidate the Sirius-XM merger application, with its application to launch and operate a satellite radio service.

This is getting really interesting.

[via Satellite Radio TechWorld] 

The FCC has placed documents that may contain proprietary or confidential documents submitted relating to the Sirius-XM merger under a Protective Order.

This provides any company, or "Submitting Party," that submits info under the 07-57 docket adequate protection. That way any sensitive materials, like oh say financial disclosures and the such, will not fall into the eager hands of evil doers.

Just stamp it with "Stamped Confidential Document" and that should prevent it from the public view.

[Read the Protective Order (PDF)]
Thanks Tim!

The Smashing Pumpkins have been busy making the rounds in the satellite radio circles. Not only did they take over Sirius' Alt Nation, but yesterday they played for a live audience at XM’s D.C. studios.

Yesterday (7/10) was also the same day that the band’s new album "Zeitgeist" hit the shelves.

Smashing Pumpkins taped an episode of the XM show "Artist Confidential" at the XM Performance Theater. Billy Corgan and company played XM in advance of their sold-out show at the 9:30 Club, the renowned rock venue which located is about a mile north of the Eck.

The "Artist Confidential" featuring the Smashing Pumpkins will air, uhm, sometime in the future. (I don't have broadcast times yet.)

But I do have photos from the band's performance at XM. Check 'em out after the jump...

Alt Nation is giving Sirius subscribers an all-access pass to the Smashing Pumpkins with a full day of programming dedicated to the band.

Tune in all day today to hear Billy Corgan and Jimmy Chamberlain play all the songs from their brand new CD "Zeitgeist" and tell stories about each one of them, as well as talk about their recent reunion.

The programming kicked all today at 3am and will run throughout the day on Sirius' home for the latest alternative rock, Alt Nation (ch 21).

This week, XM has had a huge presence in the City by the Bay (that would be San Francisco), the host city for Major League Baseball’s All-Star Week.

The 78th annual MLB All-Star Week has evolved into a five-day baseball jubilee, and the XM brand is pretty much everywhere. Fans can shop at XM kiosks, check out the XM listening stations, hear XM "music moments" between innings, and much more. Of course, is all part of XM's coverage of  the All-Star Week event.

It's all part of promoting "every game, every team" on XM. Check out a ton of photos of XM's presence in Fog City after the jump...

The Recording Industry Association of America filed a last-minute comment to the FCC regarding the Sirius-XM merger. While they didn't take a position either for or against the merger, they sure did have an opinion of what the FCC should mandate should they approve it.

The RIAA argued that XM and Sirius "are no longer new, struggling companies" and should be paying their current rates, let alone "less-than-market compulsory rates after a merger."

If a merged company were allowed to pay "below market rates" then the merger essentially create an unfair advantage in the overall audio entertainment market, "putting at risk other competitors in that marketplace."

"On the other hand, the public interest would be advanced if the merged entity were required to pay fair value for the sound recordings it purchases," the RIAA wrote.

But the RIAA also wants to restrict the recording abilities of subscribers. If subscribers are able to record and save music they hear over the air, this would "effectively transforming a radio-like service into a digital distribution subscription service like Rhapsody or Napster."

The RIAA also argued that should a merged Sirius-XM continue developing recording devices, like the Pioneer Inno, it would "seriously threaten the viability of the music industry as a whole."

And nobody wants that.

[Read RIAA Comment (PDF) via CNET Blogs] 

mSpot, the mobile music/radio/video entertainment service, has signed a partnership agreement with ABC Radio Networks to add another 14 new channels to its mSpot Radio lineup.

Thanks to the deal, 14 ABC Radio stations in the nation’s largest markets in New York, Washington, D.C., Atlanta, Dallas, Los Angeles, Minneapolis, Chicago, and Detroit, will be available to mSpot's one million subscribers in both the U.S. and Canada. mSpot provides its services in the U.S. for Sprint and U.S. Cellular, and in Canada for TELUS and Bell Mobility.

mSpot inked a similar deal with Clear Channel back in March.

"By offering our content on mSpot, we are rapidly expanding both the range and reach of our customer base," said John Rosso, senior vp, affiliate relations and digital media for ABC Radio Networks (a subsidiary of Citadel).

Launched about two years ago, mSpot Radio offers 200 channels - including more than 100 live radio stations. On top of ABC Radio Networks, mSpot has signed content deals with several radio corporations including Clear Channel, CBS Radio, National Public Radio, Radio Disney, FOX Sports and Marketwatch.

Content providers get a share of revenue on a per-subscriber basis and will eventually share in the revenue from inserted audio ads.

[MediaWeek] 

XM has launched the XM CommanderMT, which we first saw earlier this year at CES 2007. The seamless in-dash XM radio will work with any car stereo and will be available at retail later this month.

Manufactured by Audiovox, the CommanderMT is an all-in-one package styled to seamlessly integrate into any vehicle's dash and will work with any car stereo, regardless of make, brand, or year. The clean and sleek unit seems generally targeted at people who wish to retain their current car stereo (be it a stock or aftermarket headunit), but who also want to maintain a "stock look" in their vehicle.

