General News

The Cash For Clunkers program has been in full swing for over a month, and as with anything, it has good and bad aspects to it. Yesterday we highlighted some concerns relating to dealers that are getting cash strapped because they are awaiting payment from the government on monies they have already given the consumer.

As the government prepares to address how the program will wind down, they have offered reassurances to dealerships stating that they will get their money. Cash flow is the issue at hand, and the OEM’s themselves are stepping in to ease the situation.

Transportation Secretary Ray Lahood stated, “We want to make sure that dealers know when we’re getting close to running out of the money that was allocated for the program.” LaHood said he recognized that “dealers are frustrated. They’re going to get their money.”

In the meantime, the auto manufacturers are not waiting for the solution, but instead providing one. Knowing that they need support of the dealer networks, companies like General Motors have begun providing cash advances to its dealers to help cover any cash flow shortfalls related to the program. GM said it will provide the advances for up to 30 days for dealers who have already completed a sale and they will be available as long as the program remains in effect. For their part, Toyota Financial Services is offering loans to dealers for up to 60 days to cover the lag between a dealership’s payment and its reimbursement. Honda, Nissan, and Ford are other big players that have also stepped up to the plate. The commitment of the OEM’s to help with the situation should help ease the burden for dealers as the government processes requests, and the program winds down.

When the announcement comes about the end of the program, we should see a virtual run on dealerships. Given the recent pace of CFC program sales, there is likely only about two or three weeks left for consumers to take advantage of up to $4,500 in rebates. Look for auto dealerships to have a very busy August.

Position – Long Sirius XM Radio

It is no secret that terrestrial radio is suffering. Across the board, ad revenues are down to such an extent that even huge companies like Clear Channel are feeling the pain. Powerhouse radio stations like WBCN (credited with launching bands like U2 and the Police in the U.S.) in Boston are going silent. With all of these changes opportunity is created. Readers here will come to an immediate conclusion that Sirius XM would be the biggest benefactor, but that may be a bit premature.

Yes, Sirius XM offers compelling content, and yes, the satellite radio provider will fill a need, but the audio entertainment landscape is full of would be competitors that give consumers several things to consider. Taking a look at what is happening in Boston can give a good idea of the shuffle that may happen in many markets. Consider this:

- Boston Rock Staple WBCN goes Silent on 104.1 FM, but “relaunches” as an HD2 channel on HD Radio.

- CBS Radio takes their popular Mix 98.5 slot on the FM dial and changes it into a sports station called “The Hub”. This channel will compete head to head with WEEI 850 AM, which has been a monster of a station for years in Boston.

- CBS moves their Mix station to the 104.1 slot on the FM dial.

- WBCN launches a campaign that basically states the rumors of their demise were unfounded, and that they are very much alive on 98.5 HD2. They give away an HD radio every hour for four straight days to promote the changes.

- Free Form BCN, a channel programmed by WBCN’s original programmer gets exposure on HD and shows that HD radio can promise more depth in radio.

Continue Reading »

SiriusBuzz Radio will once again broadcast live tonight, August 13 at 9:00 PM EST. Are you looking for accurate in depth information, analysis and out of this world coverage? If so, SiriusBuzz Radio has the answers. Join us on the show by calling in to 347-945-7995. The show also features a live chat room where listeners can discuss the topic of satellite radio or ask questions for the show.

Governor Sarah Palin became an overnight sensation when Senator McCain announced her as a running mate in the elections of 2008. She was easy on the eyes, spunky, outgoing, and controversial. Simply stated, whether elected or not, Palin had become a national figure. Her notoriety continued recently because of a highly publicized feud with David Letterman, and then extended yet again with the announcement that she was retiring from her position as Governor of Alaska.

Ever since Palin gave up the Governors seat, she has been the subject of many stories theorizing about whether she would wind up on television, or even the radio. While nothing has been confirmed, it is obvious that Palin is carrying on discussions with many media entities.

Could satellite radio become a home for Palin? The answer is that it may well be a perfect home for her. Palin on satellite radio would allow her to reach the entire nation with her show and/or message. For satellite, it is perhaps one of the better opportunities to get a new player for a reasonable cost. Let’s face it, Palin is new to this game, and thus would not command the type of contract other big names get. This is not to say there would be no cost, but it certainly would not equate to the Martha Stewart deal.

