Orbitcast: July 2008 Archives

Commissioner Tate issues a (new) statement on Sirius-XM

July 31, 2008 11:19 AM | 21 Comments

It seems that the original statement sent out by the FCC wasn't the right one, and so Commissioner Tate has issued a new statement regarding the Sirius and XM merger.

This time around, Tate says that few decisions "have been more difficult" than the Sirius and XM one.

"As a strong supporter of free-markets and limited government regulation, I am predisposed to allow private companies the autonomy to make business decisions without the heavy hand of government regulation," said Tate.

"My personal office received hundreds of phone calls from individual citizens and organizations in at least 30 states," she added. "It seems that every segment of society has an interest in this merger."

[Read the full statement (PDF)]

21 Comments

Karmazin: "Hats off to the head of the NAB. We all owe him."

July 31, 2008 5:33 AM | 42 Comments

NAB's anti satellite radio merger banner

Sirius XM Radio Inc. chief Mel Karmazin mocked the National Association of Broadcasters head David K. Rehr in a recent appearance on the Opie & Anthony show, saying that their opposition to the merger might have had a part in its approval.

"We needed the broadcasters to be very aggressive in opposing the merger," said Karmazin [via FMQB].

"One of the things [NAB] did... is they put a banner on their building that said, 'Stop The Monopoly.' We took pictures of it and sent it to everybody who was on our list," said Karmazin.

"Our viewpoint was, the fact that they were doing it... they're not lobbying every merger that goes on, why would they care?"

"If we are a duopoly on our way to a monopoly, by definition, [terrestrial broadcasters] are not in that pie," added Karmazin. "Thank goodness for it and hats off to the head of the NAB. We all owe him. When we all get to toast this merger, I will be celebrating him first."

I think we all owe Mr. David Rehr a big round of applause, don't you think?

[FMQB]

42 Comments

Video: Mel Karmazin on CNBC talks Sirius XM Radio Inc.

July 30, 2008 2:31 PM | 24 Comments

Mel Karmazin, CEO of Sirius XM Radio Inc., continued his rounds today with an appearance on CNBC.

It's a good interview, nothing that we haven't heard before, but it's nice to hear it again. Main takeaway that Mel appears to be trying to push: This is now a strong company that is poised to take the marketplace by storm.

I like how he has pushed the fact that Sirius XM Radio is now the 2nd largest radio company in terms of revenue (next to Clear Channel) and the 2nd largest company in terms of subscribers (next to Comcast). Those are impressive soundbites to keep pushing hammering away at.

[Watch the video]

24 Comments

Audio: Mel Karmazin on Opie & Anthony

July 30, 2008 1:26 PM | 98 Comments

If you missed Mel Karmazin's appearance on The Opie & Anthony Show, it's now available online for your listening pleasure.

Check out more photos of Mel's appearance with O&A on Foundry Music (warning: some ads may be NSFW), or read a quick recap on Your Mom's Box.

Full audio available after the jump. Make sure you block off some time though, it's about 40 minutes...

98 Comments

Commissioner Tate comments on Sirius-XM merger

July 30, 2008 12:25 PM | 21 Comments

FCC Commissioner Deborah Taylor Tate has finally issued a statement (technically, two statements) on the now-approved merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Tate doesn't wax poetically about the merger like Commissioner Copps, her Democratic counterpart. Instead, she focuses purely on the Consent Decree and Sirius-XM's adherence to FCC regulations.

You can read her statements here: 1, 2 (PDF)

On a related note: there is a nasty rumor going around that the FCC is requiring XM to remotely shut down all SkyFi2 receivers, because of the wickedly powerful FM transmitters. That's completely false.

As part of the FCC's Compliance Plan (which will last for 5 years, and require reporting every 3 months), Sirius XM Radio Inc. is required to broadcast on-air notices about non-compliant radios, and will replace radios returned by customers with compliant devices.

[FCC.gov]

21 Comments

Miami Herald wants your opinion on satellite radio

July 30, 2008 10:39 AM | 8 Comments

With the Sirius and XM merger over, the Miami Herald wants to know if you think that satellite radio is worth the price of $13/month. Do you prefer free radio or is it worth paying for the premium programming that satellite radio provides?

Let's all take a minute and let the Miami Herald know what we think,

[Miami Herald]

8 Comments

Mel Karmazin to visit Howard Stern and Opie & Anthony shows

July 30, 2008 5:36 AM | 91 Comments

Mel Karmazin, CEO of the newly formed Sirius XM Radio Inc., will be making the rounds today with two of the leading talkers on the combined satellite radio company, reports FMQB.

His first stop will be on The Howard Stern Show, where I'm sure he'll answer many questions about the merger and how it will affect the fans.

Then Mel Karmazin is expected to make his way to The Opie & Anthony Show during the 9am ET hour. Since O&A's contract still hasn't been renewed, "fans should finally get the answers they have been looking for," writes FMQB.

[FMQB]
Thanks to everyone who sent this in!

91 Comments

Analyst maintains 'Buy' rating in middle of merger storm

July 29, 2008 11:49 AM | 61 Comments

In the midst of the merger storm, Citigroup has issued a report reaffirming its 'Buy' rating on ~~Sirius Satellite Radio~~ Sirius XM Radio Inc.

Citi analyst Tony Wible issued a research note this morning stating that the recent weakness in the stock is mostly attributable to technical issues ("convert issuance as well as arb trading").

But with the merger and financing now complete, Wible expects that the street will begin to "focus on the fundamentals underlying the business" and that those fundamentals are "better than expected."

Both Sirius and XM announced strong results recently, suggest that "the fundamentals of the business are holding up well despite the weak macro economic backdrop," the Citi analyst said. Wible added that management's guidance for synergies is "conservative" and the firm expects to see revenue synergies from "increased management focus" as well as the a la carte plans

61 Comments

Sirius and XM complete merger; New company name chosen

July 29, 2008 8:45 AM | 64 Comments

The merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. has finally closed, and the two companies are now one. But the question on millions of peoples' minds is: what will be the new company name?

Well, now after over 500 days, we finally know. The new name of the combined Sirius and XM will be: Sirius XM Radio Inc.

Yes, that's right. Sirius XM Radio. I hope that's not a surprise, because both services will need to continue operation for the foreseeable future. So it only makes sense, though it does feel slightly... uninspired.

The combined company's stock will continue to be traded on the Nasdaq Global Select Market under the symbol SIRI.

Based on revenue, Sirius XM Radio Inc. will be the second largest radio company, and with a combined 18.5 million subscribers, it is now the second largest subscription media business in the U.S.

"I am delighted to announce the completion of this exciting merger between Sirius and XM," said Mel Karmazin, CEO of Sirius XM Radio. "We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers."

"Every one of our constituencies is a winner. Combined, Sirius XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace," added Karmazin.

64 Comments

For Opie & Anthony fans, another clock is still ticking

July 28, 2008 9:29 PM | 132 Comments

While the clock awaiting approval for the Sirius-XM merger has finally stopped, another one continues to run down.

The Opie & Anthony Show has found itself in a precarious position with XM Satellite Radio as their contract is up for renewal and is set to run out in 65 days, reports FMQB.

To date, there has been no contact about O&A's deal being renewed. It's been thought that the hold-up in XM renewing the program was because of the pending merger, so that could change now that the FCC has voted to approve the Sirius-XM deal.

Still no news is bad news right now, and Sirius Satellite Radio Inc. CEO Mel Karmazin has repeatedly said he doesn't believe in sharing content with regular radio. The only thing for fans to do right now, is wait and see.

[FMQB]

132 Comments

Sirius, XM Merger: FCC announcement now official

July 28, 2008 4:08 PM | 79 Comments

It's officially official now. The Federal Communications Commission announcement on the merger approval of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. has officially been made public on the FCC.gov website.

Did I mention it's official?

You can read the announcement here, as well as statements from FCC Chairman Kevin Martin, Commissioner Copps, Adelstein and McDowell. Note, Tate's statement appears to be missing. (All links are PDFs.)

79 Comments

Comparing Sirius and XM Subscriber Numbers

July 28, 2008 9:35 AM | 62 Comments

Now that the merger is approved, this will be presumably the last time we can compare the subscribers number of between Sirius and XM. Interestingly enough, this is the first time in a long time that XM has outpaced Sirius in net subscriber additions.

Total Subscribers for Sirius and XM

The above graph shows total cumulative subscribers dating back to the fourth-quarter of 2001. It's neat to see Sirius' sharp growth curve has started to level out since late 2007. That's not to say that subscriber growth has stalled - hardly - but the shape of the curve is starting to bend.

Quarterly Gross Subscribers for Sirius and XM

Quarterly Gross Subscribers for Sirius and XM

The above column graph shows the quarterly gross subscriber additions between both Sirius and XM dating back to two-years. Note that XM lost marketshare in gross additions back in late 2006 by a significant margin (about 200k subscribers). But since then, the gap between the two companies has steadily narrowed.

In the first quarter of this year, XM regained its gross subscriber additional lead, but only by a slim margin. I think you can attribute this near-parity performance to increased penetration as OEM equipment in automobiles. That's both a great testament to the strength of the channel, and pretty scary thought about the dependency on a single industry.

Quarterly Net Subscribers for Sirius and XM

Now we look at the quarterly net subscriber additions between Sirius and XM, and here you can see that for the first time in a long time, XM has outpaced Sirius in net additions. Derive what you want out of that, but we're not talking about a significant margin here. The gap closed a lot in the first-quarter of this year, and then the tables turned this past quarter.

I'm not sure if we can draw any eye opening conclusions here, because from this point forward it's a totally different ball game. These are just historical numbers. The various programming packages - including A La Carte packages - interoperable radios, and soon-to-be-renegotiated content deals are going to alter how this landscape looks going forward.

Welcome to the new chapter.

62 Comments

Sirius subscribers rise over 8.9 million, loss narrows

July 28, 2008 7:41 AM | 30 Comments

Sirius Satellite Radio Inc. said revenue has increased 25 percent to $283 million, total subscribers have exceeded 8.9 million and adjusted loss from operations fell 70 percent.

According to its preliminary second quarter 2008 financial results, Sirius had 8.924 million subscribers, thanks to total gross subscriber additions of 1.029 million.