The CommanderMT features a large, easy to read, four-line display and easy to use tuning knob for selecting and changing channels. The radio offers quick channel navigation with up to 30 favorite channel presets, or you can just enter and move directly to the channel you want.

The "MT" part of course refers to the portable XM Mini-Tuner, which is a removable cartridge containing the XM subscription. So with the CommanderMT, you retain the clean look on your dash, but still have the portability of a Plug-and-Play.

CommanderMT will MSRP for $179.99, and XM has a product page up here.

Check out more pics after the jump... 

Below is an advertisement ran by Sirius and XM on July 9th:

Note the ending slogan: "programming as diverse as the people who support our merger." It's an appropriate ending line. The diverse range of content, and making that content available to under-served markets, is the biggest argument for addressing the "public interest" in my opinion.

Maybe that was the point of all these obscure organizations lending their support to the merger? (Mind you, they're obscure to you and I, but who knows their rep in the Capitol Hill circles. The NAB is an obscure organization to the majority of the population.) By arguing for a stronger satellite radio provider, this would theoretically enable more diverse content to be commercially feasible.  

Here's some bit and pieces of goodness that I don't want slipping through the cracks...

• Live Earth Internet streaming sets record, generates more than 9 million Internet streams (remember, streams != individuals... but still impressive) [Reuters]
• WCBS-FM, Cousin Brucie's old home, flips back to oldies format (...and you know you're getting old when '80s music is considered "oldies") [New York Business]
  
• Music licensing companies are calling for royalties from... a coffee shop?! (this is a disgusting article... say bye-bye to live music) [Florida Today]
• Sansa e200 coming pre-loaded with Real's 'Rhapsody DNA' (soon with social tagging - effectively creating a perfect-reception version of a music channel - watch this space) [Wired Blogs]
• Sony BMG signs with Last.fm (joining EMI Music Group and Warner Music Group) [Hollywood Reporter]
• Clear Channel's HD Radio powered Total Traffic Network now available in 48 of the top U.S. markets (look ma! no competition!) [FMQB]

This afternoon, Sirius and XM announced that the public comments filed with the FCC demonstrate "persuasively" that the proposed merger is in the public interest.

It's a bit of a PR move, but an unsurprising one since we're nearing the final hour of the FCC's pleading cycle. I especially like to see Gary Parsons being quoted in the announcement, who seemed to take a back seat during most of the battle. (Granted, Karmazin is Wall Street's "darling" but as a merger of equals we need to see a presence from both leaders. Then again, we don't see what's going on behind the scenes.)

Sirius and XM are quick to point out that over 3,500 comments have been filed in favor of the merger, as well as to highlight the various organizations who came in favor of it.

Read the press release - packed full great info (including direct quotes from terrestrial radio SEC filings) - after the jump... 

Mel Karmazin will discuss the proposed merger of Sirius and XM at a National Press Club luncheon on Monday, July 23rd.

The National Press Club luncheon will begin at 12:30pm and Karmazin's remarks will begin just after 1:00pm, followed by a Q&A session.

If you're in the Washington, DC area and would like to attend, the cost of the luncheon is $16 for members, $28 for members' guests, and $35 general admission. You can also hear a variety of NPC Luncheon speakers and more on Saturdays at 11pm ET on XM Public Radio (ch 133). Or you can listen to archived versions online.

(Side note: remember it was at the National Press Club that NAB President David Rehr noted that the competitors to terrestrial radio are satellite radio, internet radio, iPods, cellphones, etc. Watch the video here.) 

Slacker, the growing internet radio-turn-satellite service, has filed a comment with the FCC asking for specific conditions regarding Sirius and XM's partnerships with auto manufacturers, should the merger be approved.

As Slacker is a new personal audio service, they're asking the FCC to impose two conditions should the merger be approved:

1. The combined company should not be allowed to continue, or enter into any exclusive agreement with auto manufacturers. In other words, they need to terminate any exclusive agreements they already have.
   
2. The combined Sirius-XM should not be permitted to have car manufacturers represented on the new company's Board.
   

Remember that when Sirius and XM announced the merger, they stated that the board of directors would consist of one representative from each of General Motors and American Honda.

Slacker was careful to explicitly state that they take no position regarding the proposed merger, and that they don't consider themselves to be a substitutable service to Sirius or XM.

In their comment to the FCC, Slacker went into great lengths to highlight the tightly knit relationships between both satellite radio providers, auto manufacturers and their OEM agreements.

Slacker is asking a lot here, and has definitely thrown the glove down... though you honestly can't blame them. If the FCC gives these requests serious consideration, it very well could delay the entire process. Because, since it's been the basis of their business model for years, you can bet that Sirius/XM would vehemently oppose any restrictions on their OEM agreements.

My only problem is that the "exclusive" logic really only applied to each other, not competing audio technologies. If the auto manufacturers were truly married to the exclusive concept, then there wouldn't be any iPod integration, or HD Radio installations, as we're seeing today.

[Slacker's FCC Comment (PDF)]

And yet another organization has come out in support of the Sirius-XM merger, this time around it comes from the conservative non-profit group American Values.