The republican party is still reeling from the last election. Some have said that there is an identity crisis happening with the right wing, and until that issue is resolved, the party will suffer. Palin is more centrist than personalities like Limbaugh and Hannity, and that may be just the reason Sirius XM should consider bringing her on board. Her appeal will be more wide reaching, and she could bring about fan base that appeals to a demographic not already addressed on the Sirius XM dial.

Certainly Palin will wind up doing some sort of media. I may not agree with all of her stances, but I for one would like to see her on satellite.

Position – Long Sirius XM

SiriusBuzz is proud to announce the winner of our Stock Shock The Movie pre-order promotion. Readers who used the promotional code “Tyler” when ordering their DVD not only got free shipping, but were also entered to win a Sirius Soloist courtesy of TSS-Radio. Stock Shock is out and getting positive traction. Reviews are good, and many people are expressing a better understanding of how the markets work after viewing the movie.

On behalf of SiriusBuzz and TSS-Radio, we would like to offer congratulations to Rory Kearney of New Jersey for being selected as the winner of the Sirius Solist dock. TSS Radio has been an Internet retail staple of satellite radio products for years, and consumers consistantly rate them at the top of the charts for their unmatched customer service.

Tyler Savery appeared in Stock Shock The Movie

SiriusBuzz Radio will once again broadcast live tonight, July 16, 2009 at 9:00 PM EST. Are you looking for accurate in depth information, analysis and out of this world coverage? If so, SiriusBuzz.com and SiriusBuzz Radio are your answers. Join us on the show by calling in to 347-945-7995. The show also features a live chat room where listeners can discuss the topic of satellite radio or ask questions for the show.

Join Charles and Tyler as we take you through the latest news in satellite radio.

Position – Long Sirius XM

In something reminiscent of 2005 and 2006, Sirius XM put two announcements across the news wires in one day. Specifically, the company announced comprehensive coverage of the British Open, as well as a new deal with Mercedes Benz that promises 100% penetration on all Sirius equipped certified preowned Mercedes Benz vehicles.

Golf fans will be happy to know that the 138th British Open Championship will be broadcast live this Thursday, July 16, through Sunday, July 19, on XM channel 146 and on SIRIUS channel 209 with the “Best of XM” programming package. The news is not only being issued by Sirius XM, but on the PGA website as well.

The company has made a point of highlighting crossover content that demonstrates why existing subscribers would want to receive the “Best Of” programming packages. In this case, because the PGA deal was an XM deal, only Sirius subscribers that get the “Best Of XM” package will get to hear every drive, pitch and putt of the famed British Open.

SIRIUS XM’s T.J. Rives, Brian Katrek, Bob Stevens and Earl Forcey will provide listeners with live hole-by-hole coverage of the Open Championship from The Ailsa Course in Turnberry, Scotland as well as live updates. Tee off time coverage will begin Thursday and Friday at 3:00 am ET and Saturday and Sunday at 4:00 am ET and will continue until the conclusion of each day’s play. The company states, “In all, listeners will have access to more than 45 hours of live play-by-play from Thursday through Sunday plus comprehensive replays that will cover all the day’s highlights and the performances of the tournament leaders.”

While golf fans celebrate that news, investors will be keen on the latest OEM news. Sirius XM and Mercedes Benz announcement not only involves the announcement that all Sirius equipped preowned vehicles will come with a trial period, but that 100% penetration on all Mercedes Benz vehicles will continue for the 2010 model year.

For the certified preowned program, consumers will get a three month trial of the “Sirius Everything” package. Buyers of a new Mercedes Benz are treated to a six month trial. The overall take rate in the OEM channel is currently about 45%. The sales of Mercedes Benz vehicles are not as high as other brands, but the demographic of a typical Mercedes Benz buyer fits well with a service such as satellite radio.

Given the fact that Mercedes Benz has carried a very high penetration rate for a couple of years, the certified preowned program provides a good deal of promise in getting Sirius XM exposed to new consumers. The certified preowned programs also serve as a tool for the company to try to get a second chance with a radio that has already been subsidized.

Watch for the company to continue to update and work with many OEM’s on their certified prowned offerings, as the auto channel has become very used car centered in this economic climate.

Position – Long Sirius XM

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