CEO: Combined Sirius XM tech as long as 15 years away - Orbitcast

CEO: Combined Sirius XM tech as long as 15 years away

| 25 Comments
Sirius XM CEO Mel Karmazin and Ford President Mark FieldSirius XM Radio Inc. chief Mel Karmazin said yesterday that the combined satellite radio service technology in cars could take as long as 15 years to become available.

The comment was made at the Convergence 2008 conference in Detroit, and the 15-year timeline is due to the new chipset required and automakers' lead time, according to the industry publication Automotive News.

"At the end of the day, I think that the consumer is in a great position because people are going to listen to what it is that interests them," added Karmazin (pictured above, alongside Ford Motor Company president Mark Field).

But during the 2Q08 conference call with investors, Karmazin's timeline was somewhat shorter.

When asked about when interoperable radios would appear in OEM installations, Karmazin said:

"They [automakers] control the dashboard, so they can decide if they want it or they don't want it, and if they do want it, you should assume it will probably take about three years for them to integrate it, since that's the lead time that most of these options take before the car companies are willing to put it into production."

[Automotive News (subscription required) via Gizmodo]
Thanks John!

25 Comments

At this point I have to believe that they are purposely bankrupting the company in order to wipe out the debt. Sirius XM will have interoperable radios in 2009, but the auto manufacturers won't be installing them until 2023!

Bull crap 15 years! This thing will be over in two years! Get on it!

The Longer they take their sweet ass time means the more they loss costumers and hurt their name.

So I guess these means we are never getting best of service in any OEM car radios.

In 15 years, sirius xm will be a forgotten "fad".

In 15 years? Satellite will be dead in less than 2 years when Mel either sells it off to some big company to cut his losses or simply files bankruptcy within the next year. This is actually sad and funny at the same time. Consumers/Investers aren't stupid, you know!

It truly is sad to see radio dying, AM/FM and now Satellite may very well be a lost medium in 15 years. I'm still trying to figure out how it takes 15 years to develop any basic radio tech by today's standards.

In fifteen years Mel will be in diapers and Sirus XM will have gone the way of the 8 Track tape, Betamax, and the laser disc. Well hats off to everyone who supported the merger thinking it was going to save satellite radio. I'd rather have seen XM go under with some self respect then see it get raped the way it has been in the last few weeks. I can't wait to see what November has in store. It's really disappointing as I loved my XM service and it seems that come November, XM as I knew it will be dead. It was great while it lasted.

Something else will come along to fill the void.

5 Comments , and everyone a BASH against the
company.

The BASHER BOYS have infiltrated every board
on the internet.

Funny !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Get a life bashers.

Bring Hugh Panero back .

Fire Mel.

Reckless public statements are no way to run a company.

Merge technologies? What the hell is he talking about? It's simple, you have one set of channels and broadcast them on both XM and Sirius devices. Duh.

100% BS. Get lost Mel.

It doesn't work like that T.O.O.

The real reason they can't easilly swap things out are that the signals and codecs are not 100% compatible.

And there's the OEM investment. That's the big thing. Even if XM and Sirius broadcast simultaneous streams, which is what they are trying to do, and even if they resolved all the contractual issues--you still can't have customers upgrade radios so quickly. The lifetime of Cars are for 5-15 years. All the radios for Sirius and XM have to continue to work up until 2015 or 2020 or you both potentially lose subscribers and piss off the OEM providers.

You can't piss off the OEMs, because they are the biggest thing backing SatRad. Even if Sirius XM goes bankrupt, eventually somebody else will take over and we'll still have radio from the sat feeds. I think Detroit, Tokyo, and Germany have too much invested not to.

It's real easy for a stockholder wanting a quick pop to make a statement about merging technology. The fact is that it's always hard to merge different technologies. I suggest studying the Sprint/Nextel merger for an example of how difficult this could be.

(Not to mention the fact that management is already taking a risk by the slash-and-burn work they are doing to the XM side of things. If they're not careful, subs will drop significantly in an already bad economy).

the funniest thing I have ever read on this site 'In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers In fifteen years Mel will be in diapers...' haha... had me rolling on the floor ;-)

Why would we want interoperable radios? Mel is rapidly moving towards the same content on both platforms. Your dual sub radio will just tune in the same channels. Great. Why do I still have this service? Oh, that's right, I just shut off 60% of my subs.

I think some stockholders were hoping either the XM or Sirius satellites would be shut off.

Man what a waste so fifteen years more.

prior to intergration of the satellites the birds? not the chip set which will enable dual devices. Or debbie tate will be gunning for melvin if the above article is even remotly true.

I think most of you are wrong about this. They don't need to combine the spectrum to survive. They have to survive by gutting one of these companies, and they appear to be doing that now with XM.

The combining of spectrum is what will make this company very, very profitable. Do you have any idea how much that spectrum is worth? Once combined, they will be able to run the the radio portion of Sirius/XM with one half of the spectrum. What do they do with the other half? Video? Internet? Something else?

This company has some short term hurdles, no doubt about it. But if they can jump them, the future could be very, very bright.

It's not just receiving XM and Sirius on one radio, it's the ability to receive both satellites on one receiver. At that point, they can turn off the service currently broadcast on one satellite and change it to broadcast new channels, or improve sound quality and spread the service across both satellite systems.

Still, it shouldn't take 15 years.