Of particular interest to American Values is the proposed "block and rebate" offering that the combined company has promised to offer.

"Especially important to our membership is the commitment the parties have made to issue refunds to satellite radio subscribers who choose to block adult-themed programming," said American Values President Gary Bauer, in his letter to the FCC. "Like so many people, the majority of our members do not want their children and families exposed to programming they may find indecent or offensive."

American Values positions themselves as a "voice to help protect life, marriage, family, faith and freedom" and particularly are against so-called indecent and violent programming. They like the "block and rebate" program as a way to not only opt out of certain channels, but also enables subscribers to not subsidize the programming they find offensive.

But what about the NAB's opposition? 

"We believe that incumbent competitors should be forced to respond to this consumer-oriented merger by making their own service offerings more attractive, and should not be able to simply obstruct advances in the marketplace in order to serve their self-interests," added Bauer.

There's an interesting article in Radio & Records today about the Live Earth coverage on XM Satellite Radio, but what struck me the most was that XM fed its stream direct to Sirius.

"XM had more than 60 people stationed at Wembly Stadium in London and Giant’s Stadium in East Rutherford, N.J., collecting sound and producing interviews for seven XM music channels carrying various concerts from Sydney, Tokyo, Shanghai, Hamburg, London, Johannesburg, Rio De Janeiro and New York. XM took sound from the Intelsat pool and fed it to competitors Sirius Satellite Radio and Premiere Radio Networks along with World Space, Italy’s RDS and Radio Express."

What's interesting about this is that it clearly demonstrates that XM and Sirius can share streams with ease, and in real time. I'm not sure if this was the first time they've done this, but it's interesting nonetheless. If you're curious how Sirius/XM would be able to share content across platforms in a post-merger world... well, this is it.

(Read the R&R article for more on the Live Earth coverage. There's a funny bit in there involving Spinal Tap.)

Oh by the way, Premiere is radio syndication company in the U.S. with over 5,000 stations worldwide, and on the Internet, picking up their stream. They're owned by Clear Channel of course, which is the largest radio corporation in the U.S. to boot.

But yet, "they" say terrestrial radio doesn't compete with satellite radio on the nationwide basis.

[Radio & Records]
Thanks Tim!

Out with the old, in with the new. While the all-new Audiovox XpressEZ and XpressR XM Satellite Radios are hitting the retail shelves, several fan-favorite receiver models are being discontinued.

Along with the product line changes, XM SureConnect - XM's wired FM-modulator solution - will be eliminated from receiver packaging.

Dan Murphy, XM's retail aftermarket distribution executive VP, told TWICE last week that the XM Sportscaster, Delphi SkyFi2, Samsung Helix and Samsung NeXus will all be discontinued by their manufacturers. While no one will shed a tear for the Sportscaster (AGT is now making ugly HD Radios instead), the Delphi SkyFi2 - as well as Sammy's Helix and NeXus - were beloved units by many. The good news, is that they'll be cheaper than ever now as retailers blow out stock.

The Pioneer Inno, which shares the exact same functionality as the Samsung Helix, will continue to be available through the holidays, Murphy said.

XM SureConnect, which has been bundled with plug-and-play receivers since last September (following the FCC crackdown on over-powered FM transmitters), will instead be sold separately as an accessory. XM SureConnect will MSRP for $19.99.

Here's an interesting figure for you: Less than 40 percent of consumers who bought an XM radio with SureConnect included even used the kit, Murphy said. The remainder used wired FM modulators professionally installed, while others would just connect the radios to a headunit's audio inputs, or use a cassette adapter. Hopefully all this won't matter when those highly anticipated Mini-Tuner enabled XM headunits hit the streets.

[TWICE]
Thanks Jeremy!

Today is the last day of the FCC's public comment period for the proposed Sirius-XM merger. All comments are due no later than July 9, 2007.

If you haven't already, now is the time to be heard. It doesn't matter if you support or oppose the merger, just make your opinion be known. The FCC's process for reviewing this merger is far more transparent than the DOJ's, and the chance for the public's true opinion is coming to a close.

To file a comment, the easiest thing to do is to go to XMmerger.com or SIRIUSmerger.com. There you can send your comment to both the FCC, as well as to your members of Congress.

After today, responses/oppositions will be accepted by the FCC no later than July 24th.

All University of Georgia football games, and most of their men's and women's basketball games, will be carried on XM Satellite Radio as part of a 5-year agreement.

The UGA Athletic Association made the announcement yesterday, which is expected to give Georgia an average of $150,000 per year as part of the deal. Georgia also said that while all of its regular-season football games will air on XM this fall, at least eight will feature the call of the UGA broadcast crew of Larry Munson, Scott Howard and Loran Smith.

It's unclear whether this deal is part of, or in addition to, XM's 5-year deal with the SEC. But seeing as it was announced several months after the SEC deal, I'm willing to guess that this is a separate deal. XM also has a Georgia Bulldogs promotion running ($99 for radio + 6 months of service).

[AJC.com]
Thanks Josh!

