SatRadio

Satellite Radio News (10.31.03)

The following is a summary of today's satellite radio headlines:

Satellite radio chip set debuts (EE Time UK, 10.31.03) News article notes that Silicon Laboratories Inc. will unveil a satellite radio tuner chip set crafted all in CMOS. Silicon Labs has offered a CMOS synthesizer for satellite radio and is designed into the radios manufactured for the XM Radio satellite radio service. The new two-part chip set adds a tuner IC to the synthesizer to offer the full RF solution to satellite radio makers, said Mark Thompson, a marketing manager at Silicon Labs. (Read more)

Sirius Satellite Q3 loss narrows (CBS MarketWatch, 10.29.03) News article notes that Sirius Satellite Radio shares rose 3.5 percent Wednesday after the company reported a third-quarter loss 11 percent smaller than that of the prior year, on a 12-fold increase in subscribers to its satellite-based radio service. Sirius had 149,612 subscribers at the end of the September quarter, which represented a 42-percent increase from the end of the second quarter and was more than 12 times the number of subscribers the company had signed up at the end of 2002's third quarter. Sirius' share of the retail satellite radio market rose 48 percent over the second quarter, boosted by sales of the company's plug-and-play products from electronics manufacturers Kenwood and Audiovox, the company said. (Read more)

Sirius 3rd qtr loss narrows but subs growth low (Reuters, 10.29.03) News article notes that Sirius Satellite Radio posted a smaller third-quarter loss but signed on fewer new customers than expected and cut its 2003 targets. Sirius signed up 15,000 fewer customers than expected and cut its 2003 forecasts to more than 200,000 total subscribers at year-end, from its earlier target of 300,000 new customers, excluding customer turnover. Sirius, which trails market leader XM Satellite Radio Holdings Inc., also missed at least two more analyst estimates for the third quarter with its roughly 44,000 new subscribers in the period, bringing its total to 149,612. XM said this week it has more than 1 million customers and still expects 1.2 million subscribers by the end of the year. (Read more)

Sirius Satellite Radio Loss Narrows (Associated Press, 10.29.03) News article notes that Sirius Satellite Radio said Wednesday its net loss narrowed in the third quarter as revenue climbed sharply with the addition of subscribers. The New York-based satellite radio broadcaster said its net loss was $106.7 million, compared with $119.7 million last year. The company's adjusted earnings before interest and depreciation were $79.8 million versus $58.7 million last year. Revenue was $4.3 million in the latest quarter, compared with just $17,000 a year earlier and $2.1 million in the preceding quarter. (Read more)

Satellite Radio News (10.27.03)

The following is a summary of today's satellite radio headlines:

SIRIUS Kicks Off New TV Spot Featuring Pamela Anderson on Monday Night Football (Sirius Satellite Radio, 10.27.03) Press release notes that Sirius Satellite Radio today announced the launch of a 30-second television commercial depicting Pamela Anderson washing a car. The commercial will debut on Monday Night Football on October 27. Directed by Rob Cohen (The Fast and the Furious, The Rat Pack, Triple X), the spot shows Pamela using every curve of her body to render the car spotless. The commercial also highlights SIRIUS' 100% commercial-free music streams and the SIRIUS Audiovox S.R.S., which allows subscribers to easily bring the service from car to home. (Read more)

XM, Sirius Put On a Milestone Rally (TheStreet.com, 10.27.03) News article notes that shares of satellite radio stocks surged more than 5% Monday as one of this closely watched industry's big competitors passed a key subscription milestone. XM Satellite Radio said Monday morning that it had chalked up its millionth subscriber. The company noted that it reached that level less than two years after its November 2001 launch. (Read more)

XM Satellite Radio tops 1 mln users (Reuters, 10.27.03) News article notes that XM Satellite Radio said it has topped 1 million subscribers and remains on track to reach its target of 1.2 million by year-end. Earlier this month, the Washington-based company said it ended the third quarter at about 929,000. (Read more)

