December 24, 2007

If merger approved, HD Radio wants a piece of the action

Monday, December 24, 2007 at 12:18 PM

iTunes TaggingHere's a fun ongoing trend: organizations that are willing to accept the burden of responsibility - in the name of "public interest" - by asking the government to mandate that they get a piece of the Sirius-XM action.

First we had U.S. Electronics and Georgetown Partners, either of whom want "open network access" or a chunk of the bandwidth, and now iBiquity - the folks behind HD Radio - has joined the fray.

They conveniently ask the FCC requires that HD Radio be included in all satellite radio receivers, and that a merged Sirius-XM terminate all exclusive agreements with suppliers, retailers, and the OEMs. How generous of them.

Mark Ramsey sees this as a sign that HD Radio is hurting in its efforts to garner support from Detroit. It also might be a signal that the merger opposition from the NAB is coming to an end.

Satellite Radio TechWorld points out that Sirius and XM worked their respective asses of to build that OEM support, and that approving this would be unfair to the satellite radio industry. "iBiquity appears to want a free ride."

And the discussion is even more heated over in the Orbitcast Forums.

It seems to me that HD Radio/iBiquity needs to move more towards the "if we can't beat 'em, join 'em" attitude, and try working with satellite radio. If iBiquity wants to be embedded in all satrad receivers - maybe they should try a different approach.

HD Radio Coverage Map

Obviously HD Radio isn't something the public wants, but they have another asset that Sirius and XM want: bandwidth. Maybe it's time for less vinegar, and more honey.

[Satellite Radio TechWorld, Hear 2.0]
Thanks to everyone who sent this in!

December 21, 2007

XM settles with Warner Music over Inno

Friday, December 21, 2007 at 2:48 PM

Pioneer InnoXM Satellite Radio and Warner Music Group have resolved the lawsuit over the Pioneer Inno.

The terms of the deal were again not disclosed, but we know it's a multi-year agreement that covers current XM radios and future devices - much like the deal that XM reached with Universal.

Warner Music Group, the world's third largest music company, as a result has pulled out of the RIAA lawsuit against XM. That leaves Sony BMG and EMI as the remaining two of the Big Four record conglomerates left in the lawsuit.

December 20, 2007

Adelstein: DOJ decision "coming shortly," FCC decision in Q1

Thursday, December 20, 2007 at 5:56 AM

Jonathan AdelsteinFCC Commissioner Jonathan Adelstein, one of the two Democratic members of the FCC, spoke with NPR yesterday and gave some insight into the timing of the Sirius-XM merger decision.

During the interview on NPR's "Talk of the Nation," which focused primarily on the recent media consolidation ruling, Adelstein indicated that the DOJ's decision could be coming "shortly" and that the FCC's own decision would come in the first quarter.

"We’re hearing that action could be coming shortly but I don’t want to predict for sure, and then sometime after that presumably the FCC would act," said Adelstein in response to a caller. "I think probably in the first quarter of next year."

Of course the FCC Commissioner is using all the safe-words, but it's the first solid indication of timing - aside from various analysts' DC contacts - since FCC Chairman Kevin Martin said a decision would be coming in Q4. Adelsteins comments also coincide with a report from RBC's David Bank, which indicated a DOJ decision by the end of the year, and an FCC decision in February.

Listen to the audio snippet below:



(Duration - 1:27)

[Listen to the full audio, or read the transcript]

December 17, 2007

UMG and XM reach pact over Pioneer Inno

Monday, December 17, 2007 at 1:51 PM

Pioneer InnoUniversal Music Group and XM Satellite Radio have resolved the lawsuit brought by UMG against XM over its Pioneer Inno.

As part of the agreement, UMG will be the first music company to reach a multi-year deal covering all XM radios with "advanced recording functionality," including both those currently available as well as future product releases. The question remains: with this new agreement will XM be able to provide Inno-like recording capabilities in other products? It seems that other products have been crippled to only 10-hours worth of recording - hopefully this will mean that recording capacity can be raised.

In addition, UMG will withdraw as a party to the complaint filed by the RIAA against XM back in May, 2006. In that complaint, the RIAA is seeking $150,000 for each song saved by the Inno. Thankfully, UMG is no longer part of that ridiculous lawsuit.

"Our agreement is a win for everyone involved, especially for consumers," said Nate Davis, President and CEO, XM Satellite Radio. "We commend UMG for being the first music company to take this step forward with us and look forward to continuing our discussions with our other partners in the music industry."

The terms of the deal were not disclosed.

UMG is the largest of the Big Four record labels with roughly 25.5% market share.

Opie and Anthony #1 podcast on iTunes

Monday, December 17, 2007 at 11:33 AM

Opie and Anthony podcastNot even a week has gone by since XM first started podcasting, and the Opie & Anthony show has hit the #1 podcast on Apple's iTunes service.

The "Opie and Anthony Shorts" which features animated shorts of select snippets from the show, is currently today's top podcast. Currently there are only two episodes available, but word has it that not only new episodes - but also additional animators - might be brought into the mix.

Also in the Top 10 on iTunes is "XM's Weekly Music" podcast. And not too far behind at #11 is "XM Unmasked," featuring Ron Bennington from the Ron & Fez show.

It's nice to see XM podcasts gaining so much popularity in such a short amount of time. The key, of course, is maintaining that momentum.

Report: DOJ decision by year end, FCC in February

Monday, December 17, 2007 at 5:28 AM

XM and Sirius Merger

The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. will likely get the DOJ's seal of approval by the end of this year, with the FCC predicted to follow suit in early February, according to RBC Capital analyst David Bank.