UPDATE: After some research, it looks like this is just a duplicate, UGA-specific, announcement in advance of the football season. Blah.

XM Satellite Radio has added the Live Earth concert in Washington, DC to its Live Earth coverage roster. The concert is a surprise addition to the Live Earth lineup and almost didn't happen.

Former Vice President Al Gore just yesterday announced the concert will be held on the National Mall at the National Museum of the American Indian, about two blocks from the Capitol. Tentatively scheduled to begin at 10:30am ET on July 7th, the event will be the earliest US concert.

XM will carry the performances from Garth Brooks and Trisha Yearwood, who are the only musical acts for the DC show (the rest are speakers). You can hear their performances along with other event highlights and interviews on XM's Live Earth All Access (ch 40).

Sirius Satellite Radio has added another channel to its Live Earth coverage with the inclusion of the "Friends of Live Earth" event taking place at the Smithsonian’s Museum Of The Native American in Washington DC.

The event will be kicked-off by former Vice President Al Gore with performances from Garth Brooks and Trisha Yearwood and can be heard on Sirius' Prime Country (ch 61) starting at 10:30am ET on Saturday July 7th.

The "Friends of Live Earth" initiative is a toolkit designed to enable people to create their own event in support of Live Earth. You can read more about it here.

Interoperable Satellite Radio receivers. For the consumer, it would be the ultimate in flexibility: the ability to buy a single radio and choose between Sirius or XM as you desire. But it's just a dream, right?

What if it was a reality? What if Interoperable satellite radios existed, right now?

That's what is being suggested by Michael Hartleib in a series of communications to the FCC. But before we entertain this notion, let's actually define what "Interoperable Radios" really are. Without a definition you've got, well, nothing.

In his letter to the FCC, Hartleib defines an "Interoperable Radio" as a receiver with chipsets that can process signals from either Sirius or XM, and "would require some type of switching mechanism to move between one service provider to the other." Think of it like switching between AM and FM. While in AM, you can only listen to AM stations, and while in FM you can only listen to FM stations. Easy concept right?

Then there's a "Dual Mode Radio." Dual Mode Radios have chipsets that can receive and process both XM and Sirius satellite signals, simultaneously, "therefore giving consumers continuous access to ALL satellite radio channels." Another easy concept to digest. In one hand you have Interoperable, which switches between services; and in the other you have Dual Mode, which mashes them all together at once.

Now here's the kicker:
"I have been told this [Interoperable Radios] could be achieved via a firmware update from the satellites to the receivers," Hartleib writes in the letter.

Let that sink in for a minute. Interoperable Radios - receivers that can switch between XM or Sirius - might already exist. And all you need to make it happen, is an over-the-air firmware update.

The problem is that they're not commercially available. There's just never been a good business case to bring that capability to market. Understandably so.

The fact is, the FCC never really enforced the Interoperable Mandate of the SDARS license. They required the development of an Interoperable receiver, but never created a reason for it to be commercially available. You can't blame Sirius or XM for not pushing this. Both have spent billions just to acquire the customers they already have. Why further dilute your product by allowing consumers to switch? The Wireless industry doesn't do it... and they MAKE money!

In case you're wondering, Michael Hartleib actually met with Michelle Carey, Senior Legal Advisor to Chairman Martin and a representative of the Media Bureau in late June (PDF). And the letter (PDF) I'm referring to here was actually a follow up to help define the terminology, and reconfirm his position. It's packed with gems like calling the NAB "misinformed and/or disingenuous" so if you want read it, just follow the jump below...

It's a reoccurring theme, but one that keep raising its ugly head: theflyonthewall.com is reporting that there's chatter of a competing bid for XM Satellite Radio (XMSR).

And while this rumor is still only unconfirmed takeover speculation, it seems to be happening more often lately. Which increases the chances of it being true in my opinion.

I think if the proposed merger fails - especially as a result of the DOJ defining the relevant market as being just "satellite radio" - this could open up the door for a takeover of XM. If satellite doesn't compete, CBS Radio (or Clear Channel, or whoever) can then snatch up one of the satcasters without anti-trust fears.

[theflyonthewall.com]

Here's a few bits and pieces of news to check out, while I get ready some more articles to write...

• New Verizon LG Chocolate hitting the streets (when will the mobile industry learn that a 3.5mm jack is absolutely a necessity?) [Engadget]
• Album sales are down 15% already this year, while digital music sales are up 49% (gee, who saw that coming?) [New York Times]
• The music industry wants terrestrial to pay for play (wanna know why? see above) [BusinessWeek]
  
• Will Sirius miss its subscriber target? Janco seems to think so. [24/7 Wall St]
• XM's John Zellner is the cover story for FMQB's eQB (and he really needs to update his headshot) [FMQB]
• Sirius/XM Merger to provide substantial upside potential (one of the most detailed pro-merger articles I've seen in a long time) [Seeking Alpha]
  

One of the main concerns of Sirius or XM subscribers about the proposed merger is the loss of music channels. Nobody wants to lose their favorite music channels. It was a concern that I voiced in this post, and many had the same feelings.

But in a recent interview with TWICE, Mel Karmazin has indicated that the loss of channels may not be as much as we fear it will be.