XM Satellite Radio Tops One Million Subscribers (XM Satellite Radio, 10.27.03) Press release notes that XM Satellite Radio today announced that it recently surpassed 1 million subscribers, reaching this major milestone in less than two years since its national debut on November 12, 2001. "With more than one million subscribers, XM has firmly established a new mass-market entertainment medium for consumers nationwide," said Hugh Panero, XM's President and CEO. "XM's success is particularly evident when compared to other media, from the inception of radio to today's latest technology." Consumers have adopted XM Satellite Radio faster than local radio, television, satellite TV, CD players, MP3 players, or digital video recorders. As a mass medium, XM has reached one million subscribers in less time than cable television or online subscription services - two of the nation's most successful subscriber businesses. (Read more)

Sun-Spot Worries Flare at Sirius (TheStreet.com, 10.24.03) News article notes that shares of Sirius Satellite Radio fell as much as 9% before recovering some ground in late-afternoon trading. The concerns centered on an oncoming wave of electromagnetic particles that was expected to hit Earth at midafternoon New York time. A Sirius rep said that the company's satellites have not been damaged by any previous solar flare incidents and that the "engineers have not expressed any concern" this time around. (Read more)

Satellite Radio News (10.24.03)

The following is a summary of today's satellite radio headlines:

Personal Financial Strategist David Bach to Join Sirius Satellite Radio For Call-In Talk Show - (Sirius Satellite Radio, 10.24.03) Press release notes that Sirius Satellite Radio today announced that internationally recognized financial advisor David Bach -- the author of Smart Women Finish Rich and other best sellers -- will host a call-in talk show on SIRIUS Satellite Radio. The program enhances a comprehensive lineup of original talk programming available on SIRIUS, which includes "The Lynn Samuels Show," "Rolling Stone on SIRIUS," and "CMJ New Music Report." His show will air weekly on SIRIUS, beginning Saturday, October 25. (Read more)

In Orbit (Forbes, 10.23.03) Financial article says that Sirius Satellite Radio is poised for a flaming reentry. Sirius' sales have just gotten under way, hitting $3.7 million for the first half, up from $103,000. With three satellites, Sirius has valuable assets plus $560 million in cash. But Steven Mather, analyst at Sanders Morris Harris, expects the cash will run out in 2005, well before profits arrive. The stock is way ahead of itself, up sixfold since March, putting a $2.1 billion value (common market capitalization plus debt minus cash) on the enterprise. Short it; cover at $1.50. (Read more)

XM Satellite Shifts Media-Buying Account (Advertising Age, 10.23.03) News article notes that XM Satellite Radio has shifted media buying and planning responsibilties to Interpublic Group of Cos.' Mullen, Wenham, Mass. without a review, said a spokesman for XM. Aegis Group's Carat North America had handled the business since May, following a review. At the same time, Mullen won creative responsibilities on the account, also following a review. Both accounts had been handled in-house prior to that. XM Satellite's marketing is executed in a variety of mediums, Mr. Goldberg said, including TV, print and interactive. In 2002, XM spent $58 million in measured media in the U.S., according to TNS Media Intelligence. From January through July of this year, spending was $16 million. (Read more)

SIRIUS Kenwood Here2Anywhere Chosen By Good Housekeeping As Smart Gift for the 2003 Holidays (Sirius Satellite Radio, 10.22.03) Press release notes that Sirius Satellite Radio has been chosen by Good Housekeeping Magazine for its "smart gifts" section in the November 2003 issue. After thorough evaluation, the SIRIUS Kenwood Here2Anywhere was one of only thirteen products selected for the "Family Tech Buyer's Guide" as one of the ultimate electronics gifts for the holiday season. Plug and Play units from both Kenwood and Audiovox units are available at mobile electronics retailers nationwide starting at $99.99. Subscription to SIRIUS' service is $12.95 a month, with discounts for up-front payment of a year or more. SIRIUS also offers a lifetime subscription at $399.99. (Read more)

Satellite Radio News (10.21.03)

The following is a summary of today's satellite radio headlines:

XM Touts Fall Programming (SkyRETAILER.com, 10.21.03) News article notes that XM Satellite Radio will feature new programming including Major League Baseball onESPN Radio (XM Channel 140). When XM listeners tune into the game, the score and other information will be featured on the radio's display screen in real time. XM Comedy (XM 150) spotlights today's hottest stand-up comics recorded live and uncensored at the famed Caroline's on Broadway comedy nightclub in New York City this fall. XM's exclusive NASCAR channel (XM 144) delivers live coverage of the championship races in all three of NASCAR's top divisions - the Winston Cup, Busch, and Craftsman Truck series. (Read more)

World Series Yankees vs. Marlins Live on XM Satellite Radio Leads XM's New Season of Fall Programming (XM Satellite Radio, 10.17.03) Press release notes that XM Satellite Radio is launching a new fall season of programming with live coverage of the World Series, exclusive live concerts, and special events to celebrate XM's fast-approaching milestone of 1 million subscribers. A complete list of XM's programming can be found here. (Read more)

Satellite Radio News (10.15.03)

The following is a summary of today's satellite radio headlines:

XM Satellite Radio Introduces XMCommander Receiver (XM Satellite Radio, 10.15.03) Press release notes that XM Satellite Radio announced the introduction of the XMCommander, a new XM receiver that works with any AM/FM car stereo. XM has selected Terk Technologies to distribute the new XMCommander receiver to retailers nationwide. XMCommander (MSRP: $159.99) is a total, all-in-one package, featuring a compact controller with display screen, the ultra-thin XM Micro Antenna, a full-function remote control, and a small, hide-away tuner box. The XMCommander works with all AM/FM car stereos regardless of make, brand, or year. The controller is sized and styled to seamlessly integrate with the dashboard of most vehicles, including high-end luxury cars. XMCommander is currently shipping to retail stores and will be available at the end of this month. The debut of the XMCommander follows the recent arrival of the Delphi XM Roady receiver, the first complete satellite radio solution for vehicles for under $120. (Read more)

XM's Satellite Problems

The Rumors:
Drop by any message board or chat room about satellite radio and you are sure to hear about the imminent demise of XM Satellite Radio thanks to doomed satellites. There is a lot of speculation but not a lot of information about the potential problems with XM's three satellites.

The Problem:
It all began in late August of 2001 when Boeing notifying a number of its customers of a potential problem with solar array output power on six of its BSS 702 model satellites. XM owns two orbiting BSS 702 model satellites, "Rock" and "Roll", and a third sitting in storage in case of an emergency. According to Boeing, the power arrays on a number of BSS 702s in orbit have exhibited a faster than expected performance degradation during early operational life. Boeing isolated the problem to the reflectors attached to the satellites’ solar arrays and is removing those reflectors from all future 702 satellites. The satellites would normally generate about 16.000 kW of power from their solar panels. That amount would decrease over 15 years to about 15.000 kW. The defective 702-series satellites could degrade to about 12.000 kW after 15 years.

The Remedy:
XM plans to launch its spare satellite, XM-3, in late 2004. XM-3 will occupy one of XM’s orbital slots, while XM-1 and XM-2 will be co-located in the other slot and share broadcasting duties. In September of 2003 the company raised $150+ million from its sale of more than 11 million shares of stock to divisions of Legg Mason Inc. and another unnamed institutional investor. XM will use the proceeds to pay for the $190 million launch costs of XM-3. XM has also ordered a $130 million spare satellite, XM-4, from Boeing. XM-4 is scheduled to be completed by the fourth quarter of 2005. XM has signed a contract with Sea Launch to provide a launch of XM-4 that could take place in 2007.

The Litigation:
In August of 2003, XM disclosed that insurers for the potentially defective satellites had rejected its $400 million claim on the two orbiting satellites. XM has said it will pursue the insurance claim in court, if necessary. XM needs at least a partial settlement to help pay for the cost of building and launching XM-4. The unnamed insurance companies claimed the satellites are still performing normally. Insurers have already paid a claim submitted by one BSS 702 owner, Thuraya Satellite Telecommunications Co. If the insurers pay for claims on all six, they will face a potential liability of $1.6 billion. The insurers are also considering taking action against Boeing to recoup their losses.

