Can someone give me a brief run down of how the Canadian companies operate? They are clearly using the Sirius and XM brands although they are their own companies with their own shareholders.
And from a technical standpoint, do they lease space on the existing US satellite constellations?
zcurzan, Form what I understand, They both have to get everything from *now* SIRIXM except some of their own (I think 15%) content That was reqired by the Canadian government to get the companies in and operating. I do disagree some with Tylers latest article though. First of all XM of Canada just had FCF positive for the last quarter with only 439,000 subs. Plus they have to pay for all that support sometime. I am not sure if it is being defered or what but it will have to be paid from the time they got started to the time they are able to pay for it. Nether SIRI or XMSR could just give them that support for free. Hell look at it this way, the US government doesnt even let you give your own kids more then 10,000 dollars. So on top of SIRIXM having a major stake in both they will be getting paid for all that support and content. Think about this, SIRI charges 4 dollars more for stern to its subscibers now SIRI of Canada is getting him for much less, but they are going to be paying a good chunk of his salery. I would also almost guarantee they have not been getting all that support and content for free all this time. I would almost be willing to add most of the subscribers they each get from this time forward to the subscribers of SIRIXM.
Tyler, thanks for revisiting this for us. I did not care about the arguement between the two. I do think that these 2, will however become a important part of SIRIXM revenue going forward into the near future if not already.
Sirius had a stake in Sirius Canada. XM has a stake in XM Canada. As part of the merger, Sirius' operations were merged with XM and XM was the "surviving entity". Sirius Satellite Radio is the partent company. Thus, Sirius XM Radio has a stake in both Canadian companies.
There were agreements with Canada to guarebtee a certain portion of the content be Canadaian. Sirius and XM, in cooperation with their Canadian counterparts created the required content.
There will be a time when these companies add to the bottom line. Certain details of the deals are unknown, but what is known is that Sirius and XM provide the sats, programming, etc.
Canadian Satellite Radio Holdings Inc. operates as XM Canada™ through its wholly-owned subsidiary, Canadian Satellite Radio Inc. CSR is seeking to become become Canada's premium digital audio entertainment and information company. On June 16, 2005, the CRTC approved the application of CSR Inc. for a six-year broadcasting licence to offer satellite radio services across Canada. CSR creates unique content to be broadcast in Canada and the United States through XM Canada™.
XM Canada™ is the exclusive Canadian licensee of XM Satellite Radio Inc. (NASDAQ: XMSR): the leading satellite radio provider in the U.S. with more than 7.6 million subscribers. As a result of CSR’s partnership with XM, it enjoys many advantages in programming cost structure and distribution channels. XM has made significant inroads with the most important car companies. We have secured relationships with automotive companies that represent approximately 950,000 vehicles sold in Canada in 2005, or approximately 60% of the Canadian market. XM radios are installed more than 150 models of global vehicle manufacturers such as GM, Honda, Toyota, Hyundai and Nissan.
Through its XM Canada™ service, CSR launched its French and English satellite radio service across Canada on November 22, 2005. CSR offers listeners 130 channels, including 100-per-cent commercial-free music as well as news, talk, sports and children’s programming across Canada via satellite. XM Radio Canada also offers exclusive coverage of every NHL® hockey game, as it is the exclusive broadcaster of the NHL® games starting in the 2007-2008 season. NHL® on XM. Every Team. Every Game.
... first ever positive cash flow quarter
Strong results reflect continued improvement in subscriber growth, retail market share,
automotive customer growth, revenue, cost management and other key performance metrics
Toronto, July 10, 2008 – Canadian Satellite Radio Holdings Inc. (TSX: XSR) today announced
its financial results for the third quarter ended May 31, 2008.
XM Canada also announced today that it achieved positive cash flow1 for the first time during
the third quarter ended May 31, 2008. This milestone was attained in only two and a half years.
Third Quarter 2008 Highlights
Three months ended May 31, 2008 versus three months ended May 31, 2007
• Generated positive cash flow of $0.3 million during Q3 2008
• Total revenue increased 81 per cent to $10.3 million
• Adjusted Operating Loss2 improved $2.7 million to $7.1 million
• Pre-Marketing Adjusted Operating Loss2 improved $3.4 million to $1.3 million
• Subscriber base reached 439,900, an increase of 58 per cent
• Self-paying subscribers increased 84 per cent to 280,400 as ARPU grew to $11.99
According to XM Canada's year-end financial statements for 2007, XM Satellite Radio Holdings Inc. has a 23.3 per cent interest in the company. XM Canada is a publicly traded company run by Canadian Satellite Radio Holdings, also of Toronto, in partnership with XM Satellite.