Here's a snippet from the interview:

TWICE: How would you accomplish your "one-radio, two-services" pledge? By porting some XM content to Sirius radios, and vice versa?

Karmazin: We started our service with 100 channels, and through compression technology and engineering enhancement and the normal rotation, we now have 135 channels instead of 100. So what we say is that we'd be able to increase our capacity by a certain number so that our existing receivers would be able to get some additional content. So as an example, if we wanted to have some baseball, or we wanted to have Oprah, or we wanted to have some of this content, we'd be able to deliver that to our satellites and to our receivers subject to the content partners' agreements. We couldn't offer a full complement of both services.

TWICE: Could we see a 50/50 split between XM and Sirius content on an existing satellite radio?

Karmazin: If we wanted to do that, but why would we want to do that if you're a Sirius subscriber and you like our content? We're basically saying to you that we don't want you to be disenfranchised. We saying to you that "You're an existing subscriber, you don't have to pay more than $12.95 after the merger, and your existing radio is going to work."

TWICE: And you would eliminate redundancies in the selection of channels offered by Sirius and XM after the merger to make room for some of the extra channels?

Karmazin: Let's assume for a second that, when the time came, that we'd take a look, and say that we both have a '50s station. Now can you sit there and say, "Which of the '50s channels might be the best channel?" And we'd have some cost savings at the head end, and we would not be producing two 50s channels.

TWICE: So Sirius would still have its voice and brand, and XM would have its voice and brand, a Sirius receiver would continue to get existing Sirius channels plus some additional XM content, and vice versa?

Karmazin: Right.

Now, of course Mel is leaving things open here, and being very careful with the words he chooses. And hey, that's understandable. But what I'm getting out of this is that the generic music channels - like a 50s, or Top 40, or Classic Rock channel - would be up for cost savings.

But those channels that have an individual "voice" would remain.

...at least, that's what I hope. 

[CNN Money] 

Tiger Woods is in XM's hometown of Washington, DC this week to host his first golf tournament: the AT&T National at Congressional Country Club.

Woods, who became a new daddy just 2-weeks ago, will be joined by a field that includes five of the world's top six players including Phil Mickelson, Jim Furyk, Adam Scott and Vijay Singh.

As part of the Fourth of July celebration, a total of 30,000 tickets to the event are available for military personnel.

XM is on the green to broadcast the event live, from today through July 8th on the PGA Tour Network (ch 146). Woods himself is teeing off at the No. 1 hole at 1:15pm ET.

But the burning question is... will XM's lovely (and talented) Fan Enhancement Program team be there? God bless America, yes, they'll be there handing out XM radios for the first 1,000 spectators each morning to enjoy for the day.

All three satellite radio companies - Sirius, XM and WorldSpace - will be broadcasting complete coverage of the historic "Live Earth: The Concerts for a Climate in Crisis" concert series, starting on Friday, July 6th at 9pm.

Live Earth is a 24-hour, 7-continent series of 8 concerts taking place on 7.7.07 that bring together over 100 artists and 2 billion people meant to trigger a global movement to solve the climate crisis.

Special Live Earth Channels

• Sirius will broadcast "The Best of Live Earth" on Super Shuffle (ch 12), highlighting the most memorable moments of Live Earth.
• XM will broadcast "Live Earth All Access" (ch 40) featuring highlights of the most memorable performances, backstage interviews and more.
• WorldSpace Channel 29 will provide highlights of the day's best performances from all event locations.

Eco-Friendly Channels
Sirius and XM will also dedicate special channels devoted to the spirit of an eco-friendly lifestyle.

• Sirius Green (ch 119), launched on July 4th is a four-day broadcast channel dedicated to informing the audience about the realities of the climate crisis. Features include environmental tips and myths, stories and interviews with celebrities, political commentary, listener comments and the Live Earth concert calendar.
• XM's microchannel - Earthsounds (ch 39) - will feature a variety of nature sounds and recordings captured from around the world. Earthsounds can be heard starting Friday, July 6th at 10pm ET through Monday, July 9th at 3am ET, set to coincide with Live Earth.
• Sirius will also exclusively broadcast the "Stop Global Warming Concert" on Friday, July 6th at 8pm ET on The Spectrum (ch 18). Recorded on Earth Day (April 22, 2007) this concert features performances by Sheryl Crow and Carole King as well as a speech by the producer of An Inconvenient Truth.
  

Mobile Access
XM has added an interactive text messaging for Live Earth: Text "Live Earth" (or "LiveEarth") to GOTXM, or 4-6-8-9-6. The text you'll get back will include a link to the Live Earth splash page for web-enabled phones; along with the ability to reply to that text message with the name of 1 of 4 Live Earth cities - London, New York, Sydney, and Tokyo - which would send you another text for the corresponding Channel #, start time, and basic artist lineup.

Sirius is allowing users to search by artist and get lineup information over the phone. Call Sirius Satellite Radio at 877-33-SIRIUS, then press "4" from the main menu to access the Sirius Live Earth hotline.

