HD radio, the standard that is slightly more exciting than shoelace technology, is coming to more BMWs standard.  The 2009 6 and 7 Series already had HD Radio.  Now the Z4 Roadster, the 1, and 3 Series will get HD Radio standard.  BMW joins Ford in pushing HD Radio. 

Don’t know anything about HD Radio?  Let’s fill you in.  The HD does not stand for “high definition.”  In fact, it used to stand for “hybrid digital,” but now it stands for nothing in particular.  The name is a trademarked term for higher quality audio like 5.1 surround sound sent over the air.  What does this really mean?  If your town has a HD Radio station and you have a HD Radio receiver, you get better audio quality. 

Read: [PR Newswire]

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I hate surprises.  This year, it looks like a showdown of portable music players is being leaked early and I, for one, am thrilled.  No more watching keynotes to see what is coming down the line.  Today we can reveal one confirmed product and one that looks to be very real. 

The Zune HD is real

Microsoft has confirmed the Zune HD we told you about here, saying it will be available this fall.  This new Zune is designed to compete head-to-head with the iPod touch; which is a bold move as many of us believe that device is the pinnacle of PMPs. 

The Zune HD will include an OLED screen, HD radio receiver, and HD output to a TV.  There hasn’t been any announcement yet about apps (the big advertised point of the iPod touch), so surely MS has something more up there sleeve, right?

Zune owners love their little portable media player and are usually very vocal about it.  Unfortunately, they are in the minority of PMP buyers.  Quite frankly, I am a little surprised Microsoft is pushing forward with the much maligned Zune brand.  Microsoft will be using the goodwill of the Xbox brand by having the Zune HD being a “premium partner in the Xbox LIVE Video Marketplace, bringing an exciting catalog of TV and film to the platform. Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace, exposing the Zune brand experience to millions of new consumers for the first time.”

Next iPod takings shape

Also revealed is what looks very likely to be the next iPod Nano.  The newest feature appears to be a camera that is also rumored to make it onto the new iPod touch (uh-oh MS, quick - put a camera on the Zune HD).  The location on the purported new Nano is very odd, unless it can only be accessed in landscape.  The supposed release time is June to September (when Apple historically releases new iPods).

What this tells us at Gadgetell is we’ve not seen the final shape of PMPs.  They continue to change and evolve.  They also tell us Microsoft believes there is a market for it’s Zune (hopefully more than that Zune tattoo guy).  It will be interesting to see how these announcement/rumors change before release time. 

Read: [CNET]

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Somehow, WMpowerusers got their hands on what is purported to be images and specs of the Zune HD.  We’ve heard rumors of a new device supporting HD for some time and this image would be in the direction we’d have guessed.  If this image is close, the Zune HD could be a worthy device and help get Zune out of the joke genre of PMPs.

Besides really good looking, the tipster suggests the specs are solid: OLED capacitive screen, 16:9 aspect ratio, multi-touch browser, HDMI port (??!!?!?), wireless sync, 16 and 32 GB versions and support for 3D Xbox games.  Drooling yet?

The site claims their info says this device will launch to much fanfare in the fall. 

I am going to call BS on this one.  While the specs look good, they look too good.  The cost of all this would likely push it out of the market and then there is the problem with the backside.  The silver and black is far too reminiscent of the first generation iPhone.  Microsoft has an identity image with the Zune, but it is unlikely they’d try to solve this by copying the competition that is eating their lunch on the mobile phone OS.

Our Natesh Sood took a look at the timing of launching something like the Zune HD this year and projects what a late release will do:

The worst thing Microsoft can do is release the Zune HD right after Apple either releases a totally new iPod or upgrades an old one.

And an early release:

The main concern here is with the launch of all the phones, Microsoft making Windows 7 available and ready to go, as well as the possibility of there being a new iPod in September, a Zune HD could get lost in the shuffle.

The bottom line is, this late spring/summer/fall is jam packed with new stuff from all the big players.  Microsoft will have its hands full to make enough noise to get the Zune HD noticed if it isn’t amazing.

What is your take?  Are you ready to camp out when this goes on sale or is it far to fairy-tale like to be real?  Let us know in the comments.

Source: [WMpowerusers]

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Satellite radio provider XM Sirius has confirmed that they plan to release an app that will allow iPhone users to access the service via Internet streaming.  What is not clear is whether access will require a full account or if there will be a stand alone service.

The online access used to be free for XM Sirus subscribers but as of this month now costs $2.99 a month.  An Internet only option is not currently available.  There is an XM Radio Mobile service available for cellphones.  Right now AT&T users can get 25 channels for $8.99 a month, but iPhones are not compatible. Presumably when the new app is released later this year iPhone users will be able to take advantage of the plan, but they would still not be able to access all of XM Sirius’s channels.

The company has been struggling lately under competition from services such as Pandora and Slacker, which allow access to thousands of Internet radio stations and the ability to program your own playlists.  Both are free to listen to online and reasonably priced music players are available as well.

Read [ZDNet]

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Just last week it appeared like a bankruptcy was the inevitable for satellite provider Sirius XM, but how quickly things can change.  Liberty Media Corporation has just stepped in and saved them with a loan for a whopping $530 million.  The loan will be given in two parts with the first beginning immediately.

The first part consists of $280 million, of which $171.6 million will go to pay their debts.  The second part will be $150 million with another $100 million going towards the outstanding loans from XM Satellite Radio.

All-in-all, this will give Liberty Media a total of 12.5 million shared of preferred stock in Sirius XM.  Additionally, it is expected that both John Malone and Greg Maffei will be joining the Sirius XM Board of Directors.

Well, it looks like Sirius XM will live to fight another day, and their subscribers will be able to continue enjoying their (mostly) commercial free radio for a while longer.

Read [PR Newswire]

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New reports are claiming that Sirius XM is “within days” of filing for Chapter 11 bankruptcy.  According to a New York Times report, the company is currently “working with advisers to prepare for a possible bankruptcy filing.”  So, as of now, they are considering the option, which means they have not begun the process, still this is not good news. 

On the flip side, the report also mentions that this could also be a calculated move to convince Charles Ergen (owner of Dish Network and EchoStar) to make a solid offer to purchase.  Ergen has already made an offer in the past, it came shortly after Sirius and XM merged.

