Sirius Files Annual Report - Several Good Tidbits
Earlier this afternoon, Sirius Satellite Radio filed its annual report with the SEC. Here are some interesting tidbits that we pulled from it:
-When talking about SIR: “We plan to add additional content to our internet offerings in the future.” It looks like we could see either some exclusive content to the internet, or more satellite stations move over to the internet, such as how CNN was added to SIR earlier this year.
-”We also maintain earth stations in Panama and Ecuador to control and communicate with our satellites.” One of those random pieces of trivia.
-’We cannot predict with certainty when Sirius Backseat TV will be introduced.’ Sirius unveiled the first hardware for Sirius Backseat TV in January at CES, but it looks like the rollout may be delayed, again.
-On royalty rates: “In October 2006, we and XM Radio filed our direct case in this proceeding with the Copyright Royalty Board and proposed a royalty rate for our satellite radio subscription revenue. SoundExchange also submitted its direct case in this proceeding and proposed a substantially higher royalty rate than we proposed.”. The agreement expired at the end of 2006, although Sirius will continue to pay the current agreed amount to SoundExchange until the new contract is signed. It looks like SoundExchange and Sirius are still deadlocked in the current price though.
-If Mel is fired, he gets paid for the remainder of the contract and his stock options become available immediately
-If Scott Greenstein is fired, he receives his salary($800k/year) in a lump sum, plus 60% of the expected bonuses he would have received. Other execs are mentioned, and looking at the salaries and strings attached, it must be good to be a top level exec.
-Sirius spent almost $7.2 million in office rent in 2006
-One of the biggest items: programming costs increased almost five-fold, to $551 million in 2006, from $118 million in 2005, accounting for the biggest reason Sirius had such a large loss. Most of it was due to Stern’s large payout of stock.