Full Concert Schedule
Sydney
Live Earth Sydney, Australia at Aussie Stadium
9pm ET / 6pm PT  (airs Friday, July 6th)
XM: Boneyard (ch 41)
Sirius: The Spectrum (ch 18)
WorldSpace: Channel 11, 29

Tokyo
Live Earth Tokyo, Japan at Makuhari Messe
11pm ET/ 8pm PT  (airs Friday, July 6th)
XM: XMLM (ch 42)
Sirius: Boombox (ch 34)
WorldSpace: Channel 204, 29

Shanghai
Live Earth Shanghai, China at the Oriental Pearl Tower
6:30am ET/ 3:30am PT
XM: XMU (ch 43)
Sirius: Sirius Disorder (ch 32)
WorldSpace: TBD

Hamburg
Live Earth Hamburg, Germany at the HSH Nordbank Arena
8am ET/ 5am PT
XM: XM Cafe (ch 45)
Sirius: The Spectrum (ch 18)
WorldSpace: Channels 11, 204, 29

London
Live Earth London, UK at Wembley Stadium
8:30am ET/ 5:30am PT
XM: Top Tracks (ch 46)
Sirius: Alt Nation (ch 21)
WorldSpace: Channel 11, 29

Johannesburg
Live Earth Johannesburg, South Africa at the Cradle of Humankind
12 noon ET/ 9am PT (11am ET on Sirius)
XM: Fred (ch 44)
Sirius: Reggae Rhythms (ch 97)
WorldSpace: Channel 204, 29

New York (Giants Stadium)
Live Earth New York, USA at Giants Stadium
2pm ET/ 11am PT (2:30pm ET on Sirius)
XM: XMLM (ch 42)
Sirius: Sirius Hits 1 (ch 1)
WorldSpace: Channel 204, 29

Rio de Janeiro
Live Earth Rio De Janeiro, Brazil on Copacabana Beach
3pm ET/ 12am PT (2:30pm ET on Sirius)
XM: Boneyard (ch 41)
Sirius: Boombox (ch 34)
WorldSpace: Channel 11, 29

In addition to the 8 official Live Earth concerts, special broadcast events will take place from the To-ji Temple in Kyoto, Japan, and the Rothera Research Station in Antarctica. (I only have the broadcast schedule for Sirius for these special events at this time.)

Antarctica
Live Earth at the Rothera Research Station
9am ET
Sirius: Super Shuffle (ch 12)

Kyoto, Japan
Live Earth at the To-ji Temple
9am ET
Sirius: The Vault (ch 16)

Read more about the airing of these historic concerts on each satcaster's pages below:

[Live Earth on Sirius]
[Live Earth on XM]
[WorldSpace Live Earth Blog]

Note: I tried my best to assemble all the Live Earth coverage for each of the satellite radio providers in one place here. Some of the schedules have changed (sometimes several times) at the last minute and I've tried to reflect that here. If you find different info or that I missed something, please let me know either by email or in the comments. Thanks!

The first phase of the Copyright Royalty Board's trial to determine Satellite Radio's royalties was completed late last week.

XM and Sirius, as well as SoundExchange, both presented their cases from June 4th through June 28th, 2007.

There is now a break in the trial while the parties prepare their rebuttal cases. Rebuttal hearings are scheduled to take place August 15th through August 30th.

A witness for SoundExchange, Dr. Michael Pelcovits, was unavailable the week of June 25th and consequently, his testimony will take place on July 9th. MusicChoice was also supposed to be part of the hearings, but they have reached an agreement with SoundExchange, and therefore no further proceedings are necessary for them.

In their testimony, both Sirius and XM Satellite Radio requested a rate of 0.88% of gross revenue received, for the period from January 1, 2007 to December 31, 2012.

"Sirius has paid millions of dollars, and is willing to pay millions of dollars more, to the record companies for a performance right for which our primary competition - terrestrial radio - does not have to pay," said Mel Karmazin in his written testimony. "However, any fee must acount for the enormous costs incurred, risks faced and investments made by Sirius, and for the fact that our revenues must cover a host of functions that other licensees do not perform."

"Sound recording performances are available everywhere, for free," Karmazin continued. "The right to make those performances, at issue in this proceeding, does not drive our revenues."

"It is the skill behind XM music programming that makes XM music programming attractive to its subscribers," wrote Gary Parsons in his testimony. "But that value exists because of what XM contributes it does not flow merely from license to sound recordings."

"Moreover high royalty would be unfair to XM in light of the fact that XM's major competitors in broadcast radio do not pay any royalties whatsoever to sound recording labels or performers," continued Parsons. "A high royalty in this proceeding would further unfairly tilt the playing field in favor of terrestrial broadcasting, and could further distort competition in the radio industry."

SoundExchange on the otherhand, asked for a sliding scale of royalties - starting at 10% of revenue and growing to an incredible 23% of all revenue - increasing annually:

• For 2007, SoundExchange asks for 10% of all revenue, or $1.10 per month per subscription (whichever is higher)
• For 2008, the rate grows to 12% of all revenue, or $1.30 per month per subscription
  
• 2009: 15% of all revenue, or $1.60/subscription
• 2010: 18% of all revenue, or $1.95/subscription
• 2011: 20% of all revenue, or $2.35/subscription
• 2013: 23% of all revenue, or $2.75/subscription

Both propositions are for performance licenses with ephemeral (temporary) copies.

