From: http://www.msnbc.com/news/420011.asp?0m=-258 Radio gets a new frequency Satellite radio services in the U.S. are readying for liftoff later this year, promising coast-to-coast, CD-quality audio for cars and homes. By Jane Weaver <mailto:[EMAIL PROTECTED]> MSNBC June 14 Coming soon on your radio dialdozens of commercial-free music stations with clear reception that doesnt fade out no matter how far you drive. For radio fans burnt out by a glut of commercial pitches and endless Britney Spears soundalikes, two soon-to-launch satellite radio services could signal the biggest revolution in the industry since the launch of FM 40 years ago. IS THIS THE FUTURE of radio? The budding satellite radio industry should get its kickstart at the end of June when New York company Sirius Radio launches the first of 3 satellites custom designed to broadcast CD-quality audio signals across the U.S. If the June launch is successful, investment analysts expect the companys stock to takeoff as well. Thats an important catalyst for the stock, William Kidd, analyst with C.E. Unterberg, Towbin, adding that many investors have held back from buying into satellite radio stock because of risks associated with satellite launches. Sirius Satellite Radio, Inc. (SIRI) price change $39.63 unch XM Satellite Radio Holdings Inc. (XMSR) price change $29.88-1.125 Data: MSN MoneyCentral Investor and S&P Comstock There are a lot of investors who love the idea of [satellite radio], but are afraid to take the risk. The stock should increase with each successful launch. Later this year, two more Sirius satellites are scheduled for liftoff, followed closely in November by the launch of rival XMs satellite. Once the satellites are deployed, the two services will begin testing broadcasts of their systems from specially-built digital studios. Sirius Radio has already begun producing audio content and building up its digital music library in its Rockefeller Center studio in New York, says chief executive David Margolese. The Washington, D.C.-based XM will rollout some prototype radios in the fall as it begins trials of its broadcasts, says vice president of marketing Robert Acker. COAST-TO-COAST COVERAGE For listeners, satellite radio means coast-to-coast reception of a clear digital signal of up to 100 channels of music, news, talk and sports programming. Both companies plan to offer monthly subscriptions for $9.95, allowing listeners to choose their favorite genres of commercial-free musicfrom reggae to heavy metal to operaor listen to numerous news, sports or talk programs with limited commercial interruptions. Satellite radios like this illustration from XM could be standard equipment in cars in the next few years. Sirius has signed content partnerships with CNBC, National Public Radio, Bloomberg and USA Networks/Sci-Fi Channel, among others. XM counts NASCAR, USA Today, the BBC and CNN/Sports Illustrated among its content partners. Its the first innovation in radio since the advent of FM, says Vijay Jayant, an analyst with Bear, Stearns who follows both satellite radio companies. This is vastly superior radio, says Sirius Margolese. Youll be able to hear what you cant otherwise obtain on radio today. Its offering exactly what you want to listen to, offers XMs Acker. Most records arent played on the radio, people arent going to the radio to learn about new music. Consumers should be able to buy satellite radios, ranging from about $200 up to $1000, in stores like Circuit City and Best Buy by next summer. An adaptor for existing car radios should retail for $79. Investment bank C.E. Unterberg, Towbin projects that by 2005, there will be 23 million subscribers to satellite radio services. A study from The Carmel Group estimates that by 2006, there will be over 25 million satellite radio suscribers, generating more than $4 billion in revenues from hardware and subscriptions. The [growth] potential is pretty astounding, says analyst Kidd, who initiated coverage of XM in April with a strong buy. New on the dial Will satellite radio be the biggest breakthrough since FM? Two companies are preparing national rollout. 