SiriusXM/DirectTV possible synergies

[sxminvestor]

Maffei told analysts that he saw opportunities for bundling Sirius service with DirecTV in the future, but declined to be specific.
"One could talk about or imagine bundles, probably the $80 [per month] DirecTV product offering free trials of the $11 [monthly] Sirius XM product more likely than the other way around,' Maffei said. "I certainly think those are things we have talked about and we didn't put a lot in our valuation for that. But it is something [Sirius CEO] Mel [Karmazin] is enthused about and something I believe [DirecTV CEO] Chase [Carey] is enthused about. I hope we will be able to proceed on some of those in ways that are obviously beneficial for both parties."
Maffei also addressed speculation that some of Sirius' satellite spectrum could be used for DirecTV video. While he said it is possible -- by consolidating the Sirius and XM Radio platforms, freeing up half of the 25 Megahertz of spectrum allotted to it -- he said that is "a long way down the road."
"There is no plan currently to merge the two platforms," Maffei said adding that Sirius already offers a limited amount of mobile video, mostly kids programming.
"To really expand that in the mobile video space; we'll see," Maffei said.

[Newman]

One of the synergies that I would love to see Sirius undertake is to eliminate their backseat TV contracts and instead allow DircTV to broadcast to these recievers and allow Sirius to take a peice of the RevShare off of the deal. This would also free up bandwith for Sirius to work with. Of course, that depends on what frequencies the BackSeat TV is setup to recieve and the capability of Direct's satellites to broadcast to the appropriate frequencies, yada yada yada... but it would be a great start.

[TSS Taylor]

I think one of the reasons a lot of people don't have Satellite Radio is that they simply aren't able or capable of setting it up in their cars or homes. One thing I can nearly guarantee would be that Direct TV installers would be trained on setting up SIRIUS XM in homes. I would really love to tell certain customers if they need an installer to contact Direct TVs large installer network.

[sxminvestor]

Another good article involving the Liberty deal:

http://www.reuters.com/article/marke...BrandChannel=0

[rickand7]

I have Sirius starmate in my truck and the antenna slips out the door and is on the roof. When I go anywhere I have a small box that has 1) an SXM rated outdoor antenna (Best Buy $29.95), a Altec Lansing computer sound system (Staples $99.95), a 110v-12V DC power supply (Radio Shack $10.95) and thats it. As long as I have 110V AC power, I am set.

Friends are amazed the sound quality with this portable system.

ps. When you buy the power supply, get adequate wattage output from the transformer.

[Siriusly]

The only synergy I can see is fabricated to keep Sirius afloat however cheaply they can for 3 years. After 3 years, acquire the rest of SIRI, write off the tax losses, deploy the satellites for DTV then let Sirius disappear. I hope that doesn't happen but it wouldn't surprise me.

During those 3 years, I could also easily see them coordinating artist appearances and so forth, but the cheaper Sirius is at 3 years, the less it will cost to take advantage of those tax write-offs.

[just sirius]

Siriusly

You have got to be kidding. the synergies that they can explore are mind boggling. Newman just mentioned a great one. Why have a measly few channels for backseat tv when DTV could possible send their whole channel lineup. May not have the bandwidth, but just imagine the possibilities.

[Newman]

just sirius: I guarantee there are a lot fewer backseat TV cars out there than there are ones with Sirius or XM radios.

If all it would take would be a simple modification of the chip in order to change the recieving frequency from Sirius to DirecTV, you could recall all the cars with backseat TV to make the modification in the chip. With the recall, you also get a flyer letting you know that DirecTV is now available and that backseat TV from Sirius will be discontinued. For anyone who has a prepaid subscription, their paid subscription will be converted over to DirecTV subscription for their car or refunded. Anyone who has not paid will have a short time period to prepay and get the deal.

Because of the inconvienience of the recall, you also get one free month of the full lineup of DirecTV as well as Sirius radio with best of XM. (Nice marketing technique, eh?)

I am not saying that ANY of this is remotely possible, but it is a nice thought, huh?

[just sirius]

Newman

Would it be easier for Sirius to receive a direct feed from DTV and then send it through the SATS. No chip change or adjustment. May need more bandwidth to allow for increased # of channels? Would that even be remotely possible. I think that it would, but who knows.

[Siriusly]

Oh I'm sure some synergies exist. I read in the WSJ the other day (haven't had time to research if there's any truth to it) about Liberty having very few synergies between their existing assets. Having little to no synergy with Sirius would just fit an existing pattern I've been reading about lately.

I certainly hope they are able to leverage Liberty to their advantage but the more analysts I listen to the more I scratch my head on how that could happen.

Here's to crossing our fingers. : )