Retail subscribers increased 7% in 2Q08 to 4.677 million while OEM subscribers increased 53% year-over-year to 4.247 million. Sirius added 279,820 new net subscribers for the quarter, consisting of 246,221 from the OEM channel and 33,599 from the retail channel.

Average monthly self-pay churn rate was 1.6% for the quarter, down from 2.1% in first quarter 2008. Conversion rate is estimated to be approximately 48% for the second quarter, up from a conversion rate of approximately 47% in the first quarter of this year.

Total revenue for the quarter is expected to be approximately $283 million, an increase of 25% year-over-year. Operating expenses, excluding depreciation and stock based compensation, are expected to remain approximately flat in 2Q08 as compared to the same period last year. Second quarter 2008 adjusted loss from operations is expected to be approximately $24 million, an improvement of 70% from the adjusted loss from operations of $79 million in the second quarter 2007.

30 Comments

IT'S OFFICIAL: FCC approves Sirius-XM with 3-2 vote

July 26, 2008 7:13 AM | 289 Comments

Let's do this again, this time with gusto: The Federal Communications Commission has officially and formally approved the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

FCC Chairman Kevin Martin confirmed the final vote Friday night.

"I think it's going to be, in the end, a good thing for consumers and be in the public interest," Martin told The Associated Press.

FCC Chairman Kevin Martin said this in a statement:
"The merger is in the public interest and will provide consumers with greater flexibility and choices. Consumers will enjoy a variety of programming at reduced prices and more diversified programming choices. It will also spur innovation and advance the development and use of interoperable radios, bringing more flexible programming options to all subscribers."

"I am pleased that before acting on this merger, the Commission first finalized our enforcement proceeding against two companies that have flagrantly violated FCC rules and regulations," said Commissioner Tate in a statement.

Commissioner Adelstein couldn't help but to throw in a few jabs about the process of course.

"They kept each other on their toes," Democratic commissioner Jonathan Adelstein said of the two companies. "I hope they keep their edge and don't become a fat and happy monopoly."

The conditions haven't changed since we last presumed the final closure of the deal, it was simply a case of finalizing the process.

Congratulations everyone... I'm going to go sleep for a very, very long time now.

289 Comments

Wait, what's the holdup? Kevin Martin is, apparently

July 25, 2008 6:07 PM | 96 Comments

The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. has yet to be officially consumated, apparently because of a hold-up in a single vote on the consent decree.

So what's the hold up? FCC Chairman Kevin Martin is, according to reports.

A Broadcasting & Cable source said that Commissioner Tate wasn't planning to vote to approve the merger until the FCC enforcement action was taken. But Tate has already cast her vote for the decree along with Commissioner Robert McDowell.

Both of the commission Democrats, Copps and Adelstein, have not vote for the enforcement action yet either, according to a source. But they're already on record opposing the merger, so they are unlikely to do so anyway.

So that leaves Martin, who's still the missing vote.

All he needs to do is cast his vote to issue the consent decree, and the historically long merger review will finally be wrapped up. It's unclear what the hold-up is, and no one was available in the chairman's office to respond to B&C's inquires.

And so, into the weekend we go...

[Broadcast Newsroom]
Thanks voogru!

96 Comments

After FCC debacle, Stern says he will 'never vote for a Democrat again'

July 25, 2008 3:39 PM | 63 Comments

Following the obvious political posturing at the Federal Communications Commission, Howard Stern called the opposition to the merger "communism" and vowed to never vote Democrat again.

"I've voted Republican and I've voted Democrat," said Stern on the air. "I have vowed I will never vote for a Democrat again. I don't give a %#@% - no matter who they are."

Stern took it even further and called the Democrat commissioners "communists" and referred to their tactics as "gangsterism."

"The fact that these Democrats on the FCC are communists," Stern added. "They're for communism. They don't want to see companies... this is gangsterism."

[Business and Media]

Listen to the audio after the jump...

63 Comments

Lee Abrams gives hints to post-merger programming changes

July 25, 2008 1:23 PM | 58 Comments

Lee Abrams, former Chief Creative Officer at XM Satellite Radio Holdings Inc., gave some hints to the Wall Street Journal about possible programming changes that would occur post-merger.

While neither XM or Sirius will comment about programming changes, Abrams (who resigned from XM in March) gave WSJ a bit more color.

The bottom line: the lowest rated channels won't necessarily be the ones to go.

Channels that are unlikely to go are the ones that attract a small but particularly loyal audience, such as XM's "Fine Tuning," and Sirius' "Underground Garage" channel. Additionally, the companies can't ditch the French language channels la Route" on XM and "Premiere Plus" on Sirius thanks to programming agreements with the Canadian counterparts, says Lee Abrams, who is now the chief innovation officer at Tribune.

Instead, Abrams says that listeners can expect trims where there is obvious duplication, like traffic and weather channels, and classical music channels. Some low-ranking channels, such as XM's "National Lampoon Comedy," will probably disappear as well.

However, "you have to do it with a lot of dignity and respect for the listeners' feelings," Abrams told WSJ. He added that customer service reps will be trained so they know how to respond to angry callers.

[Wall Street Journal]

58 Comments

Tate's merger conditions revealed - Report

July 25, 2008 9:27 AM | 66 Comments

Mel Karmazin

A spokesman for the FCC has confirmed that there is an agreement in principle to approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

But the exact terms for FCC Commissioner Deborah Taylor Tate's approval of the deal were still unknown.

According to a source familiar with the negotiations, Tate asked for various other conditions on top of the $20 million fine:

A 3-year price freeze, but one that still allows the companies to pass through programming costs
A la carte and family-friendly programming offerings
Commitment to interoperable and open receivers
The 8% set-aside (24 channels) for noncommercial and commercial independent programmers.

That hardly seems like much of a difference from the companies' proposal, except for two changes, according to Broadcasting & Cable:

At Tate's urging, the deadline for making the receiver specs available for outside suppliers (i.e., Open Access) has been moved up to "immediately"
Interoperable radios will be available within nine months rather than a year.

XM and Sirius are said to have agreed with moving up the dates.

[Broadcasting & Cable via Orbitcast Forums]

66 Comments

Why did Adelstein flip-flop?

July 25, 2008 8:05 AM | 24 Comments

Jonathan Adelstein / David Rehr photoshop

Gino Lattarulo has an incredibly poignant article in SeekingAlpha discussing the disgusting flip-flop that Jonathan Adelstein displayed this past week over the Sirius and XM merger.

Lattarulo blasts Adelstein for his 6-year price freeze and HD Radio mandate proposals,both of which have the stench of the NAB all over them.

But it's his final point that I like the best:

"If after 18 months you have still have to back peddle and not stand behind your own decision, how can you possibly be trusted?" writes Lattarulo. "At least Commissioner Copps had the backbone to be decisive."

Well said Gino, and so true.

[SeekingAlpha]
Thanks to Nadeem for the David Rehr/Jonathan Adelstein photoshop!

24 Comments

DONE DEAL: Sirius-XM merger approved by FCC

July 24, 2008 3:17 PM | 138 Comments

Sirius, XM merger approved

The day is finally here. The Federal Communications Commission reached an agreement to conditionally approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., according to various reports.

The three Republicans on the five-member Commission have agreed in principle to vote in favor of letting the deal proceed as long as the companies agree to conditions to protect consumers and settle the FCC enforcement matters, Reuters reports.

"I think it's fair to say an agreement in principle has been reached," FCC Chairman Kevin Martin told the Wall Street Journal earlier today.

Martin explained to WSJ that XM received a higher fine because it kept its terrestrial repeaters in operation after being informed by the FCC that they were in violation. Sirius received a smaller fine because it had shut down its towers while waiting for FCC approval.

"That's a significant violation under our rules," said Martin. "Hopefully this is the last issue for us to move forward."

"I'm optimistic and hopeful that we will be able to move forward very quickly," Martin told Reuters.

Tate is expected to vote on the deal as soon as today. The FCC isn't expected to formally release its decision for a few days, as staff attorneys draft the final paperwork for review by the five commissioners.

[Wall Street Journal, Reuters]

138 Comments

Can the NAB really overturn the Sirius-XM merger?

July 24, 2008 11:34 AM | 39 Comments

A former trial attorney for the FCC has suggested that the NAB could attempt to overturn the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. - if officially approved - but is it really possible?

Orbitcast's discussions with an antitrust lawyer suggest that the chances are slim-to-none that the NAB can stop this.

Don't tell that to the NAB though. In a recent statement, NAB spokesperson Dennis Wharton said: "Given such overwhelming opposition, we're not convinced the final chapter of this book has been written." Suggesting that the NAB may already have an appeal in the works.

WSJ Deal Journal has more details on how the NAB could try to apply the brakes:

Appeal to the FCC by filing a petition, though the Commission is unlikely to second-guess itself, says Bryan Cave LLP lawyer Jerome Boros.
Push anti-deal legislation - odds are 500 to 1 that would happen according to Boros.
Take it to the US Court of Appeals, which was highlighted yesterday. This serves has the NAB's best chance, says Boros.

But does the NAB really have a case?

An antitrust lawyer, who asked to be identified as Mark S., told Orbitcast that an NAB suit would be frivilous. Since there was no appeal for the DOJ decision, and the time to do so has expired, then antitrust is not a concern. The NAB can call it a "monopoly" all they want, but the DOJ has determined that it's not one.

The only aspect that the NAB can challenge, according to the antitrust lawyer, is the license transfer itself and whether the FCC's decision was "in the public interest." This would be subject to a "arbitrary and capricious" standard - the most highly deferential standard there is and almost impossible to overcome - especially where the record is so volumninous and there is a split in the vote.

Finally, Mark disputes the notion that the decision wouldn't be delayed until a Democrat is in the Whitehouse. The only way to stop the decision would be with a restraining order and an injunction against the FCC from voting and approving. According to the antitrust lawyer, in the entire history of the FCC an injunction has never been issued against a ruling or decision of an administrative branch.

Only Congress can accomplish such a injuction, and it takes both House and Senate votes - and they're about to go on break for summer.

In other words, once Tate votes and the official tally is in: done deal.

