Ousting Sirius CEO Karmazin Is a Crazy Idea 81 comments
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These days, I can only imagine that writing about Satellite Radio is akin to being a sportswriter in Detroit assigned to covering the Lions. Reality eventually settles in that hope is meaningless, and yet the season will not end for 5 more cruel weeks.
There has been very little to write about regarding Sirius XM Radio (SIRI) lately. I have to admit that I love a good fight, and not having the FCC, NAB or the DOJ to write about has given me a case of writer's block. It seems any story is written about the moment it happens by one of my fellow writers at Siriusbuzz, leaving me again searching for story ideas.
To my complete satisfaction, a new fight seems to be starting and I am all too happy to choose a side. An article was recently published by a writer calling for the ousting of Mel Karmazin as Sirius XM CEO, which lacked any real reason for such a recommendation.
For starters, it’s all about the share price. As someone with a long position in Sirius XM myself, I am none too pleased with its current severely undervalued stock price. The problem as I see it, is that far too many of the voices crying out for Mel’s dismissal have made the mistake of being overweight Sirius XM stock. In many cases I’d venture a guess that SIRI is either their only or largest position - a position that in most cases was taken on the way down, with hopes of great wealth coming with a positive merger announcement. I say too bad. These are mistakes of the investor him/herself, rather than Sirius XM management.
Have you looked at other stocks and the value losses those investors have seen this year? Have you looked at Ford (F) and GM? How about bank stocks? (You can pick one). Not to mention Berkshire Hathaway (BRK.A), whose 52 week high was $151,650.00 and now trades at a lowly $98,000.00. Google’s (GOOG) 52 week high of $724.80 now hovers above its 52 week low of $265.00. For those with tunnel vision who think that Sirius is in a world of its own, I can assure you everyone is hurting as a result of the overall negative market conditions and perceived recession/depression.
As for Mel & Co., the report card comes in my opinion not from the stock price but on the company’s execution of its business plan. Sirius XM continues to grow revenue, consistently meeting or beating Wall Street estimates. They have lowered costs, received approval for a merger to create a monopoly (which Direct TV (DTV) and DISH failed to do), and have recreated the product in such a way as to promote exceptional value to the consumer. They have done all of this under Mel Karmazin’s watch.
This in fact is the first full quarter of a combined XM and Sirius, and despite all the positive news relating to satellite radio, some people would rather create a distraction than let the newly formed company operate and succeed. I am forced to ask myself what a person’s motivation would be to oust a CEO before his plans could be put into place? Is terrestrial radio THAT afraid of a merged Satellite Radio company? Of course they are! So do your own research rather than rely on an unintelligent article that has little to no basis in fact.
No matter what anyone says, including Mel Karmazin, a great CEO can only run a company in the most effective way possible. No CEO dictates the price of its company’s stock. Under Mel’s command, Sirius XM continues to grow despite the worst economic environment that most of us will ever live through, which is his job and a job well done I might add.
As for the debt issues facing Sirius XM today, these were put into place long before Mel Karmazin took the helm. He is now faced with the daunting task of cleaning up someone else's mess, and appears to be on his way to doing just that. If a loss in shareholder value were the yardstick used by all companies, the world today would be without CEOs, unless of course, they ran hedge funds.
Disclosure: Long SIRI, F, no other mentioned companies.
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This article has 81 comments:
A change at this point would be disastrous and, frankly, in this credit market, having an experienced, competent CEO at the helm should help convince lenders that SIRI has the management team in place to execute their business plan effectively.
A SIRI bankruptcy will probably mean an additional five years of work for me at retirement age. I'm down substantially and I'm hesitant to average down, like I did down to 1.25, because I have little confidence this 'Hail Mary' pass is going to connect. But, making any substantial changes to management now would be the death knell for this stock.
SIRI needs to continue to cut costs, continue to execute their plan, advertise through used car dealers and to previous subs to reactivate existing radios, add (very) limited commercials or sponsorships to existing non-commercial channels, and seek ways to deliver the content they have built through other channels like iPhone and a more robust Internet platform (with ads).
Satellite delivery is a stopgap until Internet radio is fully viable and Sirius is perfectly positioned to dominate both.
I believe in SIRI, I believe in Mel's abilities, and I believe in the team he has assembled. This article is right. Mel is cleaning up someone else's messes. Now, I am now counting on both not to let me down.