Should Sirius XM go through with the Chapter 11 filing, customers are unlikely to see any interruption in the service.  However some of the higher paid acts such as Howard Stern could go away when contracts up for renegotiation.

Of course, all things considered, I cannot say that this news comes with much surprise, if anything the surprise is why it has taken this long.  I have been contemplating canceling my subscription lately, I guess it is safe to say that I am not alone in that thought.

Read [New York Times]

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Nice to see that Sirius XM is catching up with the rest of the media world and have finally developed an app for the iPhone.  NiceMac announced they will submit the new app, called uSirius Starplayer, to Apple for approval on January 31.  The approval process could take anywhere from a week to several months, but once it is approved, iPhone owners will be able to stream Sirius and XM offerings to their phone. 

The app will run between $13 and $20 (the NiceMac folks still haven’t decided yet), and the standard monthly Sirius XM subscription fee of $12.95 will be required.  No word yet if Sirius XM will offer a discount on the subscription fee if the iPhone is a secondary device on a plan, similar to what it offers for secondary radios.  NiceMac co-partner Todd Bruss says he receives about 100 e-mails a day asking when uSirius Starplayer will be released.  If that’s true, expect this one to be pushed through Apple’s approval process quickly.

From [TWICE]

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You gotta love loopholes.  When Sirius and XM decided to merge, Congress and the FCC had many concerns.  As a way of calming those entities, the two companies agreed not to raise the rates on subscription and programming packages.  So if you own a single radio and don’t listen on the Internet, then this article doesn’t apply to you.  If you have more than one radio on a plan and/or listen to your stations on the Internet, then March 11 is going to be a bad day for you.

Sirius XM is going to raise rates on additional radios by $2 to $8.99.  That charge is per radio.  They are also going to introduce a $3 charge to listen on the Internet.  There is a promise that the Internet offerings will be near CD quality, but I’m not sure that offsets the new cost.  There are rumors that package prices will be raised, but I cannot see the Obama FCC allowing that to happen in the current economic climate.  Both the Sirius and XM websites are offering users the ability to lock their original prices in, by buying a long term plan instead of a month to month subscription.  Looks like Sirius needs some cash today.

From [Electronic House]

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Man, your car has everything: GPS turn-by-turn directions, awesome stereo system, DVD, almost every gadget you can think of.  But does it have MTV or Comedy Central?

AT&T and RaySat Broadcasting have announced that, via the AT&T CruiseCast service, MTV and Comedy Central will be broadcasting directly to your car.  The satellite television and radio service will be broadcasting 22 TV channels to include not only MTV and Comedy Central but Nickelodeon, Noggin, and more as part of MTV’s mobile channels.

Originally debuted at CES 2009, the 22 TV channels and 20 satellite radio channels available on AT&T CruiseCast will contain a variety of sports, news, family programming, music and more.

AT&T CruiseCast is made possible due to satellite technology getting much smaller.  It uses a small antenna that sits on the roof of your car similar to those used with XM Satellite Radio, but larger.  The antenna is attached to a small receiver in the car which then attaches to monitors.

Source: Press Release

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Slacker has added a new subscription plan to go along with its “Premium” subscription plan—a newer, low-cost “Radio Plus” subscription.  Slacker offers Internet radio to its Slacker portable players and online at their website. 

Without a subscription, you have to sit through ads and can only skip six songs per hour per station.  Slacker’s Premium Radio plan cost $7.50 per month.  This new plan, Slacker Radio Plus, costs $3.99 per month. 

Both these pay plans give you unlimited skips, no commercials, and unlimited song requests.  The difference between the plans?  The Premium plan lets you save a song to your library, whereas the Radio Plus doesn’t.

This plan makes Slacker a much more attractive option when compared to its older plan and satellite radios. 

Read [Slacker]

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Quick Review

What is it? 

• The Pioneer XMP3 (Model: GEX-XMP3) is a portable XM radio that costs $279.99

What’s cool:

• Wide variety of channels
• Superior sound quality when compared to FM radio
• Intuitive menus
• Simple design
• Recording and bookmark features

What’s not cool:

• Internal antenna is weak
• Poorly designed layout on remote control

The Crux:

• XM is to your radio what cable is to your TV.  The service offers lots of very specialized channels and the sound quality is much better than your standard FM radio.  Pair the XM Radio service with this portable XM unit and you’ve got a nice office or home radio provided you can get a signal.

This is a guest post by Merlyn Akhtar.  Merlyn Akhtar is a tech-savvy person who isn’t afraid to get her hands dirty with hardware.  One of the first upgrades she performed was installing a 2X CD-ROM drive in a PC in her early teens back when Prodigy was an awesome ISP.

Out of the Box:

This unit comes with lots of goodies.  In addition to the main unit, you get a dock, which has a line out and antenna in for the included external antenna, charger, remote control, in-ear ear buds, and RCA cables.  The portable radio is small, about the height and width of your standard clamshell-style cellphone and it feels light in the hand.

Design:

The main unit is lightweight and has a familiar navigation wheel design.  The antenna stub is a bit chunky, which distracts from the otherwise clean design.  The headphone jack and microSD card slot are conveniently located along the top.

There are 5 dedicated buttons, including one for the menu system, keypad, and options.  The navigation wheel encircles the XM (select) button and has 4 dedicated buttons of its own for play/pause, forward/rewind, and record.  Most people will find it to be a very familiar layout.

The included dock is basically a charging station and the only means for using the external antenna, which is about as big as the main unit.  The dock also has a line out so you can listen to the XM-goodness on your favorite set of external speakers.

Interface

You can browse channels by scrolling with the wheel or by pressing the keypad button which brings up a menu to enter a channel number. 

You can also schedule XM recordings so you never miss particular radio show.  “My Music Library” is where you access recorded XM programs/music, mp3s/WMAs, and audiobooks from your microSD card. 

The XMP3 features Auto Recording which records up to 30 hours of music from the five channels you listen to the most.  You can set the channels yourself or just let the radio figure it out.

