SIRIUS in GM Cars....

Sunday, November 06, 2005

update 2/2/06 the after market GM unit should be out soon.. This SIRIUS Connect box will make a GM XM ready radio work with SIRIUS
FYI: You can now get aftermarket units like the GM SIRIUS Connectto make GM radios that are wired for XM get Sirius. Could GM offer this as a dealer install?

PLEASE NOTE:
We have gotten lots of hits regarding this post, and questions. I guess we should have made it more clear that this is a rumor! We posted this info because that is what we do, post chatter and info about Sirius. We got word of this rumor and did some searching on the topic, that is what we have posted here. Thanks

We at GSI have been keeping an eye on this for some time, and over the past days and hours we have been able to track down some information that GM and XM might end their exclusive relationship. Sirius would not officially comment nor would GM, or XM. So what you read here should be treated as a rumor for now, but with the information we have, we think that there is a likelihood that this could happen.

First....There has been no press release from General Motors indicating they will continue to offer XM exclusively...

Second....Mel stated that he would be going to Detroit (GM's home base, they have the other Detroit boys on
board) last week at the conference call and said new OEM details would be announced "soon".. listen to clip

-This trip could also be with Ford, Sirius and Ford do have some room to build on their current deal..

Third...XM's SEC filings state:

"The agreement is subject to renegotiation at any time based upon the installation of radios that are compatible with common receiver platform or capable of receiving Sirius Satellite Radio's service. The agreement is subject to renegotiation if as of November 2005, ... ...There can be no assurances as to the outcome of any such renegotiations. GM's exclusivity obligations will discontinue if, by November 2005 and at two-year intervals thereafter, the Company (XM) fails to achieve and maintain specified minimum market share levels in the satellite digital radio service market..."

Now along with these facts, we still can not get any official word about this. So please note we are reporting this as just that, nothing official but some very strong facts to support that Sirius and GM may have some deal to announce soon. Form what we can gather GM may soon offer both Sirius and XM..

FYI: You can now get aftermarket units like the GM SiriusConnect to make GM radios that are wired for XM get Sirius. Could GM offer this as a dealer install?

]

30 Comments:

Anonymous Anonymous said...

Very cool if this is true!!!!!

Sun Nov 06, 07:23:00 PM EST  
Anonymous Anonymous said...

Is GM the only OEM located in Detroit?

Sun Nov 06, 07:31:00 PM EST  
Anonymous Anonymous said...

No, but Sirius has deals with all other Detroit makers.

Sun Nov 06, 07:38:00 PM EST  
Anonymous Tony said...

I think the 2nd point is the most powerful.

Sun Nov 06, 07:42:00 PM EST  
Anonymous Anonymous said...

Is it true that Mel will be on CNBC Monday?!?!? Could this be were he tells us about it..

Sun Nov 06, 08:16:00 PM EST  
Anonymous Anonymous said...

THIS IS ALL BS

Sun Nov 06, 08:30:00 PM EST  
Anonymous Anonymous said...

This is hype bullshit. If you are so confident of this into, reveal your sources. You have none. It is pure fantasy in an attemt to drive Siri stock up. Give it up.

Sun Nov 06, 08:54:00 PM EST  
Anonymous Anonymous said...

I would not call it BS, they did say "should be treated as a rumor for now" I think that is fair. Also i'm sure the source is someone in the know who has leaked this. We have to see what happens.

Sun Nov 06, 09:05:00 PM EST  
Anonymous Anonymous said...

This could be good for XM they would save beaucoup money on their relationship with GM. They are getting many deactivations 44% of installs. Which will only grow worse the more GM models added and they are adding more. It is a plus for Siri and GM both getting something they didn't have before.

Sun Nov 06, 09:06:00 PM EST  
Anonymous Anonymous said...

It is far worse than a rumor. It is concocted from thin air.

Consider the reasons presented:

1) No press release from GM? No, there has not been. Is it customary for parties to contracts to make press releases in the middle of contracts that say they are going to keep abiding by its terms?

2) Mel is going to Detroit? That's it? Maybe he is on vacation. Maybe he is going to someone at Ford or Chrysler. Maybe he's going to the zoo.

3) Why did you leave that chunk out of the middle of the SEC filing?

This is a blatant attempt to influence the price of Sirius stock. Shameful.

Sun Nov 06, 09:12:00 PM EST  
Anonymous tyler said...

Oh please, this blog has no effect on Sirius stock. I'm willing to bet the 3 anonymous people who posted that are the same, we may not be able to tell, but Damian sure can.