39 Comments

Sirius and XM work to settle FCC Enforcement matters

July 24, 2008 9:02 AM | 57 Comments

XM Satellite Radio Holdings Inc. and Sirius Satellite Radio today confirmed that the companies are in discussions with the FCC Enforcement Bureau to settle outstanding enforcement matters.

In 2006, the FCC started investigations about the compliance of certain radios that include FM transmitters with the Commission's rules, and the compliance of certain terrestrial repeaters. The companies hope to enter into a Consent Decree with the FCC to terminate these inquiries.

As part of a possible Consent Decree, the companies expect to agree to:

A comprehensive compliance plan, and take steps to address any potentially non-compliant radios remaining in the hands of consumers
Shut down 50 of XM's variant repeater towers, and shut down or bring into compliance an additional 50 variant terrestrial repeaters
Bring into compliance or shut down up to 11 of Sirius' variant terrestrial repeaters (these were already shut off in October 2006)
Make a voluntary contribution to the U.S. Treasury of approximately $17 million from XM, and approximately $2 million from Sirius.

The companies say that there can be no assurances regarding the ultimate outcome of these enforcement proceedings, including whether the FCC will approve Consent Decrees under discussion with the companies.

57 Comments

NAB could still appeal Sirius-XM merger decision

July 23, 2008 6:21 PM | 85 Comments

FCC Commissioner Deborah Taylor Tate's presumed vote in favor of the Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. merger may not bring an end to the 17-month merger debacle.

According to a former trial lawyer for the FCC, the National Association of Broadcasters (NAB) can still file an appeal in an attempt to delay the process even further.

"The merger may be approved, but it's not over until it's over," Jerome Boros, a partner with Bryan Cave LLP who formerly served as a trial lawyer for the FCC, told MarketWatch. "Among several things that could still happen; the NAB could file an appeal with the D.C. Court of Appeals."

The U.S. Court of Appeals for the D.C. Circuit has the power to block the FCC's decision - that is, if it sees grounds to do so, according to Boros.

But blocking the deal may not be the strategy, delaying it might be enough.

"The idea behind an appeal is that it would buy time," he said. "If the Democrats win the presidency in November, you'd have to figure Martin would be out and you could have a Democratic majority on the FCC."

[MarketWatch]

85 Comments

Report: Tate to approve Sirius-XM with $20M fine

July 23, 2008 2:46 PM | 149 Comments

FCC's Deborah Tate (talking to David Rehr!) Commissioner Deborah Taylor Tate is expected to approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. in exchange for a consent decree, according to the Wall Street Journal.

According to FCC officials close to the negotiations, Tate will sign off on the deal in exchange for a $20 million fine that resolves several enforcement issues involving the satellite radio companies.

Tate also has asked for other minor conditions, an FCC source said, though exact details are not known.

[Wall Street Journal]
Thanks Peter!

149 Comments

Report: Tate near agreement in favor of Sirius-XM deal

July 23, 2008 1:21 PM | 69 Comments

Reuters is reporting that FCC Commissioner Deborah Taylor Tate is nearing the necessary vote of approval for the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

According to a source familiar with the matter, FCC Chairman Kevin Martin is near an agreement to get the support of Tate, effectively greenlighting the merger.

Tate's vote would give Martin the three votes needed to approve the deal.

[Reuters]

69 Comments

Adelstein votes against Sirius-XM merger

July 23, 2008 11:57 AM | 67 Comments

Mel Karmazin and Jonathan Adelstein

FCC Commissioner Jonathan Adelstein has withdrawn his offer presented last week and voted against the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., report The Associated Press.

Adelstein sought futher conessions last week - including a 25% set-aside and a 6-year price freeze - but failed to draw support on his proposals.

This means the fate of the Sirius-XM merger now lies with Republican member Deborah Taylor Tate.

Interestingly, Adelstein may have hinted towards the direction that Commissioner Tate is leaning, when he released this statement today:

"I was hoping to forge a bipartisan solution that would offer consumers more diversity in programming, better price protection, expanded choices among innovative devices and real competition with digital radio," Adelstein wrote. "Instead, it appears they're going to get a monopoly with window dressing. We really missed a great opportunity to reach a bipartisan agreement that would have benefited the American people."

Adelstein seems to be speaking as if approval is inevitable.

[AP]
Thanks Pete & Robert!

67 Comments

Sirius NFL Radio Training Camp Tour kick off

July 23, 2008 11:26 AM | 14 Comments

Sirius Satellite Radio will kick off its 4th annual Sirius NFL Radio Training Camp Tour featuring live on-site broadcasts from all 32 NFL team training camps, plus the 2008 Hall of Fame Induction Ceremony.

Over a three week period - July 26th to August 14th - Sirius NFL Radio hosts will broadcast live on location from all 32 NFL training camp sites around the country. Sirius' NFL insiders will provide an expert look at every team, interview players, coaches and franchise executives, and will evaluate everything from the performances of fresh-out-of college rookies to the intense head-to-head competitions for starting roles.

All shows will air on Sirius NFL Radio (ch 124).

On Saturday, July 26th, the tour launches with back-to-back shows from the training camps of the New York Jets and the World Champion New York Giants. Former NFL defensive lineman Tim Ryan and longtime NFL front office executive Pat Kirwan will provide a first look at the defending Super Bowl champs when they host The End Zone live (2-6pm ET) from the Giants' camp at the University at Albany in upstate New York.

Immediately before The End Zone, veteran Sirius personality Adam Schein and former NFL lineman Ross Tucker will host The Sirius Blitz live (11am-2pm ET) from the Jets' camp at Hofstra University in Hempstead, NY.

In addition to Ryan, Kirwan, Schein and Tucker, other Sirius hosts featured on the tour will include Gil Brandt, the longtime Pro Personnel exec for the Dallas Cowboys, former players Randy Cross, Shannon Sharpe, Solomon Wilcots and Jim Miller, former NFL coach Dean Dalton, plus NFL experts Vic Carucci, Zig Fracassi, Howard Balzer, Paul Allen and Steve Cohen.

Check out the full schedule and a neato interactive map here.

14 Comments

Jean Chatzky to air 'Recession Busting 101' two-hour special

July 23, 2008 8:03 AM | 31 Comments

Jean Chatsky

Oprah & Friends host and financial expert Jean Chatsky will be providing personalized advice for consumers in financial crisis on a special two-hour episode on her XM Satellite Radio show.

"Recession Busting 101," will air today July 23rd from 10am - 12 noon ET on XM's Oprah & Friends (ch 156) channel.

Listeners can call in live to 866-OPRAH-XM to ask their most pressing financial questions on everything from 401Ks to reverse mortgages to debt reduction strategies, and more.

In recent months Chatzky's daily show has seen a steady increase in the number of inquires from listeners voicing their concerns about gas prices, rising interest rates and cost of living increases. To accommodate the overwhelming interest, the "Recession Busting 101" special will be dedicated solely to listener calls for the full two hours.

I wonder if she'll have a hotline for XMSR/SIRI shareholders?

31 Comments

Report: Adelstein, Tate call for fines for Sirius-XM

July 22, 2008 6:29 PM | 94 Comments

Deborah Taylor Tate has been pushing the FCC Enforcement Bureau to fine both XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., reports The Deal citing people close to the Commissioner.

Now Democratic commissioner Jonathan Adelstein has expressed his own concerns about violations by the satellite radio providers. Adelstein says that he wants the Commission to finish the enforcement proceeding before it approves the merger.

"We always do major enforcement issues first in major transactions before us, and I appreciate [Commissioner] Tate's focus on that," Adelstein told reporters. "There are major infractions of FCC rules on a wide-spread scale."

Those "major infractions" include:

1. Receivers that have FM transmitters that exceed FCC limits.
2. Repeater towers that either aren't in FCC approved locations or are emitting signals that are too strong.
3. Additionally, the WSJ Deal Journal reports that the issue of interoperable not getting to market is a concern.

Tate reportedly is considered to have similar enforcement concerns. Oddly enough, these concerns mimic those made by the NAB.

Adelstein reiterated his position for an independent committee to monitor compliance, adding that he hoped it would be similar to the Federal Trade Commission which employs independent review trustees to oversee merger conditions.

[The Deal via WSJ Deal Journal]

94 Comments

Report: Copps votes against Sirius-XM merger

July 22, 2008 2:07 PM | 78 Comments

FCC Commissioner Michael Copps According to the Wall Street Journal, FCC Commissioner Michael Copps has voted against the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

The Democratic commissioner voted against the deal Monday night, an FCC official told the Journal.

While Copps's decision isn't a surprise, the decision now increases pressure on FCC commissioner Deborah Taylor Tate.

Additionally, WSJ reports that "very little haggling has been going on" over Adelstein's offer, one FCC official said.

[Wall Street Journal]
Thanks to everyone who sent this in!

78 Comments

HD Radio goes portable

July 22, 2008 1:05 PM | 48 Comments

HD Radio will be reaching a significant and momentous milestone this August: portability. If there's ever a reason to "upgrade" to HD Radio, this has got to be it.

Enter the COBY HDR-700, a fully portable HD Radio tuner with integrated speakers. This baby can run completely on its rechargeable batteries for a full 5-hours at a clip. Combine that with the splash-proof housing (convenient for outdoor use), and the high-contrast LCD display (with backlight), and you'll be enjoying pure ~~high-definition~~ (oops) digital radio anywhere you want to go.

The cost for this technological wonder? Just a mere $150.

The COBY HDR-700 will debut in August, right the midsts of HD Digital Radio Alliance's whopping $57 million, 13-week radio marketing blitzkrieg telling consumers to "upgrade" to HD.

Here's a thought for the FCC: while we're pondering a mandate to force HD Radio chips into Satellite Radios, why not require the HD Digital Radio Alliance to return the favor? Give Sirius-XM a piece of the advertising budget. Let's say, 25%.

It's only fair.

48 Comments

RIAA meets with Commissioner Tate

July 22, 2008 9:40 AM | 30 Comments

The Recording Industry Association of America (RIAA) met with FCC Commissioner Deborah Taylor Tate last week to discuss the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Mitch Bainwol, the Chairman and CEO of the RIAA, and Steven Marks, RIAA Executive VP and General Counsel, held a telephone conversation with Commissioner Tate on July 17th, according to a recent filing.