I understand Mel's position given the terrible price paid for this merger and he does have a track record increasing the synergys of a merger, but he can take some hits too.
for one thing, the marketing of this company is a disgrace and he is responsibe for that. There is no promotion anywhere, there is no appeal to a specific target market, there is a terrible lack of focus on the retail section of the market, on used cars, at expired subscribers, and especially at young people. This despite the fact that the products offered exceed the standards set by Apple with its IPOD. Frankly as the owner of both a stiletto and Ipod I'll take my stilletto any day, it has the same functions as the ipod and its wifi capable also. That this product has never been marketed to the young adults who are so techno crasy is disgraceful to me. In addition there is are stations oriented to the youth, such as Faction and XMU that can be used to support an ad campaign directed both at teenagers and college students, even by getting the endorsements of some of the DJ's like Jason Ellis or Bam Margera. They have done nothing to exploit this segment of the market that still goes out and buys "entertainment" on a regular basis despite the recession.
Mel has done nothing to ask his biggest stars to promote this company. Howard does nothing but collect his paycheck and I am one of his biggest fans. Same with Oprah what has she really done to justify her 55 million? What has she done to promote this company post merger? Why was there no Howard Stern Oprah press conference? Was Wasn't Howard on her show and vice versa?
Jimmy Buffett is constantly promoting Sirius at his shows yet he has never been asked to appear on Howard show? Here is the most bakable entertainer in America, a promoters dream, and yet he has never been asked to be on the Howard Stern show despite his loyalty and commitment to Sirius? Why?
The same holds true for Bubba, say what you want he is the most outrageous, over the top broadcasting personality on radio. he has the second most popular show and continues gain listeners every day in the USA and Canada. And he is the future after Howard leaves, yet he is not resigned long term for whatever reason, yet this is a guy who could have been promoting Sirius on the road this past year. Why? His status and situation certainly needs an explanation since he has more subscribers listening to his show than Chris Russo and he got 3 million per year.
This is just the tip of the iceberg, there is no appeal to kids on myspace, facebook, no daily press releases to highlight what is happening on Sirius, nothing to indicate that this company exists, and it is a magnificiant company. This should be a place where the most creative people should be working ecause it has little boundary's and unlimited growth, in America, Canada, and the world via the internet. Yet there is no marketing of its internet based product? Why?
For all of the above Mel is responsible. Sooner or later the large shareholders and long termers and the new investors who Mel will getafter the reverse split and dilution of the company will take a long hard look at all of this and then maybe Mel will be in hot water. Until then or until we as shareholders demand answwers to the above. Mel is the man for better or worse for richer or poorer.
One point..I do not believe Mel is gay so you might want to check your word usage in the title.. I believe Ousting is what you meant... not OUTING..
In this toilet bowl of a market he knows that only performance will raise the stock permanently. This will take a while, a couple of quarters anyway to start to come around.
I agree that this stock is super speculative, I am glad I was probably more lucky than smart when I sold it at 3 something with a small loss.
I hold a small position (relatively) and at this price, it's an option. I.e. it could completely lose value or go up a few hundred percent.
They are in a tough place with the debt, but they do have the advantages of having agreements with car makers to install their technology and the fact that the rechnology is good for driving, unlike wifi, which may go in and out.
it IS the yardstick for a PUBLICLY traded company, and those companies SHOULD be with ceos that maximize PROFIT and therefore SHAREHOLDER VALUE, what the f--k else is there for a publicly traded company to do, that is their raison de etre. ceos that can't do it, should retire
On black friday I bought 2 XM recievers with $55 service plan, and the fm booster for each reciever to give out as christmas gifts. My Total for all equipment and service came to $100..
There was a meaning to having that 1.4 billion dollar write down. It is working too, as there are some very large rebates on mostly XM equipment. Mel is using these rebates to hook line and sinker the audience. 3Q revenue wasn't bad either considering that there are barely any cars being sold.
XM doesn't nead the interpolarable recievers that sirius needs either as you can get the NFL, Howard, or NASCAR on XM recievers right now!!!
I too am a share holder, and I am not discouraged by any of Mel Karmazines decisions.
Also, to say there is "no promotion anywhere" is blatantly not true. I've seen Sirius advertised on web sites and car commercials. While I would say there is certainly not enough promotion, Mel is NOT in charge of marketing.
IF YOU DON'T RESPOND THIS THIS ARTICLE IS A FRAUD.
