Info on XM coming to Canada
08-31-2003, 12:33 PM
#1
Yankee
Thread Starter
Join Date: Nov 2001
Posts: 385
I just saw this on a Sirius forum so I thought I would post it here for you guys north of the border.
XM Canadian move could boost market size
Friday August 29, 3:06 pm ET
(Updates share price, paragraph 6)
NEW YORK, Aug 29 (Reuters) - XM Satellite Radio Holdings Inc.'s (NasdaqNM:XMSR - News) move to expand to Canada could boost the number of people who subscribe to its service, but it could also be a burden for the debt-laden company, analysts said.
The No. 1 U.S. satellite radio company said in a filing last week it applied for a license to sell its services north of the border through a Canadian venture, which a spokesman said could boost the company's potential market by 10 percent.
And XM said in the filing that it does not expect to make a cash investment in the venture. XM's satellite network already reaches as far as Canada, XM spokesman Chance Patterson said.
While analysts welcomed moves to increase XM's potential market, they wanted more financial details on the venture. One was concerned Canada's regulatory demands could be too onerous and another asked how exchange rates would effect pricing.
"It's a business about scale, so clearly getting more scale is advantageous," Rodman & Renshaw analyst Dan Ernst said. "But I'm not convinced there wouldn't be some additional capital requirements to yield such scale."
Ernst, who set an 18 month $6 stock price target for XM, is already concerned about XM's debt and costs. The stock was down 3 cents at $13.67 on the Nasdaq on on Thursday afternoon.
XM has $731.5 million long-term debt.
Debt analyst Phelps Hoyt of KDP Investment said some ground equipment would likely be needed in Canadian cities, but the venture should not require a huge investment.
"I'm waiting for the details to tell me what it means for the balance sheet," Hoyt said. "As long as they keep the total cost under control and they fund it with at least some mix of equity,"
REGULATORY APPLICATION
XM would pair up with Canadian Satellite Radio Inc., led by entrepreneur John Bitove, a controller of businesses as diverse as sports, entertainment and fast food. Canadia Satellite Radio applied for a satellite radio license to regulator Canadian Radio-Television and Telecommunications Commission this month.
XM will provide programming and infrastructure while Canadian Satellite Radio works on regulatory approval, XM said.
Stewart Lyons, a director of Canadian Satellite Radio said it was too early to reveal the ownership or financial structure of its deal with XM because the licensing process would take until the beginning of next year at least.
But Lyons noted media holding companies in Canada can only have 33 percent foreign ownership and the foreign ownership limit for holders of licenses such as radio is 20 percent.
Thirty-five percent of content provided by radio stations in the country must be of Canadian origin, but Lyons says his company should not have the same restrictions as it would be the first satellite radio license holder in Canada.
"We don't expect to have anywhere near these requirements," Lyons said. "We think we'll be looked at completely differently."
Janco Partners analyst April Horace said the project made sense, but a lot depended on the regulatory outcome.
"The Canadian government, I believe may want to protect some of its own radio stations," said Horace, who added that, if XM was asked to create a high percentage of new content, the extra subscribers might not be worth the cost.
XM's Patterson said the company was already talking to radio broadcasters, including the Canadian Broadcasting Corp. and its French language service, Societe Radio-Canada, for potential content deals.
John LaForge, a portfolio manager for Phoenix Hollister investment fund, which owns shares in XM's direct U.S. rival Sirius Satellite Radio Inc. (NasdaqNM:SIRI - News) welcomed any moves that would extend the reach and awareness of satellite radio.
But LaForge, who regards XM's $9.99 a month U.S. subscription price as perfect, is concerned about how the company would price the service in Canada. ($1 = $1.39 Canadian)
BTW: Sirius already carries the nightly CBC Newsmagazine ''As it Happens'' on PRI, as well as Radio Canada International on WRN.
XM Canadian move could boost market size
Friday August 29, 3:06 pm ET
(Updates share price, paragraph 6)
NEW YORK, Aug 29 (Reuters) - XM Satellite Radio Holdings Inc.'s (NasdaqNM:XMSR - News) move to expand to Canada could boost the number of people who subscribe to its service, but it could also be a burden for the debt-laden company, analysts said.
The No. 1 U.S. satellite radio company said in a filing last week it applied for a license to sell its services north of the border through a Canadian venture, which a spokesman said could boost the company's potential market by 10 percent.
And XM said in the filing that it does not expect to make a cash investment in the venture. XM's satellite network already reaches as far as Canada, XM spokesman Chance Patterson said.
While analysts welcomed moves to increase XM's potential market, they wanted more financial details on the venture. One was concerned Canada's regulatory demands could be too onerous and another asked how exchange rates would effect pricing.