The RIAA discussed their "concerns with the merger and its impacts on the recording industry" as well as some recent conversations with Sirius about them. The RIAA was sure to highlight that Sirius failed to respond to the RIAA about those "concerns."

[Read Filing (PDF)]

30 Comments

XM earnings rise nearly 15 percent

July 22, 2008 6:10 AM | 22 Comments

Revenue for XM Satellite Radio Holdings Inc. rose nearly 15 percent year over year to $318 million in the second quarter, the company said today.

As announced yesterday, XM's subscribers grew 17 percent to 9.65 million for Q2, compared to 8.25 million subscribers at the end of second quarter 2007. Net OEM subscriber additions of 360,000 more than offset the loss of 38,000 net retail subscribers.

Second quarter 2008 adjusted operating loss narrowed to $37 million, compared to a loss of $47 million in second quarter 2007. XM's second quarter 2008 net loss improved to $120 million, compared to a second quarter 2007 net loss of $176 million.

In 2Q08, XM's subscriber acquisition costs (SAC) improved year-over-year to $65, compared to $75 in the period last year. Cost per gross addition (CPGA) came in at $100 and down from $121 in the second quarter 2007.

XM reported that Q208 conversion held at 53.4 percent, compared to second quarter 2007 conversion of 52.7 percent. Second quarter 2008 churn improved to 1.67 percent, compared to second quarter 2007 churn of 1.84 percent.

Full financials after the jump...

22 Comments

Mel Karmazin, Gary Parsons, Nate Davis met with FCC

July 21, 2008 6:48 PM | 70 Comments

Discussions continue to heat up with FCC Commissioners over the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., only this time top executives from both companies were present.

On Thursday, July 17th, Sirius CEO Mel Karmazin met with Commissioner Jonathan Adelstein to discuss the conditions and objections to the merger. Karmazin also discussed possible modifications to the voluntary commitment letter previously filed by Sirius-XM.

On the same day, representatives from Sirius and XM met with Commissioner Deborah Taylor Tate and Amy Blankenship to discuss the merger as well as matters pending before the Enforcement Bureau.

Also on July 17th, XM chairman Gary Parsons and CEO Nate Davis, alongside others from XM and counsel for Sirius. met with Catherine Bohigian, Chief of the Office of Strategic Planning and Policy Analysis.

[View FCC Filings: 1, 2, 3 (PDF)]

70 Comments

ABBA Radio continues on Sirius

July 21, 2008 5:55 PM | 14 Comments

Due to popular demand, Sirius is extending its ABBA Radio channel through July 25th, the company said today.

The limited engagement channel launched on Sirius on July 7th in celebration of the release of MAMMA MIA! The Movie. The film, released in North America on July 18th, set a record for the strongest debut of a musical, earning an estimated $27.6 million at the box office.

ABBA Radio (ch 3) will continue to feature celebrity fans sharing their favorite ABBA music and personal stories, including stars from MAMMA MIA! The Movie.

The exclusive channel run has also featured guest deejay sessions by Martha Stewart, singer Dionne Warwick, New York Rangers goalie Henrik Lundqvist, Neil Sedaka, songwriter Desmond Child, Randy Jones of The Village People, among many others.

14 Comments

Adelstein wants "independent monitor" for Sirius-XM deal

July 21, 2008 11:19 AM | 61 Comments

FCC Commissioner Jonathan Adelstein said Friday that he wants an "independent monitor" to ensure that Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. comply with the agency's conditions if they are allowed to merge.

The Commissioner said this in the Bloomberg Television interview late last week.

Adelstein, one of two Democrats on the five-member FCC, said he hopes to meet with the two companies ~~next~~ this week.

61 Comments

XM surpasses 9.6 million subscribers

July 21, 2008 6:26 AM | 30 Comments

XM Satellite Radio Holdings Inc. surpassed 9.6 million subscribers in the second quarter of 2008, marking the fifth consecutive quarter of record OEM gross additions.

XM added 322,000 new net subscribers in the second quarter of 2008 for a total of 9,653,000 subscribers, that's a 17% increase in subscribers since the end of the second quarter of 2007.

Total gross additions for the quarter came in at 1,081,000 - that includes a record 857,000 gross additions from the automotive (OEM) sector - the fifth consecutive quarter of record OEM gross additions. Retail gross additions were 224,000 for the quarter.

Churn also improved in Q208 to 1.67 percent. Compare that to both second quarter 2007 churn of 1.84 percent and to first quarter 2008 churn of 1.77 percent.

XM also said that subscription revenue for second quarter 2008 is expected to be in the range of $283 - $288 million, and that adjusted operating loss is expected to be in the range of $32 - $38 million (excluding the impact of any FCC settlement). Conversion rate for promotional subscribers is expected to be in the range of 52.7 percent to 53.4 percent.

30 Comments

Sirius-XM merger costs approach $100 million

July 20, 2008 10:16 AM | 60 Comments

The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc has collectively cost the companies at least $69 million, according to filings with the SEC.

XM disclosed expenses through the end of 2007 totaling to $29.5 million. Sirius on the other hand disclosed merger-related expenses amounting to $29.4 million, and just over $10 million through the end of March.

Of course, the NAB has something to say about this.

"Given the satcasters' exorbitant spending reported so far, it is well within reason to assume their combined merger-related expenses are approaching 100 million dollars," said NAB's Dennis Wharton.

"From the beginning, we knew XM and Sirius would say anything to gain blessing for a government-sanctioned monopoly, despite their years of brazenly abusing FCC rules," Wharton added. "Now we know they will spend anything as well. But they are also finding that government-sanctioned monopolies apparently don't come cheap."

The NAB obviously ignores the fact that this merger has extended on for an astounding 17 months, but that doesn't make for good PR-spin, now does it?

[Radio Online]

60 Comments

Video: FCC Commissioner Adelstein speaks

July 19, 2008 2:04 PM | 86 Comments

Bloomberg News featured an in depth interview with FCC Commissioner Jonathan Adelstein about the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings INc. yesterday.

One interesting note: Adelstein cites the proposals made by DirecTV-EchoStar, back when they tried to merge, as the reason for asking that Sirius-XM provide 25% of spectrum for non-commercial/minority use.

It's a good interview, and highly recommended.

[Watch Video]

86 Comments

Spotted: XM at MLB All-Star FanFest

July 19, 2008 10:15 AM | 3 Comments

XM was all over the MLB All-Star Game in New York this past week, including the All-Star FanFest at the Javits convention center in Manhattan.

The MLB Home Plate (ch 175) channel played host to a long line of baseball stars and legends, including Hall of Famers George Brett and Whitey Ford, who taped episodes of "Baseball Confidential" in front of live crowds. Lots of other XM channels broadcast from the site, even the POTUS '08 presidential election channel, which mixed sports and politics with sportswriters and politicos.

The last XM show from Javits was "60/20 Sports" with James Carville and Luke Russert, who did double-duty on the POTUS channel, then hopped over to his own show to interview Bob Costas and Greta Van Susteren, then walked out onto the field at Yankee Stadium with his mother Maureen Orth for a pre-game tribute to Luke's late father Tim, in recognition of his support and advocacy for baseball.

Quite a week.

POTUS: Luke Russert and Joe Mathieu

Pictured: Luke Russert (right) talks about the drive to get young people to register to vote with POTUS '08 host Joe Mathieu.

Check out more photos after the jump...

3 Comments

XM to air the ESPYs, plus exclusive Red Carpet Specials

July 18, 2008 12:54 PM | 25 Comments

Danica Patrick XM will air the 2008 ESPYs award show in cooperation with ESPN this Sunday night. No, this has nothing to do with the merger.

The show will be simulcast on XM from 9-11pm ET, and XM will also air pre- and post-awards specials produced by ESPN exclusively for listeners. ESPN Radio's Jason Smith hosts the XM specials 8-9pm and 11-midnight ET from the red carpet at the Nokia Theatre L.A. LIVE, the entertainment complex in downtown Los Angeles.

XM's coverage of The ESPYs will air nationwide on ESPN XTRA (ch 141).

If you're wondering about the photo, as you should be, one of the ESPYs presenters is XM host (and history-making race car driver) Danica Patrick. So I see that as more than enough reason to post another photo of this upstanding radio journalist/athlete.

Hosted by Justin Timberlake, the 2008 ESPYs bring celebrities from sports and entertainment together to commemorate the past year in sports by recognizing major sports achievements and honoring the leading performers and performances.

25 Comments

Meetings with Commissioner Tate heat up

July 18, 2008 10:55 AM | 62 Comments

FCC's Deborah Tate talking to NAB's David Rehr

This Tuesday was a busy day for FCC Commissioner Deborah Taylor Tate. Not only did she meet with Sirius and XM, but she also met with various terrestrial radio parties, including Clear Channel, the NAB and Entercom.

On July 15th, Mark Mays CEO of Clear Channel Communications, Inc. met with Commissioner Tate, according to a recent filing. Mays expressed "concerns" regarding the Sirius-XM merger, and "reiterated the importance of reducing the risk" of stifling HD Radio's growth.

Representatives from the NAB also met with Tate on the same day, as well as with Tate's Legal Advisor Amy Blankenship, Commissioner McDowell, and his legal advisors, Angela Giancarlo and Cristina Chou Pauzé. The NAB also spoke on the telephone with Wayne Leighton of Commissioner Deborah Taylor Tate's office that day, according to various filings.

Finally, Entercom Communications Corp. CEO David J. Field met on phone with Commissioner Tate and Amy Blankenship - urging the Commissioner to vote against the merger.

[Read FCC Filings: 1, 2, 3, 4 (PDF)]

62 Comments

Sirius, XM meet with Tate and Martin's offices

July 18, 2008 8:34 AM | 32 Comments

Representatives for Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. were engaged in separate meetings with various officials from the Federal Communications Commission, according to a recent FCC filing.

On Tuesday, Sirius-XM met separately with:

FCC Commissioner Deborah Taylor Tate and Amy Blankenship, legal advisor to Commissioner Tate
Daniel Gonzalez, Chief of Staff to Chairman Kevin Martin, and Elizabeth Andrion, legal advisor to Chairman Martin

In both meetings, the parties discussed "pending issues raised in recent filings... including matters pending before the Enforcement Bureau."

