Droxy (Digital Radio) http://www.droxy.com Droxy (Digital Radio) http://www.droxy.com/media/feedlogo.gif Droxy (Digital Radio) http://www.droxy.com en-us Copyright 2008 Blogsmith, LLC. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/SIRIUS Subscriber Growth Outpaces XMhttp://www.droxy.com/2006/07/06/sirius-subscriber-growth-outpaces-xm/http://www.droxy.com/2006/07/06/sirius-subscriber-growth-outpaces-xm/http://www.droxy.com/2006/07/06/sirius-subscriber-growth-outpaces-xm/#commentsFiled under: ,

We've thought it to be coming for quite some time, given the string of bad news for XM and good news for SIRIUS. Today's second quarter numbers released from SIRI show SIRIUS outpacing XMSR in subscriber growth, a vitally important number for the two battling companies.

"Sirius, boosted by an exclusive deal with shock jock radio personality Howard Stern, said it added about 600,640 net new subscribers in the quarter, a 64 percent growth from the same period last year. It ended the quarter with 4.7 million subscribers, still short of XM's nearly 7 million subscribers.

XM said it added 398,000 net new subscribers, a 38 percent drop in net subscriber growth compared to last year's period curbed by new product availability. XM shares were flat in Nasdaq trade after falling as much as 5 percent before the market opened."

There's still a very long way to go before satellite radio becomes profitable. Continued strong growth does help to sway the doubting Thomas', and at least gets SIRIUS a bit closer to paying the bills.

[via Reuters]
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]]>SIRISiriusXM RadioXmRadioXMSRGrant Robertson2006-07-06T17:07:00+00:00Sorry, Wrong Number - XM's Phone Foiblehttp://www.droxy.com/2006/06/30/sorry-wrong-number-xms-phone-foible/http://www.droxy.com/2006/06/30/sorry-wrong-number-xms-phone-foible/http://www.droxy.com/2006/06/30/sorry-wrong-number-xms-phone-foible/#commentsFiled under: ,

Ever get a wrong number call? Of course, everyone with a phone has experienced the inconvenience of a wrong number, whether on the dialing or recieving end. What about 1200 of them, in one day...

XM made a tiny mistake in when printing 78,000 direct mail postcards for direct mail requesting customers to update their billing information, by phone. XM did what every girl in a disco has done to me over my entire life, gave out the wrong phone number. The errant digit led callers to a Eureka, California small business who according to the Times Standard fielded 200-300 wrong numbers per hour over the course of a day.

And get this, the fun continues with the 3rd class mailing being dribbled into mailboxes over the next 2 weeks.
The owners of the Eureka, California company are hoping that some sort of financial settlement can be reached for loss of business and the cost of the 800 calls.

[via Times Standard Online]

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]]>Grant Robertson2006-06-30T19:50:00+00:00Karmazin Wants To Buy XMSRhttp://www.droxy.com/2006/06/27/karmazin-wants-to-buy-xmsr/http://www.droxy.com/2006/06/27/karmazin-wants-to-buy-xmsr/http://www.droxy.com/2006/06/27/karmazin-wants-to-buy-xmsr/#commentsFiled under: , , ,

Go go market unification. Well, not just yet, but it could be coming. Even with regulatory "question marks" looming, Mel Karmazin says he'd buy XM if the price were right.

The merger idea has been floated before, and many are certain that a consolidation between the two is inevitable in the long term. Still, when Karmazin talks, people listen and when he talks about a buy out of rival XM, it gets everyone talking.

Not the least of which is long time industry cheerleader, The Motley Fool. In the Fool's analysis, "If it does happen, it's likely to happen sooner rather than later. If XM and Sirius hit their mark and start producing positive operating cash flow in a few quarters, a lot of the bearish sentiment that has been marinating the stocks in recent months will evaporate. Prices will start inching higher, creating less of an incentive for XM and Sirius to cash out, and the potential acquirers may not be willing to pay those higher prices."

