News Articles From Days Gone ByAfter struggling to stay alive by completing a $1.
(31 March 2003)
2 billion recapitalization, Sirius is reporting dismal financial results.The company reported only $685,000 in revenue for the October-December time frame. They posted a net loss for the 2002 fourth quarter. Much of their losses are said to be due to spending on advertising and promotional activities during the holiday season.
Despite a dramatic increase in subscriptions, XM remains unprofitable, and its net loss for the quarter even widened.
(28 March 2003)
The Washington Post reports that about 79,000 signed up for XM in December. The increase was due, in part, to sales of SkyFi "satellite boom boxes."
XM listenership is getting a boost from interest in the war in Iraq.
(27 March 2003)
Since hostilities commenced interest has soared in XM's war coverage anchored by their national news and information channels. The host of broadcasts from Fox News, CNN, and BBC World Service mark the first time that a major international conflict has been covered nationally by both television and radio. Said XM boss Hugh Panero "XM has broken the tether to the television during this time of national uncertainty. Trusted information sources, liked Fox News, CNN and BBC, that Americans seek out when the need for news is greatest are now available to people no matter where they are, in the car, on the go as well as at home."
SkyWaves of Ann Arbor, Michigan has released its latest report on expected satellite radio subscriptions for Sirius and XM.
(26 March 2003)
According to SkyWaves, XM is expected to have 490,000 to 500,000 subscribers by the end of the first quarter and 1.24 million by the end of this year. By contrast, Sirius is expected to post between 45,000 and 50,000 subscriptions at the end of the first quarter. They are also expected to gain up to 20,000 subscriptions as a result of their relationship with Hertz.
DaimlerCrrysler is getting Sirius.
(26 March 2003)
It's the first automaker to offer Sirius satellite receivers in its new cars. It's not a new decision. DaimlerChrysler made plans early on to offer Sirius in its vehicles but had to delay the introduction of the units because of production difficulties. The Sirius vehicles are most new Chryslers, Dodges, and Jeeps. Sirius is also available in the 2003 Chrysler PT Dream Cruiser Series2, the 2004 Chrysler 300M, and the new Chrysler Pacifica sport utility wagon.
Just when we thought that there were enough distractions to drivers on our highways along comes satellite TV for vehicles.
(25 March 2003)
KVH Industries of Middletown, R.I. is planning to offer vehicle owners satellite T.V. The service should provide 300 TV channels and 50 commercial-free audio channels. Unlike Sirius and XM, KVH is providing only after-market units rather than partnering with vehicle manufacturers. "We're planning a nationwide rollout and should be shipping products by the end of June," says KVH spokesman Chris Watson.
Having convinced itself finally that it has finances to manage, Sirius has commenced a search for a new Chief Financial Officer to succeed John J.
(24 March 2003)
Scelfo. Scelfo will leave Sirius on 7 April. At that time the Sirius financial responsibilities are to be handled by boss Joe Clayton pending the selection of a new CFO. Said Clayton " John has helped us through significant expense reductions and capital raising efforts including our recent recapitalization. He has indicated a desire to move on to different personal and professional ventures and we wish him well."
The satellite radio industry has come to an agreement with SoundExchange on royalty rates and terms for the public performance of copyrighted sound recordings.
(20 March 2003)
"The royalties paid under this agreement will be an important new revenue stream for the 3000 labels and thousands of artists we represent. THe agreement once again compensates artists and copyright owners for public performances of their creative works," said SoundExchange Executive Director John L. Simson. Sirius and XM Veeps Doug Kaplan and Ron Levin jointly commented " We're pleased to have reached an amicable agreement that compensates performers and record labels."
It's time to play ball again, and "The Dog" is getting Sirius as the satellite broadcaster announced that Major League Baseball would be broadcast on stream 120, ESPN Radio, for the 2003 season.
(20 March 2003)
Sirius broadcasts feature the Sunday game of the week, the Division Series, League Championship Series, The All-Star Game and the World Series. Karl Ravech and Rob Dibble's "The Baseball Show" is also being carried.
XM may not have a new ad agency yet but they do have a strategy.