To get from submenu to submenu, you have to use the scroll wheel (the arrow keys on wheel won’t work).  You can click the Options button while listening to XM programming which displays a menu.  You can access TuneSelect for an artist or a song which alerts you whenever that artist or song is playing on another channel.  You can bookmark the song, mark a channel a favorite, and view programs for your current channel.

The Remote

The included remote works well within line of sight, but it is a bit awkward to move from wheel control on unit to button control on remote.  The “Back” button is placed in bottom right hand corner, but “Select” button is in the top-middle.  This is a poor layout considering these two buttons are frequently used when navigating the menu system (can really hurt your thumb if you’ve got small hands).

Audio Quality and Reception

When I could get a signal, the sound quality was good.  The equalizer has nine presets.  There is no option to customize an equalizer setting.

I found the signal poor when I was at home using just the radio’s internal antenna.  The radio has an antenna signal utility that is really helpful when setting up the unit with the external antenna.  Reception was much improved using the external antenna, though I had to wander around the room a while to find the right spot to set it down. 

I tested out the radio on my morning commute on the MetroNorth train (lower Hudson valley to NYC).  Lower Westchester had good to very good (1 to 2 bars out of 3) signal reception.  There was little to no signal by mid-Westchester, even when I brought the dock with me and had the external antenna.  In Queens, NY, I had to use the external antenna to get a viable signal in a building.  There was a very good to excellent signal in Manhattan and the Bronx.

I was initially excited when I took the radio on the train, but was greatly disappointed by the poor signal reception.  I’ll stick with my dedicated MP3 player for my music on my commute. 

Wrap up

The Pioneer XMP3 player is an interesting device.  It can serve as your normal music player if you bring along a microSD card.  The recording feature is also handy when there is no signal.  The design could use another revision to integrate the antenna a little bit better.  The antenna sticks out like a sore thumb on this relatively clean design.  $279.99 seems a little steep for something like this.  The price will likely be a barrier to most who are just curious about XM.  For those who already love satellite radio, this is a very pocketable solution.

This device will appeal to XM enthusiasts, but probably won’t win over the masses yet.

Product Page [XMP3 Radio]

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I am a Fred fan.  Or I guess I was a Fred fan.  Fred was an alternative rock station on XM that played some deep tracks that exposed where bands like U2, REM, Cure and others got their sounds influenced from.  XM radio has euthanized Fred and other themed genre stations, in efforts to merge their networks.  I am not the only one sad.

The replacement for Fred is First Wave, a Sirius station, which in my opinion and the opinion of these groupies, blows chow.  Bad.  Shallow.  Bad.

Can I make a fiscal justification to keep both stations going along?  No.  Can I say that satellite radio has finally lost the race with Internet radio?  Yes.  My cohorts and I are leaving as we can’t stand your far too repetitious music designed for those behind the wheel for 30 minutes.

It isn’t all tears for satellite radio owners though, according to craveonline, 

“Each sides’ premium channels and talent remains mostly intact, with stations like Howard Stern, the Grateful Dead Channel and Eminem’s Shade 45 all now available to XM users, while Sirius listeners now get Bob Dylan’s Theme Time Radio Hour, Tom Petty’s Buried Treasure and B.B. King’s blues station.”

Those of us that got attached to these themed genre stations will miss them and the talent at XM studios in DC.

Farewell Fred.  Thanks for the tip, Jeff.

Full Story » | Written by JG Mason for Gadgetell. | Comment on this Article »

Satellite radio took a hit this past week as WorldSpace filed for Chapter 11 bankruptcy.  Only two weeks ago, both Chief Operating Officers resigned.

WorldSpace is a subscription-based service that broadcasts news, sports, music and educational programming to over 150,000 people.  They charge $5.00 - $10.00 per month for their plans and provide more than 100 channels.  WorldSpace offers the only satellite radio service outside the U.S. (except Japan and South Korea).  Sirius XM is the licensed provider of satellite radio here.  Judith Pryor, Senior Vice President of Worldspace, told me that they do not expect for the U.S. to ever be in their market.  With a reorganization and probable sale in its immediate future, it is uncertain who their audience will be.

Chapter 11 allows WorldSpace to continue on with business while these changes are being made.

Worldspace’s objective is to come up with a way to pay back some outstanding debts.  Pryor says, “This we expect to do by either a sale of the Company or its assets or a recapitalization of the Company.”  Worldspace had a decent 2006 with major relationships and agreements made with CNN and ESPN.  That was followed by a disastrous year financially in 2007 with a shareholder lawsuit, and with this year looking even worse, the call for change should not come as a surprise.

Worldspace highlights:

• Worldspace pioneered broadcasting from company-owned and launched satellites.
• Worldspace was one of the principal founding shareholders of XM Satellite Radio.
• Worldspace’s Global Content and Programming Department puts out four of the original content channels heard on XM Satellite Radio.
• Worldspace technology is used in every XM receiver.
• Worldspace’s receivers act as modems and are capable of downloading data, video, and other media content.

Sirius Too?

Sirius XM is having a pressured year also, not nearly as bad as Worldspace, but they did cut 50 jobs last week.  Sirius is seeking approval for a reverse stock split in order to increase their stock value and to avoid getting delisted from Nasdaq.  Sirius is also under scrutiny for inhumane working conditions for women in their factory in Korea who assemble the satellite radios.  A press conference is supposed to be held today (Tuesday, October 21) to discuss some very scary discrimination and abuse accusations.

Good news for both companies: both their stocks at closing yesterday were up (a little).

See Stock Information
See Sirius accusations
Read Worldspace News Release

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After a long time of speculation and wondering, the deal has officially been completed. Sirius and XM have formed as one company and are now using the uninspired sounding name of Sirius XM Radio.

As we saw the merger had its ups and downs and times when it looked like it was never going to happen, we saw the DOJ give their seal of approval back in March, and then the news kind of died down a little bit. Then finally the FCC gave their seal of approval late last week and now things seem to be quick moving again.

As part of the merger, any existing radios will continue to work and subscribers can continue on with their current plans, but personally I am more looking forward to see those new a-la-carte style plans that we have heard mentioned. Well, that and some new Sirius XM Radio branded hardware.

