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XM Satellite Radio
|
| Type |
Public (NASDAQ: XMSR) |
| Founded |
1992 |
| Location |
Washington, DC |
| Key people |
Hugh Panero, President and CEO
Gary Parsons, Chairman
Eric Logan, Executive Vice President, Programming
Lee Abrams, Chief Creative Officer |
| Industry |
Broadcasting |
| Products |
Satellite Radio, |
| Revenue |
$558.3 million USD (2005) |
| Employees |
577 (2004) |
| Website |
www.xmradio.com, www.xmwxweather.com |
XM Satellite Radio NASDAQ: XMSR is a satellite radio (DARS) service in the United States and Canada. XM provides pay-for-service radio, analogous to premium cable television. Its service includes 69 different music channels, 39 news, sports, talk and entertainment channels, 21 regional traffic and weather channels and 23 play-by-play sports channels. XM channels are identified by Arbitron with the label "XM" (e.g. "XM175", "XM4", "XM32"). Meanwhile, AOL Radio, a division of America Online's media sector, offers select XM Satellite Radio channels streamed live through Winamp, AOL Instant Messenger Triton, and AOL Radio, free of charge.
XM was founded in 1992 as American Mobile Radio Corporation.
Contents
- 1 Services
- 2 Timeline
- 3 Technology
- 4 Controlling interest
- 5 Programming agreement
- 6 XM in Canada
- 7 Satellite footprints
- 8 XM radio channels
- 9 Official XM Radio Websites
- 10 Fan sites
- 11 Related links
|
Services
XM-capable receivers cost US$30 – US$300. If opting for the month-to-month plan, service fees are US$12.95 for the first receiver, and US$6.99 each for up to four additional receivers on the same account. Subscribers may opt to purchase one-, two-, three-, four-, or five-year packages, in which the average monthly cost would be under US$10.00 per month. XM Satellite Radio produces the majority of its channels, as well as a few others that are not available via satellite, available on the Internet. The Internet-only subscription fee is US$7.99 per month; those with an active satellite subscription do not need to pay an additional charge. XM is currently the only satellite radio service to offer true mobile services, utilizing the built in antenna in its MyFi to transmit a live satellite signal to iPod-sized battery operated devices.
XM also provides data services such as weather information for pilots and weather spotters through its XM WX Satellite Weather datacasting service, in addition to real-time weather and traffic updates aired every two minutes for major metropolitan areas on some of XM's audio channels.
DirecTV now gives listeners as part of its service the music and talk channels of XM, but not the news or traffic channels.
XM also offers music downloads though XM+Napster. This service is being intergrated with XM Online and the new XM receivers, Inno & Helix.
Timeline
- In 1988, American Mobile Satellite Corp. is founded.
- In 1991, American Mobile Radio/XM co-founder Lon Levin joins American Mobile Satellite Corp.
- On December 15, 1992, after CD Radio (later becoming Sirius Satellite Radio) successfully petitioned the Federal Communications Commission, and Congress to look into creating Digital Audio Radio Service (DARS) in the United States, American Mobile Satellite Corp. spins off a new division known as American Mobile Radio Corp. who would go on and join three other applicants as potential licensees.
- Later in 1992, American Mobile brings in WorldSpace as a 20% investor into the new venture with the intention of using their technology.
- In 1996, Gary Parsons leaves MCI Communications to join American Mobile as its CEO and President and later as its Chairman in March 1998. He would remain on as the Chairman of American Mobile Radio (later XM) until this day.
- On May 16, 1997, American Mobile Satellite and WorldSpace officially change the name of American Mobile Radio, thereby creating XM Satellite Radio.
- May 1997, with the name change, Lon Levin who was politically instrumental in the early years of establishing American Mobile Radio, becomes its President until 1998; he would remain on until 2005 in an influential VP role in charge of Government Regulatory.
- In October 1997 XM Radio obtains one of only two satellite digital audio radio service licenses offered by the Federal Communications Commission. Together with CD Radio, the two successfully beat out Primosphere Limited Partnership and Digital Satellite Broadcasting Corporation as licensees.
- In 1998, Hugh Panero leaves Request TV as its President and CEO, to join XM Radio in the same role.
