By Franklin Paul
NEW YORK (Reuters) - Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile, Research, Stock Buzz) expects to offer a live television service in cars by late 2007, and deals with content providers may be set as early as January, Chief Executive Mel Karmazin said on Thursday.
Karmazin told the Reuters Media Summit in New York that the mobile video, likely to be available in 2008 model lines, would be geared toward young viewers in the back seat. Shares of Sirius closed up nearly 2.7 percent at $4.26.
"We have three content deals that are very close to being finalized. I don't know if they will be done by CES, but that is what we are shooting for," he said, referring to the Consumer Electronics Show in Las Vegas in January. "We will have video in the rear seat of the car up and running."
Sirius has previously touted the possible launch of a few TV channels in cars. In 2004, it said it would offer video services by mid-2005, but that the timing depended on automakers' wishes. It later said it would debut in 2006.
The TV channels could represent one of the last major thrusts by Sirius, now that it has signed all the celebrity hosts, car agreements and high-level investments it needs to keep the accelerator on subscriber growth, Karmazin said.
He said there is nothing that the company needs to invest in now that it has not planned for already.
"There is no missing piece of our puzzle," he said. "There is no new content that we need; our OEM (automobile) deals are done. There is nothing we need to invest in that we have not planned for, and that hopefully enables us to make money."
In response to questions about a possible combination with larger rival XM Satellite Radio Holdings Inc. XMSR.O Karmazin said: "I'd consider anything that's in our shareholders best interest...(but)our plan does not call for us doing anything." Continued...
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