In a recent research note, RBC wrote that their sources in D.C. indicated that the DOJ is likely to approve the merger before the end of the year. While reports of an imminent decision were obviously incorrect, RBC still finds that Assistant Attorney General Thomas Barnett - who ultimately rules on the merger - will be leaning towards an approval.

At this point, the FCC's 180-day timeclock has become "immaterial" (obviously) and Bank estimates that the FCC won't make a final decision on the Sirius-XM merger until "early February at best." RBC sources indicate that the FCC is predicted to be 1-2 months away from fleshing out all the conditions to the merger (such as pricing, interoperability, unused bandwidth, indecency, etc.).

The FCC also recently began publishing a list of "Items on Circulation" - a weekly list used to provide better transparency into what the Commission is currently reviewing - and the Sirius-XM merger is not on the list. So a decision by the year-end is unlikely.

Remember that the DOJ looks at competition as far out as two years from now when analyzing the marketplace.

A year ago, Apple and Google were not players in mobile devices, and Microsoft was not behind a disruptive force for in-vehicle entertainment. Bank, citing the iPhone specifically, feels that mobile audio entertainment on cellphones "will likely be ubiquitous" using this perspective.

Thanks Sam!

December 13, 2007

Report: Despite the politicians, merger is still a go

Thursday, December 13, 2007 at 9:56 AM

XM Sirius merger
Despite yesterday's hoopla over a letter written by Reps. Conyers and Chabot to Attorney General Michael Mukasey, the Sirius-XM merger is still on track an analyst said today.

Stifel, Nicolaus & Co. analyst Blair Levin said that while the DOJ has struggled with the decision and the final outcome is a close call, he believes the department will green light the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Investors right now are on a hair trigger, waiting for the slightest indication of where the merger decision will go. After the news broke yesterday, shares of both XMSR and SIRI fell sharply - XM shares dropped nearly 10% Wednesday.

Still, despite the legislators' skepticism, Levin said the deal is still moving forward.

"It's possible the Department of Justice will still try to block the deal and that there's been some sort of leak, but we don't believe the reported letter ... means there is a greater chance of DOJ opposition," Levin said in a client note, noting a decision could come any day.

[AP]

December 12, 2007

Lawmakers cast doubt over Sirius-XM review process

Wednesday, December 12, 2007 at 4:33 PM

XM and Sirius MergerWondering why the stock took a nosedive earlier today? This might be it. Members of the House of Representatives Judiciary Committee expressed concern about the DOJ's review of the proposed merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

In a letter dated December 11th to Attorney General Michael Mukasey, Reps. John Conyers and Steve Chabot wrote:

"We were dismayed to learn of recent press reports suggesting that Justice Department staff may be trying to rush through the merger before you have an opportunity to fully participate, and that Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff."

The longer this process drags on, the more and more opportunity it gives for those on Capitol Hill to make a stink about it.

[Reuters]
Thanks Mark!
'
UPDATE: Interestingly enough, Conyers and Chabot were the two Congressmen who the NAB apologized about, stating that they misrepresented the members' position on the merger.

December 10, 2007

Sirius renews contract with Bubba the Love Sponge

Monday, December 10, 2007 at 9:58 AM

Bubba The Love SpingeWell, the wait is over. Bubba the Love Sponge has officially renewed his contract with Sirius Satellite Radio.

"We launched the radio revolution with Howard Stern, and I am grateful he brought me to SIRIUS," Bubba stated in the press release. "We will continue to do uncensored, groundbreaking radio on Howard 101."

"We are happy Bubba has renewed with Sirius," said Scott Greenstein, Sirius' President, Entertainment and Sports. "Bubba has steadily created an enthusiastic national fan base since he launched his show on Howard 101. That fan base will continue to expand on Sirius."

Terms of the contract, including the length that he's signed on for, were not disclosed. But for the time being, at least we know that BTLS isn't going anywhere anytime soon.

Related:

December 6, 2007

Now about that FCC timeclock...

Thursday, December 6, 2007 at 5:21 AM

Sirius XM MergerWe're now on day 181 of the 180-day FCC timeclock, and many folks are undoubtedly scratching their heads (or biting their nails).

But a quick look at some of the other major transactions that the FCC had, or has, on its plate shows that this isn't necessarily out of the ordinary for the Commission:

  • Adelphia Communications, Time Warner, Inc., Comcast Corporation - 404 Days
  • AT&T Inc. and BellSouth Corporation - 253 Days
  • Clear Channel Communications, Inc. and Lee/Bain - 350 Days
  • Tribune Company and Samuel Zell - 204 Days
  • Verizon Communications Inc. and FairPoint Communications - 266 Days
  • Liberty Media, DirecTV - 287 Days

So when Watts said that the FCC review of the Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. transaction could take longer, well, he meant it.

Of course, the DOJ still needs to reach a decision as well, and they don't have a timeclock to adhere to - no matter how arbitrary it may be.

At yesterday's UBS Global Media conference, XM Chairman Gary Parsons said that the Department of Justice will have to approve the merger within a week or 10 days for the deal to go through this year. (UPDATE: Gary's reference to ten days had to do with getting the approval in 2007. He was not claiming that the deal was over if they didn't get the approval in the next 10 days. Sorry for the confusion.) That doesn't leave much time left.

Good, because I don't know about you, but I'm getting a little sick of this.

December 2007 (13)