WorldSpace
From Wikipedia, the free encyclopedia
| Worldspace Inc. | |
 |
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| Type | Public NASDAQ: WRSP |
|---|---|
| Founded | 1990 |
| Headquarters | [Silver Spring]USA |
| Key people | Noah A. Samara , Chairman & CEO Andy Ras-Work , COO |
| Industry | Broadcasting - Radio |
| Products | Satellite Radio |
| Revenue |  $11.66 Million USD (2005) |
| Net income |  -$79.863 Million USD (2005) |
| Employees | 492 (2005) |
| Website | www.worldspace.com |
WorldSpace is a digital satellite radio network based in Silver Spring, MD, USA. It covers most of Asia and Europe plus all of Africa by satellite. The company is also licensed to serve South America and Central America, but services for those regions have not started yet. (The company's website does not include any mention of plans for services to these regions to start.) In the United States, some WorldSpace channels, such as "The System" and "U-Pop" are carried on XM Satellite Radio. Major content partners include BBC, NPR, CNN, Virgin Radio, Fox News and Bloomberg. Many channels are free of advertising, and they are known for high quality programs with "near CD quality" audio.
JVC, XM Radio, Hitachi, and Panasonic are manufacturers selling WorldSpace digital satellite radios. A consumer's radio consists of a satellite receiver plus an antenna that has to be placed in clear view of the relevant satellite (so-called "line of sight"), oriented in a certain azimuth and elevation (depending upon the geographic location). Most of the channels are available only by subscription, but a few are free: the BBC's African channels and RFI, for example.
There are currently two satellites in use, AfriStar and AsiaStar. AfriStar serves Africa, Europe, and the Middle East, while AsiaStar serves most of South Asia and overlaps in the Mideast. Plans to launch a third satellite, Ameristar, to serve South America were not carried out as the frequencies used by WorldSpace (L band) are commandeered by the United States Air Force. Each satellite provides three transmission beams that can support 50 channels each, carrying news, music, entertainment, and education, and including a computer multimedia service.
WorldSpace has worked with Thomson Broadcast to introduce a village communications center known as a Telekiosk to bring communications services to rural areas. The Telekiosks are self-contained and are available as fixed or mobile units.
WorldSpace Foundation started off with the aim of improving literacy in Africa, and is providing content through satellite to smaller community radio stations in the continent. WorldSpace Foundation has changed its name to First Voice International. However, WorldSpace's original plan to offer low-cost satellite radio services to rural Africa has failed, due to the cost of receivers and batteries, which led to the service being accessible only to expatriates and to the wealthier members of urban African society. The west beam of the Afristar satellite, ostensibly intended to cover West Africa but also receivable in most of western Europe, now carries subscription stations aimed at Europeans.
On 2005-08-04 WorldSpace offered its IPO on the NASDAQ Stock Exchange. It closed at the end of the first day of trading at $22.36 a share.
Just four days later, The Wall Street Journal published “WorldSpace Risk: Disputed Terror Ties Follow Key Backers.” The reference alludes to WorldSpace Corporation’s financial underwriters among the Saudi royal family, which reportedly has invested more than $2.5 billion in the start-up stages alone. The following day, August 9, online investment news site The Motley Fool ran the first of several articles ("Terrorist In Your Portfolio?") critical of WorldSpace’s corporate practices and out-of-this-world claims. In "A Stellar Way to Lose Money," after looking at the dismal performance after five years to establish an audience for AsiaStar broadcasting in India, the article concludes:
“If you enjoy companies that pay management at a rate of 2.5 times your company's entire revenue, burn cash like crazy, but have a story that sounds good until you listen closely, this may be the stock for you. Knock yourself out. If you're looking for a good investment, look elsewhere.” Just four months after its IPO, establishing a share value of $22.36, WorldSpace was trading at $12.28; after seven months, $11.62; and after exactly one year a public slice of WorldSpace was valued at $2.16 (NASDAQ: WRSP).
WorldSpace Corporation’s first satellite, AfriStar, seemed to fare far better with African audiences, due in large part to the effectiveness of WorldSpace Foundation in promoting the “information empowerment” potential of satellite radio broadcasting in developing nations. Of AfriStar’s “80+” channels, WorldSpace dedicates four to programming on fundamental themes of development, broadcast with “near FM quality” in colonial languages to rural emerging cultures across the continent (the African continent has 1,350 indigenous languages). The Digital Divide Network reports, “Currently, the ALC (Africa Learning Channel) has an estimated audience of 1.2 million based on reports from partners in 21 African countries in which close to 1000 receivers have been placed.” At 1,200 listeners per radio unit the Foundation’s efforts are consistently lauded (mainly by the Foundation) not just for “improving literacy in Africa,” but also for programming on themes of health, education and peace.
Credit for the success of WorldSpace Foundation’s efforts lies squarely with its oft-called “visionary” founder and corporate CEO, Noah Samara. Renowned as a man of profound conviction and humility, Mr. Samara throughout the 1990s was ever on-the-wing promoting his bold double-pronged concept for global broadcasting. “In Africa, information is scarce. So our project makes great business sense. I can make a lot of money and do a lot of good,” he told Reuters in October, 1998 – a theme echoed in virtually all Mr. Samara’s many media encounters in the Corporation’s start-up era.
WorldSpace’s strategies for receiver distribution include enlisting the assistance of governments, UN agencies, non-governmental organizations and private donors. WorldSpace’s development partners are the bedrock of the Corporation’s efforts to build a commercial audience and “information affluence” in Africa. An early and ardent promoter for WorldSpace in development circles, the UN Economic Commission for Africa invited the WorldSpace chief executive to address the Africa Development Forum (ADF), in October 1999. Tackling the theme of “The Challenge to Africa of Globalization in the Information Age,” the ECA reported Mr. Samara’s address alongside the remarks of top UN officials, writing “Mr. Samara explained that it was in part the desire to stem HIV/AIDS that motivated him to start WorldSpace.”
For further reference on WorldSpace Foundation’s successes read the “award winning” article, The Bankilare Project, by WorldSpace vice-president Rose Tchwenko, at the First Voice International website.
WorldSpace audio advertisements in 2006 have highlighted the company's ability to provide communication and data-transmission services to remote areas of the world, particularly in a disaster-relief context. The promotions also mention WorldSpace's facilitation of long-distance educational projects in Africa. The ads, broadcast on Washington D.C. radio stations, appear aimed at government procurement officials and possibly NGOs.
Recently, WorldSpace named noted Indian composer A.R.Rahman as its brand ambassador in India where 90% of its customers are located, and unveiled an integrated marketing communication campaign across print and visual media featuring an exclusive signature tune composed by Mr. Rahman.