MR. STUPID
www.247wallst.com/2008...
ericsmusclecars.com
1. Destruction of shareholder value: The stock was at $3.94 in November 2007 and is now around $.20. This low value means SiriusXM could be delisted barring a drastic reverse split.
2. Terrible content management: Sirius and XM subcribers were promised simpler, cheaper and more diverse programming options. Instead, we've seen clumsy combinations (e.g. Sirius + Best of XM, top 50, and Best of Both) at higher prices. At the same time, niche content with dedicated listeners (e.g hip-hop, hispanic) is being watered down.
3. Static technology management: The iPod/iTunes model is effective because it is simple, convenient, and accessible. Aftermarket SiriusXM customers have to run cables through their car, place an antenna just right, and search for dead FM stations. Even after this is done, most are stuck leaving it on a fixed mount in their home or car.
SiriusXM should have figured out how to make itself more convenient, flexible, and simple by now. Aftermarket tuners should be able to automatically identify FM stations with dead air. Portable player options need to drastically improve. Also, SiriusXM must find a way to eliminate the need to place an antenna on the roof.
4. Unimaginative handling of the revenue stream: SiriusXM relies almost entirely on paid subscriptions in new car sales to provide revenue. This is too narrow for remaining a viable business.
SiriusXM needs to find ways to bundle in navigation, streaming video, and/or communication services on a broad scale instead of limiting to a few auto brands. Sell Stern, Ron & Fez, O&A on podcasts to mitigate the beatdown being given by iPods.
Additionally, the company could consider giving hardware at deep discounts after signing a contract. This will help remove upfront cost barriers on skeptical first-time consumers.
5. Inefficient usage of already dwindling cash reserves: SiriusXM subscribers and shareholders were promised drastic reductions to operating expenses and debt burdens post-merger. Aside from a few token executive departures, little has been demonstrated to date.
Massive layoffs and other cost-cutting moves are too delayed in coming. Quick and effective cost-cuts could come from reduction of shared services such as HR, Marketing, and Accounting. The company will simply run out of cash without drastic measures.
Very good article. The originator of that article, WallSt24/7, HATES SIRI. They have done nothing but write negative articles for the past several years. A-hole Doug McIntire has been the main author of the negativity and this guy has chimed in from time to time. As you say, their opinions are pure conjecture with a "24/7" negative bias..so essentially they have no cred.
To furthur illustrate your point about not being in a vacuum (which most people think SIRI is), before Thanksgiving I posted a list of other radio space stocks...who are ALL just as decimated as SIRI. Ostensibly, they all have their problems of some kind (although a few actually have positive CF), but the sector in of itself has been totally decimated. People just have to start getting real about the last 3 months. Take a look around...at ANY sector. But I urge any poster here to do a search on radio sector stocks and stop living in a shoe box.
As ar as the guy whining about "no short squeeze"...get a clue, get a life. You prove that you have no business being in the stock market...for god sakes, stop blaming people here for your own misfortunes and shortcomings..thank you.
As for Mel and the stock price, not so much! Here is the thing that has bugged me about Mel since July. In the postmerger conference call one analyst asked about possible reverse splits or dilution and Mel shrugged off the question and stated that the combined company would be fully funded. (check me on this, I swear thats what I heard)...fully funded? That was a lie, and I know CEO's have to talk positive, but if Mel would have said we might need to dilute further or pull a reverse split. For me, that signals the end of times, I could have sold my 7500 shares for around 2.68. I think he could have left out fully funded, I feel he lied, I could be wrong. I hate sounding like a Monday morning Rothislisbergerh!
Long Harrison/Woodley/siri
This country is going to be Moscow in three months.
I have not heard Adam Smiths name in while what happened to him?
No Mel, No board, No dilution. We need new management,
new ideas, and new energy. The current big newspaper ads
show images for talent for the 45 year age group and up. There
are no ads for the 20-35 year age group. Mel is out of touch
with the younger era and has lost the touch. He has overspent,
used irresponsible fiscal policy that has put SIRIUS in deep
debt with no way to pay it back. He now wants the current
stockholders to lose money with his RS, dilution plans, so he can
issue new shares to pay off the debt he made, at the risk of everyone
else losing their money. The managedment and talent walk away with millions. Mel's salary, with options, 07, $32,000,000,-06,$31,00...
