Fact Sheet
• On June 16, 2005, the Canadian Radio-television and Telecommunications Commission approved the application by Canadian Satellite Radio Inc. for a six-year broadcasting licence to offer the XM Satellite Radio subscription radio service in French and English across Canada via satellite.
• Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as XM Canada™ through its subsidiary, Canadian Satellite Radio Inc. The XM Canada satellite radio service launched on November 22, 2005.
• XM Canada offers the best product, programming and price for satellite radio in Canada. It offers listeners 100 channels, including 100-per-cent commercial-free music, and news, talk, sports including NHL hockey, and children’s programming for $12.99 per month. XM Canada becomes Canada’s exclusive provider of NHL games via satellite after next season.
• XM Canada offers unique Canadian content, including eight French and English Canadian channels, developed in-house at the company’s facilities in Toronto and Montréal for broadcast across North America.
• In January 2006, CSR projected one million subscribers in 2010 and 75,000 subscribers by August 2006 for its XM Canada service.
• CSR’s partner, XM Satellite Radio, is the leading satellite radio provider in the U.S. with more than 6.5 million subscribers.
Business Opportunities
Strong relationships: CSR enjoys key relationships as described below:
• Automotive manufacturers: CSR has an exclusive 13-year distribution agreement with General Motors of Canada Ltd., the largest seller of cars in Canada. XM radios will be installed in as many GM Canada lines as possible in 2006 and up to 90% of GM lines in 2007. XM Satellite Radio has established relationships with Honda, Toyota, Hyundai and Nissan for satellite-delivered entertainment. CSR intends to try to use these relationships to enable it to establish similar links with the Canadian counterparts of these auto manufacturers.
• National consumer electronics retailers: A&B Sound, Best Buy, Canadian Tire, Future Shop, The Source and London Drugs, among others, sell a broad variety of XM radios in Canada made by companies such as Alpine, Audiovox, Delphi, Panasonic, Pioneer and Sony.
• Revenue generation: Most revenues initially are from activation fees and monthly $12.99 subscription fees, although CSR expects to generate advertising revenue from advertising on select non-music channels.
• Market awareness: In an October 2005 study that was conducted by Charlton Research and commissioned and paid for by CSR, 49 per cent of Canadian adults said that they were aware of satellite radio service.
• Low capital requirements: CSR receives XM’s broadcasts through XM’s current satellite network and enhances coverage with a terrestrial repeater network. CSR is not required to build, launch, maintain or manage its own satellites.
• Favourable demographics: There is strong demand for radio service in Canada, with more than 94 per cent of Canadians aged 18 and above listening to radio weekly, with the average adult listener tuning in for 22.1 hours weekly.
• Access to capital: CSR plans to raise net proceeds of approximately $75 million (Canadian dollars) through a high-yield note offering in the U.S. CSR has obtained a US$45 million standby credit facility from XM. CSR completed its initial public offering of $55 million on December 12, 2005. The proceeds are being used to complete its initial infrastructure rollout and fund operating expenses for its XM Canada service..
Executive Leadership Team
John I. Bitove: Chairman and Chief Executive Officer of XM Canada
John I. Bitove controls CSR Investments, the controlling shareholder of CSR Holdings. He is also the Chairman and CEO of Priszm Canadian Income Fund (TSX:QSR.UN), the owner and operator of 479 KFC™, Pizza Hut™ and Taco Bell™ restaurants in Canada, and Chairman and CEO of Scott’s Real Estate Investment Trust (TSX:SRQ.UN). In 1993, he founded the Toronto Raptors Basketball Club. While with the Raptors, Mr. Bitove helped to launch what is now Raptors TV almost 11 years ago. Mr. Bitove has been associated in various broadcasting ventures for more than a decade.
Stephen Tapp: President and Chief Operating Officer of XM Canada
Before joining XM Canada, Mr. Tapp oversaw CHUM’s television division, consisting of 26 channels including leading stations such as Citytv and MuchMusic. His international experience includes roles developing and managing CHUM’s global distribution arm. In addition, Mr. Tapp oversaw international joint ventures and channel launches in the U.S., Europe, South America and Asia and has a background in new technology and product launches.
Michael Washinushi : Chief Financial Officer of XM Canada
In his role as CFO, Mr. Washinushi has overall responsibility for financial reporting and corporate governance, reporting to the CEO. He joined the XM Canada team in spring 2005. He served as Executive VP of Scott’s REIT and Director of Finance for Priszm Canadian Income Fund.
Click here to view the Management team
Corporate Office
161 Bay Street, Suite 2300
Canada Trust Tower , BCE Place
Toronto , ON
M5J 2S1
Canada
www.cdnsatrad.com
www.xmradio.ca
For more information, please contact:
Jason Mercier
Wilcox Group
604-488-1100 ext. 226
[email protected]