The Motley's have a point. Profitable, these two are going to be giants to contend with in terms of stock price. They will have created a new industry, something that isn't easy to do. To the victor goes the spoils, as they say.
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]]>Grant Robertson2006-06-27T18:03:00+00:00USA Today Bearish On SIRIUS Stockhttp://www.droxy.com/2006/06/23/usa-today-bearish-on-sirius-stock/http://www.droxy.com/2006/06/23/usa-today-bearish-on-sirius-stock/http://www.droxy.com/2006/06/23/usa-today-bearish-on-sirius-stock/#commentsFiled under: ,

Everybody's a critic when it comes to start-ups. USA Today's Matt Krantz says he's bearish on SIRIUS, due to lackluster returns and the failure to turn a profit as of yet (You mean they're trying to make money?)

Krantz explains, "Satellite radio was a classic case. Shortly after the dot-com bust, investors looking for wild and exciting investment opportunities didn't lose any time investing in satellite radio. It seemed to have unlimited promise. And it didn't seem to matter that Sirius hadn't made a dime and analysts were torn on when, or if, profits would arrive."

Well true, but it takes time to build infrastructure and, the adoption rate of satellite radio is unparelleled in any other new broadcast medium so far in our history. I think Krantx is just a little ticked about Howard Stern making more money than should be legally allowed for someone who sits in front of a microphone, writing, "the biggest winner on the stock has been shock jock Howard Stern, who was paid $100 million a year plus given the opportunity to cash in $191 million in stock. You can read about Stern's mega payday here.

"[now] The stock is trading around $4.45 a share. That's a 13% decline since April 2005. Interestingly, too, investors haven't cashed in on Stern, either. The stock is down 35% since he started on the air. Meanwhile, the company still loses money, making it impossible to value the stock using any standard method."

I'm pretty sure that the momentum is in SIRIUS' favor. Mel Karmazin is a strong leader, and barring anything unforseen (like FCC regulation of content, or a few satellites crashing and burning) SIRIUS has a bright future.

[via USA Today]
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]]>Grant Robertson2006-06-23T17:53:00+00:00Jim Cramer Says XMSR and SIRI Have Peaked, Should Mergehttp://www.droxy.com/2006/06/22/jim-cramer-says-xmsr-and-siri-have-peaked/http://www.droxy.com/2006/06/22/jim-cramer-says-xmsr-and-siri-have-peaked/http://www.droxy.com/2006/06/22/jim-cramer-says-xmsr-and-siri-have-peaked/#commentsFiled under: , ,

"Crazy" Jim Cramer of CNBC's Mad Money says XM Satellite Radio (XMSR) and SIRIUS Satellite Radio (SIRI) are overvalued, and the satellite Radio industry as a whole has "peaked".

Citing market capitialization as too large, and pointing to XM's recent miss in subscriber number targets, Cramer says XMSR and SIRI only represent value now if they merge.

Cramer says on the short term, he would be long SIRI and short XMSR.

I'll agree on long SIRI and short XMSR but, I don't think mergers are where the butter for this bread lie, at least not yet. SIRI needs to capitalize and expound upon the recent gains it has made against XMSR in the market. SIRIUS has been on a rampage lately, and XM is facing some difficult and bumpy roads ahead in the form of lawsuits and legal battles.

If SIRIUS can launch useable and relevant video feeds soon, and well ahead of XM, they will have established a strong foothold in a market that didn't exist 3 years ago. History is written by the victorious, and I think SIRIUS will be writing the book on how Satellite Radio killed FM.

[via Street Insider]
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]]>Grant Robertson2006-06-22T15:28:00+00:00XM Applies For New Patenthttp://www.droxy.com/2006/06/20/xm-applies-for-new-patent/http://www.droxy.com/2006/06/20/xm-applies-for-new-patent/http://www.droxy.com/2006/06/20/xm-applies-for-new-patent/#commentsFiled under: , , , ,

This is patent non-sense, as it's one of those ideas that isn't actually so much an idea as it is the natural progression of things. However,  XM Satellite Radio has applied for a patent to incorporate HD radio transmitters into satellite radio recivers. Instead of the current FM modulators available in most radio models, XM seeks to add HD capability allowing a portable radio what is essentially a wireless digital input to a car audio system.