Compare that to investor's losses. Why should a management that is
losing the company money, putting it in debt, overpaying talent, and taking millions for themselves stay? Shareholders have the legal right
for proper purpose to examine the books and the accounts at any
reasonable time. The law of corporations allows shareholders to go and look at the books. Stock holders got screwed by this management. Why
should they stay? To finish the stockholders off completely. Just because he got Howard Stern. NO RS>NO DILUTION> NO MEL AND NO BOARD. VOTE NO
compensation, with options, $31,000,000
the downturn, except one drop, then a return, pays 6% div. Radio stocks are relying on ad revenue. SIRI has a solid subs base. Apples and oranges.
Most of what you read in these blogs is paid for by Sirius. Yes, all the so called experts still talking up Sirius here are paid false advertisers of Sirius. It is called PR and your reading it all here.
Remember, false advertisers is a well know and large industry. Every time you read about someone here trading Sirius and two others congratulating them for the move, read the usernames history back a few months. You will see for yourself.
We have only two or three users who have multiple accounts and they use them for Sirius Paid Propaganda. So, please be advised and aware.
IMHO
Mel needs to go. All true stock holders of Sirius have already realized that Mel is very dangerous for our investments. Mel needs his propaganda because we are going to kick him out.
Like that guy says, VOTE NO!
>>> Brandon, please identify the "writer" who suggested that Mel should be fired. Does this "writer" exist? <<<<
It was
Jon C. Ogg
December 1, 2008
>>10 CEOs To Go For 2009: Mel Karmazin of SIRIUS XM (SIRI)
It is December, and it is time for many companies to review their existing plans and decide to make some major changes in 2009. SIRIUS XM Radio Inc. (NASDAQ: SIRI) now stands at a critical juncture, and this is a call which will not come about easily. It is also a call which may be one of the more controversial calls out there. It is time for a major change at SIRIUS XM, and that change needs to be the ouster of Mel Karmazin as CEO. << see Washington Post >>
And I agree... Mel is dangerus to Sirius Stock Holders.
Vote No to everything Mel wants. For the love of god get Mel out!!!
December 1, 2008
Washington Post
It is time for a major change at SIRIUS XM, and that change needs to be the ouster of Mel Karmazin as CEO.
The value destruction here has been enormous and the efforts from holders to ouster the company might actually have a shot at achieving their goals here. Michael Hartleib, an individual leading SaveSirius.org and suing Sirius, offered up comments on this. He noted specifically, "What's transpired during Mr. Karmazin's leadership is nothing more than criminal and I'd like to remind you of the CNBC piece Mr. Karmazin did entitled "I am American Business" in which he states "the reason I like to be the CEO of a publicly traded company is because the shareprice is like a report card." News Flash Mr. Karmazin.... I and members of SaveSirius.org give you a big fat "F" which I guess is appropriate considering the way you ____ us (edited over)."
Most of what you read in these blogs is paid for by Sirius.
Ford: 640% off its 5 year high ($16-$2.50)
GM: 1000% off its 5 year high ($50-$5)
Google: 269% off its 5 year high ($714-$265)
SIRIUS: 46,294% off its 5 year high ($7.87-$.17)
Mell K. has done nothing but line the pockets of himself and his cronies at the expense of all shareholders....he may have been a great salesman, but he is THE WORST CEO. Get rid of him now.
Ford: 640% off its 5 year high ($16-$2.50)
GM: 1000% off its 5 year high ($50-$5)
Google: 269% off its 5 year high ($714-$265)
SIRIUS: 46,294% off its 5 year high ($7.87-$.17)
Mell K. has done nothing but line the pockets of himself and his cronies at the expense of all shareholders....he may have been a great salesman, but he is THE WORST CEO. Get rid of him now.
On Dec 02 11:43 AM pauld63 wrote:
> Thank you Brandon for saying what needs to be said. I agree with
> everything you said 100%. It seems to me Mel is an extremely effective
> CEO who knows media and radio better than just about anyone else.
> He is faced with large challenges that are not of his doing, and
> he is meeting those challenges in the best way possible. I think
> he is managing Sirius XM for the long term and that we need to back
> off and let him do that.
Think about your question...270M shares of short interest. A. That's astronomical. B. Even if that were reduced to what they were averaging most of this year (which is somewhere around 130 - 150) they would have to shed 120 MILLION SHARES just to get to get there. As far as I'm concerned, that approx. 120M is the overhang on this stock. You lift that in the right mix, you lift this PPS to much healthier levels...and quickly.
