Wedding Bells for XM and Sirius
For better or worse the FCC has granted marriage license to XM and Sirius dispite an agreement to never become anticompetitive, heavy opposition, and a history of not cooperating with FCC regulation to an extent. Maybe the FCC feels that terrestrial tunes have become a staple in American culture and anything short of partnering the two sat broadcasters means the demise of an American freedom.
Lets take a look at the brief history of satellite radio. “Satellite radio” took off in 1992 when the FCC set aside a portion of spectrum, the “S” band (2.3GHz) for nationwide broadcasting of satellite-based digital audio radio service. Four companies applied for a broadcast license, XM and Sirius being 2 of them. They were given approval to broadcast in 1997. XM began broadcasting in September, 2001 and Sirius nine months later in June, 2002.
At any rate here we are. The two are united. So what does that mean for you and me. The FCC has put several restrictions on the deal. Like, a price lock for three years, minority and community based programming. Radios that receive XM and Sirius signals and a la carte programming will also be offered so we can pick and choose our channels from both. The new company is said to be named Sirius XM Radio Inc.
Press Release
NEW YORK, July 29, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio today announced that they have completed their merger, resulting in the nation’s premier radio company. The new company plans to change its corporate name to SIRIUS XM Radio Inc. The combined company’s stock will continue to be traded on the Nasdaq Global Select Market under the symbol “SIRI.”
SIRIUS XM Radio begins day one with over 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country; and, based upon subscribers, the second largest subscription media business in the U.S. With under 10% penetration of the home and car market, the opportunity for continued growth is significant.
“I am delighted to announce the completion of this exciting merger between SIRIUS and XM,” said Mel Karmazin, CEO of SIRIUS XM Radio. “We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers.”
“Every one of our constituencies is a winner. Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace,” added Karmazin.
XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM.
Competitive New Options for Consumers
SIRIUS XM Radio broadcasts more than 300 channels of programming, including exclusive radio offerings from Howard Stern, Oprah, Opie & Anthony and Martha Stewart, among others. SIRIUS XM Radio will offer these expanded options to consumers through arrangements with the world’s leading automakers and its relationships with nationwide retailers.
As a result of the merger, SIRIUS XM Radio will also be able to offer consumers new packages in audio entertainment, including the first-ever a la carte programming option in subscription media. In addition to two a la carte options, the new packages will include: “Best of Both,” giving subscribers the option to access certain programming from the other network; discounted Family Friendly packages; and tailored packages including “Mostly Music” and “News, Talk and Sports.” The first of the new packages will be available in the early Fall.
“One of the most exciting benefits of this transaction is the ability to offer subscribers the option of expanding their subscriptions to include the Best of Both services. Given the respective popularity of exclusive programming on both SIRIUS and XM, we expect many subscribers will upgrade their current subscription,” said Karmazin.
“The upside potential for both consumers and shareholders is huge. Consumers have the ease of adding premier programming without purchasing a new device. For shareholders, this kind of organic growth is a key part of the company’s future and the success we expect to see,” said Karmazin.
As promised when the merger was first announced, existing radios will continue to work and every subscriber has the option of maintaining their current service package.
Benefits for Shareholders Begin Immediately, Integration Already Under Way
SIRIUS XM Radio expects to begin realizing the synergies expected from this transaction immediately.
“In addition to realizing significant potential revenue growth, the management team will move quickly to capitalize on the synergies that many analysts have predicted for this combination. We expect to begin achieving those synergies without sacrificing any of the world-class programming and marketing we are known for,” said Karmazin.
The company today also reiterated guidance for the combined SIRIUS XM Radio. Based upon a preliminary analysis, the combined company expects to realize total synergies, net of the costs to achieve such synergies, of approximately $400 million in 2009; to post adjusted EBITDA exceeding $300 million in 2009; and to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009. The company also expects that both synergies and adjusted EBITDA will continue growing beyond 2009.
“We have all the tools necessary to begin executing as a combined company with high aspirations for subscriber growth and greater financial performance in part from the significant synergies that we begin realizing literally today — on Day One. We are moving quickly to integrate the operations,” said Karmazin.
The corporate headquarters will be located in New York, NY and XM Satellite Radio, the company’s wholly-owned subsidiary, will remain headquartered in Washington, DC.
Effective after the close of the market yesterday, trading in XMSR common stock on the Nasdaq Global Select Market ceased.
What can we expect in the future?
