News

A new era in radio will begin on November 30, when a rocket lifts off from the Baikonur">http://www.space.com/businesstechnology/baikonur_cosmodrome_000710.html… Cosmodrome in Kazakhstan carrying a commercial digital radio transponder to a geosynchronous orbit over North America. The satellite, which belongs to Sirius">http://www.siriusradio.com/detect_flash/index_flash.htm">Sirius Satellite Radio, will eventually beam as many as 100 stations providing "CD-quality" sound to listeners throughout the continent.

Combine the challenge of establishing a start-up with the launch of an entirely new consumer electronics market and you've got the recipe for a highly volatile and explosive brew. But news of a successful $1.2 billion re-capitalization announced last week indicates that three-year old digital radio pioneer Siriushttp://www.sirius.com">Sirius; will likely remain intact—at least for now.

Sirius">http://www.siriusradio.com">Sirius Satellite Radio has achieved three milestones in its campaign to reach profitability.

The numbers are up for Sirius">http://www.siriusradio.com">Sirius Satellite Radio. On June 23, the New York–based digital broadcaster announced that it had exceeded 100,000 subscribers for its 100-channel music/news/entertainment service. Sirius offers 60 channels of commercial-free music and 40 channels of news, sports, talk shows, comedy, and other programming.

Sirius">http://www.sirius.com">Sirius Satellite Radio is now available nationally.

On September 26, Sirius Satellite Radio announced the availability of the $350 Stiletto 100, "the company's first live portable radio, featuring WIFI, Yahoo music purchasing software, and the ability to save music subscribers love for playback later."

In August, the future looked cloudy for Sirius">http://www.sirius.com">Sirius Satellite Radio, Inc. Despite the eventual commercial promise of satellite radio, the startup suffered from massive debt accrued during its development and from a slow initial subscription rate. Company officials had discussed a possible">http://www.stereophile.com/news/11421/">possible bankruptcy filing if additional financing couldn't be found.

Digital satellite radio is one of the most promising entertainment developments since the invention of the DVD. It's also a high-risk venture for investors.

Sirius Satellite Radio is concerned about The Bottom Line. Not the company's profitability, but the venerable Greenwich Village music cabaret, which has suffered since the terrorist attacks on the World Trade Center on September 11, 2001.

Industry observers have long debated the ultimate fate of satellite broadcaster Sirius Radio. Front-runner XM Radio, with more than two million subscribers, is already above the break-even point, but for many months Sirius struggled against technical problems and overwhelming debt. Would the fledgling survive, get devoured by its larger competitor, or worse, get picked up in a fire sale by Rupert Murdoch's News Corp.?