Nick
03-21-06, 07:08 AM
Two positives have surfaced for Sirius Satellite Radio.
With the first, the Wall Street Journal reported that the company
reached key deals with two music groups - Warner Music Group
and Vivendi Universal's Universal Music Group. The deals allow
music to be played on a still-under-development satellite radio
unit that allows users to store music like an iPod.
Tom Eagan of Oppenheimer and Co. said the deals could serve as
a template for future negotiations, including with two other major
music labels, which are EMI Group and Sony BMG. "Sirius' agree-
ment also dispels concern that negotiations with music labels
would be ongoing, possibly moving to arbitration," he said.
Said Bernstein Research's Craig Moffett, "The agreement is
very limited in scope - it applies to the S50 portable only - but it
is a breakthrough nonetheless, inasmuch as it assigns the
royalty to the device rather than the service."
Moffett added that the deal is a bonus for both Sirius and XM,
and could signal a breakthrough for upcoming negotiations with
the Recording Industry Association of America concerning music
storage devices.
In the other development, Sirius said it passed the 4 million
subscriber milestone. The company ended 2005 with 3.316
million customers, and has said it expects to end 2006 with
more than 6 million customers.
www.SkyReport.com - used with permission
With the first, the Wall Street Journal reported that the company
reached key deals with two music groups - Warner Music Group
and Vivendi Universal's Universal Music Group. The deals allow
music to be played on a still-under-development satellite radio
unit that allows users to store music like an iPod.
Tom Eagan of Oppenheimer and Co. said the deals could serve as
a template for future negotiations, including with two other major
music labels, which are EMI Group and Sony BMG. "Sirius' agree-
ment also dispels concern that negotiations with music labels
would be ongoing, possibly moving to arbitration," he said.
Said Bernstein Research's Craig Moffett, "The agreement is
very limited in scope - it applies to the S50 portable only - but it
is a breakthrough nonetheless, inasmuch as it assigns the
royalty to the device rather than the service."
Moffett added that the deal is a bonus for both Sirius and XM,
and could signal a breakthrough for upcoming negotiations with
the Recording Industry Association of America concerning music
storage devices.
In the other development, Sirius said it passed the 4 million
subscriber milestone. The company ended 2005 with 3.316
million customers, and has said it expects to end 2006 with
more than 6 million customers.
www.SkyReport.com - used with permission