You can read the full testimonies of Sirius Satellite Radio, XM Satellite Radio as well as SoundExchange and MusicChoice on the CRB's website. More detailed information will be posted closer to the start of the rebuttal hearings.

[via Satellite Radio TechWorld] 

Sirius is donning the silly tophat and growing a white beard this Independence Day with a slew of patriotic programming fit for any picnic, BBQ or just a day at the beach.

Radio Margaritaville (ch 31) is on an American Road Trip. Each hour, a different city where Jimmy Buffett has performed in concert will be spotlighted with plenty of favorites, some rare tracks and a lot of fun.

On Totally '70s (ch 7), it's the 40 Grooviest Party Tunes spanning the entire 70s decade hosted by Dave Hoeffe.

Classic Vinyl (ch 14) salutes the Founding Fathers of Classic Rock, each day - since Father's Day through the 4th of July - they've been featuring a different artist every hour and it all culminates on Wednesday.

Underground Garage (ch 25) will celebrate our independence from those pesky Lobster-backs all day long starting at 8am ET. Each DJ pays their own tribute in an all-American parade of Rock’n’Roll.

Hard Attack (ch 27) will play nothing but American Metal Gods in a 24-hour tribute starting on July 4th at 3am ET. No Motorhead here - it's all Megadeth, Cannibal Corpse, Slipknot, Fear Factory, Morbid Angel and more on this day.

And if you're taking a break from the music, check out Mike Church’s Road to Independence on Sirius Patriot (ch 144). Over three hours, Sirius Patriot will re-live the actual words of the Declaration of Independence as read aloud in Independence Hall, Philadelphia, 1 July 1776. Rediscover the men who signed the Declaration and hear their impassioned defense of its meaning, and relive the year that was 1776. Hear the Founding Fathers stories, relive their words and pay homage to their actions.

There's a whole lot more, so be sure to check out Sirius' Fourth of July Schedule for additional programs.

Here's a little extra link-love to read for those stuck in the office while everyone else is on vacation this week.

• Cadillac CTS Infotainment System, a hands-on review [Crunchgear]
• Slacker's deal with music labels a form of "Dark Payola"? [Idolator]
  
• The return of Imus? [New York Post]
• UMG, the world’s biggest music corp, reportedly will not renew with Apple iTunes [New York Times]
• Chrysler/Nickelodeon ramping up a multi-media marketing blitz for Sirius Backseat TV [ClickZ]
  

While former FCC Commissioner Harold Furchgott-Roth (who was retained by XM/Sirius) issued a report saying that a combined XM-Sirius would not be a monopoly; Philip M. Napoli (who was retained by the NAB) subsequently has countered the Furchgott-Roth report.

Napoli, who is one of the NAB's hired guns from back in April, filed a statement with the FCC saying that "the satellite radio market is in fact a distinct market for antitrust purposes." He also concluded that a satellite radio merger "would lead to monopoly conditions in the downstream consumer market, as well as monopsony conditions in the upstream programming market."

Can we hire another gun to counter the counter statements of one hired gun to the other? That would convince the FCC! Or better yet, let's prove that we really mean business, and hang a banner out the window. That'll show 'em.

[Read full report (PDF)]

XM Satellite Radio has officially announced the XM Exclusives channel - or XMX - that we learned about from the leaked channel guide a few days ago.

If you were one of the skeptical, this thankfully validates that the channel changes in that guide were, in fact, real... albeit the timing was off by a month. XMX and the other changes will all go live on August 1st. Ah, the beauty of unofficial information!

XMX will feature XM's most popular original music shows, including "Theme Time Radio Hour with Your Host Bob Dylan," "Ludacris' Open Mic," "Tom Petty's Buried Treasure," "In the Swing Seat with Wynton Marsalis," "Quincy Jones' Off the Charts" and XM's signature performance/interview series "Artist Confidential," all in one place.

XM also announced the merging of XM Cafe and Hear Music, as well as those college sports channel changes that we also knew all about.

Check out the XMX info page here, and rejoice in that this wasn't another Radio Wasabi incident.

XM Satellite Radio will be airing comprehensive coverage of Major League Baseball's 2007 All-Star Week from July 7th to July 10th.

XM will cover All-Star Week from every possible angle: on the field, in the stands - even on the water. During the Home Run Derby, MLB Home Plate host Holden Kushner will broadcast from a kayak floating in McCovey Cove outside AT&T Park, keeping a watchful eye on baseballs raining down from the stadium.

The XM All-Star Futures Game will air July 8th, and the Home Run Derby will air July 9th. XM will carry the 78th All-Star Game live from AT&T Park in San Francisco on July 10th. The play-by-play coverage will be broadcast on XM channel 176.

XM's baseball talk radio channel - MLB Home Plate (ch 175) - will be live from the DHL All-Star FanFest for four days starting July 7th. MLB Home Plate will have a broadcast center at FanFest which will also feature XM listening stations and an XM store.