Let's just hope that the discussions with Commissioner Tate included merger requirements that are slightly more reasonable than Adelstein's.

[Read Filing (PDF)]

32 Comments

Analysts: Conditions "onerous" but won't kill Sirius-XM deal

July 17, 2008 6:50 PM | 43 Comments

Responding to Commissioner Adelstein's stronger conditions for approval of the Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. merger, analysts say the demands won't derail the deal.

"These do seem to be onerous additional conditions," said Miller Tabak analyst David Joyce told the Associated Press. "I don't think Sirius will walk away. I think they will still work on negotiating the conditions."

Joyce said Adelstein's requirements would be easier for Sirius-XM if they are compensated for setting aside the 25% of capacity as asked.

"Six years sounds a little egregious, depending on what conditions Sirius are attached," said Kit Spring, an analyst at Stifel Nicolaus & Co. Still, Sirius "may be amenable if it's a price freeze with a certain inflationary adjustment."

Spring said if the companies agree not to raise prices for six years, he would have to reduce his projecting $5 billion in annual savings and synergies.

Unsurprisingly, Adelstein's requirements echo those of Rep. Markey, the influential Democrat who coincidentally asked for similar concessions from the FCC on Tuesday. Apparently it's all politics afterall.

[CNN Money]

43 Comments

Report: Adelstein to approve merger if new conditions are met

July 17, 2008 3:59 PM | 111 Comments

Johnathan Adelstein

The Associated Press is reporting that FCC Commission Jonathan Adelstein will vote in favor of the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. if the companies agree to certain additional conditions.

Adelstein wants the companies to cap prices for six years and make one quarter of their combined spectrum available for public interest and minority programming, among other conditions.

If the Sirius-XM agree, Adelstein told the AP that he will be in favor of the deal.

"It's critical that if we're going to allow a monopoly, that we put in adequate consumer protections and make sure they're enforced," Adelstein said. Adelstein circulated his recommended conditions among the other four commissioners Thursday.

[CNN]

111 Comments

Will the iPhone disrupt radio?

July 17, 2008 2:01 PM | 43 Comments

iPhone

Will the iPhone disrupt radio? That's what new media gurus Steve Rubel and Jeff Jarvis think, and I tend to agree (to a point).

Just the fact that Pandora is the fourth most popular free app on the iPhone (next to Apple's remote, AIM, and weather) is evidence enough that there's a strong interest in streaming audio.

Bear in mind that Steve, Jeff, et al. are literally on the bleeding edge of this stuff. We're still a ways away before the general public hops on board, but maybe not that far. If there was ever a time when the industry had a crystal ball and could predict the future, this is it.

The question is, how do you respond to this threat? I've got some ideas that I'll voice soon - what are yours?

43 Comments

NPR wants more conditions in Sirius-XM merger

July 17, 2008 10:41 AM | 61 Comments

National Public Radio (NPR) is continuing the assault by terrestrial broadcasters in opposing the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

In a letter sent to FCC Chairman Kevin Martin earlier this week, NPR called for an HD Radio capability mandate and 25% of the spectrum to be reserved for non-commercial programming - as opposed to the 8% proposed by the companies.

NPR, which is also carried on Sirius, touted that public radio has been at the forefront of HD Radio broadcasting and "a merger condition requiring the inclusion of HD Radio technology in all new satellite receivers would ensure a competitive market for digital terrestrial broadcasting, while preventing monopolistic market forces from squeezing out this growing service."

As for the spectrum set-aside requirement, NPR CEO Dennis Haarsager said, "Reserving an appropriate percent of the satellite radio spectrum for programming from non-commercial public and minority broadcasters will contribute to the multiplicity of voices that is an inherent component of the dialogue of America's democracy."

[FMQB]

61 Comments

Guess what's not on the FCC's Open Meeting Agenda?

July 17, 2008 6:06 AM | 20 Comments

The Federal Communications Commission has released the tentative agenda for its August 1st Open Meeting... and guess what's not on it? If you guessed the Sirus-XM merger, give yourself a cookie.

Martin said last week that he didn't expect the vote on the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. to come at the Open Meeting, but some folks still were hopeful. I'm actually not even sure where anyone got the notion that an Open Meeting vote was even in order for the merger. This vote will be behind closed doors. Let's just hope it happens before August.

Anyway, if you're interested in what will be discussed:

Comcast: A Memorandum Opinion & Order that addresses Comcast's network management practices.
Regulatory Fees: A Report & Order concerning regulatory fees for Fiscal Year 2008 and a Further Notice of Proposed Rulemaking seeking comment on regulatory fee issues.
Verizon Wireless/RCC: A Memorandum Opinion & Order and Declaratory Ruling considering the transfer of control of licenses and authorizations from Rural Cellular Corporation to Verizon Wireless.

Until then...

20 Comments

NAB attempts to rescue C3SR

July 16, 2008 10:27 PM | 23 Comments

NAB President David Rehr attempted to come to the rescue of fellow anti-merger organization C3SR in a recent letter to the Federal Communication Commission.

Rehr particularly took offense to the notion that the FCC has reportedly elected not to enforce the interoperability requirement, or disregarded C3SR's claims of a lack of candor by Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

"This position could not be more inaccurate," writes Rehr in a letter to the FCC's General Counsel.

The NAB questions whether Sirius-XM "can be relied upon to follow through on any promises they make with regard to the alleged consumer benefits of the proposed merger."

"If the merged entity cannot be relied upon to comply with these promises, grant of a merger based upon these commitments would be a sham," wrote Rehr.

The word "candor" is mentioned 13 times in the letter, usually accompanied by the words "lacked" or "lack of." One would guess that David Rehr is suggesting that Sirius-XM, lack, candor? I think we get it Rehr.

[Read Letter (PDF)]

23 Comments

Kermit and Fozzie to guest DJ on Sirius

July 16, 2008 7:49 PM | 37 Comments

Sirius will be handing the reins of an entire channel over to famed film and television stars Kermit the Frog and Fozzie Bear, beginning this Friday.

Kermit and Fozzie will guest deejay on Sirius' Kids Stuff (ch 116) channel for an hour, personally introducing their own songs and will also play some of their favorites.

It's all to celebrate the recent release of The Muppet Show - The Complete Third Season on DVD. Tune in nextFriday, July 25th at 3pm and 7pm ET to hear the muppet madness.

Don't worry, there will be plenty of encores, like the following Saturday, July 26th at 8am, 12pm, 6pm; Sunday, July 27th at 10am and 10pm; and Monday, July 28th at 9am and 5pm (all times Eastern).

37 Comments

Yankees team doc talks groin injuries on Sirius' Doctor Radio

July 16, 2008 11:18 AM | 27 Comments

Earlier this summer New York Yankees catcher Jose Molina and Arizona Diamondbacks catcher Chris Snyder both suffered groin injuries on the same night. Molina was hit in the groin with a fastball while Snyder caught a foul tip and fractured his left testicle (yeesh).

This week on the men's health show on Doctor Radio, hosts Dr. Samir Taneja and Dr. Andrew McCullough welcome Yankees Team Physician Dr. Stuart Hershon to discuss some of the latest nasty testicular sports injuries - including the cases of Molina and Snyder.

Groin injuries are common in baseball and so you have to ask the question: is that protective cup doing anything? With balls flying (no pun intended) at 80mph, isn't there a better way to protect the twig and berries? McCullough and Herson will discuss as well as take calls from listeners.

Cross your legs and tune in to Doctor Radio (ch 114) tonight, July 16th at 6pm ET/3pm PT for this groan-inducing episode.

Dr. Andrew McCullough is an assistant professor at NYU Langone Medical Center, the director of NYU's Male Sexual Health and Fertility program, and was a principle investigator into the development of Viagra. Dr. Samir Taneja is the director of Urologic Oncology in the Department of Urology at NYU. Every week they explore a wide variety of general and sexual health issues affecting men of all ages.

(Photo credit: Flickr)

27 Comments

Hispanic broadcaster applauds Martin on Sirius-XM proposal

July 16, 2008 8:23 AM | 58 Comments

A non-profit, charitable Hispanic educational organization has applauded FCC Chairman Kevin Martin's proposal for a public interest set-aside in the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

The Hispanic Information and Telecommunications Network (HITN), an organization dedicated to promoting educational opportunities for Hispanic Americans, said the importance of the Chairman's proposal "should not be overlooked" in a letter to Martin.

HITN formed HITN-TV, the first and only Latino managed and controlled public interest TV network - which is available in over 30 million U.S. households through DirecTV, Dish Network, Comcast Cable, Time Warner Cable, and Charter Communications.

"For HITN-TV, the DBS set-aside has permitted out network to service the educational needs of Spanish language households as well as provide a glimpse into the rich, diverse interests and culture of Latino America for all viewers," wrote HITN.

"A public interest set-aside for satellite radio would afford the same opportunity for non-profit broadcasters like HITN-TV to provide non-commercial content to listeneres and to offer new, fresh or alternative perspectives to what is available through major consolidated media outlets."

HITN went on to urge the FCC to ensure that capacity for public interest channels are reserved for "truly non-profit entities" and there should be no cost for carriage for the non-profits.

"I applaud the Chairman for introducing the concept of public interest and minority programming set-asides to satellite radio," HITN concluded. "It is a good idea which should be built upon and implemented in a way that ensures that independent, minority, and public interest voices have a chance to be heard."

So, how is it that an established public interest network can see the value in Martin's proposal, while an inexperienced, unestablished organization like Georgetown Partners can't?

[Read Letter (PDF)]

58 Comments

Rep. Markey urges more conditions on Sirius-XM merger

July 15, 2008 9:36 PM | 64 Comments

Representative Edward Markey (D-MA) said the FCC should go beyond the requirements that Chairman Kevin Martin has proposed for the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Markey, who is chairman of the House Subcommittee on Telecommunications and the Internet, wrote in a letter to Martin on Tuesday urging the agency to require that all new satellite radios be built to receive HD Radio.

The Congressman also said the FCC should extend the price caps to six years and increase the number of channel set-asides.