- Better programming
- More subscription choices
- Lower overall pricing
- Radios capable of accepting XM and Sirius signals
- Continued company growth
- Hopefully a profit
Kenny Chesney Fans
Don’t forget! Today is the big day when XM launches the new “No Shoes Radio” channel that is all things Kenny Chesney with his music, interviews, insights, exclusive concert broadcasts and much more.
Kenny Chesney’s No Shoes Radio - Starts Saturday!
Kenny Chesney, the four-time consecutive and current Academy of Country Music and three-time and reigning Country Music Association Entertainer of the Year has set his sights on XM Radio and his own signature music channel, “No Shoes Radio” (XM-18), which begins this Saturday, July 26!
“No Shoes Radio” is a 24/7 destination for all things Chesney - featuring music from Chesney’s audio catalog, including never-before-heard recordings, an uncut, exclusive concert broadcast from the 2008 Poets & Pirates Tour, plus random drop-ins from fans, friends and plenty of music to bring to life the attitude that permeates Kenny Chesney’s world. Kenny will take listeners backstage on his “Poets & Pirates Tour” for exclusive access to the “Vibe Room” and his tour bus and feature conversations and jam sessions with friends like Sammy Hagar, Steve Miller, Keith Urban, and more! Plus, listeners will travel with Kenny to the Caribbean and get a first-hand insight into his island life! Get the true Kenny Chesney experience on “No Shoes Radio,” exclusively on XM!
The channel will launch at 12:00 Noon ET (9:00 AM PT) this Saturday, July 26, with a LIVE broadcast from Kenny’s stadium concert in Boston! Hear live reports from the tailgate parties, plus a special appearance and LIVE performance from Kenny Chesney himself!
“No Shoes Radio” will be available on XM channel 18 from July 26 through October 25. The channel will also be on XM Radio Online (http://xmro.xmradio.com/), where it will stream for an additional three months.
For more on Kenny Chesney’s “No Shoes Radio,” go to www.xmradio.com/chesney!
You can pick up his newset album “Just Who I Am: Poets & Pirates” at Amazon.com in CD or DRM-free MP3 for $9.99.
uXM - iPhone Edition BETA v.53 Released
Millard Software has you XM subscribers cover too. You now can enjoy the terrestrial tunes of XM on your iPhone via WIFI, EDGE and soon HSDPA with the 3G release. You can also stream XM to your iPod touch with this software as well.
There are some know issues with this BETA release, but hopefully they will be corrected with a future release.
If you are a Sirius subscriber you can visit this post to learn more about uSirius.
All uSirius and uXM software is available for download and www.millardsoftware.com.
“No Shoes Radio”
Typically, here at RAA we stick to equipment news and reviews, but being a country music fan I wanted to pass along the news that XM and Kenny Chesney are teaming up this summer to bring XM subscribers an exclusive station of everthing that is Kenny Chesney with “No Shoes Radio.”
Press Release
WASHINGTON, July 3 /PRNewswire/ — Midway through the year’s most attended Poets & Pirates Tour, complete with 14 NFL stadium plays, the four-time consecutive and current Academy of Country Music and three-time and reigning Country Music Association Entertainer of the Year has set his sights on XM Radio and his own signature music channel, “No Shoes Radio.”
Scheduled to launch July 26, “No Shoes Radio” will feature music from Chesney’s audio catalog, including never-before-heard recordings, an uncut, exclusive concert broadcast from the 2008 Poets & Pirates Tour, plus random drop-ins from fans, friends and plenty of music to bring to life the attitude that permeates Kenny Chesney’s world.
“There’s a lot of hits, but there are also a lot of album tracks, songs from the early part of my career, stuff from our Keg in the Closet shows and obscurities that you had to be there to hear,” says the Luttrell, Tennessee-born and -raised singer/songwriter with a laugh. “Anyone who knows anything about me knows how passionate I am about music, and this is a way to bring people into everything I love about songs, playing … music.”
“No Shoes Radio” will also include music beyond Chesney’s catalog, featuring both those artists who rocked Chesney’s world and the kind of music you could easily hear drifting from the backstage “Vibe Room” — capturing the sonic culture of the Poets & Pirates Tour.
“I think we’ve become a part of people’s lives,” admits the high energy performer. “The way a lot of bands were for us, we’re what they’re listening to when they’re hanging out, when they’re having fun, when they need to gear up for something. That’s what music always did for me … and it’s kind of mind-blowing to think that your songs could be that for someone else. So for all those fans out there, get ready for something pretty cool.”