In the patent application, the company notes that its "high quality digital signal broadcast by XM Satellite Radio is ideally received by a digital satellite receiver for best audio reproduction, but in many instances an analog frequency modulation technique is utilized to reproduce the digital signal to take advantage of existing FM receiver car audio hardware.". As satellite radio owners know, "high quality digital signal" is a little bit of a misnomer, it's not exactly CD quality. An HD Radio modulator might help slightly, but you're still reproducing a compressed digital signal that is full of artifacts and noise.

Of course, you can patent just about anything these days. The entire patent application can be read here [FMQB.com] as a PDF.

[via FMQB]
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]]>Grant Robertson2006-06-20T17:43:00+00:00XM and SIRIUS Fight It Out Via Stern and Opie + Anthonyhttp://www.droxy.com/2006/06/17/xm-and-sirius-fight-it-out-via-stern-and-opie-anthony/http://www.droxy.com/2006/06/17/xm-and-sirius-fight-it-out-via-stern-and-opie-anthony/http://www.droxy.com/2006/06/17/xm-and-sirius-fight-it-out-via-stern-and-opie-anthony/#commentsFiled under: , , ,

This whole Stern vs. O+A thing is getting out of hand, but I guess it sells radios. A Howard Stern fan approached Opie & Anthony during the XM "Walk Over" on Friday's show. The Stern fan first came up to the microphone and said, "This is Opie and Anthony's whole audience here? I just wanna say, uhm, Howard Stern has a huge [base, vulgar term for male genitalia] and I love him."

More inane quips one would expect from a diehard Stern (or OA) fan followed, until the Stern fan then threw Ben Sparks against a wall and was subdued by "Club Soda Kenny" and "Master Po" who pinned the Stern fan down and made him apologize on air. The Stern fan was held for the NYPD, who arrived an unspecified amount of time later.

Stern and OA are becoming the Rock-em-sock-em robots of XM and SIRIUS, allowing the companies to spar against each other in the press without actually, uh, sparring against each other in the press.

Orbitcast has audio of the whole thing. Not safe for work.

[via Orbitcast]
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]]>Grant Robertson2006-06-17T07:14:00+00:00XM and SIRIUS FCC Modifications May Not Be So SIRIUShttp://www.droxy.com/2006/06/14/xm-and-sirius-fcc-modifications-may-not-be-so-sirius/http://www.droxy.com/2006/06/14/xm-and-sirius-fcc-modifications-may-not-be-so-sirius/http://www.droxy.com/2006/06/14/xm-and-sirius-fcc-modifications-may-not-be-so-sirius/#commentsFiled under: , , , ,

The modifications required to get XM radios back in compliance with the FCC may be much smaller that we thought. When Forbes published an article that read "The FCC issue could be more pervasive than previously believed", we previously believed them. Pitty us, as the answer may be much closer to the mundane.



According to Orbitcast, the part needed isn't internal, it's simply a 25-cent ferrite bead. That's right, one of those funny little bumps on the cord may be the cause of all this ruckus. The little loop is used to dampen magnetic radiation emmitted from cables carrying electric current.

This is good news for everyone involved if its true. I'm still not certain this is the issue in question. Other stories have pointed to the FM modulator being the problem that drew the ire of the FCC. If that's the case, I'm hard pressed to see how this fixes the issue.
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]]>FCCSIRIXMSRXMSR SIRIXmsrSiriGrant Robertson2006-06-14T18:12:00+00:00XM Seen Benefiting From Lower Delphi Strike Riskhttp://www.droxy.com/2006/06/12/xm-seen-benefiting-from-lower-delphi-strike-risk/http://www.droxy.com/2006/06/12/xm-seen-benefiting-from-lower-delphi-strike-risk/http://www.droxy.com/2006/06/12/xm-seen-benefiting-from-lower-delphi-strike-risk/#commentsFiled under: , ,

Friday, GM, Delphi, and the United Auto Workers announced new agreements that expand attrition efforts at Delphi and  push back court litigation until Aug. 11. This demonstrates a minimized risk of an employee strike at Delphi, which has negatively affected XM's stock price over recent months, according to UBS Investment Research analyst Lucas Binder.

