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News From Audio Graphics:
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The New Problem at Sirius Satellite Radio |
We've all seen the headlines about Sirius receivers being in violation of FCC requirements, and how motorists are hearing a bleeding of Sirius Satellite Radio programming on 87.7 MHz and 87.9 MGz frequencies. It's an unforseen problem that has the potential for a major disruption at the satellite company.
The reports have concentrated on how Howard Stern is being picked up by persons who don't subscribe to Sirius. The point in question is how Sirius after-market receivers were set to broadcast on those frequencies in the first place.
Linked below is a letter sent to Jim Collins, in the corporate communications department at Sirius.
Its author is Robert Gonsett, E.E., editor of "The CGC Communicator, which "provides consultant radio engineering services for a number of radio and television stations on the west coast." It explains that a visit to "Circuit City in Escondido, CA" led to uncovering how 80% of the Sirius receivers (on display) were capable of transmitting on 87.7 MHz or 87.9 MGz. (None of the XM Satellite Radio receivers on display were set to transmit on those frequencies.)
The big question in this is what happens if Sirius is instructed to conduct a recall of receivers?
While the above is in a formal complaint filed with the FCC, mysteriously, it is not mentioned in news of first quarter revenues released this morning. A few points that are present include:
"First quarter 2006 revenue grew to $126.7 million, up 193% from
$43.2 million [y-2-y]."
"Advertising revenue increased to a record $7.3 million."
"Average monthly churn was 1.8%."
"Subscriber acquisition costs (SAC) per gross addition were $113
for the first quarter, a 41% improvement over the year-ago quarter."
But, this is also noted: subscriber acquisition costs were $42.1 million,
a 63% increase "to support a 171% increase in gross subscriber additions
from 354,708 for the first quarter of 2005 to 960,610 for the first
quarter of 2006."
"Programming and content expenses increased by $32.1 million to
$56.4 million," resulting from Howard Stern's and Marth Stewart's
salaries being calculated for the first time (among other items).
But, here is the number everyone is interested in: SIRIUS reported
"a net loss of ($458.5) million, or ($0.33) per share, for the first
quarter of 2006." That's compared to "a net loss of ($193.6)
million, or ($0.15) per share, in the year-ago quarter...."
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Related:
Letter to Sirius
Comments may be published.
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