(20 March 2003)
Having dumped TBWA/Chiat/Day (see story below) XM is looking for less hype and more customers, preferably with the assistance of an organization on the East Coast. Pile and Co. , Boston is assisting XM in their search. The idea is to tap into a market consisting of drivers who just can't seem to find anything on the radio. Said media consultant Walter Sabo of Sabo Media in New York "Neither Sirius nor XM has had an ad campaign that establishes the point of need and the solution."
To sweeten the package for presenters at this year's Oscars, the academy is providing each with "gift bags" including a Delphi SKYFi boom box and a year's subscription to XM.
(18 March 2003)
The presenters include Julia Roberts, Denzel Washington, Dustin Hoffman, Halle Berry, Cameron Diaz, Ben Affleck, Harrison Ford, Michael Douglas, Jim Carrey, Colin Farrell and Jennifer Garner.
The first luxury performance sedan to include an audio system with XM as standard equipment is being shipped to dealerships across America this week.
(18 March 2003)
XM Boss Hugh Panero said "We are delighted that Acura has made XM Satellite Radio a standard feature in the exciting 2004 Acura 3.5 RL. We look forward to American Honda equipping a wide variety of Acura and Honda models with XM throughout 2003 and beyond." The Acura 3.5 RL will be joined by the 2004 Acura TL this Fall. Both will be XM-ready.
It may be a sign that XM is finally starting to worry about Sirius, that they are starting to get Sirius, or that it's just time for a change.
(13 March 2003)
In any case, XM is beginning to look for a new ad agency. The XM account has been handled until recently by the Playa del Ray, California, office of TBWA/Chiat/Day . XM's original promotions featured images of instruments falling from the sky.
Not to be outdone by the U.
(13 March 2003)
S., Europeans are looking to Global Radio to satisfy their satellite needs.They still have a long way to go. Says Joe Ragan, senior Veep, "We are developing the satellite radio market in Europe. We are working on closing another round of financing. We will make commitments shortly in terms of satellite and launch contracts. We will begin satellite construction in 2004 and develop content in 2005. We plan to hit a million subscribers in 2008 and cashflow positive in 2010."
In a move that insures the financial future of Sirius, at least for a while, stockholders approved the company's proposed recapitalization.
(5 March 2003)
The decision by 68% of Sirius stockholders allows the exchange of approximately $700 million in debt for common stock and $519 million in preferred stock for common stock and warrants. It also provides for the raising of an additional $200 million through he sale of newly-issued common stock.
A story that must bring back bad memories for the staff at XM is the saga of the Word Network.
(5 March 2003)
Rev. Al Sharpton, founder of the National Action Network (NAN), and Sam Riddle, management consultant to The Word have discussed its "token carriage" on Cablevision with Tom Montemagno, that organization's vice-president of Programming Acquisition. Rev. Sharpton requested discussions with Cablevision of New York after their digital launch did not include The Word Network, which is carried on analog. Said Riddle "I believe that if Cablevision can see fit to carry the likes of 'The Hot Network' and Playboy, there ought to be room for The Word." Similar remarks were made regarding XM's decision not to carry The Word last year. The Word is carried by Sirius.
The subject of chipsets is never a good one at Sirius, where delays in chipset development put Sirius behind XM in the marketplace.
(4 March 2003)
Nevertheless, the second generation of Sirius chipsets is available and ready to be shipped to manufacturers. An initial order of 60,000 chipsets has begun shipping from maker Agere Systems to Kiryung Electronics of Seoul, South Korea, a major supplier to the radio industry. "This initial roll out of our new chipsets will help support our introduction of second generation Sirius satellite radios into the marketplace, including our 'Plug & Play' units. We are very pleased to be introducing this additional element to our growing product mix," said Sirius boss Joe Clayton.
XM boss Hugh Panero says the satellite industry needs to make significant changes to heighten its future competitiveness.
(4 March 2003)
The industry, says Panero, should dedicate itself to improving its profitability, in orbit satellite reliability and business plan execution. The remarks were made during an address on Thursday, 27 February, to SATELLITE 2003 in Washington D.C. (see story below dated 13 February 2003) where Panero was accepting PBI Media's "Satellite Executive of the Year" award.
XM is planning a special shareholders meeting this month to increase the number of authorized shares of its common stock.
(4 March 2003)
The change is believed to be consistent with the financing package announced on 23 December 2002.