HDTV Emerges in Europe
At SES Astra, European consumers are making it known that more HDTV services are welcome. According to Luxembourg-based SES Astra spokesman Markus Payer, several more German commercial channels, Prosieben, Sat1 and the HDTV bouquet of the German Pay-TV operator Premiere, will soon join HD1 by Euro1080, which in 2004 became the first HDTV channel in Europe via Astra.
"In 2006, the U.K. operator BSKyB will launch its HDTV channels via Astra as well. Furthermore, we are conducting tests and demos at points of sale and for the industry in order to explain and promote the possibilities that HDTV offers," says Payer. "SES Astra has been instrumental in developing the HD-ready logo and standard that the industry is using today for promoting HD-compatible displays and projectors. All our customers will use the DVB-S2 and MPEG-4 AVC technology. As a satellite operator, we are in a position to upgrade technology standards, like DVB-S2 and MPEG-4 AVC, and to develop the path towards HDTV transmissions," he adds.
Satellite Radio Adding Momentum By Adding Services
Satellite radio service providers are maintaining their high-performance edge. According to XM Satellite Radio spokesman David Butler, XM's offering of 153 channels of digital radio is on track to have more than 6 million subscribers by the end of 2005. Beyond digital radio, XM services now include XM Navtraffic for real-time traffic information for vehicle navigation systems. Launched in fall 2004 and currently available in 23 metro areas, Navtraffic offers a real-time update of travel speeds, accident and traffic jam locations -- integrated in graphic form on the navigation system. XM WX Satellite Weather provides information for marine, aviation and emergency responder use. While XM has demonstrated its video capability at trade shows, there is no announced timetable for providing this service.
XM expects its acquisition of WCS Wireless before the end of 2005. The additional wireless spectrum licenses that XM will gain as part of the deal will provide XM an opportunity to offer a variety of multimedia subscription services, possibly including video and/or data offerings transmitted over these new frequencies, according to Butler.
"Looking ahead, Samsung will introduce MP3 players with XM capability later this year. The best-selling satellite radios in the marketplace continue to be plug-and-play models for the car and home, such as the Delphi XM Roady2 radio," says Butler. "Experience has taught us that when people get to sample XM, they want to become full-time subscribers. In addition, XM continues to have a remarkably low churn rate of about 1.3 percent."
XM's partner, Canadian Satellite Radio Inc., won approval from the Canadian Radio-television and Telecommunications Commission in June to provide the XM service in Canada, In addition to XM programming, XM Canada's 80-channel line-up will include four English-language and four French-language channels produced in Canada, and the company is excited by the prospect of being able to offer National Hockey League games, an exclusive for XM starting in the 2007 NHL season. XM Canada is registering subscribers at its Web site and receivers will be available in time for the 2005 Christmas season.
Sirius Satellite Radio, XM's main rival, also received approval to launch service in Canada and expects to kick off broadcasts in the country before the end of 2005, says Sirius spokesman Jim Collins. Sirius also plans to launch a special data service for the boating community before the end of the year. This will be data, not audio, and will include marine-related information, such as water temperature, wave height etc., on a unit that will have a small screen for viewing. A subscriber to the service will also be able to receive Sirius programming through the unit. "The current timetable for deployment of video services remains in 2006, starting in the retail aftermarket with [original equipment manufacturing] to follow later," says Collins.
"There is no question that we have enjoyed tremendous popularity this past year and that the industry numbers are rapidly growing. Churn continues to remain low, averaging around 1.5 percent, which is very low for any industry that is just beginning like ours," says Collins. But Sirius and XM continue to push innovations and partnerships to keep their respective subscriber bases growing.
In October, Sirius introduced a unit called the S50 that has the capability to store up to 50 hours of programming, either Sirius broadcast or MP3/WMA files or a combination of both for replay later.
Both XM and Sirius also have ties to the U.S. satellite TV providers. DirecTV subscribers can receive 72 XM channels, featuring both music and talk. Sirius offers 65 channels to Dish Network premium package subscribers. "In terms of both brand awareness and perhaps even reduced licensing fees for audio channels, a [satellite TV/satellite radio] connection is a win-win," says Leichtman.
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