Well, Sirius used to stay out all night long
Sirius made me cry, Sirius's done me wrong
Sirius hurt my eyes open, that's no lie
Tables turn and now Sirius's turn to cry

Because I used to love Sirius, but it's all over now
Because I used to love Sirius, but it's all over now

Well, Sirius used to run around with every Melvin in town
Sirius spent all my money, playing Melvin's half-assed game
Sirius put me out, it was a pity how I cried
Tables turn and now Sirius's turn to cry

Because I used to love Sirius, but it's all over now
Because I used to love Sirius, but it's all over now

Well, I used to walk in the morning, get my breakfast in bed
When I'd gotten worried Sirius ease my aching head
But now Sirius here and there, with every Melvin in town
Still trying to take subscribers for those same old blind, ignorant, clowns

Because I used to love Sirius, but it's all over now
Because I used to love Sirius, but it's all over now
Because I used to love Sirius, but it's all over now
Because I used to love Sirius, but it's all over now

NO! to Melvin's "merge" MONOPOLY, Because I used to love Sirius, but it's all over now

Wow! 15 years?

That's a very very very very very long time. Surely Mel meant to say 1 to 5 years, right? Maybe he only budgeted for 1 month of contract engineering per year. Voila, 15 month development cycle turns into 15 years. Yeah, it's making sense now. I can't wait for the car companies to unveil their 2023 car plans to help me select my new car with a combined radio!!!

they are customers and investors who have been screwed by mel karmazan's lies.

I'm a little bitter, but I knew the risk. It just sucks to have based my investment on lies spewing out of the ceo's mouth.

I am becoming convinced that their strategy is to steal the company away from the shareholders by reverse splits, dillution, and finally going private

It CAN work like that JRT.

You must take your head out of Mel's back office.

You merge the channels and broadcast over the current codecs and signals.

You know, like "merge" them...

The real reason they can't swap things out - is... because they don't want to get rid of 1/2 the subs $$$. It has NOTHING to do with codecs and signals. It has to do with $$$, and how they can get double payment (subs) for the same content.

Like we really need 14 country stations...

Look, I am currently paying double. One subscription for my car (Sirius) and ONE for my home theater (XM). I want one set of channels on BOTH. GOT IT!? Stop BS'n me and STOP making me pay double!!! MERGE THE CHANNELS, stop double charging, and make it easy for new customers to pick a service. They can pick whatever device they want. The content MUST be the same, on both devices! DUH!

...and speaking of piss'n off the OEM providers... Try talking to all the customers and investors that are VERY pissed off!!! Just like AOL, they will NEVER get back subs who were investors. The most widely held stock has lost a great deal of money for a great deal of people! (It WILL effect future sales, no doubt.)

After investors have thrown away mucho bucks on this looser, I don't think I want to listen to Howard tell me how much money he has...

I suggest you study as well, start with every shareholder who lost $$$ because of Mel's outrageous business "skills."

Mel put us in this position. NOT ME. Mel said 15 years!!?? and, I'm just calling him an ass for saying 15 years... You must agree, that was VERY stupid.

This sound familar from 2006. Maybe the writing on the wall started here:

XM Satellite Radio Director Pierce J. Roberts, Jr submitted his letter of resignation on Monday, February 13th. While the nature of the disagreement was not explicitly stateed, it is believe it primarily involved a disagreement between the strategic balance of growth versus cash flow.

Director Roberts has historically favored more stringent cost control in XM Radio, specifically involving lower marketing, programming and promotional expenditures. The other XM Directors, however, believe that high growth rate, market leadership and large base of subscribers are strategically important assets to ensure the long term value of XM and can be sustained while also reaching positive operating cash flow later this year.

Read the full resignation letter after the jump:

Gary M. Parsons
Chairman of the Board
XM Satellite Radio Holdings Inc.
1500 Eckington Place
Washington, DC 20002

Dear Gary:

It has been my pleasure to serve on the Board of Directors of XM for more than 5 years. The company has achieved many notable successes and overcome numerous seemingly-insurmountable obstacles during this period. It has been great fun to have a minor role in helping you, Hugh and the XM team as the company has grown from its founding concept to become a major firm with rapidly growing numbers of subscribers. There is much in which to be pleased.

That said, I have been troubled about the current direction of the company and do not believe that it is in the best interest of the company’s shareholders. For some time I have made my analyses and observations known in an increasingly vociferous manner to the Board and a number of senior managers of the Company. I am not having any useful effect and I care too much and believe in my own views too much to just “go along”.

Given current course and speed there is, in my view, a significant chance of a crisis on the horizon. Even absent a crisis, I believe that XM will inevitably serve its shareholders poorly without major changes now. It is clear to me that I cannot be part of the solution and I will not be part of the problem.

Therefore, after a lot of thought and with a great deal of sadness, I tender my resignation to be effective immediately. Thanks and best wishes to the entire XM family.

Sincerely,
Pierce J. Roberts, Jr.

No, it's over. In 5 years there won't be a company trading as Sirius XM, let alone 15.

It's over, kids.

>>> The combining of spectrum is what will make this company very, very profitable. Do you have any idea how much that spectrum is worth? Once combined, they will be able to run the the radio portion of Sirius/XM with one half of the spectrum. What do they do with the other half? Video? Internet? Something else?

Nonsense. If people won't buy 100 channels they won't buy 500.

The best use of the Sirius spectrum is to SELL IT. Quickly.

A bit off-topic but Mel is freaking ugly!