SIRIUS Canada Exceeds 750,000 Subscribers
- Strongest subscriber growth to-date with more than 250,000 added over 8 month period
- Increases programming line-up to 120 full-time channels
TORONTO – (June 12, 2008) – SIRIUS Canada Inc. today announced that it has exceeded 750,000 paying subscribers, adding more than 250,000 subscribers in the 8 months since October 2007. The last 8 months were the company’s strongest period of subscriber growth since inception and SIRIUS expects the growth to continue through the busy Father’s Day sales period and beyond.
“SIRIUS has experienced a surge of growth in the past 8 months from both the automotive and retail channel and its subscriber base is now in excess of 750,000 paying customers,” said Mark Redmond, President and CEO, SIRIUS Canada Inc. “The last 8 months were the strongest period of subscriber growth since launch and our success to-date has surpassed the expectations of the company’s management and shareholders. We’d like to thank SIRIUS’ employees, subscribers as well as our automotive and retail partners for helping achieve this important milestone.”
SIRIUS also announced that later this month it will increase its programming line-up to 120 full time channels, adding a range of sports and talk programming, and 100% commercial-free music channels.
“With the best coverage and content and now with 120 channels, SIRIUS is the leading satellite radio brand in the country and will continue to compete aggressively to become an even larger part of Canadians’ entertainment-mix. SIRIUS is proud to be Canada’s number one choice for satellite radio with unique content not available on any other platform,” said Redmond.
Subscriber Growth since Inception (December, 2005)
- 750,000 subscribers – June 12, 2008
- 500,000 subscribers – October 11, 2007
- 300,000 subscribers - February 13, 2007
- 200,000 subscribers - November 22, 2006
- 100,000 subscribers – May 10, 2006
Since launch, SIRIUS Satellite Radio has been the fastest growing satellite radio company in Canada with the most subscribers and the brand most selected by consumers. According to The NPD Group, SIRIUS captured 73% market share of satellite radios sold at retail during April 2008 and more than 75% market share throughout 2007.
SIRIUS’ automotive partners including Audi, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Kia, Land Rover, Lexus, Lincoln, Mazda, Mercedes Benz, MINI, Mitsubishi, Subaru, Toyota, Volkswagen and Volvo make SIRIUS available in over 150 different vehicle models.
About SIRIUS Canada
SIRIUS is Canada's number one choice for satellite radio with 110 full-time channels broadcast from studios in Vancouver, Toronto, Montreal and New York. SIRIUS offers 100% commercial-free music plus premium sports, news, talk and entertainment programming from North America's most recognizable and respected personalities and brands. SIRIUS offers listeners unparalleled coast-to-coast signal coverage and digital quality sound broadcast from three high-orbit satellites.
SIRIUS is the Official Satellite Radio Partner of the CFL, NFL, NASCAR, NBA, NLL and broadcasts live play-by-play games of the CFL, NFL, NBA and NLL. In addition, SIRIUS broadcasts live NASCAR races, the Wimbledon Tennis Championships as well as Barclays English Premier League and UEFA Champions League soccer.
SIRIUS products for the car, truck, home, RV and boat are available in more than 3,500 retail locations, including Best Buy, Canadian Tire, Centre Hi-Fi, Costco, Dumoulin, Future Shop, Home Hardware, London Drugs, Staples, The Source By Circuit City, Visions, Wal-Mart and 2001 Audio Video. All SIRIUS programming is available for a monthly subscription fee of only $14.99.
SIRIUS Canada's automotive partners include Aston Martin, Audi, BMW, Chrysler, Dodge, Ford, Jaguar, Jeep, Land Rover, Lexus, Lincoln, Mazda, MINI, Pana-Pacific, Subaru, Toyota, Volkswagen, Volvo and the Canadian Automobile Association (CAA).
Click on www.siriuscanada.ca to listen to SIRIUS live, or to purchase a SIRIUS radio and subscription.
Sirius Satellite Radio Inc. holds a 20 per cent stake in Sirius Canada