Read [Sirius]

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Coming in a close 3-2 vote, the $3.3 billion purchase of XM from rival Sirius has been given the official seal of approval from the FCC.

This news will now leave US customers with just one satellite radio service, which initially sounds like not the best of news, however at least some from the FCC think this was a good move.

According to a recent statement from FCC Chairman Kevin Martin, “this merger is in the public interest and will ultimately benefit consumers.” As a consumer and a current Sirius subscriber I can only hope that turns out to be an accurate statement.

While the approval has been granted, this decision does not come without some guidelines, which are being set in place to offer protection to consumers.

To begin with there will be a three-year cap on prices. They will also have to offer a minimum of “8 percent of their channel capacity for minority and non-commercial programming” and also pay a fine of $19.7 million for FCC rule violations that have occurred in the past.

It sounds good so far.

Chairman Martin also went on to mention that this merger would allow customers to choose from smaller, low-cost packages of programming in the future.

Lets just hope that he means a more a-la-carte based system where you can pay just a few bucks a month for a few channels. I am not sure about your listening habits, but while its nice that Sirius currently has lots of available channels, I spend 95% of my time listening to just 4 or 5 of my favorites.

Read [Reuters]

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No middleman. Claims of paying their artists more than twice the royalty rate offered on commercial radio. Sounds pretty darn good for independent artists, doesn’t it? Last.FM is a music-streaming service that says they offer all of that and more.  The company actually launched in January of 2007, and has since been bought by CBS, so, they have some pretty strong backing holding them up. And they are starting to pass the longer running Sound Exchange even with the fact that royalty rates for music being streamed over the Internet has been raised; making it somewhat difficult for ad-supported start-ups to stay afloat. Some people though, say this is not wholly due to their really being all for the artist, but instead because they pay rock bottom royalty rates. From a commenter at DashGo regarding Last.Fm’s royalty tier - “Even bands that write just one great song deserve compensation for their copyright. Maybe not by a major label force bundling it into an album, but certainly at more than 30% of whatever pitifully low CPM Last.fm and CBS can dredge up - something they won’t even guarantee a floor on.”

However, Last.FM maintains they support smaller labels that possibly couldn’t exist on a site like SoundExchange due to their size, or for some other reason. They say that their account creation is up 60% since January and users have uploaded over 450,000 tracks. So, looks like somebody is listening at least.

I don’t know. A way to shake down the poor indie guys who can’t afford a label, or a site that seriously wants to support the local music scene? Music for the masses to offer it up in a cool new way, or a yet another dot.com simply out to roll in bucku-bucks at the expense of the little dude?  I think this one just may play out to be the former.

Via [TechCrunch]

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It’s been 17 months since the XM-Sirius satellite radio merger was announced, and in that time a typical consumer’s desire to spend discretionary income on a satellite radio subscription may have broken up into static.

Now that the regulatory process appears to be winding down and FCC Chairman Kevin Martin has given his blessing to the merger, the sour economy is proving to be a new obstacle in making this media duet sing like a Coldplay single. “I believe that consumers will begin to feel wary about many subscription-based products in general,” says Ryan Saghir of Orbitcast in an email to Gadgetell. “As rising gas prices and increased food costs continue to take their toll, some subscribers may not find value in a ‘luxury expense’ when they can listen to similar content on their iPod. Indeed, that in essence was the basis of the argument for the merger.”

Orbitcast, which tracks developments in the satellite radio industry, reports that legal counsel with XM and Sirius met last week with Republican FCC Commissioners Robert McDowell and Deborah Tate in addition to talks with Martin. XM-Sirius needs two more “yes” votes on the panel to combine and supposedly make 17 million total subscribers happier, while offering a new and improved merged company to potential new customers. But Saghir tells me that what really has to happen is some new hardware to put the spark back into the XM-Sirius marriage.

“I think a newer, cooler, and more advanced portable radio is desperately needed, but it may not be in the traditional sense,” Saghir says. “As the chips get smaller, we might start to see satellite radios in GPS devices and cellphones. Additionally, with the ‘open device’ provision that Sirius-XM have reportedly agreed to - which will allow for any manufacturer to produce satellite radios - we may begin to see receivers in places we never imagined before, and at much lower prices.”

Read [Orbitcast]

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It is getting tough to tell who’s side is whose in the terrestrial vs extra terrestrial battle going on as all consider the merger of XM and Sirius radio.  Some, like the Department of Justice, see no problems.  Others like two lawmakers who on Friday announced we should take a good, long, hard look at the damage a satellite radio merger might reap and how they should protect us.

The FCC will make the final call and it is expected that ruling won’t come until the summer.  Lawmakers seized the opportunity to run up the fear flag:

“It would be contrary to the public interest, for example, to permit the merged company to bar HD radio chips or iPod compatibility from inclusion in a manufacturer’s satellite radio device,” they wrote. -Reps. John Dingell (Mich.) and Ed Markey (Mass.)

As you can probably tell, I am against the government mandating an HD chip or iPod compatibility.  Those are great ideas and I’d love to see them in products, but not at the hands of Washington requiring it.  The market should be willing to pay for these options and we should rely on the market calling the shots; not the fear mongers in DC.

They think they have a touch choice here huh?  Wait till internet radio gets into my car.  HA!

Read [InternetNews]

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AOL is no longer carrying feeds from satellite radio provider XM now that contract the two companies had has expired. Presumably this also means that subscribers to XM’s online streaming service will no longer have access to AOL Radio. The announcement has been particularly upsetting to listeners from outside the U.S. and Canada, where XM service is unavailable. AOL radio was the only way for them to enjoy the over 80 commercial free music channels XM provides. XM does offer online streaming of their channels, but the service is once again, available to U.S. residents only. In an effort to make up for the loss, XM is offering a special deal to AOL subscribers in which they can sign up for the online service for just $2.99 a month. The company is currently awaiting FCC approval for its much anticipated (and for some, dreaded) merger with rival Sirius Satellite Radio.

Via [CrunchGear]

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Another day another product leak from the FCC, the latest is the Starmate 5 from Sirius, which in by itself would not be that exciting. However in this case based on a memo that switched hands from a “testing firm and the FCC authorization staff” included the possibility of the Starmate 5 supporting Sirius channels as well as XM.