"It's a business about scale, so clearly getting more scale is advantageous," Rodman & Renshaw analyst Dan Ernst said. "But I'm not convinced there wouldn't be some additional capital requirements to yield such scale."
Ernst, who set an 18 month $6 stock price target for XM, is already concerned about XM's debt and costs. The stock was down 3 cents at $13.67 on the Nasdaq on on Thursday afternoon.
XM has $731.5 million long-term debt.
Debt analyst Phelps Hoyt of KDP Investment said some ground equipment would likely be needed in Canadian cities, but the venture should not require a huge investment.
"I'm waiting for the details to tell me what it means for the balance sheet," Hoyt said. "As long as they keep the total cost under control and they fund it with at least some mix of equity,"
REGULATORY APPLICATION
XM would pair up with Canadian Satellite Radio Inc., led by entrepreneur John Bitove, a controller of businesses as diverse as sports, entertainment and fast food. Canadia Satellite Radio applied for a satellite radio license to regulator Canadian Radio-Television and Telecommunications Commission this month.
XM will provide programming and infrastructure while Canadian Satellite Radio works on regulatory approval, XM said.
Stewart Lyons, a director of Canadian Satellite Radio said it was too early to reveal the ownership or financial structure of its deal with XM because the licensing process would take until the beginning of next year at least.
But Lyons noted media holding companies in Canada can only have 33 percent foreign ownership and the foreign ownership limit for holders of licenses such as radio is 20 percent.
Thirty-five percent of content provided by radio stations in the country must be of Canadian origin, but Lyons says his company should not have the same restrictions as it would be the first satellite radio license holder in Canada.
"We don't expect to have anywhere near these requirements," Lyons said. "We think we'll be looked at completely differently."
Janco Partners analyst April Horace said the project made sense, but a lot depended on the regulatory outcome.
"The Canadian government, I believe may want to protect some of its own radio stations," said Horace, who added that, if XM was asked to create a high percentage of new content, the extra subscribers might not be worth the cost.
XM's Patterson said the company was already talking to radio broadcasters, including the Canadian Broadcasting Corp. and its French language service, Societe Radio-Canada, for potential content deals.
John LaForge, a portfolio manager for Phoenix Hollister investment fund, which owns shares in XM's direct U.S. rival Sirius Satellite Radio Inc. (NasdaqNM:SIRI - News) welcomed any moves that would extend the reach and awareness of satellite radio.
But LaForge, who regards XM's $9.99 a month U.S. subscription price as perfect, is concerned about how the company would price the service in Canada. ($1 = $1.39 Canadian)
BTW: Sirius already carries the nightly CBC Newsmagazine ''As it Happens'' on PRI, as well as Radio Canada International on WRN.
09-02-2003, 09:47 AM
#4
50 Watt CAFz'r
Join Date: May 2003
Posts: 204
I just bought a Sirus Ready Panasonic 883U Deck. I would love to see Sat. Radio getting Broadcasted in Canada.
Quite frankly I think as it was said before that the content laws are going to be the biggest hurdle. Just point the Sat. Into Canada, and let the Government try and erect sheilding to stop us.
Quite frankly I think as it was said before that the content laws are going to be the biggest hurdle. Just point the Sat. Into Canada, and let the Government try and erect sheilding to stop us.
09-02-2003, 01:48 PM
#5
500 Watt CAFz'r
Join Date: Jul 2003
Posts: 756
Many people are already getting XM in canada, I think all you need is a US address, and many shops there are willing to use their own address, and send you an invoice each month (probably for a small fee). Industry Canada is strict about radio frequencies, but I dont see any long lasting objections to XM in the near future.
DAB sounds great, I've had the pleasure of hearing it in the past, and I think digital broadcast radio is a bit more practical than satalite broadcasting. It'll be interesting to see what happens.
DAB sounds great, I've had the pleasure of hearing it in the past, and I think digital broadcast radio is a bit more practical than satalite broadcasting. It'll be interesting to see what happens.
09-02-2003, 05:39 PM
#6
Yankee
Thread Starter
Join Date: Nov 2001
Posts: 385
Originally posted by Fuzz:
I just bought a Sirus Ready Panasonic 883U Deck. I would love to see Sat. Radio getting Broadcasted in Canada.
Quite frankly I think as it was said before that the content laws are going to be the biggest hurdle. Just point the Sat. Into Canada, and let the Government try and erect sheilding to stop us.
I just bought a Sirus Ready Panasonic 883U Deck. I would love to see Sat. Radio getting Broadcasted in Canada.
Quite frankly I think as it was said before that the content laws are going to be the biggest hurdle. Just point the Sat. Into Canada, and let the Government try and erect sheilding to stop us.