In the spirit of his Corona-sponsored Poets & Pirates Tour, music and other content for “No Shoes Radio” will be captured on the bus, in the halls, around the soundchecks, and even during post-show jams. Beyond that, not only will Chesney’s special guests be taking part in the ad hoc merriment, look for tailgating fans from the parking lot to provide drop-ins, shout-outs and the occasional request.
Said Chesney, “This is a way to keep the vibe alive, long after our tour is gone.”
For XM, this sort of full-immersion, dedicated radio channel is reserved for a very few artists — Led Zeppelin, Michael Jackson, George Strait and the recently announced Coldplay. It offers a unique listening experience to hardcore fans of music that reflects a way of life as much as a record collection.
“‘No Shoes Radio’ will bring the same energy and fun found in the parking lot tailgates and the sold-out stadiums Kenny plays to fans across the country,” said Eric Logan, executive vice president, programming, XM Radio. “Kenny’s a tremendous talent and we’re excited to share his passion for music and life on XM.”
“No Shoes Radio” will be available on XM channel 18 from July 26 through October 25. The channel will also be on XM Radio Online (http://xmro.xmradio.com/), where it will stream for an additional three months. Complete programming information for the channel will be available online at http://www.xmradio.com/kennychesney.
Stay tuned. We may bring more artist news from time to time.
Sirius Satellite Radio on Apple iPhone and iPod Touch
Apple iPhone / iPod Touch owners and Sirius Satellite Radio Subscribers, you might want to sit down. (I guess you probably already are.) Oh yeah! A program called uSirius has brought you Sirius subscribers slash iphone and iPod Touch owners together. For you iPhone owners, isn’t that great? You can have your phone, iPod, camera, web surfing device and now Sirius radio all in one cool little package. What next?
You can stream Sirius radio tunes with an application called uSirius, developed by Millard Software, via Wi-Fi and EDGE. Once the iPhone 3G hits the streets you’ll have connectivity via HSDPA also. You are, of course, responsible for a Sirius subscription to get terrestrial tunes on your iPhone and iPod Touch.
Millard software has developed a software called uSirius - iPhone Edition BETA v.62 that is available for download at www.millardsoftware.com
Lamborghini and Sirius Team Up
What do you get when Lamborghini and Sirius Satellite Radio put their heads together? Well, starting in ‘09 you get a Murcielago with some of the greatest tunes on the planet. Lamborghini will install Sirius in every Murcielago. Standard. With a lifetime subscription. So if your in the market for a new 2009 Lamborghini, now you have one more reason to buy.
Press Release:
NEW YORK and SANTA AGATA, Italy, June 19, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — SIRIUS Satellite Radio (Nasdaq: SIRI) and Automobili Lamborghini S.p.A. today announced that Automobili Lamborghini will offer SIRIUS as its exclusive satellite radio provider in Lamborghini vehicles. The first Lamborghini to include SIRIUS as standard factory installed equipment will be the Murcielago beginning with the 2009 model year in the U.S.
“We are very pleased to have Automobili Lamborghini as a partner.” said Mel Karmazin, CEO SIRIUS. “We look forward to working closely with Automobili Lamborghini to offer its customers the best in audio entertainment available for its prestigious vehicles.”
“SIRIUS was the natural choice for Automobili Lamborghini’s exclusive supercars,” stated Stephan Winkelmann, President and CEO of Automobili Lamborghini S.p.A. “Satellite radio gives our customers easy access to endless music options, therefore enhancing their ability to enjoy their vehicle on the road or track.”
SIRIUS will be standard equipment in each Murcielago and will include a lifetime subscription to SIRIUS Satellite Radio with every vehicle purchase.
XM & Sirius Inch Closer
In a statement on Monday, June 16, 2008 by FCC Chairman Kevin Martin gave the go ahead for the satellite radio giants XM and Sirius to wed. A number of conditions will exist, including a three year price freeze for consumers. Don’t get too excited yet. The four other commissioners still need to give the OK nod, before it’s a done deal.
Some of the good that can come from the merger is smaller subscription packages at a lower price (about half of the current subscription fee), “family friendly” programming excluding the racier stuff like Stern (as if I needed to point that out), and the two providers have agreed to allow any radio equipment manufacturer make satellite radio products.
I know there is a lot of opposition toward the merger out there and arguably for good reason, but my opinion is that if you are against it, then don’t subscribe. Personally, I think consumers will have more options with a merger, at least at this stage. Also, a merger may save one company from a short existence, if not both.
As always please feel free to share your thoughts and say tuned to read more in the coming days as all this merger stuff plays out.