“We used the satellite radio signal coming from either XM or Sirius,”

Which assuming that happens, and note as of now its just speculation as nothing official has been announced, this would be the first hybrid satellite radio receiver. Sounds like a great move, however a very risky move, while the DOJ has given their seal of approval on the merger, its still pending FCC approval which is not expected to take place until sometime late in May or possibly into June.

Personally I like the design of the Starmate, but aside from the exciting possibility of a hybrid receiver the latest coming from the FCC is just showing the standard features which would include a 5 line display, 30 channel presets and the ability to pause, rewind and replay up to 44 minutes of radio.

Via [electronista]

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Following approval of the Department of Justice, legal counsel of both Sirius and XM met with the FCC on Wednesday to discuss the merger proposal of the two companies. The merger proposal was given the nod by DOJ, and so XM and Sirius seem to wasting little time in getting the FCC’s approval.

Based on record of filing at the FCC, the meeting was held last Wednesday before FCC Chairman Kevin Martin. Together with the legal counsel of Sirius and XM, others who were present during the meeting were Daniel Gonzales, Chairman of Martin’s Chief of Staff and Michelle Carey, Chairman Martin’s Senior Legal advisor.

The record of filing also indicated that the meeting discussed programming packages and proposed pricing which were previously announced by both Sirius and XM.

To backtrack, the merger proposal was announced February last year. After several months of getting various tirades and criticisms from other companies claiming that such merger could lead to the two companies monopolizing the radio satellite industry which will lead to increase in prices of delivering radio satellite services to the consumers. Both Sirius and XM denied this allegation and even announced various programming packages and their corresponding prices. Both versions of the programming prices show no sign of dramatic increase in the prices of services offered by Sirius and XM.

And this was probably what made the DOJ to approve the merger proposal. Thinking that the issue has been going for so long now, Sirius and XM took matters into their own hands and met up with the FCC. Pending outcome of the meeting, we have yet to see if the FCC would also approve the proposal, which to some analysts will most likely happen since the FCC most often than not just follow what the DOJ says.

Via [Orbit Cast]

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It has been in the works for a long time, just over a year now and at this point many were thinking the approval would never happen. However, it seems the latest two month extension for the merger deadline was just was they needed. The Department of Justice has approved Sirius’s $5 billion buyout of XM Radio, however no information was given on just when the merger will officially take place.

According to the DOJ: “Evidence Does Not Establish that Combination of Satellite Radio Providers Would Substantially Reduce Competition”

Keep reading for the full Department Of Justice Statement below…

Read [Dept. Of Justice]

Statement of the Department of Justice Antitrust Division on its Decision to Close its Investigation of XM Satellite Radio Holdings Inc.’s Merger with Sirius Satellite Radio Inc.

Evidence Does Not Establish that Combination of Satellite Radio Providers Would Substantially Reduce Competition

WASHINGTON — The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the proposed merger of XM Satellite Radio Holdings Inc. with Sirius Satellite Radio Inc.:

“After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers. The Division reached this conclusion because the evidence did not show that the merger would enable the parties to profitably increase prices to satellite radio customers for several reasons, including: a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers.

“The Division’s investigation indicated that the parties are not likely to compete with respect to many segments of the satellite radio business even in the absence of the merger. Because customers must acquire equipment that is specialized to the satellite radio service to which they subscribe, and which cannot receive the other provider’s signal, there has never been significant competition for customers who have already subscribed to one or the other service. For potential new subscribers, past competition has resulted in XM and Sirius entering long-term, sole-source contracts that provide incentives to all of the major auto manufacturers to install their radios in new vehicles. The car manufacturer channel accounts for a large and growing share of all satellite radio sales; yet, as a result of these contracts, there is not likely to be significant further competition between the parties for satellite radio equipment and service sold through this channel for many years. In the retail channel, where the parties likely would continue to compete to attract new subscribers absent the merger, the Division found that the evidence did not support defining a market limited to the two satellite radio firms that would exclude various alternative sources for audio entertainment, and similarly did not establish that the combined firm could profitably sustain an increased price to satellite radio consumers. Substantial cost savings likely to flow from the transaction also undermined any inference of competitive harm. Finally, the likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term. Accordingly, the Division has closed its investigation of the proposed merger.”

ANALYSIS

During the course of its investigation, the Division reviewed millions of pages of documents, analyzed large amounts of data related to sales of satellite radios and subscriptions for satellite radio service, and interviewed scores of industry participants.

Extent of Likely Future Competition between XM and Sirius

The Division’s analysis considered the extent to which the two satellite radio providers compete with one another. Although the firms in the past competed to attract new subscribers, there has never been significant competition between them for customers who have already subscribed to one or the other service and purchased the requisite equipment. Also, competition for new subscribers is likely to be substantially more limited in the future than it was in the past.

As to existing subscribers, the Division found that satellite radio equipment sold by each company is customized to each network and will not function with the other service. XM and Sirius made some efforts to develop an interoperable radio capable of receiving both sets of satellite signals. Depending on how such a radio would be configured, it could enable consumers to switch between providers without incurring the costs of new equipment. The Division’s investigation revealed, however, that no such interoperable radio is on the market and that such a radio likely would not be introduced in the near term. For example, in the important automotive channel, such a radio could not be introduced in the near term due to the engineering required to integrate radios into new vehicles. The need for equipment customized to each network means that in order to switch from XM to Sirius, or vice versa, a subscriber would have to purchase new equipment designed for the other service. In the case of a factory-installed car radio, switching satellite radio providers would have the additional disadvantage of requiring an aftermarket radio that would be less integrated into the vehicle’s systems. Data analyzed by the Division confirmed that subscribers rarely switch between XM and Sirius.