"While we believe there would be minimal impact to XM's radio production from a strike, the detriment to GM's production and sales of XM radios in GM cars would be negatively impacted," said Binder.

Given the other external pressures faced by XM, it's nice to see some good news for a change. Even so, XMSR slipped another 21 cents to 13.39 before today's close.

[Source: Forbes]
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]]>DelphiGeneral MotorsGeneralMotorsXM Satellite RadioXmSatelliteRadioXMSRGrant Robertson2006-06-12T16:19:00+00:00Singular Research Lowers Price Target on XMSR From $14 to $10http://www.droxy.com/2006/06/12/singular-research-lowers-price-target-on-xmsr-from-14-to-10/http://www.droxy.com/2006/06/12/singular-research-lowers-price-target-on-xmsr-from-14-to-10/http://www.droxy.com/2006/06/12/singular-research-lowers-price-target-on-xmsr-from-14-to-10/#commentsFiled under: ,

Sell! Sell! Sell! That's what Singular Research says of XMSR. Singular Research provides research to institutional money managers and hedge funds, has recently updated its coverage of XMSR.

Sighting the revised subscriber projections XM recently released, and pointing to the host of ongoing litigation, Singular says very matter of factly, "As events unfold, we are becoming increasingly confident that current industry expectations are overly optimistic. We are now forecasting 15.7 million subscribers by 2010 versus the company's current estimate of 20 million subscribers."

Singular is just one such research firm that follows XMSR for institutional investors, hedge funds and other financial management firms and by no means should be taken as a pure authoritative source on the matter. Still, the tide has turned on XM in a surprisingly short amount of time. Once the darling of the satellite radio industry, XM is at the very least losing their grip on the lead as momentum has shifted in recent months to SIRIUS.

I'm still philosophically bullish over XM's prospects in the long run but, at this point I'd be hard pressed to put my money where my mouth is.

[via MarketWire]
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]]>XMSRGrant Robertson2006-06-12T09:28:00+00:00SIRIUS To Add Fixed Position Satellitehttp://www.droxy.com/2006/06/11/sirius-to-add-fixed-position-satellite/http://www.droxy.com/2006/06/11/sirius-to-add-fixed-position-satellite/http://www.droxy.com/2006/06/11/sirius-to-add-fixed-position-satellite/#commentsFiled under: ,

Space is about to get a little more crowded, and as a result your SIRIUS reception may be all the better. That's according to SIRIUS Satellite Radio and the satellite builder Loral.

Construction of the new satellite is expected to be completed in the fourth quarter of 2008. The satellite will be launched into a geostationary orbit to complement SIRIUS' existing three satellites, which were also manufactured by Space Systems/Loral and operate in a highly elliptical geosynchronous orbit. This unique hybrid constellation will hopefully provide unparalleled redundancy, enhanced coverage and exceptional performance.

Technical details on how reception will improve, what the satellite's planned footprint will be and what additional features might be supported by the new stationary platform are light so far. According to SpaceToday, the SIRIUS FM-5 satellite is a "high-power" 130-series spacecraft, able to generate over 20 kilowatts of power and will be equipped with a number of advanced technologies, including an unfurl-able 9-meter antenna. Rumor has it that the additional bandwidth and capability may be  planned for use in streaming video delivery.

[via PRNewswire]
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]]>LoralSatellite RadioSatelliteRadioSIRISIRIUSGrant Robertson2006-06-11T20:55:00+00:00SIRIUS Beating XM In Canadian Subscriber Counthttp://www.droxy.com/2006/06/07/sirius-beating-xm-in-canadian-subscriber-count/http://www.droxy.com/2006/06/07/sirius-beating-xm-in-canadian-subscriber-count/http://www.droxy.com/2006/06/07/sirius-beating-xm-in-canadian-subscriber-count/#commentsFiled under: , ,

More signs that the XM SIRIUS battle is turning more SIRIUS than XM. Unaudited subscriber numbers published by XM this week have XM subscriptions in Canada (a relatively new market for both XM and SIRIUS) at 80,000.

