XM NEEDS TO PUT A
TON OF CASH IN ORBIT

Gee, this whole outerspace radio thing sure is getting costly. XM Satellite Radio CFO Heinz Stubblefield, speaking at a Banc of America Securities investor conference, said that the company will need to raise $300-350 million dollars to fund its satellite radio broadcasts from 2002-2004.

The company has already raised $1.5 billion dollars, which it has spent building and launching two broadcast satellites ("Rock" and "Roll"), advertising and marketing the service and bidding on Jeff Koons’ ceramic sculptures of Michael and Bubbles. XM plans on broadcasting 100 channels of news and music at the end of September. For now, subscribers can get in on the action for $9.95 per month, but Stubblefield said that the company has the flexibility to raise its rates. "We’ll assess our pricing and marketing approach as we move closer to launch."

The company's main competitor, Sirius Satellite Radio Inc., increased its monthlys service fee by $3 to $12.95. XM continues to assess its pricing models, according to Stubblefield. "For now, we're going to stick to the $9.95 price, though we have the flexibility to raise our rates. Now, did anyone see my ticket for the Mir space shuttle?"

Allied Business Intelligence, an Oyster Bay, NY, think tank, projects that, by 2006, satellite radio will generate annual revenues of $350 million. Which seems to be some sort of magic number with this industry.

Can we talk about the monkey man now?