As to new subscribers, XM and Sirius sell satellite radios and service primarily through two distribution channels: (1) car manufacturers that install the equipment in new cars and (2) mass-market retailers that sell automobile aftermarket equipment and other stand-alone equipment. Car manufacturers account for an increasingly large portion of XM and Sirius sales, and the parties have focused more and more of their resources on attracting subscribers through the car manufacturer channel. Historically, XM and Sirius engaged in head-to-head competition for the right to distribute their products and services through each car company. As a result of this competitive process, XM and Sirius have provided car manufacturers with subsidies and other payments that indirectly reduce the equipment prices paid by car buyers to obtain a satellite radio. However, XM and Sirius have entered into sole-source contracts with all the major automobile manufacturers that fix the amount of these subsidies and other pertinent terms through 2012 or beyond. Moreover, there was no evidence that competition between XM or Sirius beyond the terms of these contracts would affect customers’ choices of which car to buy. As a result, there is not likely to be significant competition between XM and Sirius for satellite radio equipment and service sold through the car manufacturer channel for many years.

The Division’s investigation identified the mass-market retail channel as an arena in which XM and Sirius would compete with one another for the foreseeable future. Both XM and Sirius devote substantial effort and expense to attracting subscribers in this arena, with both companies offering discounts, most commonly in the form of equipment rebates, to attract consumers. Retail channel sales have dropped significantly since 2005, and the parties contended that the decline was accelerating. However, retail outlets still account for a large portion of the firms’ sales, and the Division was unable to determine with any certainty that this channel would not continue to be important in the future.

Effect on Competition in the Retail Channel

Because XM and Sirius would no longer compete with one another in the retail channel following the merger, the Division examined what alternatives, if any, were available to consumers interested in purchasing satellite radio service, and specifically whether the relevant market was limited to the two satellite radio providers, such that their combination would create a monopoly. The parties contended that they compete with a variety of other sources of audio entertainment, including traditional AM/FM radio, HD Radio, MP3 players (e.g., iPods®), and audio offerings delivered through wireless telephones. Those options, used individually or in combination, offer many consumers attributes of satellite radio service that they may find attractive. The parties further contended that these audio entertainment alternatives were sufficient to prevent the merged company from profitably raising prices to consumers in the retail channel – for example, through less discounting of equipment prices, increased subscription prices, or reductions in the quality of equipment or service.

The Division found that evidence developed in the investigation did not support defining a market limited to the two satellite radio firms, and similarly did not establish that the combined firm could profitably sustain an increased price to satellite radio consumers. XM and Sirius seek to attract subscribers in a wide variety of ways, including by offering commercial-free music (with digital sound quality), exclusive programming (such as Howard Stern on Sirius and “Oprah & Friends” on XM), niche music formats, out-of-market sporting events, and a variety of news and talk formats in a service that is accessible nationwide. The variety of these offerings reflects an effort to attract consumers with highly differentiated interests and tastes. Thus, while the satellite radio offerings of XM and Sirius likely are the closest substitutes for some current or potential customers, the two offerings do not appear to be the closest substitutes for other current or potential customers. For example, a potential customer considering purchasing XM service primarily to listen to Major League Baseball games or one considering purchasing Sirius service primarily to listen to Howard Stern may not view the other satellite radio service, which lacks the desired content, as a particularly close substitute. Similarly, many customers buying radios in the retail channel are acquiring an additional receiver to add to an existing XM or Sirius subscription for their car radio, and these customers likely would not respond to a price increase by choosing a radio linked to the other satellite radio provider. The evidence did not demonstrate that the number of current or potential customers that view XM and Sirius as the closest alternatives is large enough to make a price increase profitable. Importantly in this regard, the parties do not appear to have the ability to identify and price discriminate against those actual or potential customers that view XM and Sirius as the closest substitutes.

Likely Efficiencies

To the extent there were some concern that the combined firm might be able profitably to increase prices in the mass-market retail channel, efficiencies flowing from the transaction likely would undermine any such concern. The Division’s investigation confirmed that the parties are likely to realize significant variable and fixed cost savings through the merger. It was not possible to estimate the magnitude of the efficiencies with precision due to the lack of evidentiary support provided by XM and Sirius, and many of the efficiencies claimed by the parties were not credited or were discounted because they did not reflect improvements in economic welfare, could have been achieved without the proposed transaction, or were not likely to be realized within the next several years. Nevertheless, the Division estimated the likely variable cost savings – those savings most likely to be passed on to consumers in the form of lower prices – to be substantial. For example, the merger is likely to allow the parties to consolidate development, production and distribution efforts on a single line of radios and thereby eliminate duplicative costs and realize economies of scale. These efficiencies alone likely would be sufficient to undermine an inference of competitive harm.

Effect of Technological Change

Any inference of a competitive concern was further limited by the fact that a number of technology platforms are under development that are likely to offer new or improved alternatives to satellite radio. Most notable is the expected introduction within several years of next-generation wireless networks capable of streaming Internet radio to mobile devices. While it is difficult to predict which of these alternatives will be successful and the precise timing of their availability as an attractive alternative, a significant number of consumers in the future are likely to consider one or more of these platforms as an attractive alternative to satellite radio. The likely evolution of technology played an important role in the Division’s assessment of competitive effects in the longer term because, for example, consumers are likely to have access to new alternatives, including mobile broadband Internet devices, by the time the current long-term contracts between the parties and car manufacturers expire.

The Division’s Closing Statement Policy The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions. Guidance on the Division’s policy regarding closing statements is available at: http://www.usdoj.gov/atr/public/guidelines/201888.htm.

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At 3:48 pm today, a Boeing 702 model satellite was launched aboard a Sea Launch ZEnit-3SL rocket from the Odyssey Launch Platform.The new satellite called the DIRECTV 11 was introduced to enhance the HD capacity of DirecTV. Which means that subscribers will be getting an additional 150 new HD channels by this September. 

Today’s launch is just the first of two satellites that DirecTV is working on. The second satellite is currently being readied to deliver up to 200 HD channels sometime next year. The newly launched satellite is reportedly DirecTV’s tenth operated and owned satellite. The tests are not yet complete but if successful, subscribers can expect to surf more and more HD channels. 

According to DirecTV’s Content Strategy and Development executive vice-president Derek Chang:

“We are continuing to enhance the DIRECTV HD platform by broadcasting our exclusive, interactive sports packages like NCAA Mega March Madness, Nascar Hotpass and NFL Sunday Ticket all in HD and adding more HD content to our DirecTV On Demand VOD platform that will formally launch in the coming weeks.”