XM Previously estimated 75,000 Canadian subscribers by August of this year, so on the surface this looks like a good thing for the recent litigation pincushion. However, SIRIUS, often the also-ran when it comes to total numbers of subscribers, and even available channels, claims 100,000 Canadian subscribers in a May announcement.

It's way to early to declare the tide turning in the battle between XM and SIRI but, continued signs like this continue to demonstrate that the race for king of satellite radio is far from over.

[via Digital Home Canada]
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]]>Grant Robertson2006-06-07T13:55:00+00:00Sirius, XM Could Halt Radio Productionhttp://www.droxy.com/2006/05/30/sirius-xm-could-halt-radio-production/http://www.droxy.com/2006/05/30/sirius-xm-could-halt-radio-production/http://www.droxy.com/2006/05/30/sirius-xm-could-halt-radio-production/#commentsFiled under: , , ,

It's looking like the FCC issues that caused Audiovox to pull certain models of XM radios off of the market, and caused XM to voluntarily suspend sales of certain models of radios containing FM transmitters may be more widespread than previously thought.

According to Forbes, "The FCC issue could be more pervasive than previously believed," wrote analyst Jonathan Jacoby in a research note Tuesday. "We believe that XM and Sirius could temporarily suspend retail shipments of certain radios, but the fix would be relatively quick and inexpensive and likely would not lead to stock-outs at retail."

In all honesty, neither company needs this. Both XM and SIRIUS are relying on phenomenal growth numbers to help keep their stock values up while they continue to lose money while developing infrastructure and programming. Anything that slows subscriber growth could be bad news. 30 - 60 days of poor availability of radios in the retail market is a definite way to slow subscriber growth.

[via Forbes]
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]]>FCCSIRIUSXMGrant Robertson2006-05-30T13:04:00+00:00Stern Settlement Final, SIRIUS Gets Rights To Old Showshttp://www.droxy.com/2006/05/26/stern-settlement-final-sirius-gets-rights-to-old-shows/http://www.droxy.com/2006/05/26/stern-settlement-final-sirius-gets-rights-to-old-shows/http://www.droxy.com/2006/05/26/stern-settlement-final-sirius-gets-rights-to-old-shows/#commentsFiled under: , ,

We reported yesterday Wednesday that Howard Stern and CBS reached an agreement and all but finalized a deal that put an end to the feud between Stern and his former employer. Today brings us news that Howard not only settled but was able to regain control of his old recordings, according to Reuters, "As part of the deal, Stern will gain rights to his old CBS Radio broadcast material in return for unspecified payments to CBS, including $2 million from Sirius. Further details of the agreement were not disclosed."

This is a huge win for SIRIUS. The reported figure is a very reasonable number, and SIRIUS with the ability to run classic Stern content should be able to monetize that content in ways that help fund Howard's $500 Million dollar deal.

[via Reuters]
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]]>CBSHoward SternHowardSternlawsuitSIRIUSGrant Robertson2006-05-26T19:48:00+00:00SIRIUS Shares Up, Oulook Getting Brighterhttp://www.droxy.com/2006/05/25/sirius-shares-up-oulook-getting-brighter/http://www.droxy.com/2006/05/25/sirius-shares-up-oulook-getting-brighter/http://www.droxy.com/2006/05/25/sirius-shares-up-oulook-getting-brighter/#commentsFiled under: , ,

It was only a few months ago that the XM vs SIRIUS battle was looking like a lot of XM and a little bit of SIRIUS. Not so fast says Wall St., as SIRIUS shares rise on news while XM recently sank to a new 52 week low.