- In June 1999, Clear Channel Communications, DirecTV, General Motors, and a private investment group invested $250 million in XM Radio convertible debt. Both Clear Channel and DIRECTV agreed to develop services for XM.
- On June 7, 1999, with GM's investment into XM, they enter into a 12-year "Distribution Agreement" between XM and GM subsdiary, OnStar Corporation. The agreement calls for exclusive installation of XM Satellite Radio into GM vehicles from November 12, 2001 until November 2013. OnStar must meet specific escalating installation rates each year, while XM must make extensive payments to OnStar for the installation and sale of XM in their vehicles, while sharing revenue earned from these radios with OnStar – as well as payments on the exclusivity agreement too.
- On July 7, 1999, American Mobile Satellite, still XM's parent company, uses approximately $75 million of the proceeds from the private investment to reacquire the 20% interest that WorldSpace held.
- In October 1999, XM Satellite Radio issues 10,241,000 shares of Class A common stock at an initial public offering price of $12.00 per share. American Mobile Satellite remains on as the majority holder of the public company.
- In April 2000, American Mobile Satellite Corp. changes its name to Motient.
- In July 2000, American Honda joined several private investors in a $235 million preferred stock investment in the company.
- On September 25, 2001, XM service was launched, first in San Diego and Dallas/Fort Worth, while spreading across the US. The initial lineup included 71 music channels and 29 other channels consisting of sports, talk, childrens, entertainment and news. The original launch date, September 11, 2001, was pushed back after the events of that date.
- In October 2001 with Motient heading into bankruptcy, they spin off their non-XM satellite division into a joint operation with TMI Communications and Company, L.P., a wholly owned subsidiary of BCE Inc. of Canada – this new venture becomes known as Mobile Satellite Ventures.
- On November 12, 2001, XM Radio marks the official launch of full nationwide service.
- In November 2001 with Motient in bankruptcy, they sell off their controlling interest in XM to Hughes Electronics, Singapore Telecommunications and Baron Capital Partners. This ends Motient's interest in XM and begins XM's history as a stand-alone company. Hughes Electronics would go on to combine this new interest in with the interest already held by their subsidiary, DirecTV.
- December 31, 2001, XM Satellite Radio ends the year with 27,733 subscribers.
- December 31, 2002, XM Satellite Radio ends the year with 347,159 subscribers.
- In January 2003, with the launch and rollout taking longer and more costly than expected, the company undergoes a large and complicated re-capitalization plan. The plan involves XM exchanging $300 million in old debt for new debt, while deferring interest for 3-years on the notes; as well as restructuring the payment obligations on the General Motors installation agreement, issuing a convertible bond to GM, issuing a warrant for shares to GM and establishing a revolving credit facility with GM; and finally the plan included new funding coming from a placement of over $300 million in 10% convertible bonds to a group of private investors.
- In July 2003 the company had nearly 700,000 subscribers.
- December 31, 2003, XM Satellite Radio ends the year with 1,360,228 subscribers.
- In January and March 2004, with the sale of Hughes Electronics from General Motors to Rupert Murdoch's News Corp., DirecTV's interest in XM Satellite Radio is sold off on the market.
- On February 2, 2004, XM Radio announced 100 percent commercial free music lineup.
- On March 1, 2004, XM Radio launched Instant Traffic and Weather Channels for major metropolitan markets in the United States.
- On August 11, 2004, XM's subscriber base broke the 2.5 million mark. The company partnered with both luxury automakers: (Acura and Audi) as well as others: (General Motors, Honda, Isuzu, Nissan, Toyota, Volkswagen, and SAAB) to offer in-dash XM receivers on an OEM basis. The Acura TL was the first luxury automobile to offer XM radio as "standard" in every vehicle.
- On October 4, 2004, "shock" jocks Opie and Anthony began broadcasting on a premium ($1.99/month extra) XM Satellite Radio.
- On October 4, 2004, former National Public Radio host Bob Edwards broadcast the first Bob Edwards Show on XM Public Radio, channel 133.