So the 92 national HD channels presently available will double before the year ends. Won’t channel surfing take a lot more time than it already does?

Read [Business Wire]

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While the Sirius/XM merger still seems far away from being completed, the original date for the merger, which was March 1 has expired and they have agreed on a two month extension. Based on the new date, they now have until May 1, 2008 to receive regulatory approval, that is unless they agree upon another extension.

Sadly, this merger is almost getting to the point of not caring either way, we will just be happy when its finally over. We have been getting teased with a possible merger and better plans for over a year now.

Read [Reuters]

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The much hyped merger of Satellite radio providers XM and Sirius has stalled, and the deadline is looming. The original deal was struck on February 19, 2007 and the termination date is Saturday. Sirius is desperate for the merger but regulators have still not approved the plan. Sirius CEO Mel Karmazin said he expects the boards of both companies to meet to extend that deadline. The DOJ seems to be stuck on the question of whether the merger would result in a monopoly. The answer to most is no, given that most satellite radio usage happens in cars, where DVD players, iPods, and free radio are also options. Since February 20, 2007, Sirius shares have fallen 22% to $3.05, while XM shares have sunk 15% to $13.13.

Read [Reuters]

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New to Insignia’s rapidly expanding line of shelf systems is their NS-HD2114. The compact player/speaker system can play your CDs, DVDs, favorite (HD) Radio stations, and even has support for your iPod. While the NS-HD2114 may not replace your current home theater setup, for $128, it acts as a great device to put up in your bedroom or kitchen.

Input/Output

Before I delve into the features of the NS-HD2114, I’d like to put up a list of the input and outputs found on the device.

• 1 Analog Audio Input
• 1 Optical Audio Input
• 1 USB input
• 1 Coaxial Audio Output
• 1 Analog Audio Output
• 1 set of Composite Video Output
• 1 Component Video Output
• 1 S-Video Output

Audio

Taking a first glance at the Shelf Component System, given the two speakers, you’d expect the device to have a nice audio experience.I was honestly shocked at how nice the 75 watt system sounded. While playing CDs and my iPod, I could easily hear rich and clear sound throughout the (fairly large) room. The included remote lets you control the entire system, from a maximum (line of sight) distance of about 20 feet. One gripe is that the remote controls more features than the actual system-front itself, which is quite a pain when I’m sitting right next to the device.

Another issue I had with the NS-HD2114 is that the radio, both AM and FM, is

Back in September, EchoStar had acquired Sling Media for $380 million and have now announced plans to spin Sling Media off into a separate business. EchoStar will be broken down into two businesses, they will have Dish Network for the satellite broadcast service and EchoStar Holding Co that will include fixed satellite services and set-top boxes. The current CEO, Charlie Ergen will remain a head for both companies.

EchoStar Holding Co will incorporate Sling Media and the Slingbox will become one of the possible set-top boxes that could be sold to other cable or satellite providers. Which means that its possible that we may see local cable or satellite providers offering a Slingbox as an option in the future. Of course, this is most likely just wishful thinking and no plans have been announced.

Via [Crave]

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Volvo has announced that it will be offering factory-installed HD Radio receivers as standard or optional equipment in most of the models beginning in fall of 2008. According to Volvo, the models will include their S40 T5, V50 T5, C30, C70, S80, V70, XC70 and XC90. In other words, Volvo owners will be able to enjoy a better driving experience and sound quality with free HD radio, which currently offers more than 1,500 stations. In addition, owners will also have access to weather reports, emergency alerts and other information on the display screen.

Via [Radio Ink]

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The sirius/XM deal is still awaiting approval from the FCC and DOJ, however Sirius shareholders have just signed off on a bid of $5 billion to acquire XM Radio. The shareholders for XM still need to vote on the deal, however advisory firms have already endorsed the deal.

So far those are the easy parts, they still need the approval of the FCC and DOJ, they are also still facing opposition from consumer groups who fear a monopoly would form and hurt the customers. Sirius and XM are claiming that the deal would actually benefit customers by offering more pricing options and a greater choice of flexibility in channel lineups. Should the deal be approved we can expect to see pricing starting at $6.99 a month for 50 channels from either Sirius or XM or $16.99 a month where you can keep your current service plus also pick additional channels from the other service.

Sirius had 96% of the sharholder votes in favor of the deal and is still aiming to get the deal wrapped up before the end of the year.

Read [Yahoo! News]

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While overall listener figures in the UK are declining, the percentage that are tuning into digital radio is increasing in the UK.

About 153 million hours per week were spent listening to the radio in the three months ending in September, statistics from Radio Joint Audience Research show.

Almost nine per cent of those hours were via a digital radio, three per cent via a digital television (Sky, Freeview or cable) and 1.6 per cent via the internet.

• Listening to the radio via mobile phones is also growing
• Among those aged 15 to 25, the figure rose to 23 per cent compared with 18.6 per cent in the same period last year

Overall though the trend isn’t good for the radio, no doubt contributed to by the amount of people now listening to podcasts while they commute and do their errands.

Via [DailyTelegraph]

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GM has announced they will begin to offer XM satellite radio standard on all 2008 Buick, Hummer and Saab models. In addition to these new models, GM has already been installing XM satellite radio as a standard option in other models to include the Chevrolet Malibu, Silverado, Tahoe, Cobalt, Corvette and Impala; Saturn VUE, OUTLOOK, AURA and SKY; GMC Acadia, Yukon, and Sierra; and the Pontiac G5 and Solstice. In total, more than 50 model year 2008 GM vehicles will offer XM satellite radio and they will all come with a free 3-month trial subscription.

“XM Satellite Radio has been one of the most successful entertainment offerings ever launched by General Motors,” said Rick Lee, General Motors executive director. “The XM service has broad appeal, with a growing number of our customers asking for the service in their new car or truck. In the 2008 model year, General Motors will build more than 2.5 million vehicles with XM.”

GM was the first to introduce XM satellite radio with the Cadillac in 2001 and have currently produced more than six million vehicles with XM. Satellite radio providers look to have radios pre-installed in cars to help attract customers, currently between XM and Sirius there are exclusive deals with all the major car makers.