Just don't be like others and ask when it's going to happen. It will happen when the decision is made and not before. Time is the great equalizer in this arena. If one can master that, one can be successful. Most people cannot...which is why they get spanked by MM's and lose all their money. Then MM's just laugh it off at the bar every night while counting their newfound wealth. IMHO.
All stock holders are invited to the “Tar and Feather Party” for Mel.
Florida, December 18, 2008
Free beer and lots of entertainment…
I agree that 270M is still a huge amount of short interest. It's just refreshing to see a decline after it's run up so high . . . and hopefully it continues because I agree that it will be a big boost to the PPS as you said. No worries about me asking when the short squeeze will come into play because I'm quite sure that the people that have a short interest is not posting here, or at least if they are they will not be announcing any moves!
LOL…
I bet security at the meeting is going to be hell. Mel would be nuts if he did not bring an army of security to the meeting.
Most Stock Holders of Sirius want Mel’s blood. So, I am thinking he will not even be at the meeting.
Anyone want to bet Mel is a no show?
People have to remember SATRAD is (and in my opinion) always will primarily be an in-car experience. Not to say they don't now have nor can't grow more into the portable space, but in-car is THE market. And Mel did well solidifying the entire space. A big reason I believe he wanted the buyout so badly. People are too hung up on the Big Three. Fact is, the numbers in the US are what they are (anywhere from 11 - 13M) and the mix is irrelevant. If GM or Ford decline, Toyota or Honda will pick up the slack. Mel has the space covered. Right now it's a bunch of noise. But the point is, SATRAD is sold primarily at the dealerships, Point of Purchase, not on TV. Nothing wrong with more branding next year on TV but by incentivising dealers to push the product to comsumers with a cut, they essentially are paying for advertising in that effort. Think of dealers as part of SIRI's sales force. It's a great partnership and a big reason why we don't see more TV. Now I do think they should be doing radio ads, which are not cheap either but cheaper than TV. They should be all over terrestrial radio telling people what they are missing. That is a place I would throw a few Mil...esp now when so many consumers are in cars out shopping with the radio on. I would hit 'em up right there.
The big diff about HD radio and SATRAD is content--which has been said before here, but can't be stressed enough. And this is where SATRAD holds the cards. I mean, you're kidding if you think consumers will be able to tell the difference betwen an HD radio signal and standard FM. It's a car! Road noise, machine noise, all kinds of noise. This ain't smoking some dope and listening to Dark Side of the Moon on headphones for god sakes! It's a car. HD radio can only go so far. SATRAD on the otherhand offers exclusive entertainment-oriented content as well as commercial-free music. This blows away radio of any kind.
SATRAD is media really, and not really radio. Personally, I think SIRI should drop the Radio from their name altogether. Just be SiriusXM..with a tag like Premium Audio Entertainment. I think next year, they would do well with a campaign that properly identifies their product for what it is...and the uniqueness of it...and mainly dispells what it isn't.
I agree dumb, Mel did not do anything by accident. Like the paid propaganda keep saying, "It was all legal".
But, Mel did it all in a plan to kill the stock and take it private. The dilution of massive issue followed by a rev split will end again in massive shorts.
The second time the shorts reduce the stock, and this will be after the split, the reduced share and value will be absorbed in a private deal to take Sirius private.
Mel did the exact same thing building Viacom. This is no theory, it is history repeating...
Mel is dangerous to stock holders.
Actually, the higher the better at this stage. My guess is it did rise back toward the Oct B of 285M on that leg down to .14. We did have last week's kick but I think that was more MM manipulation rather than outright covering. Unfortunately we don't get the current number until the next one is already reported. So we should get Nov B about the 15th. I don't expect to see anything lower than 270 though..which is what we want at these SP levels (higher is better potential). Let's see what happens...
My lawyer and I have a 364 page draft ready to go. We are waiting for Mel to make his mistake and repeat what he did to build Viacom by destroying investor value. His history will be the thing he can not defend this time around.
In contrast to his active promotion of Sirius is Eminim who also has his own station who has done NOTHING to promote Sirius. I say that that's wrong. These people have been given an opportunity to create something special free from censorship and they should have a vested interest in the success of this company, since it is understod that in return for their checks they have to create a station that will generate subscriptions.
