Satellite Radio News (12.18.03)

The following is a summary of today's satellite radio headlines:

Alpine Debuts Aftermarket Radio With Integrated XM Receiver (Radio & Records, 12.18.03) News blurb notes that while previous XM-ready aftermarket receivers required users to install a separate XM receiver, the new Alpine CDA-9820XM integrates all satellite-radio functions into one AM/FM/CD head unit. An XM antenna must be purchased separately, but XM VP/Corporate Communications Chance Patterson tells R&R that XM's new micro antenna is compatible with the Alpine unit. The CDA-9820XM will hit shelves in January at a retail price of about $349. (Read more)

S&P comments on Sirius Satellite Radio (Reuters, 12.17.03) News blurb notes that Standard & Poor's Ratings Services said today that Sirius Satellite Radio Inc.'s seven-year, non-exclusive broadcasting and marketing agreement with the National Football League does not affect the company's rating or outlook. The agreement adds to Sirius' extensive sports programming, which is a modest content differentiator from XM Satellite Radio Inc., its only direct competitor. Still, it is highly uncertain that Sirius will be able to earn a satisfactory return on this sizable investment or that the deal will meaningfully help it attract subscribers, despite some advertising and promotional incentives with the NFL and local teams. The $220 million deal includes $188 million in cash. However, initial cash payments are limited to $95 million, including $85 million that will be placed in escrow, and no further cash payments will be required until Aug. 15, 2009. Nonetheless, this will erode some of Sirius' near-term liquidity, consisting of $479 million in liquid assets at Sept. 30, 2003, plus $150 million in net proceeds from a common stock offering in November. Sirius consumed $80 million in cash in the third quarter and is unlikely to achieve positive discretionary cash flow for the foreseeable future. Failure to maintain sizable liquid asset balances and to show continued operational progress could lead to a revision of the outlook or rating. (Read more)

Alpine Electronics Unveils Industry's First Automotive CD Receiver With Fully Integrated XM Satellite Radio (XM Satellite Radio, 12.17.03) Press release notes that XM Satellite Radio and Alpine Electronics of America, Inc. today announced the industry's first in-dash CD receiver with an integrated XM tuner. With its smart, all-in-one design, Alpine's new CDA-9820XM receiver eliminates the need for a separate XM tuner box for easier installation and delivers best-in-class sound performance. Alpine's CES 2004 Innovations Award-winning CDA-9820XM features an integrated XM tuner module. Previous configurations required a user to purchase an XM Ready head unit, separate XM tuner module and satellite radio antenna to enjoy XM's service in the car. Now, a consumer can just make an easy purchase of the CDA-9820XM and the new XM Micro antenna (sold separately). (Read more)

Sirius Satellite Radio Signs NFL Deal (RadioInk, 12.17.03) News blurb notes that Sirius Satellite Radio has signed a $220 million deal with the National Football League to broadcast professional football games beginning in 2004. Over the course of the seven-year deal, the NFL will receive $188 million in cash and $32 million in Sirius stock, with the ability to earn warrants to buy an additional 50 million shares. Sirius gets national broadcast rights to all regular season NFL games, as well as select preseason and playoff contests. It also becomes the official satellite radio provider of the NFL. (Read more)

A Sirius "Hail Mary" (Fool.com, 12.16.03) Investing article notes that Sirius Satellite Radio became the "Official Satellite Radio Partner of the National Football League." But at what price? Sirius will pay the NFL $188 million in cash over seven years, plus $32 million in stock. In addition, the NFL will have the ability to earn warrants to purchase another 50 million shares. In an interview this morning with Fool Jeff Fischer, an XM Satellite Radio executive called the move "desperate looking." We agree. (Read more)