Markey claims these conditions are necessary to protect consumers and to help ensure that terrestrial radio remains a viable business.

"Only through such a mandate will the commission adequately ensure that competition in digital radio services is as robust as possible and that free, over-the-air radio remains a vibrant marketplace alternative for consumers well into the future," Markey wrote.

Edward Markey is the third longest serving member of Congress from New England, since 1976, behind Ted Kennedy and Patrick Leahy.

[Reuters]

64 Comments

NAB argues against Sirius-XM spectrum lease

July 15, 2008 6:40 PM | 32 Comments

David K. Rehr of the National Association of Broadcasters has argued to the FCC that the lease of spectrum as a requirement for the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. is against the public interest.

In a letter to FCC Chairman Kevin Martin yesterday, NAB president David Rehr writes that any manditory lease - even half of Sirius-XM's spectrum - would "raise more problems than it could ever correct."

Rehr argues that Sirius-XM would "improve its system features and services through the deployment of new radios" while leaving the lessee behind with old hardware. Yet, Rehr's assumption seemingly ignores the entire Open Access provision in Kevin Martin's proposal, which would facilitate the development of receivers separate from Sirius-XM.

The NAB President also suggests that proposals for a free satellite radio service, like that of Georgetown Partners, would require an entirely additional rulemaking proceeding.

Overall the letter seems hurried and unfocused, lacking any real substance. Though, that's pretty much par for the course for Mr. Rehr, isn't it?

[Read Letter (PDF)]

32 Comments

XM updates channels for XM Radio Online and DirecTV

July 15, 2008 7:41 AM | 44 Comments

XM has updated the channel lineup for its XM Radio Online internet radio service and the channels that play through the DirecTV offering.

Starting today, XM Radio Online has added on an expansive offering including Radio Disney, BBC World Service, CNN, C-Span Radio, FOX News Talk, ESPN Radio, NHL Home Ice, PGA TOUR Network, and XM Sports Nation.

At the same time, gone from the XM Radio Online channel lineup are The Torch, Special X, Fuego, Luna, Music Lab, The Flow and On the Rocks. DirecTV will also no longer air The Torch, Special X, Fuego and Luna. These channels haven't been on the satellites for years.

It seems as if XM is attempting to make it's online offering more in-line with its satellite-based offering (though The Agenda, Ngoma and World Zone still survive on XMRO). This could be an attempt to cut costs, both in programming as well as in costs associated to royalty fees to SoundExchange. Or it might be in preparation for a new device with internet radio capabilities, though that's purely dreams and speculation.

Whatever the reasons, the new channels to XM Radio Online are definitely a huge improvement.

44 Comments

XM signs on BB King

July 14, 2008 7:50 PM | 24 Comments

BB King is planning to host his very own weekly blues show for XM. So in anticipation of King's hosting debut, today XM relaunched its blues channel "Bluesville" as "BB King's Bluesville."

Starting in September, BB King's weekly program will feature a wide range of blues and gospel music hand-selected by the legend, along with stories about the artists and other personal anecdotes from his epic career.

Riley B. King - better known as B.B. King - was born September 16, 1925, on a plantation in Itta Bene, Mississippi. In his youth, he played on street corners for dimes, and would sometimes play in as many as four towns a night. In 1947, he hitchhiked to Memphis, TN, to pursue his music career. And for more than 60 years, B.B. King has defined the blues for a worldwide audience.

"I love the blues and am looking forward to sharing my passion, stories and my favorite music with all the folks who listen to XM, one of the few places where the vibrant sounds of the blues still thrives," said B.B. King.

24 Comments

Analyst: Sirius-XM merger is "finally at hand"

July 14, 2008 6:29 AM | 41 Comments

Cowen & Company analyst Tom Watts predicts that the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. is in the final countdown stages and that approval is at hand.

In a research note issued this morning, Cowen & Co. wrote that after multiple delays the Sirius-XM merger "is finally at hand and should occur by the end of this month."

Additionally, Watts predicted that FCC Commissioner McDowell could announce a vote in favor of the deal "any day now" confirming last week's reports. With Commissioner Tate out of the country this week, Watts expects that the third and final vote will come on the week of July 21st, which coincides with Orbitcast's own information that staffers asked to have that period blocked off.

Cowen & Co. maintains their Outperform rating on both SIRI and XMSR.

41 Comments

Report: McDowell has voted in favor of merger; one more vote needed

July 11, 2008 6:49 PM | 125 Comments

FCC

FCC Commissioner Robert McDowell has voted with Martin to approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., according to a Dow Jones report.

The report cites a person with knowledge of McDowell's vote.

Dow Jones is also reporting that people close to the talks say the fate of the deal lies with Republican Commissioner Deborah Taylor Tate. They feel the two Democrats on the FCC - Jonathan Adelstein and Michael Copps - are not likely to vote in favor of the deal.

Additionally, Dow Jones sources say the conditions laid out in Martin's recommendation were carefully negotiated, and there may be little wiggle room for further changes.

[CNN]

125 Comments

Martin: Commissioners need to figure out what they want, "and propose it"

July 11, 2008 1:54 PM | 73 Comments

FCC Chairman Kevin Martin

FCC Chairman Kevin Martin today said that he would considering further conditions on the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., but the Commissioners need to come up with a proposal.

"They [FCC commissioners] need to figure out what it is that they want and propose it," said FCC Chairman Kevin Martin at a press briefing.

This comment, of course, comes while Commissioner Tate - widely believed to be the wildcard in the decision process - is out of the country this week.

Stifel Nicolaus analyst Blair Levin feels that upon Tate's return, the Sirius-XM merger will jump to the top of the Commissione's priorties.

Levin believes that Tate will ultimately vote in favor of the deal, "albeit with some conditions that are not in the draft order currently circulating among the commissioners."

UPDATE: Broadcasting & Cable reports that Martin also said that he did not expect the merger vote to come at the FCC's August 1st meeting. They also have a more detailed quote, which puts the above quote in more context:

"In large part I have proposed what I think is the answer," Martin told reporters Friday. "Other commissioners have concerns and want other kinds of conditions. I'm not opposed to anybody proposing anything they want, but they need to figure out what they want and propose it."

UPDATE 2: Dow Jones Newswire adds more quotes from Martin:
"I think some of the commissioners do have concerns about the transaction, and all I'm saying is if they have concerns, they need to articulate what they would like to see done about it," Martin said at a press conference.

Martin continues: "They've said they've got issues and concerns about it, but they haven't necessarily proposed this is how they want them to be added."

UPDATE 3: This Reuters report is now saying that Martin is hoping on a vote before August 1st... I give up.

73 Comments

FCC Enforcement Bureau called in over Sirius Backseat TV

July 11, 2008 11:20 AM | 58 Comments

Georgetown Partners has asked the FCC Enforcement Bureau to issued an order to stop Sirius Satellite Radio Inc. from broadcasting video via its Sirius Backseat TV offering.

The minority-owned private investment firm is using this as an 11th-hour effort to solidify its argument that 20% of spectrum should be handed over for minority-owned programming.

"By Sirius' own admission, its television service is planned to occupy up to 20 percent of its spectrum, so obviously 20 percent of the spectrum is available for something other than digital radio services and could be made available to provide competition," writes Georgetown Partners in its FCC filing.

"We could establish a competitive alternative voice using just the 20 percent of spectrum capacity that Sirius admits it is planning to use for broadcasting television instead of for radio. It now is crystal clear on the record that Sirius/XM does not require the entire 25 MHz swath of spectrum to provide digital audio radio programs," Georgetown stated.

Georgetown calls Sirius Backseat TV an unauthorized satellite live television broadcasting service using spectrum that the Commission licensed exclusively for satellite radio. They are requesting that the FCC Enforcement Bureau to conduct an investigation into Sirius' alleged misuse of spectrum.

58 Comments

iPhone 3G becomes radio alternative overnight

July 11, 2008 10:51 AM | 26 Comments

Along with the masses clamoring for the new iPhone 3G, the Apple App Store has opened up with more than 500 programs launching internationally.

One of those programs is Pandora, which previously was only available on other phones for a monthly fee. But on the iPhone, it's free. And that makes it "a credible alternative to broadcast (radio)," Pandora founder Tim Westergren told USA Today.

To add salt on the wound, along comes Shazam for the iPhone, which effectively nullifies HD Radio's oft-touted iTunes Tagging in one feel swoop. Shazam's Music Identification Software allows you to record a few seconds of a song you're hearing, and will tag it for iTunes purchase later.

Hear it, tag it, buy it... no HD Radio required.

So to all the naysayers (*cough* NAB *cough*) who bemoaned that the iPhone doesn't represent a viable alternative to satellite radio: you're wrong.

[USA Today, TUAW]
Thanks to everyone who sent this in!

26 Comments

Automakers come out against HD Radio mandate

July 11, 2008 6:56 AM | 25 Comments

Two key automakers have come out strongly against proposals calling for an FCC mandate that HD Radios be included within all satellite radios, should the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. be approved.

General Motors Corporation and Toyota Motor Sales USA, Inc. jointly filed a letter to the FCC, expressing opposition to the "unprecedented requirement" of the broadcaster-supported HD Radio proposals.

"HD is already penetrating the automotive sector without a mandate. Several manufacturers are either currently offering HD or have announced plans to make HD radio standard or optional in future models," wrote GM and Toyota.

"Nothing in our companies' respective agreements with XM inhibits our ability to offer HD radio."

GM and Toyota pointed out that if "consumers continue to show an interest in HD technology" automakers will "take notice and adjust their strategies" in response.

The auto manufacturers feel that once mandated, "HD would have no incentive to be fully responsive to the demands of the marketplace." Adding that "any mandate will inherently distort the normal incentives to cost reduce and further improve the HD product offering."

GM and Toyota urged the FCC to "not ignore the demonstrated success of a market-based approach."

[Read Letter (PDF)]
Thanks Gregg!

25 Comments

State AGs continue assault against Sirius-XM

July 10, 2008 6:58 AM | 83 Comments

There's a new gang of 14 on the block, this time consisting of fourteen State Attorneys General offices, who consistently are launching an opposition campaign against the Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. merger.

