NoDownTime@gmail.com
February 23rd, 2006, 08:30 AM
Another SIRI delivery date slips.
Satellite radio rivals look to add video to digital play lists
GRANT ROBERTSON
Satellite radio in Canada could soon become satellite video as well.
XM Canada, one of two new satellite radio companies, told analysts
yesterday that its U.S. affiliate is in the process of introducing
video-equipped receivers that may eventually drive a significant
portion of the industry's revenue.
"The technology is there," John Bitove Jr., chief executive officer of
Canadian Satellite Radio Inc. told a RBC Dominion Securities Inc.
investment conference in Whistler, B.C.
"I've seen prototypes of it, but it's not like its something that's
way, way off. It's something that's realistic and that we're all trying
to bring to fruition."
The industry faces two significant issues in trying to bring satellite
video to Canada. The federal licences granted to satellite radio
providers last fall only allow for radio at this point. Another
potential problem is bandwidth availability on satellite feeds.
Mr. Bitove said XM Canada is looking to expand its transmitting
capacity as it adds business such as video feeds. Eventually, audio
content may only represent half of the company's revenue, he said.
"If you think I'm going to be happy five years from now if we're just
in satellite radio with just a few product offerings, the answer is
no," Mr. Bitove said. "We're going to go after everything we can to
grow this business."
XM and rival Sirius Canada both launched service in late 2005.
Customers pay a monthly fee to subscribe to dozens of music and talk
channels provided by each service.
Sirius and XM are battling to bring the first satellite radio receiver
to Canada capable of storing digital music files, similar to Apple
Computer Inc.'s iPod. Each have said those gadgets could be arriving in
the next three months.
While video-equipped receivers are the next major frontier for the
industry, Sirius Canada CEO Mark Redmond said it's not a service that
is designed to compete with satellite television. Rather, the
technology is aimed at the "backseat viewers" such as children who want
to watch music videos in cars. "It's probably late 2006 at best," Mr.
Redmond said.
Satellite radio rivals look to add video to digital play lists
GRANT ROBERTSON
Satellite radio in Canada could soon become satellite video as well.
XM Canada, one of two new satellite radio companies, told analysts
yesterday that its U.S. affiliate is in the process of introducing
video-equipped receivers that may eventually drive a significant
portion of the industry's revenue.
"The technology is there," John Bitove Jr., chief executive officer of
Canadian Satellite Radio Inc. told a RBC Dominion Securities Inc.
investment conference in Whistler, B.C.
"I've seen prototypes of it, but it's not like its something that's
way, way off. It's something that's realistic and that we're all trying
to bring to fruition."
The industry faces two significant issues in trying to bring satellite
video to Canada. The federal licences granted to satellite radio
providers last fall only allow for radio at this point. Another
potential problem is bandwidth availability on satellite feeds.
Mr. Bitove said XM Canada is looking to expand its transmitting
capacity as it adds business such as video feeds. Eventually, audio
content may only represent half of the company's revenue, he said.
"If you think I'm going to be happy five years from now if we're just
in satellite radio with just a few product offerings, the answer is
no," Mr. Bitove said. "We're going to go after everything we can to
grow this business."
XM and rival Sirius Canada both launched service in late 2005.
Customers pay a monthly fee to subscribe to dozens of music and talk
channels provided by each service.
Sirius and XM are battling to bring the first satellite radio receiver
to Canada capable of storing digital music files, similar to Apple
Computer Inc.'s iPod. Each have said those gadgets could be arriving in
the next three months.
While video-equipped receivers are the next major frontier for the
industry, Sirius Canada CEO Mark Redmond said it's not a service that
is designed to compete with satellite television. Rather, the
technology is aimed at the "backseat viewers" such as children who want
to watch music videos in cars. "It's probably late 2006 at best," Mr.
Redmond said.