Satellite Radio News (10.10.03)

The following is a summary of today's satellite radio headlines:

Delphi sees strong XM Satellite radio sales (Dow Jones Business News, 10.10.03) News article notes that shares of XM Satellite Radio rose to its second straight 52-week high Friday after a Delphi announced hefty sales numbers. Delphi Corp., of Troy, Michigan, early Friday said it had shipped 1.2 million satellite radios. "The satellite radio market has just taken off at an amazing rate," said J.T. Battenberg III, Delphi's chairman and chief executive. Earlier this month, XM Satellite said it remains on track to reach 1.2 million subscribers in 2003. The announcement came less than a month after the company launched a marketing campaign to build its subscription base to 1 million. (Read more)

Delphi Ships More Than 1.2 Million Satellite Radios (Delphi Corp., 10.10.03) Press release notes that Delphi has produced and shipped more than 1.2 million factory-installed and retail satellite radios. Delphi has produced and shipped 475,000 retail units and 770,000 factory- installed satellite radio units. Delphi provides satellite radio units to the world's leading OEMs, and its retail units are available at Wal-Mart, Crutchfield, BestBuy, Circuit City and Sears. Delphi Delco Electronics and Delphi Product & Service Solutions recently celebrated achieving over 1 million units shipped milestone with XM Radio representatives at a commemorative event staged at the Delphi Delco Electronics Systems headquarters in Kokomo, Indiana. (Read more)

SatRadio's New Location

Welcome to the new home of SatRadio, your source for XM and Sirius Satellite Radio news, reviews, rumors, and more. After nearly two years of covering the satellite radio industry this blog has a new location on the Internet.

SatRadio will continue to give readers complete coverage of the satellite radio industry, and will also feature product reviews to help consumers make an informed choice. Thank you for visiting.

Satellite Radio FAQ

The following post is intended to answer the most frequently asked questions about satellite radio. The information contained in this post will be updated and maintained over time to keep it as accurate as possible.

How does satellite radio work?
Orbiting satellites broadcast a signal that is received on the ground by a satellite radio receiver. In some areas a ground repeater is used to improve signal quality. A more comprehensive explanation can be found here.

What companies are currently offering the service?
At the moment there are only two companies, XM Satellite Radio and Sirius Satellite Radio, offering the service. Each company paid an estimated $80 million each for their exclusive distribution rights to satellite radio.

How did XM and Sirius get the rights to broadcast satellite radio?
In 1992, the Federal Communications Commission (FCC) assigned part of the S-band (2.3 GHz) spectrum for nationwide broadcasting of a satellite-based Digital Audio Radio Service (DARS). In 1997, the FCC granted American Mobile Radio (now XM Satellite Radio) and CD Radio (now Sirius Satellite Radio) broadcast rights over that band.

How much does satellite radio cost?
XM costs $9.99 per month and Sirius costs $12.95 per month.

How do I get satellite radio?
You will need to purchase a satellite radio receiver, available at most electronics stores and online, or purchase a car that has one already installed. Keep in mind that the type of receiver you buy will determine the service provider you must use. Once you have a receiver you will need to activate the service with either XM or Sirius, depending on the type of receiver you purchased.

What is the broadcast frequency for XM and Sirius?
XM broadcasts at 12.5 MHz of S-Band: 2332.5 to 2345.0 MHz. Sirius broadcasts at 12.5 MHz of S-Band: 2320.0 to 2332.5 MHz

Does satellite radio only work in your car?
No, there are several mobile units like the Delphi XM SKYFi Radio Receiver and the Kenwood Here2Anywhere Sirius Satellite Radio. They allow you to listen to satellite radio in your car, in your home, and on the go.

Is satellite radio available outside of the United States?
No, at the moment XM and Sirius are only licensed to broadcast satellite radio in the US. XM has recently applied for a license to broadcast in Canada and that service could be available as early as spring 2004.

Which auto manufacturers are building cars with satellite radios?
On many '03 and '04 cars the satellite radio receiver is now standard equipment and all you need to do is activate it. XM has agreements with General Motors, Honda, Acura, Toyota, Nissan, Infiniti, Volkswagen, Audi, and Isuzu to install receivers in their vehicles. Sirius has agreements with manufacturers to install receivers on Ford, Chrysler, BMW, Mercedes-Benz, Jaguar, Volvo, Mazda, Land Rover, Dodge, Jeep, MINI, Volkswagen, Audi, Nissan, and Infiniti vehicles, along with trucks from Freightliner and Sterling.