In addition to the live broadcasts during All-Star Week, XM will tape an episode of the show "Baseball Confidential" with Hall of Fame inductee Tony Gwynn in front of an audience at the CHW Stage at FanFest on July 10th. MLB En Espanol (ch 174) will carry Spanish play-by-play of the All-Star Game, and the call-in show "Solamente Pelota" will be live from AT&T Park.

But the baseball madness isn't just on their MLB channels. XM's alternative rock channel Ethel, country hits channel Highway 16, and children's channel XM KiDS will also broadcast from the XM booth at FanFest.

[All-Star Week on XM]

Sirius Satellite Radio has announced that the new weekly show "The Chairman's Hour" on Siriusly Sinatra (ch 75) will debut on July 7th at 5pm ET, with a special preview broadcast on July 4th at 5 pm ET.

The preview broadcast on July 4th will feature a set of Frank's patriotic songs.

"The Chairman's Hour" is 'hosted' by Frank Sinatra himself using rare material culled from the Sinatra family archives. The show, spanning decades, is reflective of his body of work, emotional composition, and respect for those who he collaborated with personally and professionally.

Siriusly Sinatra, which launched earlier this year, is produced by the Sinatra family and also features regular blocks of Sinatra's music, archival performances and is the home of "Nancy For Frank," a weekly show hosted by Nancy Sinatra.

It sounds like "The Chairman's Hour" required an incredible amount of work in order to produce it. I'll definitely be tuning in.

[Siriusly Sinatra] 

Apple sold about a half million iPhones the first weekend the device went on sale, according to analyst estimates.

Piper Jaffray analyst Gene Munster released a report Sunday estimating that Apple sold about 500,000 units through the close of business Sunday. Munster originally thought Apple would sell 200,000 on Friday and Saturday.

Ninety-five percent of iPhone buyers in San Francisco, New York and Minneapolis purchased the 8GB model, according to the survey. About half of the people surveyed for the report were new customers for AT&T. Considering that it's estimated that Apple pulls in anywhere from a 20% to 50% profit margin for the iPhone, that's not a bad opening weekend.

Now, what can Sirius and XM learn about this?

[CRAVE]

Whether or not Sirius and XM are successful in merging, automakers are still betting on satellite radio as installations will rapidly increase over the next few years. It's a point wonderfully illustrated in a recent AutoWeek article.

By 2011, analysts say that 75 percent of vehicles sold in the U.S. and Canada will include satellite radios. And while the conversion rate will likely reduce as a result of the increased exposure, it will still be the main driver of subscriptions for both services.

Even today, it's estimated that one out of four new vehicles sold will have an activated satellite radio.

Patrik Borenius, Mercedes' manager of advanced product planning, says satellite radio has gone beyond being "a dealer-installed thing, where early adopters specifically asked for it."

"Two years ago, we started to make it standard and to package it because we saw such positive responses from both the dealer body and the customers," Borenius told AutoWeek.

As many as 80 percent of Mercedes owners choose to renew, Borenius says.

But that's not to say there isn't strong competition already growing, and more on the horizon. HD Radio is growing at a rapid pace, and more OEMs will undoubtedly choose to adopt the technology (like BMW and Mini already have). Future technologies like WiMAX and mobile audio integration are right around the corner.

And all these alternatives will have a direct impact of satellite radio's conversion rate. There's no doubt about that.

[AutoWeek]
Thanks Donald!

"Cabbie" - real name Lee Mroszak - was fired by Sirius Satellite Radio on Thursday after claiming that he had a Howard Stern sex tape. But Cabbie thinks he was really fired because of a lawsuit over a botched weight-loss product promotion.

Cabbie says he destroyed the tape Wednesday after talking to his biological mother, who hadn't seen him since giving him up for adoption as a baby.

"Howard helped me find my mother, and she said, 'What are you doing?' I'm a lot of things, but I'm not a [bleep]bag," Cabbie told Page Six. "I took the high road [by destroying the tape before it could be made public]. It was something I didn't want on my soul."

But when Cabbie appeared on the Opie & Anthony show recently (6-19), he didn't indicate at all that he had destroyed the tape, though he did say that he might throw it out. He also professed his independence from the Howard Stern show during the segment.

An Orbitcast reader sent in audio of Cabbie's appearance on the O&A show. You can listen to it here:

Cabbie claims the tape was given to about two years ago and said he could have sold the tape for a large amount of money. When asked to describe the alleged Stern sex tape, Cabbie told the Post, "It was Howard and a woman having sex at a place where rich people go to sun themselves. That's all I'm going to say." Oddly enough, this differs from the description Cabbie gave on the Opie & Anthony Show, where he describe the act being performed in an RV-like vehicle.

Regardless Cabbie, who was a DJ on Sirius' Faction (ch 28), claims on his website that he was fired over the $100 million lawsuit against Stern and Sirius. The lawsuit made by weightloss product i57 Ignite, charges Stern/Sirius with defamation after Howard said that Cabbie looked "fatter than ever."

[New York Post]