Sun Nov 06, 09:22:00 PM EST  
Anonymous Seniorchristo said...

If you said Ford was negotiating with XM it would be more believable.

Sun Nov 06, 09:32:00 PM EST  
Blogger Damian said...

Yes I can tell were the post come from, but that is not important.

1. No PR, is just that.. Nothing, It is a fact that is why we posted it.

2. Mel going to Detroit, he said this on a conference call with millions listening, then he said in the same sentence, There will be a Big OEM deal forthcoming. Mel has deals done with Ford and Chrysler. Mel likes to vacation in Europe.

3. I left a chunk out b/c it was not important to the story, and I did not want to type it, but I made it clear that a part was missing, not to hide anything. If you want to read the pages of legal jargon, please…

Yes CNBC is going off the Air because GSI is now going to be the source of all financial news. If shareholders trade based on info and rumors on the internet.. God help us..

Sun Nov 06, 09:34:00 PM EST  
Anonymous Anonymous said...

All I have to say is that Sirius' stock has a lot better chance of doubling in the next 2 months than XM's. And I'm not biased. I have owned both stocks. My wife has XM and I have Sirus.

Sun Nov 06, 09:38:00 PM EST  
Blogger Dominick said...

This is a link to the SEC's website and xm's 10Q filing....

http://www.sec.gov/Archives/edgar/data/1091530/000119312505159200/d10q.htm

The middle part of the text was left out because of its lack of relvance to the argument...The text in its entirety reads:

In order to encourage the broad installation of XM radios in GM vehicles, the Company has agreed to subsidize a portion of the cost of XM radios, and to make incentive payments to GM when the owners of GM vehicles with installed XM radios become subscribers to the Company’s service. The Company must also share with GM a percentage of the subscription revenue attributable to GM vehicles with installed XM radios, which percentage increases until there are more than eight million GM vehicles with installed XM radios (at which point the percentage remains constant). During the second quarter of 2004, a clarification was agreed to by XM and OnStar relating to the implementation of certain aspects of revenue sharing contained within the distribution agreement. Accordingly, the revenue share expense is recognized as the related subscription revenue is earned. As of June 30, 2005, the Company has $22.1 million of current prepaid expense to related party and $8.8 million of non-current prepaid expense to related party in connection with this revenue sharing arrangement. As part of the agreement, OnStar provides certain call-center related services directly to XM subscribers who are also OnStar customers and the Company must reimburse OnStar for these XM-related call center services. The agreement is subject to renegotiation at any time based upon the installation of radios that are compatible with a common receiver platform or capable of receiving Sirius Satellite Radio’s service. The agreement is subject to renegotiation if as of November 2005, and at two-year intervals thereafter, GM does not achieve and maintain specified installation levels of GM vehicles capable of receiving the Company’s service. The specified installation level of 1,240,000 units by November 2005 was achieved in 2004. The specified installation levels in future years will increase by the lesser of 600,000 units per year or amounts proportionate to target market shares in the satellite digital radio service market. There can be no assurances as to the outcome of any such renegotiations. GM’s exclusivity obligations will discontinue if, by November 2005 and at two-year intervals thereafter, the Company fails to achieve and maintain specified minimum market share levels in the satellite digital radio service market. For the six month periods ended June 30, 2005 and 2004 the Company incurred total costs of $98.5 million and $82.1 million, respectively, under the distribution agreement.

Sun Nov 06, 09:50:00 PM EST  
Anonymous Anonymous said...

Sirius would be hard pressed to afford breaking XM's exclusivity with GM.

XM has, IIRC, over $200 million in guaranteed payments left to make to GM, on top of revenue sharing of probably $5 per sub per month, not to mention installation and activation commissions.

The Asian automakers are going with XM exclusively at the factory (Toyota, Nissan, Hyundai, Honda) because they get telematic bandwidth. GM certainly has that as well with XM.

So, I'd say this is very unlikely.

Moreover, if this were to happen, XM would be cash flow positive almost immediately.... Sirius would not really want that.

Sun Nov 06, 10:01:00 PM EST  
Anonymous Anonymous said...

Cool I love BS. Hope it's true!

Sun Nov 06, 10:03:00 PM EST  
Anonymous Anonymous said...

This is not true in any way shape or form. Why the hell would GM give up about $100 per install from XM, along with what is estimated to be ~20% revenue share and a good portion of XM stock is owned by GM. So let's run down the rumor list:

1) XM doesn't release PRs as much as Sirius.

