General News

Sirius XM Radio can celebrate a successful launch of their newest satellite (FM-5), but as yet, there are still several steps that need to happen before full control is turned over to the company. With the riskiest part of the launch behind them, the company, as well as investors can breathe a bit easier knowing that they now have one of the most powerful satellites ever built safely in orbit.

The new satellite is not yet in it’s final location, and there will be maneuvers to accomplish the finalized orbit during the first two weeks in July. Once in place, the nine meter reflector deployment will happen, and then the company can begin testing of the functionality. The functionality testing should happen during the final two weeks of July, and it can be anticipated that Sirius XM will take control of the satellite in early August.

The newest satellite will not only improve the signal reception for Sirius receivers, but also carries the capability to do more functions than the satellites in the existing constellation. This satellite will be in geostationary orbit, meaning that it will remain in a fixed position in the sky. The three satellites already in orbit are in a geosynchronous orbit, running a virtual figure eight pattern over North and South America.

Celebration for the fact that the satellite is in orbit is good, but investors should remember that there are a lot of moving parts and tests that need to be completed prior to popping the cork on the champagne.

Position:  Long Sirius XM

SiriusBuzz Radio is back, and we have a ton to talk about. Was the iPod app launch a success or failure. How will the new app impact the company. Will consumers embrace the app, and will it draw new subscribers. Sirius XM stock is stuck in the $0.30’s, and what exactly will it take to see this equity move?

On the lighter side, learn what happened to the baseball that Gary Dell’Abate of the Howard stern Show threw out for the Mets. You wont believe who has it!

SiriusBuzz Radio is back again with Tyler and Charles opening up discussion and taking your calls. You can participate in the show by dialing 347-945-7995. Catch SiriusBuzz Radio live tonight from 9:00 PM to 10:00 PM eastern.

Position - Long Sirius XM Radio, No Position Apple

Some of the key selling points of satellite radio include commercial free music, and no censorship. Getting the benefits of those qualities across to consumers has long been the challenge of the satellite radio marketing team. Sometimes the best marketing is to capitalize on the moves of others.

Green Day, a popular band with a huge following, recently got into a bit of a debate with WalMart. The result was that Green Day’s newest album, 21st Century Breakdown, will not be seen on the shelves of Wal Mart, the worlds largest retailer.

WalMart was willing to sell the album, but wanted wanted an edited version that “cleaned up” language and content. To their credit, Green Day refused and WalMart will not carry the album at all. Green day frontman Billie Joe Armstrong stated;

“Wal-Mart’s become the biggest retail outlet in the country, but they won’t carry our record because they wanted us to censor it. They want artists to censor their records in order to be carried in there. We just said no. We’ve never done it before. You feel like you’re in 1953 or something.”

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Terrestrial radio does not have to pay music royalties, and they want to keep it that way. There are two competing bills that are on the table in Washington. One maintains the current no royalty status, and the other seeks to establish royalties.

This is a battle that has been going on for quite some time, and at stake is the business model of terrestrial radio, the livelihood of music performers, and the profits of the record labels themselves. This is a classic case of not really knowing who to root for. On one hand, there should be a level playing field regarding royalties for terrestrial, satellite, and Internet radio. On the other hand, the record companies have been virtual fat cats for quite some time. Suffering in the fringe are performers who receive very little money for the broadcasts of their performances.

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It was reported yesterday that Performance Rights Act passed the House Judiciary Committee. For the bill, this was a major step. The Performance Rights Act legislation has direct opposition from an NAB backed bill that would keep terrestrial radio from having to pay royalties.

Upon passage of the Judiciary committee, Jennifer Bendal, the executive Director of the musicFirst Coalition, stated:

“We applaud Chairman Conyers and Committee members for their work on the Performance Rights Act and for supporting artists, musicians and rights holders in their fight for fair compensation when their music is used by AM and FM radio stations.

Our continued momentum in Congress is proof that it’s well past time to recognize the importance of fairly compensating the artists and musicians whose talent and hard work allows radio to generate billions of dollars in ad revenue each year.

Corporate radio’s days of hiding behind a loophole in the copyright law are over. For over 80 years, Big Radio has had a free pass to play music. All other music platforms – satellite, cable and Internet radio stations – pay artists, musicians and rights holders for the use of their music. It’s only fair that AM and FM radio be held to the same standards.

The Performance Rights Act will bring fairness to artists, musicians and rights holders and one that’s fair to radio and its counterparts. It also includes accommodations for small and minority-owned broadcasters. musicFIRST looks forward to the next chapter and to Congress to ensure that U.S. artists and musicians receive the performance right they deserve.”

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The quarterly call is complete. There is clarity on many items, yet still confusion on others. Why was the loss 7 cents per share? What does the new GM deal mean? When will the iPhone application get launched? These and many other questions will be discussed on a live SiriusBuzz Radio broadcast tonight at 9:00 PM eastern.

Join Tyler and Charles as we break down the events of the call, discuss what is happening from a consumer standpoint and take questions from callers. Those that wish to call in can do so by dialing 347-947-7995. SiriusBuzz Radio also features a live chat room where listeners can interact. If you just want to listen, that is fine as well. You can catch SiriusBuzz Radio live or in replay.

Position - Long Sirius XM Radio

Only a bit over a week after their convention in Las Vegas, the National Association of Broadcasters President and CEO David Rehr has resigned. Rehr was at the helm of the NAB and staunchly against the record long merger process of Sirius and XM. Additionally, Rehr and the NAB are in the midst of a performance royalty debate that could potentially have terrestrial radio paying royalties when they broadcast music.

Rehr’s time at the NAB encompassed the emergence of competing forces such as satellite radio, Internet radio, iPods, and other entertainment options for consumers. Over the past five years, the valuation of radio companies has taken a substantial hit. While Rehr will forever be connected to and associated with the contentious satellite radio debate, he was also instrumental in setting NAB policy and strategy for the membership of the NAB to navigate through what could only be termed as tough times.

In announcing his resignation Rehr stated, “I have enjoyed leading America’s broadcasters through this time of change and challenge. Our efforts to educate America about the digital television transition have been enormously successful, and our effort to reinvigorate radio through the Radio Heard Here campaign is positioning radio broadcasters well for the future.”

David stated that he plans to continue in his current role during a transition phase, and during that interim period, Janet McGregor, NAB’s chief operating and financial officer, will work closely with Rehr and assume day-to-day duties until a successor is named.

Strangely, the resignation announcement did not include any comment from NAB Executive Vice President Dennis Wharton, who has been very active in the NAB over the past year. The announcement missing any mention of Wharton may be an indication that the NAB Board of Directors is seeking an entirely different direction.

Position - Long Sirius XM Radio

While on vacation in Las Vegas, I have had a great time, taken in some shows, and spent time with my family. I have also been able to maintain what is happening in the news because of my Blackberry. Only a decade ago, a cell phone was not standard equipment for every human aged 12 and up. Now, we are so technologically tethered, that it has become difficult to imagine life without our gadgets.

I took the opportunity today to pick up the weekend edition of USA Today. On the front page was an interesting survey that shows that even in tough times that people seem to feel that their gadgets are even more important now than ever before.

In 2006 the Pew Research Center conducted a survey of items that people felt were a necessity. The same survey was conducted a couple of weeks back, and the results were very interesting. It would appear that items that people categorize as necessities has shifted substantially. Microwaves are out, and iPods are in. In these poor economic times who would have imagined that this would be the case? In 2006 68% called a microwave a necessity, now that number is 47%! In 2006 television was at 64%, today it is at 52%!

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