Granted, neither company is over-performing at current but, Robert Peck and analyst for Bear Sterns recently downgraded XM to "underperform" from "outperform" and wrote in a research report, "We think the market has lost faith, and unfortunately what used to be XM's premium over Sirius (confidence in its management) has eroded,"

Coupled with SIRIUS's Howard Stern reaching a settlement in his legal battle with CBS, and XM's long list of stock related class action lawsuits and that doosey of a whopper of a lawsuit from the RIAA, XM is looking less and less like the sure bet.

[via Yahoo Finance]
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]]>SIRIUSXMGrant Robertson2006-05-25T14:41:00+00:00Stern And CBS Settle Lawsuithttp://www.droxy.com/2006/05/25/stern-and-cbs-settle-lawsuit/http://www.droxy.com/2006/05/25/stern-and-cbs-settle-lawsuit/http://www.droxy.com/2006/05/25/stern-and-cbs-settle-lawsuit/#commentsFiled under: , , ,

As had been widely expected, Howard Stern and CBS have settled the lawsuit that grew from Stern's departure to SIRUS Satellite Radio. CBS filed suit in February against Stern, his agent and Sirius, claiming he breached his contract by talking about his new satellite radio gig on the air, essentially giving SIRIUS free advertisement.

No details on the settlement have been published, and in fact, spokes-people for both sides are being tight lipped in the press, having stated publicly that no deal has actually been signed.

This is good news for all involved. SIRIUS and Howard need to get down to the business of selling more radios and paying off the enormous deal offered to Stern and his crew for their relocation to satellite. CBS needs to let bygones be bygones. No lawsuit will return Stern to the public airwaves, and this deal lets CBS end the crying over spilled milk.

[via Forbes]
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]]>Howard SternHowardSternlawsuitsettlementSIRIUSGrant Robertson2006-05-25T12:26:00+00:00XM Cuts Subscriber Projectionshttp://www.droxy.com/2006/05/24/xm-cuts-subscriber-projections/http://www.droxy.com/2006/05/24/xm-cuts-subscriber-projections/http://www.droxy.com/2006/05/24/xm-cuts-subscriber-projections/#commentsFiled under: ,

While we are not rushing to subscribe to XM Satellite Radio quite as fast as XM would like, causing revised subscriber projections, we are still moving radios off of store shelves at a pretty incredible pace.

 XM today reported financial guidance for 2006, projecting that it will end 2006 with 8.5 million subscribers, resulting in subscriber revenues $835 million and EBITDA loss of $235 million. XM reaffirmed that it remains on track to have positive cash flow from operations for the fourth quarter of 2006 and on an annual basis for 2007. The revised guidance of 8.5 million subscribers represents growth of more than 40 percent over the course of the year.

"Subscriber growth for the first quarter of 2006 was consistent with our initial guidance of nine million subscribers by the end of 2006," said Hugh Panero, President and CEO of XM Satellite Radio. "Although XM has regained retail market share since the first of the year, the satellite radio category has seen an overall softness at retail during the second quarter to date, and we have been later than anticipated with broad availability of our new products."

XM has been and continues to be the leader among the satellite radio set in terms of both total subscribers and total channels broadcast. So, what's a half million  listeners? Between friends, not much. For the shareholders though, this may be a significant warning. XM is facing strong pressure from lawsuits and competitor SIRIUS.

XM shares fell $1.76 to a 52 week low on the news.
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]]>financialssatellite radioSatelliteRadioSIRIUSXMSRGrant Robertson2006-05-24T16:34:00+00:00Failed XM Deal Could Be Good Newshttp://www.droxy.com/2006/05/23/failed-xm-deal-could-be-good-news/http://www.droxy.com/2006/05/23/failed-xm-deal-could-be-good-news/http://www.droxy.com/2006/05/23/failed-xm-deal-could-be-good-news/#commentsFiled under: ,

Yesterday we learned that XM's deal with WCS Wireless fell through, leaving XM with less bandwidth than projected which in turn could mean delays in XM's previously announced plans to expand into mobile video and data services.

Don't cry just yet. In fact, if you're holding XM stock, you may just want to breathe a sigh of relief. According to an article from Forbes, the failure to get regulatory ducks in a row over the WCS merger should be welcome news for Wall St.

