Reuters
Sirius Radio CEO talks car video and shock jocks
Tuesday May 25, 2:30 pm ET
NEW YORK, May 25 (Reuters) - Sirius Satellite Radio (NasdaqNM:SIRI - News) CEO Joseph Clayton told stockholders on Tuesday the company's plans include a video service, wearable radios, and the signing of a top shock jock such as Howard Stern.
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"Do we want Opie & Anthony? Do we want Mancow? Do we want Howard Stern?" Clayton said, referring to some of the most popular, though controversial, morning radio personalities. "We're talking to all of them."
Shock Jocks like Howard Stern have begun to talk about satellite radio as a potential outlet, given a regulatory push against broadcasts that are deemed indecent. None of the top names have yet moved over to satellite.
Clayton faced a much different audience in the annual meeting of shareholders on Tuesday than last fall when Sirius' stock price was trading well below $3 and shareholders were angry and vocal.
This time Clayton mostly basked in praise from the group, but cautioned that the company may never catch market leader XM Satellite Radio (NasdaqNM:XMSR - News) in subscriptions, but could, like EchoStar's Dish Network in satellite TV, become a profitable number two.
He reiterated the company's forecast for the year, saying Sirius would reach 1 million subscriptions and $75 million in revenue by year-end. He said his top executives would receivestock awards based on meeting those and other projections.
Clayton said the company's next generation of radios, which he calls generation 2.5, would reach stores in August accompanied by a marketing push heading into the holiday season.
The company's third generation of devices, due to market in the fall of 2005, will include much smaller, wearable radios, due to miniaturization achieved by chip supplier STMicroelectronics (Paris:STM.PA - News).
Clayton said the company would introduce at least four but possibly as many as eight video channels targeted at children riding in the back seats of cars.
One million cars were sold with video equipment in the back seats in 2003 and 4 million are expected to be sold in 2004, he said.
"We are being pressed hard by our car partners to move into video," Clayton told Reuters.
Clayton expects the company to win approval to sell Sirius service in Canada in the first quarter of 2005 and is in talks with a Latin American partner to sell the service in Mexico.
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