BITOVE HANDS OFF CEO ROLE AT CSR Grant Robertson – Globe and Mail Two years after launching Canadian Satellite Radio Holdings Inc., John Bitove wants a full-time chief executive officer at the helm, and has tapped a former top executive at Palm Inc. for the job.
Michael Moskowitz, who ran the Canadian, Latin American and Caribbean operations for Palm, will take over at the start of 2008. Mr. Bitove – who also serves as CEO of two other businesses – the Priszm Canadian Income Fund and Scott's Real Estate Investment Trust – plans to stay on as executive chairman.
“It kind of came down to the judgment call that a full-time CEO could accomplish a lot more a lot quicker than the current model we had,” Mr. Bitove said in an interview.
The news came as the company reported an $84.6-million loss for fiscal 2007, an improvement on a loss of $102.7-million the previous year.
Much like rival Sirius Canada Inc., Canadian Satellite Radio, which operates the XM Canada brand, has incurred steep startup costs to launch its service and build a subscriber base. Though Sirius is privately held and doesn't report financial data, analysts believe both companies will experience a few years of tough quarters before turning a profit.
With 306,000 subscribers, roughly double last year's number, Mr. Bitove expects to see positive cash flow by this time next year, and a million subscribers by 2010. After focusing on broadcasting operations in the first two years, the business will now spend more time building distribution channels, he said.
Mr. Moskowitz, who is in his mid-30s, worked for Palm for the past seven years, overseeing sales of handheld devices. A hockey buff and avid reader of the Harvard Business Review, he also worked for Sharp Electronics of Canada Ltd. and Sony of Canada Ltd.
“He really understands electronics, he understands the distribution model,” Mr. Bitove said. “He likes to get in the middle of understanding the technologies and their applications, and that was something that we really need.”
Canadian Satellite Radio has been pinning much of its future hopes on selling radios in new cars, having pursued deals with several car makers to put its receivers in about 150 different models.
Though the company sees that as the more lucrative path, it has also been ramping up retail efforts to battle Sirius on store shelves. It recently began a contract to offer exclusive NHL broadcasts, which it said has helped attract new subscribers, who pay a monthly fee of about $15 for more than 100 channels.
Canadian Satellite Radio has reduced its spending, but analyst Jeff Tkachuk with BMO Nesbitt Burns Inc. said it's not certain whether such reductions can be sustained. At the same time, both XM Canada and Sirius are battling each other with discounted radios heading into the busy December retail season.
“It's definitely getting competitive out there, and we're not even into Christmas yet,” Mr. Tkachuk said.
Meanwhile, the parent companies of both are attempting to merge in the United States. Mr. Bitove said he's not sure whether regulators will allow the deal, but a decision is expected this year.
Analysts figure it's a long shot that U.S. regulators will allow the deal. |