- On October 20, 2004, XM announces an 11-year, $650 million deal with Major League Baseball to broadcast MLB games live nationwide, and to become the Official Satellite Radio provider of Major League Baseball. The agreement also grants XM the rights to use the MLB silhouetted batter logo and the collective marks of all 30 MLB clubs. As part of the deal, XM creates a 24/7 MLB channel called "Home Plate". The deal starts with the 2005 season and runs through the 2012 season – with a 3-year option that MLB can pick up.
- On October 26, 2004, XM presents its first XM2go™ portable XM receiver: The Delphi MyFi™.
- December 31, 2004, XM Satellite Radio ends the year with 3,229,124 subscribers.
- On January 5, 2005, XM announces the introduction of two more XM2go™ models: Pioneer's AirWare™ and the Tao™ from Giant International.
- On February 28, 2005, XM's third satellite, Rhythm, was launched successfully.
- On April 1, 2005, XM announced that it had added 540,000 subscribers in Q1 2005, pushing their total subscriber base to 3.77 million.
- On April 11, 2005, XM announced that a deal had been reached to be the official satellite radio network of Air America Radio.
- On May 16, 2005, XM announced that subscribership topped the 4 million mark. This indicates exponential growth for the company. In 5 weeks time, they have added 230,000 subscribers — almost 50% the subscribers added in the previous quarter.
- On May 28, 2005, the Wall Street Journal reported that XM had awarded the contract for the XM 5 spacecraft to Space Systems/Loral (see also [1]).
- On June 07, 2005, XM partnered with Audible.com to offer downloadable audio show archives of The Opie and Anthony Show, as well as The Bob Edwards Show.
- On July 1, 2005, XM announced that it had added more than 640,000 subscribers in Q2 2005, pushing their total subscriber base to over 4.4 million.
- On August 1, 2005, XM announced the addition of popular radio hosts Ron and Fez. They join Opie and Anthony on High Voltage XM 202 on September 12th, 2005.
- On September 13, 2005, XM announced a 10-year $100 million deal to carry National Hockey League broadcasts beginning with the 2005-06 season, initially sharing the coverage with Sirius but gaining satellite-radio exclusivity from 2007 onward.
- On September 27, 2005, XM announced that it surpassed the 5 million subscriber mark.
- On September 27, 2005, XM announced that starting on November 15th, 2005, DirecTV will carry 72 channels as part of their audio programming. This includes music channels, "Home Plate" (XM 175), and "High Voltage" (XM 202)
- On October 3, 2005, XM announced that it had added more than 617,000 subscribers in Q3 2005, pushing their total subscriber base to over 5.03 million.
- On October 3, 2005, XM Radio launched channel "Take 5" (XM 155). This channel is geared toward Women's Programming and features replays of "The Ellen DeGeneres Show", "The Tyra Banks Show", syndicated and original programming, as well as programming from Food Network and HGTV. Additionally, XM Radio drops two of its Talk and Entertainment channels: MTV and VH1.
- On October 18, 2005, XM announced that it will launch Fox News Talk Radio in January 2006.
- On November 15, 2005, DirecTV began carrying 72 channels of XM programming. These include music channels, but not news or sports channels.
- On November 17, 2005, XM launched their new Fall lineup of channels. "unSigned", which now plays new and recently discovered Canadian artists. "Air Musique", French punk, hip-hop, metal, electronic and alternative rock music. "Sur La Route", a blend of modern and classic pop, folk, rock n' roll, "chanson" and soul featuring the stars of yesterday, today and tomorrow. "Laugh Attack", Canadian comedic talent. "Canada 360", and "Quoi de Neuf", a 24/7 news and information channel with the latest news, weather, sports, business, entertainment and issues making headlines in Canada and around the world. "Franc Parler", the place for Canadian news, talk, and information. "Home Ice", part of XM's sports lineup, featuring NHL games. "Lex and Terry", a popular nationally syndicated morning radio program, delivers a unique blend of lifestyle advice, humor and on-air community, especially for men, beginning November 28, 2005, on Extreme XM.
- On November 29, 2005, XM launched its service in Canada.
- December 31, 2005, XM Satellite Radio ends the year with 5,932,957 subscribers.
- On January 2, 2006, XM launched "Fox News Talk", news, analysis and the pulse of the nation from Bill O'Reilly, Tony Snow, John Gibson, Alan Colmes and more.