Just as they did with Commissioner Tate the State AGs - led by Connecticut Attorney General Richard Blumenthal - met telephonically on Monday with Commissioner Michael Copps (pictured) and his Senior Legal Advisor.

The topic of discussion was essentially the same as with Tate - they generally oppose the merger, but demand 20% of spectrum and HD Radio inclusion if it should be approved. This time, though, the letter (PDF) submitted to the FCC is worded far more strongly.

Interestingly, the State Attorneys General also continue to employ a "localism" tactic in appealing to the Commissioners.

In the letter sent to Tate, the charge was led by Tennessee State AG Robert Cooper. Tennessee just happens to be Tate's home state. Now in this most recent assault, Blumenthal is marching alongside Washington State AG Robert McKenna.

And Washington - you guessed it - served as home to Commissioner Copps when he moved there in 1970 to work under Senator Fritz Hollings (D-SC) for over a dozen years.

[Read Letter (PDF)]

83 Comments

Eric Logan leaves XM for Harpo

July 9, 2008 11:04 AM | 109 Comments

Eric Logan

XM Satellite Radio's Executive Vice President of Programming, Eric Logan, is leaving the company to take on a new role at Harpo Productions.

Logan served as EVP for programming and broadcast operations since August 2004, where he directed a staff of nearly 400 to build the XM platform.

In this newly-created role, Logan will oversee several divisions within Harpo including Harpo Radio, Harpo Print and Harpo Retail. Logan will also help manage the company's talent relations efforts, handling relationships with top-tier talent across all Harpo platforms. Additionally, he will help accelerate the company's expansion into digital and mobile initiatives.

Logan will begin his new role in mid-August.

Best of luck E-Lo, both personally and professionally, as you move on to the next phase in your career.

109 Comments

Public radio wants to extend Sirius-XM process up to one-year

July 9, 2008 10:33 AM | 52 Comments

Nine non-profit media organizations, including two of the nation's largest public radio producers and distributors, are asking the FCC for more stipulations on the Sirius and XM merger.

The organizations, which include Public Radio International and American Public Media, said they were "deeply troubled" by the DOJ's decision to approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. They added that the combination of the two satellite radio companies will "reduce the diversity of programming."

Collectively the public radio groups claim to have more than 29 million listeners weekly.

Following, practically in lockstep, with demands made by other broadcasters, the public radio groups are asking the FCC to mandate that:

All new satellite radio receivers must contain HD Radio chipsets.
Twenty-five percent of combined Sirius-XM spectrum be set-aside for minority, non-commercial and emergency programming.
Finally, they ask that a separate FCC rulemaking process should be launched to detail the management of this spectrum set-aside.

For the separate process, the public radio groups are asking to include a comment period spanning from six-months to one-year.

"We would be extremely interested in participating in that rulemaking through future filings," writes the groups in a letter to FCC Chairman Kevin Martin.

During this additional 6-12 month period, the groups ask that Sirius-XM "maintain all current content and financial relationships" with non-commercial public service channels and minority broadcasters.

[Read Letter (PDF)]

52 Comments

Source: FCC staffers indicate possible timetable

July 9, 2008 6:42 AM | 56 Comments

Counsel for XM Satellite Radio Holdings Inc. were instructed by FCC staffers to cancel any vacation plans for the period of mid-to-late July, according to Orbitcast sources. The information was provided to Orbitcast under the strict condition of anonymity.

While it's unclear as to specifics, this could be an indication of the timetable that the agency is planning for rendering a decision of the merger with Sirius Satellite Radio Inc.

XM's lead counsel for the merger is Latham & Watkins LLP, the second largest lawfirm by revenue in the United States.

56 Comments

XM registers "SkyCube" trademark

July 8, 2008 1:38 PM | 41 Comments

XM Satellite Radio has filed for a trademark for the term "SkyCube" according to a recent application at the U.S. Patent and Trademark Office.

Aside from the intriguing name, the description for the use of the trademark also piques some curiosity, because it indicates some never-seen-before behavior.

XM says that SkyCube would be used for:

"Satellite radio broadcasting, programming and transmission services; digital audio radio broadcasting, programming and transmission services; Internet radio services; webcasting services; digital media distribution services, namely, distributing digital media content from the Internet to portable media players and devices; consumer electronic devices; digital audio radio hardware and accessories; satellite radio hardware and accessories; receivers, antennas, tuners, transceivers, transmitters, remote controls, electronic control panels, batteries, battery chargers; radios; a series of sound recordings; entertainment services, namely, providing audio programs featuring music, sports, talk, news and data via satellite and the Internet; entertainment services, namely providing podcasts featuring music, sports, talk, news and data; podcasting services"
(emphasis added)

Adding to the strangeness, it looks like XM filed for a similar trademark application at the beginning of this year for the term "SkyBuds" which features a similar description.

The fact that both the SkyCube and SkyBuds applications include the distributing of content "from the Internet to portable media players" and highlight podcasting services tells me there's more to XM's podcasting strategy than meets the eye. It looks like an accompanying device is in the works.

41 Comments

Sirius rep and Commission McDowell meet

July 8, 2008 10:35 AM | 36 Comments

Counsel for Sirius Satellite Radio Inc. met with FCC Commissioner Robert McDowell last Thursday to discuss the pending merger with XM Satellite Radio, according to a recent filing.

Little else is known about the meeting. other than "pending issues" were discussed, but the filing does indicate that the merger proceedings at the FCC are continuing.

It is expected that McDowell (pictured to the right, albeit, blurred) will vote in favor of the proposed merger alongside FCC Chairman, and fellow Republican, Kevin Martin.

[View FCC Filing (PDF)]

36 Comments

uXM: Listen to XM on the iPhone

July 8, 2008 8:17 AM | 12 Comments

The same folks who made uSirius, a Sirius client for jailbroken iPhones, have returned with a version for XM - appropriately named uXM.

Essentially the same concept as uSirius, uXM allows your iPhone or iPod Touch to tune into XM Radio Online as long as you have firmware version 1.1.4.

There's still a few kinks that need to be worked out (some channel logos are not loading and the stream sometimes drops after 30 minutes), but it'll definitely get you through until July 11th when XM is expected to release an official iPhone application in the Apple App Store.

[iSmashPhone via Gizmodo]

12 Comments

MLB All-Star Game live from NYC on XM

July 7, 2008 7:47 PM | 6 Comments

XM Satellite Radio will be airing comprehensive coverage of the 2008 MLB All-Star Week, live from New York City, starting this Saturday, July 12th.

Fans across the nation will hear the 79th MLB All-Star Game at Yankee Stadium, the Home Run Derby, and exclusive radio coverage of the XM All-Star Futures Game.

XM's MLB Home Plate (ch 175) will be live at the All-Star FanFest at the Javits Center in Manhattan with Cal Ripken Jr. and his brother (and fellow major-league vet) Billy Ripken at the XM broadcast booth on July 12th, from 10-11 am ET. The Ripkens' guests will include the Yankees' Hall of Famer Whitey Ford.

The XM All Star Futures Game will air on Sunday, July 13th at 12:30pm ET on XM channel 175. On Monday, July 14th tune in to the State Farm Home Run Derby at 8pm ET on XM channel 176. Then on Tuesday, July 15th hear the 79th MLB All-Star Game at 8pm ET on XM channel 176.

MLB Home Plate's on-air team will host shows throughout the week - from July 12th-16th - at FanFest, Yankee Stadium and at XM's studios at Jazz at Lincoln Center.

This year's Midsummer Classic will be the fourth and final All-Star Game played at Yankee Stadium as the team prepares to open a new stadium in 2009. Pre-game ceremonies at the "House That Ruth Built" will include the largest gathering of baseball stars on one field at the same time.

[MLB All-Star Week on XM]

6 Comments

State AGs pressure Tate against Sirius-XM

July 7, 2008 1:39 PM | 98 Comments

State Attorneys General continue to push the Federal Communications Commission to add more concessions to, or for the flat-out rejection of, the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Last week, State AGs Robert Cooper and Richard Blumenthal (pictured, left), of Tennessee and Connecticut respectively, were joined with staff members from 12 other State AG Offices in a phone conversation with FCC Commissioners Deborah Tate (pictured, right).

The States positions haven't changed much since their meeting with the FCC Chairman. They still feel that Georgetown Partners' proposal of a 20% set-aside for minority-owned programming would be the minimum for a "completely sufficient alternative" - but noted that others have proposed a larger divestiture of spectrum.

Additionally, the State AGs want to see HD Radio chips included in satellite radio receivers in conjunction with the availabilty of interoperable equipment.

[Read FCC Filing (PDF)]

98 Comments

XMp3: More details emerge on XM's new portable player

July 7, 2008 11:32 AM | 21 Comments

Remember that new XM portable device (codenamed the "Phoenix") we all got excited over? Well, it appears that the car kit for the upcoming satellite radio receiver has hit the FCC, and XM is keeping most of the details a secret.

That is, as far as I can tell, except for the actual name of the device, oh, and the estimated release date.

XM has asked that the schematics, diagrams, user guide, parts list, and internal/external photographs of the "XMp3 Car Kit" be held confidential until the product launch date. So it doesn't take much to deduce that the new device will be named - drumroll please - the XMp3.

Indeed, XM even filed for a trademark for the term "XMP3" in June of this year, stating that it is for "digital audio radio hardware and accessories; satellite radio hardware and accessories." So we can be fairly certain that "XMp3" is in fact the name of the new XM portable satellite radio.

But what about the release date?

Well, it turns out that the new short term confidentiality form now requires a specific release date. And so XM had to spill the beans. The estimated release date is October 5th, 2008. Just in time for the holiday season ramp up.

Note: This isn't the first time that XM has used the XMP3 moniker, it was originally given to the Samsung Nexus.

21 Comments

AP recaps Sirius-XM merger

July 7, 2008 9:24 AM | 21 Comments

The Associated Press has a well done recap about the current state of the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

There's not much you'll learn from the piece, especially if you've been following the process as closely as many of us have. But there are some good quotes.

Like this one: "The process appears to be broken," said Ken Ferree, former chief of the FCC's media bureau. The Commissions's unofficial 180-day calendar has become "meaningless," he said.