Are XM and Sirius publicly traded companies?
Yes, they are both publicly traded companies. XM trades on the NASDAQ under the symbol, XMSR. Sirius trades on the NASDAQ under the symbol, SIRI.

Are XM or Sirius profitable yet?
No, at the moment neither company is turning a profit.

How many subscribers do XM and Sirius need to be profitable?
It has been reported that XM needed 4.3 million subscribers to be profitable and that Sirius would need 3.4 million.

How many subscribers do XM and Sirius have at the moment?
XM Satellite Radio had 929,000 subscribers at the end of Q3 2003. On October 27, 2003, XM announced that it had surpassed 1 million subscribers. On May 6, 2004, XM announced that it had 1,680,000 subscribers at the end of Q1 2004.

Sirius Satellite Radio had 149,612 subscribers at the end of Q3 2003. On December 8, 2003, Sirius announced that it had surpassed 200,000 subscribers. On April 21, 2004, Sirius announced that it had 351,663 subscribers at the end of Q1 2004.

XM Satellite Radio Info

Company Information:
XM Satellite Radio Inc. (formerly American Mobile Radio) is headquartered in Washington, DC. and is a wholly owned subsidiary of XM Satellite Radio Holdings Inc., which is publicly traded on NASDAQ. XM is one of two FCC licensees to deliver satellite radio programming.

Exchange/Symbol: Nasdaq/XMSR

Date of IPO: October 5, 1999

Date of Service Launch: November 12, 2001

Service Fee: Monthly subscription fee, approximately $9.99 per month

Broadcast Frequency: 12.5 MHz of S-Band: 2332.5 to 2345.0 MHz

Satellite Information:
Two Boeing 702 satellites built by Boeing Satellite Systems, with payloads manufactured by Alcatel Space. Both satellites will operate in geostationary orbit, with "XM Rock" at 85° West Longitude and "XM Roll" positioned at 115° West Longitude. The satellites maintain a geostationary orbit at 22,000 miles above the earth. Telesat Canada will monitor and control the satellites for XM. Sea Launch provided launch services. XM Radio has a third back-up satellite on the ground should something go wrong in orbit.

XM Satellite Radio manufacturing partners:
Pioneer, Sony , Delphi Delco, Alpine, Audiovox, Clarion, Mitsubishi, Motorola, Bontec, Blaupunkt, Visteon, Panasonic, Hyundai Autonet, Sharp, Eclipse and Sanyo.

Automotive Partners:
General Motors, Saab, Susuki, Isuzu, Porsche, Freightliner, Peterbuilt

Retail Partners:
Best Buy, Circuit City, sears, Tweeter, Good Guys, Ultimate, Al & Ed's, Car Toys, Crutchfild, Sound Advice, Cowboy Maloney's and Magnolia Hi-Fi. (I also advise people to all their local electronics retailer and check).

Technology Partners:
Boeing, Alcatel, Telesat, IIS Fraunhofer, STMicroeletronics, OnStar, Hughes Network Services, SeaLaunch, Zenit, Terk, Antenna Specialists, Klotz Digital, Dalet Digital Media Systems, IBM, Encoda Systems, Acoustic Systems, Inc., Northeastern Communications Concepts, Studio Technology, Radio Systems Inc., Telos Systems, Harris, Genelec, Sony, Denon, Accenture, Siebel Systems, Vitria, Portal, Veritas, Lawson, Oracle, Object Builders, Cisco Systems, Lucent Technologies and SUN.

Ownership Information:
Apollo Group Holdings 9.1%
Motient Corp. 5.8%
Clear Channel 8.5%
DIRECTV 6.6%
GM 5.6%
Madison Dearborn 5.2%
Columbia Capital 3.8%
Baron Capital 3.8%
AEA Investors 2.8%
Telcom Ventures 2.6%
Honda Motor Corp. 2.3%
Employees and Directors 4.5%
Public Investors 40%

Website: www.xmradio.com