- On January 4, 2006, XM announced that it has passed the 6 million subscriber mark.
- On January 9, 2006, XM wins top honors at the 2006 Consumer Electronics Show in Las Vegas for their two new portable units that also offer live programming on-the-go. The new radios are named the XM Pioneer Helix and Samsung Inno. They are expected to be released at the end of March, to the beginning of April 2006.
- On February 9, 2006, XM announced that they had signed a $55 million three-year deal with Oprah Winfrey's Harpo Productions. A new channel called "Oprah and Friends" will launch in September 2006, which will be programmed by Winfrey and originated in the Harpo Studios located in Chicago. The channel will feature programs hosted by a team of personalities who appear on her television show including Gayle King, Dr. Mehmet Oz, Marianne Williamson, Dr. Robin Smith, Bob Greene and Nate Berkus. As part of the agreement, Oprah will appear in a weekly 30-minute program along with friend Gayle King. The program that will air 39-weeks a year will feature taped phone conversations between Winfrey and King.
- On March 1, 2006, XM launched channels 49 Big Tracks, 84 XM Chill, and 173 WLW giving them 69 commercial free music channels, and with the addition of WLW, a news talk channel.
Technology
XM provides digital programming directly from three satellites in geostationary orbit above the equator. XM-1 ("Roll") and XM-2 ("Rock") are co-located at 115 degrees west longitude and XM-3 ("Rhythm") is located 85 degrees west longitude in addition to a network of ground-based repeaters. The combination of three satellites and a ground-based repeater network is designed to provide gap-free coverage anywhere within the continental U.S. Unfortunately, XM-1 and XM-2 are suffering from a generic design fault on the Boeing 702 series of satellites, which means that their lifetimes will be shortened to approximately six years (instead of the design goal of 15 years). To compensate for this flaw, XM-3 was launched earlier than anticipated and moved into XM-1's previous location. XM-1 was then moved over next to XM-2, where each satellite operates only one transponder to conserve energy.
In American and Canadian metropolitan areas, XM and its Canadian Licensee known as Canadian Satellite Radio (CSR), own and operate a network of approximately 900 terrestrial repeater stations, meant to compensate for satellite signal blockage by buildings, tunnels, and bridges. In the United States XM owns and operates approximately 800 repeater sites covering 60 markets; in Canada CSR is installing approximately 80 to 100 repeaters that will be owned and operated by CSR in the 16 largest Canadian cities. The actual number of repeater sites varies as the signal is regularly tested and monitored for optimal performance. The actual number of sites in the United States has dropped from the original 1,000 installed when the service first launched in 2001. The repeaters transmit in the same frequency band as the satellites. A typical city contains 20 or more terrestrial stations. Typically the receiver owner is unaware when a terrestrial station is being used.
The XM signal uses 12.5 MHz of the S band: 2332.5 to 2345.0 MHz. XM has agreed to provide 128 kilobits per second of its bandwidth to OnStar Corporation for use with XM-enabled GM vehicles, regardless of whether their owners are XM subscribers. American Honda also retains the right to some of the company's bandwidth to transmit coded traffic information directly to navigation systems using TMC technology.
Audio channels on XM are digitally compressed using the aacPlus codec from Coding Technologies for most channels, and the AMBE codec from Digital Voice Systems for some voice channels. Due to bandwidth restrictions and a large channel load, the maximum bitrate XM broadcast from its satellite per music channel is limited to 64kbps.
Beginning in March 2006, XM will begin broadcasting select channels in 5.1 surround sound audio quality. The technology, titled XM HD Surround, is a partnership between XM and Neural Audio Corporation which provides content with six discrete channels of digital full fidelity audio powered by Neural Audio technology. XM channels XM Pops and Fine Tuning will broadcast in XM HD Surround 24/7, while XM Live will broadcast the format for new live concerts and events. XM manufacturing partners such as Denon, Onkyo, Pioneer Electronics (USA) Inc., and Yamaha will introduce home audio systems capable of playing XM HD Surround powered by Neural Audio in 2006.
On March 23, XM's Director of Programming Eric Logan announced on the "Opie and Anthony Show" that former channel "XM Liquid Metal" would return.