1) Sirius Satellite Radio, New York Satellite takeoff: Approxmiately June 28 Launch: Q2 2001 Playlist: 50 channels of commercial-free music, including R&B, hits, rock, jazz, classical, country, latin; 50 channel of news, sports and talk with 4 minutes of commercials per hour. Content partners: Includes BBC, Bloomberg, CNBC, Hispanic Radio Network, NPR, Sports Byline USA, Playbill. Alliances for on-air programming with Sting, Grandmaster Flash, and MC Lyte. Investors: DaimlerChrysler, Ford Motor Co. ($20 million) Blackstone Capital Partners III, Apollo Management. Auto partners: BMW, DaimlerChrysler, Ford Motor Co., Volvo, Jaguar, Toyota (in negotiations) Monthly fee: $9.95 2) XMSR, Washington, D.C. Satellite takeoff: November Launch: Q2 2001 Playlist: Capability of up to 200 channels, including a "significant number" of music channels, some commercial free. Also news, talk and sports channels. Content partners: Includes USA Today, BBC World Service, PBS News Hour with Jim Lehrer, Blomberg News Radio, CNN News Group, CNN Sports Illustrated, Black Entertainment Television, AsiaOne, The Weather Channel. Investors; Motient, General Motors ($100 million), DirecTV, ClearChannel Communications, Columbia Capital, Madison Dearborn Partners, Telcom Ventures. Auto partners: General Motors, Saab, American Honda Co. (in negotiations), Toyota (in negotiations), Avis Rent A Car Monthly fee: $9.95 The biggest breakthrough for the upstart companies has come from the Detroit automakers who have enthusiastically embraced the new technology. General Motors invested $100 million in XM last year and hopes to factory install the companys satellite radios exclusively in select models in early 2001. Ford Motor Co. and DaimlerChrysler have backed Sirius Radio and may include it in some 2001 models early next year. The Carmel Group estimates that 1.5 million cars will have satellite radio by the end of 2001. Satellite radios will probably become standard equipment in domestic cars within the next few years, auto executives project. In some cases, several years worth of subscription fees could be embedded in the cost of new cars, according to various sources. We think its definitely big, says Tom Grau, in charge of satellite radio service for General Motors OnStar division. Were energized behind what we perceive to be a compelling consumer offering. We think its an attractive offering for consumers, says Phil Wright, finance director for Fords Telematics division. People primarily listen to their radios [in their cars], but they dont like commercials and they dont like interruptions. In fact, the rollout of the mostly commercial-free satellite music channels should be welcome relief for radio listeners burnt out by radio commercial clutter. A recent study by Empower MediaMarketing found that commercial radio time increased by 6 percent overall from 1998 to 1999. In the San Francisco market, where dot-com ad spending was particularly heavy last year, commercial clutter soared 20 percent. Some believe ad clutter has contributed to a drop off in the amount of time people spend listening to the radio. In 1995, the average time spent listening to the radio was 22 hours, 30 minutes a week. In 2000, the amount of time the average person listened to the radio dropped to 20 hours, 45 minutes a week. On a lot of stations you get 5 minute commercials breaks, says Thom Moon of market researcher Duncans American Radio. Im really surprised that some of the bigger spending advertisers havent started pressuring radio stations about so many commercials. Sirius plans to keep its 50 music stations commercial-free and limit ads on its talk and news channels to 4 minutes an hour. Many of XMs music channels will be commercial-free, with no more than 7 minutes of ads in other content. However, not everyone in the radio industry is sold on satellites success. Its going to take some time to develop, a lot of advertising and a lot of word-of-mouth, says radio researcher Moon. Over-the-air radio has one humongous advantageits free. Nobody thought people would pay for television when cable was first launched two decades ago, counters XMs Acker. And even with some cable bills climbing up to $50 a month, more than 65 million homes now subscribe to cable TV. Itll be music for disenfranchised listeners, thats why people will push the button, says Sirius Margolese. Itll be in the car; its just a matter of turning it on. ================================================================= Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT FROM THE DESK OF: <[EMAIL PROTECTED]> *Mike Spitzer* <[EMAIL PROTECTED]> ~~~~~~~~ <[EMAIL PROTECTED]> The Best Way To Destroy Enemies Is To Change Them To Friends Shalom, A Salaam Aleikum, and to all, A Good Day. ================================================================= <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! 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