Please don't take this post as a slam on canadian music. There has been a ton of great music to come out of Canada:
Sarah McLachlan
Jann Arden
Triumph
Rush
April Wine
just for starters
[ September 02, 2003, 06:41 PM: Message edited by: PerryB ]
09-02-2003, 07:26 PM
#7
50 Watt CAFz'r
Join Date: May 2003
Posts: 204
I forget what the actual thing is, but I think it is 1 in every 4 songs must be by a Canadian Artist/Band. I may even be 1 in 3.
Because of this, there is a lot of repetition on the air. The biggest one this year has been Swollen Members, Nelly Furtado, and Avril. They seem to play the same song over and over and over again. Some stations in Toronto at least, seem to go over the same 30 songs time and time again.
For instance, before a "top 10 countdown", they will probably play the songs ON the countdown 1/2 hour before!
Because of this, there is a lot of repetition on the air. The biggest one this year has been Swollen Members, Nelly Furtado, and Avril. They seem to play the same song over and over and over again. Some stations in Toronto at least, seem to go over the same 30 songs time and time again.
For instance, before a "top 10 countdown", they will probably play the songs ON the countdown 1/2 hour before!
09-03-2003, 12:50 PM
#8
Yankee
Thread Starter
Join Date: Nov 2001
Posts: 385
Originally posted by Fuzz:
I forget what the actual thing is, but I think it is 1 in every 4 songs must be by a Canadian Artist/Band. I may even be 1 in 3.
Because of this, there is a lot of repetition on the air. The biggest one this year has been Swollen Members, Nelly Furtado, and Avril. They seem to play the same song over and over and over again. Some stations in Toronto at least, seem to go over the same 30 songs time and time again.
For instance, before a "top 10 countdown", they will probably play the songs ON the countdown 1/2 hour before!
I forget what the actual thing is, but I think it is 1 in every 4 songs must be by a Canadian Artist/Band. I may even be 1 in 3.
Because of this, there is a lot of repetition on the air. The biggest one this year has been Swollen Members, Nelly Furtado, and Avril. They seem to play the same song over and over and over again. Some stations in Toronto at least, seem to go over the same 30 songs time and time again.
For instance, before a "top 10 countdown", they will probably play the songs ON the countdown 1/2 hour before!
09-03-2003, 02:29 PM
#9
^Well, to you Americans just. [img]tongue.gif[/img]
Maybe Canadian music sucks to Yanks? Then stop listening to Nelly Furtado, The Tea Party, Our Lady Peace, Barenaked Ladies, Treble Charger, Outkast, I Mother Earth (old and new), Gob, Alanis Morissette, just to name a few.
You might as well isolate yourselves from us all now. We're so bad. 
Maybe Canadian music sucks to Yanks? Then stop listening to Nelly Furtado, The Tea Party, Our Lady Peace, Barenaked Ladies, Treble Charger, Outkast, I Mother Earth (old and new), Gob, Alanis Morissette, just to name a few.
You might as well isolate yourselves from us all now. We're so bad.
09-03-2003, 02:36 PM
#10
50 Watt CAFz'r
Join Date: May 2003
Posts: 204
On Behalf of Radio Listeners everywhere in Canada:
Duh!
The laws are even shaped so that they can't play the crappy Canadian content late at night and save the normal stuff for during the day. They have laws for everything now.
They are starting to be good with Television letting more and more American networks being broadcasted, they actually are going to be opening up the market to Showcase and HBO to try and do battle with people who have "illegal" US network dish.
Personally, just like radio, cells, Sats. or anything else that broadcasts "over the air", it should be free for anyone who can get it (just pay for the equipment).
I just got into a fight with a neighbour of mine because I was using his wireless router when I was down the street from my place. I simply told him that if he wanted to put his internet access over the air where it is publically accessable, then its his own damn fault.
Then he tried to pay me to fix it for him, but I did it for free, and kept the access information so I am still using it when I am at the park :-P
Duh!
The laws are even shaped so that they can't play the crappy Canadian content late at night and save the normal stuff for during the day. They have laws for everything now.
They are starting to be good with Television letting more and more American networks being broadcasted, they actually are going to be opening up the market to Showcase and HBO to try and do battle with people who have "illegal" US network dish.
Personally, just like radio, cells, Sats. or anything else that broadcasts "over the air", it should be free for anyone who can get it (just pay for the equipment).
I just got into a fight with a neighbour of mine because I was using his wireless router when I was down the street from my place. I simply told him that if he wanted to put his internet access over the air where it is publically accessable, then its his own damn fault.
Then he tried to pay me to fix it for him, but I did it for free, and kept the access information so I am still using it when I am at the park :-P