"The increasingly bearish sentiment towards XM today -- and towards satellite radio in general -- has led to growing skepticism about the opportunities the WCS spectrum might have enabled...and growing concern about the capex (Capital Expenditure) it might have entailed," Craig E. Moffett, an analyst at Sanford C. Berinstein & Co wrote in research note Tuesday.

"Today's announcement removes these risks from the stock."

On the other hand, XM is still facing a host of lawsuits. The RIAA, as well as a growing list of law firms involved in class action suits, could put a damper on XM's bottom line for quite some time to come.

[via Forbes]
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]]>lawsuitsXM Satellite RadioXmSatelliteRadioXMSRGrant Robertson2006-05-23T14:07:00+00:00XM Loses Earlier Announced Deal With WCS Wirelesshttp://www.droxy.com/2006/05/22/xm-loses-earlier-announced-deal-with-wcs-wireless/http://www.droxy.com/2006/05/22/xm-loses-earlier-announced-deal-with-wcs-wireless/http://www.droxy.com/2006/05/22/xm-loses-earlier-announced-deal-with-wcs-wireless/#commentsFiled under: , ,

XM Satellite Radio has announced the termination of a prior agreement to acquire WCS Wireless, a private entity. XM had been seeking additional wireless spectrum WCS Wireless held in certain geographic areas throughout the United States. The deal, previously announced on July 13th, 2005, would have seen XM acquire WCS wireless for 5.5 million shares of XM Common Stock.

At the time of the acquisition agreement between XM and WCS Wireless the parties had expected to close their transaction by this time, with the timing dependent on receipt of necessary government approvals.

Neither XM or WCS has been able to obtain approval for the new use of the spectrum held by WCS. Accordingly, XM and WCS Wireless have agreed to terminate the acquisition agreement in order to free WCS Wireless to pursue other alternatives for its spectrum licenses.

XM had at one point hoped to use the additional bandwidth to provide "a variety of multimedia subscription services, including innovative video and data offerings" in areas covering 160 million people throughout the United States and including 15 of 20 top metro markets.

In commenting on the termination, Gary Parsons, Chairman of XM, stated, "With the inability to obtain the necessary government approval for this transaction in a timely manner, WCS Wireless needed to pursue alternatives for its spectrum with greater certainty of regulatory approval."

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]]>FCCWCS WirelessWcsWirelessXMSRGrant Robertson2006-05-22T16:50:00+00:00Is The Stern Effect Fading? I Think Nothttp://www.droxy.com/2006/05/12/is-the-stern-effect-fading-i-think-not/http://www.droxy.com/2006/05/12/is-the-stern-effect-fading-i-think-not/http://www.droxy.com/2006/05/12/is-the-stern-effect-fading-i-think-not/#commentsFiled under: ,

Sirius' 500 million dollar dice roll may be coming up snake eyes. According to this study from Bridge Ratings, the "Stern-Effect" seen during 2005's fourth quarter and into the first quarter of '06, has virtually stalled. The boom days of post-terrestrial Stern may be waining.

Among the statistics Bridge Ratings cites from talking with 3200 Stern listeners who haven't gone to Satellite:
  • 31% Don't Miss Stern Enough To Subscribe
  • 23% Say Equipment and Subscription Costs Are Too High
  • 20% Are Listening To Their Former Second Choice Morning Show
  • 10% Don't See The Value of Satellite Radio
Luring Stern away from terrestrial radio was a risky proposition, but I don't think this is all over just yet. Stern's value to Sirius is often underestimated in my opinion. He's not just a personality, he's a programming genius. Sirius obviously recognizes this, having given Stern two full channels to fill. Heck, Martha Stewart went to jail and all she got was one lousy channel.

Meanwhile, Stern can't say enough good things about Sirius. In this short article at Forbes.com, Stern says he'll never go back to terrestrial radio, not even in syndication. "I've never been happier", said Stern on a recent show.



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]]>Howard SternHowardSternratingssatellite radioSatelliteRadioGrant Robertson2006-05-12T15:22:00+00:00