Controlling interest
The company's May 2004 proxy statement notes that four directors are subject to director designation agreements with GM, American Honda, the chairman, and the CEO. Four additional directors are investors, and two are not affiliated with any significant stockholders.
At that time, GM owned 8.6% of the Class A common stock (a voting percentage of less than 1%) and Honda owned 13% (with a voting percentage of 3.6%).
Unless they unaminously agree otherwise, control of the company remains with the preferred shareholder and noteholders of the company, including Hughes Electronics, GM, Honda, and several private investment groups.
Programming agreement
As part of terrestrial radio giant Clear Channel Communications' early investment into XM in 1998, the companies entered into agreements which provided for certain programming and director designation arrangements as long as Clear Channel retained the full amount of its original investment in XM. In June 2003, Clear Channel entered into a forward sales agreement relating to its ownership of XM. During the third quarter of 2005, Clear Channel and XM arbitrated the impact of this agreement on the Operational Assistance Agreement and the Director Designation Agreement. The Arbitration Panel decided that the Operational Assistance Agreement would remain in effect, including Clear Channel's right to receive a revenue share of commercial advertising on programming it provides to XM, but declined to enforce the Director Designation Agreement. Per the original agreement, Clear Channel has the right to program a specific amount of XM bandwidth, including forcing XM to include commercial advertising. The current plans for this bandwidth will include up to 6 music channels including: XM11 Nashville!, XM21 KISS, XM22 MIX, and XM24 Sunny - as well as various talk channel programming - all of which will begin airing commercials. The music channel advertising is expected to be limited to the 5-6 minute per hour maximum that was in place prior to XM taking its music channels commercial-free in 2004.
Seen as a blow to XM's 100% commercial-free music channel status, XM Executive Vice President of Programming Eric Logan released a programming announcementto XM subscribers on the company's website that reiterated XM's commitment to commercial-free music while noting that XM still had the most commercial-free music and that more commercial-free music channels will be added in the near future to ensure that XM will still have more commercial-free music than competitor Sirius Satellite Radio. In response, Sirius has displayed that they are the only satellite radio provider that is 100% commercial free with music. Both XM and Sirius air commercials currently on their news, talk, and sports channels.
The Clear Channel forward sales agreement with Bear, Stearns & Co. Inc is set to expire in 2008, at which time Clear Channel is expected to deliver to Bear Stearns over 8.3 million shares in XM — which is their original investment — however Clear Channel withholds the right to settle with cash. If Clear Channel settles with shares, then it would be expected at that time that Clear Channels' Operational Assistance Agreement with XM would terminate, along with any and all programming provided by Clear Channel.
XM in Canada
- Main article: XM Radio Canada
In November 2004, Canadian Satellite Radio filed an application with the Canadian Radio-television and Telecommunications Commission to bring the XM service to Canada. Along with Sirius Canada and CHUM Subscription Radio Canada, CSR was one of three applications for national subscription radio services submitted to the CRTC.
On June 16, 2005, the CRTC approved all three applications. The decisions were appealed to the Canadian federal Cabinet by a number of broadcasting, labour, and arts and culture organizations, including the Friends of Canadian Broadcasting, CHUM Limited, and the National Campus and Community Radio Association. The groups objected to the satellite radio applicants' approach to and reduced levels of Canadian Content and French-language programming, along with the exclusion of Canadian non-commercial broadcasting. After a lengthy debate, Cabinet rejected the appeals on September 9, 2005.
XM's Canadian channels appeared on US receivers on November 17, 2005. On November 29, 2005, XM Canada officially launched.
Satellite footprints
See XM's footprints for the US and Canada.
XM radio channels
See List of XM Satellite Radio channels
Official XM Radio Websites
- Official website (United States)
- XM Test Drive (United States)
- Official website (Canada)
Fan sites
In alphabetical order:
- OnXm XM Radio news site.
- Orbitcast popular Satellite Radio blog.
- XM411 XM fansite (with over 17,529 members) plus store.
- XMFan XM fansite (with over 36,500 members) plus store.
- WhatsOnMyXM.com An XM programming community with show programming grid, RSS feeds and shows wiki.
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