News and musings on Sirius, XM, DirecTV and the DISH Network.

XM radio surpasses 4 million subscribers

XM Satellite Radio Holdings Inc. said Monday it had surpassed the 4 million subscriber mark and was on track to hit its goal of 5.5 million subscribers by the end of the year.

XM said it added 1 million subscribers since late December. XM’s rival in the satellite radio business, the New York-based Sirius Satellite Radio Inc., reported last month that it had 1.4 million subscribers and expected to have 2.7 million by the end of the year.

The two companies are hoping to sign up enough customers at $12.95 a month to become profitable. So far both companies are still losing money while also paying out multimillion dollar contracts to build up programming schedules including shock jock Howard Stern, Major League Baseball and NASCAR racing.

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DirecTV 8 Launch Details Revealed

International Launch Services (ILS) said the window for its May 21 launch of the DirecTV 8 satellite from the Baikonur Cosmodrome in Kazakhstan will open at 1:59 p.m. EDT. The satellite will be delivered to orbit on a Proton M/Breeze M rocket.

Space System/Loral built the DirecTV 8 satellite based on its 1300 platform for DirecTV Inc. The spacecraft, which will reside at 101 degrees West, carries 16 Ku- band transponders and a Ka-band payload to link broadcast facilities. It will be used to support the expansion of new digital and high-definition services. The satellite has an expected service life of 12 years.

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Sirius Goes After the Parrotheads

Sirius Satellite Radio reached an agreement with singer and songwriter Jimmy Buffett, whose standards include “Cheeseburger in Paradise,” to offer a Radio Margaritaville music channel to its subscribers, providing Parrotheads an around-the-clock option to enjoy the musician’s beach- and ocean-themed stylings.

The new 24-hour channel, which will start this summer, will feature music, live broadcasts of Buffett’s concerts and other programs.

“We designed Radio Margaritaville after the old pirate radio stations that sat offshore and played what they wanted,” Buffett said in a press release Tuesday. “When I saw how Sirius is changing the way radio is being heard, I welcomed the opportunity for Radio Margaritaville to join them.”

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Satellite slugfest: Sirius and XM Radio fight for pay listeners

“You’re in The Mansion with Johansen,” crows the rocker David Johansen, queuing up six hours of Friday-night serendipity – Mary Wells into Big Bill Broonzy into Bread – in a corner studio at Sirius Satellite Radio. “We’re getting our hip ticket punched.”

He has no idea who’s listening. No one reads him numbers or focus reports. It’s like the old days of free-form radio – only he’s working for the latest thing, a medium that is growing faster than cellular phone service or cable television did in their infancies

Over the last two years, Sirius and its rival, XM Radio, have spent $1.5 billion to secure talent and broadcast rights to sports in hopes of convincing listeners tired of AM and FM that the answer is orbiting overhead.

We’re witnessing a satellite slugfest, with each service constantly trumping the other.

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Dish Network to Pay $50,000 for Violating State No Call Law

Satellite television provider EchoStar Communications – which does business as Dish Network – will pay a civil penalty of $50,000 for telemarketing calls made to Missourians on the state’s No Call list in an agreement reached with Attorney General Jay Nixon. Dish Network is the nation’s second-largest satellite television company.

The assurance of voluntary compliance, filed in St. Charles County Circuit Court, alleges that EchoStar and its authorized dealers placed telemarketing calls soliciting the sale of satellite television services since July 2001 to consumers on Missouri’s No Call list. As part of the agreement approved Wednesday by Circuit Court Judge Lucy D. Rauch, EchoStar and its authorized dealers will cease calling Missourians on the list, and will provide Nixon’s office with a report of measures the company has taken to assure future compliance with state law.

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DISH Network Expands High-Definition Package with Addition of VOOM Programming

EchoStar Communications Corporation announced that its DISH Network(TM) satellite TV service will expand its high-definition television (HDTV) package by adding 10 original VOOM HD networks, expected to be available May 1, 2005. With the addition of these originals to its current slate of HD programming, DISH Network further establishes itself as the leader in high-definition TV.

The 10 VOOM HD networks will include RUSH HD, Gallery HD, Rave HD, Ultra HD, Equator HD, Monsters HD, Animania HD, Majestic HD, HD News and Guy TV HD. These networks will give viewers a high-def experience in such entertainment categories as science fiction, fashion, travel, music concerts and more.

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DirecTV posts narrower 1Q loss on revenue

DirecTV Group Inc., the nation’s largest direct broadcast satellite provider, said Monday that first-quarter losses narrowed significantly from last year, due to fewer charges and higher revenue at DirecTV U.S.

Losses narrowed to $41.4 million, or 3 cents per share, from $638.8 million, or 46 cents per share, a year ago.

The 2004 period included charges of $479 million related to the sale of PanAmSat, $311 million from a change in accounting for subscriber acquisition, upgrade and retention costs, and $63 million for the early retirement of PanAmSat’s backup satellite due to a failure in its power system.

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Gravity Grounds DirecTV

Is satellite entertainment giant DirecTV set for new heights, or will the stock stay stuck in low orbit?

Sure, first-quarter results out yesterday were heartening: Subscriber growth helped DirecTV stem losses, prompting the market to push the stock up 5%. All the same, it’s hard to find a good reason to buy into DirecTV right now.

DirecTV added 505,000 net additional subscribers, ending the quarter with 14.45 million. On the surface, that’s great news. But investors expecting subscriber growth to translate into financial turnaround anytime soon may want to think again. The cost of acquiring and holding on to subscriptions remains high for DirectTV, and it’s likely to stay that way as more and more players — including cable operators and telcos — grab for slices of the couch potato marketplace.

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Sirius Hops on Podcast Bandwagon

Sirius Satellite Radio is latching onto the podcasting phenomenon, launching a show later this month that will feature a daily selection of the increasingly popular do-it-yourself audio programs.

The move by Sirius (SIRI) comes just days after Infinity (IFNY) said it would convert a struggling talk radio station in San Francisco to an all-podcast format.

The show will begin broadcasting weekdays on May 13. It will be hosted by Adam Curry, the former MTV personality who helped create podcasting.

Podcasts are less than a year old but have become popular with the booming use of iPods. They include music and random musings on things like wine, pop culture, politics, hobbies and sports. The radio industry, which has already been facing sluggish growth in advertising in recent years, has been watching the booming use of iPods with growing concern.

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Apple Gets Sirius

Aren’t you sick and tired of hearing how the popularity of Apple Computer’s iPod and other portable streaming devices is going to kill not only traditional radio but also Sirius and XM Satellite Radio as well? It’s a lot like saying that the DVD will be the death of cable television or the multiplex. That’s because folks who already spend a lot of time listening to music they know will go to even greater lengths to discover new music.

So perhaps that’s why I appreciate the irony of Sirius’ announcement that it will team up with podcasting pioneer and former MTV host Adam Curry to offer blocks of talk radio programming dedicated to podcasts.

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