Another good one comes from Scott Cleland, a consultant at Precursor LLC: "The amount of opposition is directly correlated to the amount of time the review takes." I'm not sure if that's an encouraging thought, but it's a fact that the NAB has thrown everything they have in their arsenal to try to stop this merger, and the delays have been purely ridiculous.

But there has to be more to this than just a simple equation. And I think Art Brodsky of Public Knowledge sums it up perfectly: "Is it political?" Brodsky asked. "Sure, but what isn't?"

Ain't that the truth.

[AP]
Thanks to everyone who sent this in!

21 Comments

Howard Stern regulars bombed, seriously

July 4, 2008 1:08 PM | 68 Comments

Howard Stern show producer Gary Dell'Abate, sidekick Artie Lange, and comedians Nick DiPaolo, Jim Florentine and Dave Attell came under fire after performing a comedy show in Afghanistan.

The comics had just finished a set for troops in Kandahar when the base came under attack.

"Everything was going fine until the end," a friend of the comics, who heard from them by cell phone, told the Daily News. "They were all done with their sets, and they were headed in a car convoy to a meet-and-greet elsewhere, but they only made it about 20 yards.

"The military base they were on came under mortar fire, and the convoy was turned around."

Troops led the comics into a secure bunker, where the comedians - all uninjured - waited until the shelling stopped. They went on to continue the USO/Armed Forces Entertainment tour at other undisclosed locations in the Persian Gulf.

Dell'Abate's rep confirmed the incident but couldn't comment.

[NY Daily News]
Thanks to everyone who sent this in!

68 Comments

Kenny Chesney gets a music channel on XM

July 3, 2008 4:14 PM | 35 Comments

XM Radio is set to launch Kenny Chesney's "No Shoes Radio," starting July 26th on XM channel 18.

"No Shoes Radio," will feature music from Chesney's audio catalog, including never-before-heard recordings, an uncut, exclusive concert broadcast from the "2008 Poets & Pirates Tour," plus random drop-ins from fans and friends.

The dedicated channel will thankfully also include music beyond Chesney's catalog, featuring some of his favorite artists - similar to the kind of music you could easily hear drifting from the backstage "Vibe Room" - to capture the sonic culture of the Poets & Pirates Tour.

Since the channel is launching midway through the year's most attended Poets & Pirates Tour - complete with 14 NFL stadium plays - expect to hear music and other content for "No Shoes Radio" from the bus, in the halls, around the soundchecks, and even during post-show jams. Beyond that, not only will Chesney's special guests be partaking in the enjoyment, but look for tailgating fans from the parking lot to provide drop-ins, shout-outs and the occasional request.

"This is a way to keep the vibe alive, long after our tour is gone," aaid Chesney.

The channel will run from July 26th through October 25th on XM channel 18, as well as on XM Radio Online, where it will get a 3-month extension.

[No Shoes Radio]

35 Comments

Georgetown Partners teams with broadcasters against Sirius, XM merger

July 3, 2008 9:08 AM | 116 Comments

Georgetown Partners is working with terrestrial radio broadcasters urging the Federal Communications Commission to deny the Sirius-XM merger, or have it reworked to be in favor of the minority-owned firm's own proposals.

Chester Davenport (pictured), managing director at Georgetown Partners, was joined by Walter Ulloa, Chairman and CEO of Entravision Communications Corporation - a broadcaster that primarily targets the Hispanic community - in separate meetings with two FCC Commissioners late last week.

FCC Commissioners Michael Copps and Jonathan Adelstein met with the Davenport and Ulloa, according to recent filings, and were encouraged to "outright reject" the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

"The parties should not be permitted to change the rules and reap the financial windfall of a monopoly when they paid the U.S. Treasury only for a license that precluded merger with the only other SDARS competitor," writes Georgetown Partners is a highly-detailed filing.

Georgetown Partners and Entravision even cited the (flawed?) Arbitron numbers, stating that the elimination of channels from Sirius-XM's lineup to accommodate Georgetown's lease proposal of 20% of spectrum "would affect just 2% of [Sirius-XM's] listening audience" due to the high concentration of listeners "around a relatively small number of channels."

Additionally, the Georgetown and Entravision cited Mel Karmazin's statement that Don Imus would be welcome on Sirius following his "offensive racial comments" - even though Imus never actually violated any FCC regulations.

[View FCC Filings: 1, 2 (PDF)]

116 Comments

More Democrats push FCC for merger conditions

July 2, 2008 6:44 AM | 158 Comments

More Democrats are weighing in, urging the FCC for stronger conditions on the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

In a letter to FCC Chairman Kevin Martin, five House Democrats from Minnesota voiced their disapproval for the 8% spectrum set-aside for non-commercial/minority programming that Sirius-XM have proposed.

Reps. Betty McCollum, James Oberstar (pictured), Collin Peterson, Keith Ellison, and Timothy Walz feel that Sirius-XM's proposal of spectrum set-aside could instead result "in fewer noncommercial channels for satellite radio customers than they currently enjoy." Instead, the are asking for a minimum of a 25% set-aside, echoing a similar request by other key Democrats that include Sen. John Kerry.

The Representatives also would like to see HD Radio included in all new satellite receivers, as it would, "encourage competition in the digital terrestrial market and would leverage the millions of federal dollars already invested in the conversion of noncommercial stations to HD Radio technology."

For some reason, they also warned that approval of the Sirius-XM merger without conditions would be "to the detriment of the public interest," even though the companies have already agreed to merger concessions.

[Broadcasting & Cable, RadioInk]

158 Comments

Merrill Lynch raises rating on Sirius, sees "imminent approval" of merger

July 1, 2008 7:43 PM | 37 Comments

Following an extremely negative rating from Goldman Sachs nearly two weeks ago, Merrill Lynch analyst Glen Campbell is raising his rating on Sirius Satellite Radio Inc. to a "buy" follow the bullish post-merger guidance from management.

Campbell also noted that weak auto sales "create a risk" to the near-term forecast, but have only a minor impact on the long-term value.

The news helped push shares of SIRI higher today, closing up 1.56%, but didn't help shares of XMSR, which closed down 4.34% today.

The Merrill Lynch analyst saw the recent post-merger guidance from management as "bullish," noting that the company's guidance is "well above" Merrill's own "very bullish" estimates. Campbell feels this difference is largely related to timing on cost savings. The analyst as also sees "imminent approval" of the merger, after which point a more detailed guidance is expected from the company's management.

[via Barrons]
Thanks Smokey!

37 Comments

Every SEC team now on XM

July 1, 2008 4:25 PM | 16 Comments

XM said today that it will carry games for all 12 Southeastern Conference (SEC) teams, including every SEC football game, starting this fall.

Seven SEC teams are currently heard on XM. But now the five remaining teams - Alabama, Auburn, Florida, South Carolina, and Vanderbilt - will come aboard XM starting with the fall 2008 football season.

This means that XM is now the satellite radio home for literally every SEC team and a culmination of a process that started in March 2007 when XM became the official satellite radio provider for the conference.

In addition to every SEC football game, XM will carry the majority of SEC men's basketball teams and key baseball and women's basketball games. This includes the SEC championship games in football, basketball, and baseball.

16 Comments

Uncle Sam channel celebrates July 4th on XM

July 1, 2008 2:37 PM | 21 Comments

XM is launching the Uncle Sam Channel on Friday, a musical melting pot of songs all about America in celebration of Independence Day.

The Uncle Sam Channel will provide the perfect soundtrack for the holiday, whether you're just enjoying the 4th of July in the back yard or driving cross-country from sea to shining sea.

Tune in to XM Live (ch 120) on Friday, July 4th all day long (12am to midnight ET) to hear classics like Woody Guthrie's "This Land is Your Land," Charlie Daniels' "In America," Jimi Hendrix's "The Star Spangled Banner," and Lee Greenwood's "God Bless the U.S.A."

21 Comments

Post merger: What happens to Howard Stern's contract?

July 1, 2008 9:58 AM | 71 Comments

Assuming the FCC approves the Sirius and XM merger, both companies will need to take drastic steps to bolster their balance sheet, including cutting costs and refinancing massive debt. And Fortune writer Scott Moritz questions whether one of the areas to trim, would be Howard Stern contract.

"The question is, is there anyone out there who would pay him $700 million," asks Scott Cleland, a Washington-based analysts with Precursor. "Good luck."

Total programming costs, in total, came in at $475.4 million last year, or 23% of total revenue - the biggest single expense for the two companies. And Stern's contract - along with the NFL ($220 million for 7-years), NASCAR ($107.5 million for 5-years) and MLB ($650 million for 11-years) - are some of the biggest contributors.

Depending on the health of the combined company, Moritz figures that Stern may be in for a tough negotiation when renewal time comes up in 2010.

Cowen & Co. analyst Tom Watts thinks that's exactly what Sirius will do: wait until Stern's contract expires before seeking new terms. Watts says the more pressing issue is refinancing XM's $1.46 billion debt, a move he says could happen soon after the merger.

Sure, some significant belt-tightening is in order, but the real factor in negotiations isn't whether there's only one satellite radio player in town: it's who needs who more. So the question is: does Sirius-XM need Howard Stern, more than Howard Stern needs Sirius-XM?

[Fortune]

71 Comments

Sirius to debut ABBA Radio

July 1, 2008 6:01 AM | 33 Comments

On Monday, July 7th, Sirius will debut a channel dedicated to the Swedish pop group ABBA, for two weeks.

Set to launch in conjunction with the film adaptation of the musical MAMMA MIA! (opening in theaters on July 18th), ABBA Radio will air 24/7 ABBA music and will also feature tracks from the original cast recording of the hit stage musical.

You'll also hear Meryl Streep, Pierce Brosnan, and Colin Firth will sing ABBA songs on the soundtrack to MAMMA MIA! The Movie, which will be released the next day on July 8th.

ABBA Radio (ch 3) will feature stories and insights from ABBA members Benny Andersson and Bjorn Ulvaeus about their many pop classics which have influenced recording artists for over three decades. ABBA Radio will also feature celebrity fans (like Brooke Shields, Andy Bell from Erasure and Randy Jones from the Village People) sharing their favorite ABBA music and personal stories.

ABBA Radio kicks on Monday, July 7th at 6pm ET on Sirius channel 3.

33 Comments

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