Sirius Satellite Radio Inc. has filed a request with the Federal Communications Commission for authority to launch and operate a new satellite, SIRIUS FM-5, which includes a provision for "video services." The new geostationary Digital Audio Radio Service ("DARS") satellite will operate in concert with Sirius’ three in-orbit non-geostationary satellites. Earlier this year, Sirius said it had signed an agreement with Loral Space & Communications for the construction of a communications satellite that would be finished by the fourth quarter of 2008. If this is the same bird, it appears they may have accelerated their schedule.

While the main thrust of the application is to provide "redundancy, enhanced coverage, and exceptional performance for all Sirius subscribers," the application briefly mentions video services as among the "advances in satellite design to improve service."

According to a technical description filed with the application, the additional transmission capacity of 1.35 Mb/s used "for providing subscribers with more audio channel programming, data, and compressed video channels currently planned for automobile back seat viewing." This certainly suggests that the new video service aimed at kids.

Sirius had already announced plans to launch a video service - using Windows Media Video (VC-1) - devoting several channels to children’s programming. This new announcement shows they are putting money and technology into mobile video applications. While the available bandwidth may not compete directly with established services for DirecTV and Dish Network, one has to wonder if the two satellite video providers might have a regulatory issue, they might wave at Sirius (and XM, if they also enter the market); it is not clear how the FCC will view this new outlet for video competition.

Certainly, we don’t expect Sirius to start carrying local TV (the must-carry laws would require carrying ALL stations in a local area), but what happens if they negotiate carriage of, say, the Cartoon Network? How will that affect the deals the other two already have in place?

Satellite video may have a place in automobiles as another "trip pacifier," but when given the alternative of an in-car DVD player, we’ll just have to see how much subscribers are willing to pay for what may be a limited-quality service and what effect these new offerings have on the delicate balance between satellite terrestrial and cable broadcasters. –AC

Note: Look for an expanded (more technical) version of this article in the November issue of Projection Monthly.