2) The Ford Deal is fairly weak right now. I would bet dollars to donuts that we will see a big Ford announcement from this "trip to Detroit".

3) Minimum marketshare levels is total marketshare of 40% for XM. They are nowhere near that and won't be for some time.

This looks like GSI is desperate for attention, and you guys got it. Good job, too bad you weren't around 100 years ago or you would have made a great "reporter" for Hearst.

Sun Nov 06, 10:44:00 PM EST  
Anonymous Anonymous said...

If Sirius shareholders want to rely on this blog for information, fine.

This place is obviously here for one reason -- to drum up hits and [hopefully] clickthrus on the innumerable Sirius ads on the site.

Personally, I'm not giving it any more traffic. I can read this kind of bullshit all day long on the Yahoo Sirius board.

Mon Nov 07, 12:06:00 AM EST  
Anonymous Tony said...

I do not thing they do this blog for Ads money. It is just as good if not better for Sirius news then orbitcast or backstage. Most are google ADs and for the Sirius Store (a small online store) Are you socked the Sirius ADs would be on a page about Sirius? Oh thats right you are not coming back so you will never read this. Keep up the good work Damian and gang, you have the Balls to post rumors like this, we can all read the facts and make our own judgements on it.

Mon Nov 07, 12:14:00 AM EST  
Anonymous Anonymous said...

So many people make a big deal, this is just a rumor, and has been on msg boards for days.

Mon Nov 07, 06:37:00 AM EST  
Anonymous Anonymous said...

Im willing to bet this is a Ford expansion with Sirius--I cant see GM/XM changing their agreement since its been good for BOTH and GM owns part of XM

Mon Nov 07, 08:12:00 AM EST  
Anonymous Anonymous said...

This isn't a real news site. It's just a front to drive up traffic. I wouldn't believe anything that comes out of here anyway, so who cares.

Mon Nov 07, 09:02:00 AM EST  
Anonymous Anonymous said...

GSI isn't a real news site, so who cares. I'll get my info from sources that don't make up bits like this, thank you very much.

Mon Nov 07, 09:03:00 AM EST  
Anonymous Anonymous said...

this is only a blog people. there are plenty of blogs where people claim to see ufo's.

however, after following this blog for some time now, i will tell you damian is spot on with 98% of his posts. he has posted "inside info" in the past so i can beleive his "inside source" claims.

This rumor has been drifting around for months now, and like gsi said, they just decided to post it now.

Mon Nov 07, 11:13:00 AM EST  
Blogger Dr. Droo said...

Awful lot of 'anonymous' fools, probably the same person. I quite prefer this place compared to the fact that Ryan over at Orbitcast has a clear XM bias. XM-related materials end up posted MUCH sooner over there than Sirius-related materials.

While neither are probably considered 'news' sites, they are considered blogs. Blogs aren't necessarily required to be news sites, and I quite prefer rumors and possibilities based on various chatter out there compared to not. Lest we forget that a LOT of various satellite-related places have rumor and SOME ends up true in full or partial form as well as SOME does not. GSI had the new schedule for Sirius and Starmate Replay and S50 info very quickly compared to everyone else.

Mon Nov 07, 12:31:00 PM EST  
Blogger Dominick said...

Amazingly, xm just released their 10Q. My search was initially for word on exclusivity. Now I don't want to say that something stinks over at xm, but....

This report is for the period ending 9/30/05. Xm changed the 11/2005 date to 11/2007. Yet the author of this report failed to change the date 2 lines up! It still says 11/05! Was this done because of the rumor? There was no announcement by GM in Q3 that GM had extended its exclusive deal with xm for two more years...none...and yet xm submitted to the SEC a statement that it had...hmmmmmm.....

As I stated...this report is for Q3...not Q4. THIS is the review month....not last quarter...

Mon Nov 07, 06:21:00 PM EST  
Anonymous Mel said...

This place is a joke. The Sirius Store should be embarrased to be associated with you.

Mon Nov 07, 09:51:00 PM EST  
Anonymous Mels a Joke said...

Hey Mel, you are a joke, go back to your XM boards were your type are welcome, your family should be embarrased to be associated with you.

Mon Nov 07, 10:31:00 PM EST  
Anonymous Anonymous said...

It is amazing that XM released its 10Q, right on schedule? Something stinks at XM? You actually think XM modified its 10Q because of this bullshit rumor you made up and posted here?

There was no "extension" of the deal between XM and GM. The agreement continues until something happens to terminate it.

I know it is tough, but how about at least TRYING present things in a factual manner?

Tue Nov 08, 10:44:00 AM EST  

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