Press Release [XM Radio] Via [Business Week]

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Alltel has just announced the availability of the new MOTOROKR Z6m, a great slider style music phone with XM Radio Mobile built-in. The Z6m features an MP3 player with support for MP3, AAC, AAC+ and WMA, TeleNAV GPS Navigator, stereo Bluetooth, 2-megapixel camera, 3.5mm headset, up to 2GB of storage (via external memory card), USB 2.0 and Axcess Search.

“Alltel is excited to bring customers this music lover’s phone with the exclusive XM Radio Mobile cell and MP3 player,” said Brian Ullem, director of device strategy for Alltel Wireless. “With a stylish form factor and impressive list of features, the MOTOROKR Z6m delivers the ultimate experience in mobile music.”

The Z6m also includes Alltel’s Celltop technology that will allow you an easier way to access, manage and organize information on your cellphone. The MOTOROKR Z6m is currently available from Alltel for $129.99 after rebates along with a 2-year contract. XM Mobile Radio is available for $7.99 a month.

Read [Alltel]

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XM Satellite Radio has introduced the Audiovox XM Direct 2, a programmable universal adapter that works with more than 100 satellite ready car stereos. According to XM, the unit allows retailers to update it to make it compatible with new and upcoming car stereos. With this unit, users are able to listen to 170 channels of XM Radio in the most convenient way. The unit is bundled with a universal adapter kit, a car stereo connection cable and the XM Mini-Tuner. The Audiovox Direct 2 is now for sale at $130.

Via [Crave]

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Sirius Canada has announced that they are the first satellite radio company in Canada that has achieved more than 500,000 paying subscribers. This means that they have added more than 200,000 subscribers since February of this year. According to them, Sirius Canada’s automotive partners make nearly 60 percent vehicle sales and there are more than 100,000 vehicles that have been built with factory installed Sirius radios since January 2007.

Via [Orbitcast]

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If you are looking for HD content then DirecTV may be a good option to consider. They have just added 21 new HD channels, with 70 more planned for October and a promise of up to 100 by the end of the year.

You can check the full lineup here, I am sure there will be more than enough to choose from.
Read [DirecTV] Via [UNEASYsilence]

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JVC claim that the KT-HDP1 “is the first HD Radio receiver that can be added to any in-car system without swapping out the existing head unit”. It comes with a DIY kit for those brave enough to believe that claim, that costs $49. The HDP1 will cost $129 and somewhat confusingly there is a professional only kit that costs $39.

a do-it-yourself kit is available as one option along with a kit for listening in the home and a pro kit that ensures a clean installation for most any car layout.

Assuming you get it installed and working this is what you get for your money:

• enhanced digital sound of HD Radio
• text data from supporting stations
• song data as well as news or weather
• receive standard radio and store up to 18 FM and 6 AM presets in memory
• minijack output connects the receiver to headphones or any other small stereo speaker arrangement

It is available now. Good luck with the installation! The idea seems a good one, and the unit looks nice enough to give it a go.
Via [Electronista]

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Sirius and XM are still working towards a merge and the Justice Department is moving “as quickly as possible” to get it completed. While they are moving at a fast pace they have also stated that they wanted to make sure they have the right answer in the end.

Despite any opposition Sirius and XM continue to defend their merger saying that it is not anti-competitive. While Sirius and XM are the two players in satellite radio they are primarily competing against standard radio and other new technology such as portable MP3 players. Currently the Sirius/XM merger is being reviewed by the FCC and DOJ, with opposition coming from the National Association of Broadcasters.

Read [Reuters]

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In a deal that is expected to close before the end of the year, EchoStar has agreed to acquire Sling Media for $380 million. Sling Media’s Slingbox allows users to connect their cable and satellite TV set-top boxes to the Internet giving them access to their home TV over cell phones or other web-connected devices.

“As an early investor in Sling Media, EchoStar has been pleased with the progress and commitment the company has made establishing Sling Media and the Slingbox as powerful and beloved digital media brands,” said EchoStar CEO Charlie Ergen

Sling Media have worked with EchoStar for over two years now and Blake Krikorian the CEO for Sling Media announced they “are psyched to make this announcement” because they realize that Sling Media and EchoStar both “have similar entrepreneurial cultures and mutual dedication and passion for creating empowering experiences that benefit the consumer and the media industry”.

The acquisition of Sling Media will not change any of Sling’s senior managers and even better it will not change any of the products and services currently scheduled to be released. Sling Media have also announced that just because EchoStar will be the parent company they will not change the interoperability of its products with set-top boxes made by Echostar rivals and the already announced partnership with DirecTV will continue.

The statements regarding the sale and agreement almost seem to good, hopefully the statements made by both companies will follow through in the long term, Sling Media makes some great devices and it would be a shame to see them become dependent or limited to Dish Network customers.

Read [Engadget]

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Sirius has been busy with some new and updated products this past week, giving us the Stiletto 2 and now the Sportster 5. While the Sirius Sportster 5 is a worthwhile player and a nice update from the previous model, the main focus of the new line seems to be the color display and customizable backlighting. In addition to the features, the Sportster will offer docking capability, a built in FM transmitter, Replay that gives you the ability to pause, rewind or replay up to 60 minutes of audio, 30 presets an alarm clock with snooze, and will come with a complete vehicle kit to include a suction cup dock or vent mount, remote control, power adapter, antenna and FM extender antenna. The Sportster 5 will be available in the fall for $169.99.

Read [Gizmodo]

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Forget the choice of music shown in the promo image.  This is the player that is going to make you rethink not paying monthly for music and talk.  This player is hot.  Here is why:

• Enhanced WiFi - commercial WiFi capabilities allow you to listen indoors where perhaps there is no Sat. reception.
• 100 hours of programming recording memory.  Awesome!  Catch all of that alt. 80s weekend.
• Play/Pause Sirius radio like TiVo.
• MicroSD slot for more memory.
• Altec Lansing supplied headphones.  Name brands must be good, yes?  Custom antenna inside.
• $349 coming this fall.

Thinner and lighter than the original (25%) Stiletto 100, you can also set up future recordings on this player.  You can also tag songs for purchase through compatible sites.

Clearly, the Stiletto is a step in the right direction for satellite radio.

Read [Orbitcast]

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