As to promotion, Sirius in car commercials is because the CAR company is paying the ad bill. I have never seen an advertisment on a web site for Sirius, please give me any link. There is so much that can be done on the web to promote this company but it seems to me that nothing is being done and while you say that "Mel is NOT in charge of marketing." I disagree. He's the CEO. He's in charge of everyone. The success or failure of this company is ultimately his responsibility.
If you are happy with the marketing plan of this company God bless you, but I think that more people will say that this company has done a terrible job of marketing itself, and giving itself a buzz especially after the merger. Please tell me why the biggest stars of this company have done nothing to promote this company since the merger. Are you telling me that Mel can't ask Howard to go on Letterman to romote SiriusXM? Are you telling me that Mel can't ask Oprah to give away SiriusXM radios to her audience as a gadget that they should have. Cm'on if not Mel then who? If Howard is truly one of us who has his money tied up in a 20 cent stock then it shouldn't take much effort on Mels part to ask him to do something to help, don't they have an over 20 year business relationship?
Show me one time where Sirius has promoted its stiletto radio. This is an amazing product. Don't you remember when Howard came over, how many radios were sold at the retail level. What happened since? It just seems now that they are relying on the OEM for new subscribers. I say that's wrong. They should be active on all fronts, they could offer an internet only subscription featuring the best of both for an intro price of $9.99 per month and upon activization send the subscriber a coupon to buy a stiletto 100 for fifty dollars off. They could offer internet subscriptions to college kids for a discounted price, through the student organizations at their schools. I think that they should get some smart young kids fresh out college to pitch Sirius on myspace and face book and other places where kids chill.
Why can't Sirius buy banner ads on Myspace and give everyone there a promo discount on equipment in exchange for a one year subscription paid up front?
If you truly believe that Sirius should get some people who can think outside the box then tell Mel to clean house. If you think he can't do that and you are happy with the marketing direction of this company, that's fine except how do you think Mel will grow the share price "when prosperity returns?"
I like Mel and he has a proven track record in media, but the marketing department needs a swift kick...out the door
Peace and respect.
Mel has been sued in 23 States in the past 12 years. Most states Mel has been sued more than several times.
Mel settled several stock holder cases after he retired from Viacom. All the cases were failing to protect stock holder interest.
Your points are not without merit in the real world...but I think SIRI is not exactly ready for prime time at this moment (post merger until now). Meaning they are more fighting for their survial rather than all guns blazing with plenty of ad money to go around. I think once they get past this year, you will start seeing more consolidated effort to brand and expand.
As said, they have a built-in sales force at their main POP--whom they pay via revenue sharing...and which thus far has proven to be their main revenue stream. So I have to believe they are leaning on that at the moment until the smoke clears. They first have to get over this dilution/reverse hill to pay down the debt (sadly to say for us peon shareholders). But then with a better bottom line, they can focus next year on branding. I think you will see more of the things you're talking about...
In the meantime, we investors have to be smart about and on top of our wealth recovery...
And now many more words from the Sirius Sponsors…
what is your source on those suit numbers?...
What's up man...hope you're well.
I know you're still negative on the product. I don't know....I think it's got legs and can morph. First, why do you consider cars the devil? It's the primary mode of transportation in this country and always will be--albeit with waaay fewer SUV's--which doesn't suck for me since I can't see sh%t behind them in my A4. Further, cars and "radio" (even though SIRI is less radio than real radio) go together like hambuger meat and a bun..and always have. Though that market suffers now from non prescience and a downsize confusion due to a major a paradigm shift, it will rebalance eventually. And the players will rebalance with it, as will their suppliers like SIRI.
Tangent to that, I don't know many teenagers that drive but I get your point as in ipod. A teenager bopping down the street wearing a headset listening to maddog. As you say not going to happen but I don't think teens are nor ever will be SIRI's market. As far as women go, that does need to be addressed but I have to believe that target is being strategized as we speak for next year and so on. One would hope. But in all, I say, think about giving the product a little time and think about waiting until this time next year to see what's what. The company now as a bigger entity, needs to prove its vision (and if there was one). But they need a little more time than 3 months to show anything concrete. A year would be fair game to evaluate their implementation or judge their existence... Just a thought.
And so here we are...
I agree on the talent...and to PAY FOR IT without going bankrupt. That will be their trickiest issue to tackle given the current standards of pay. Going to be tough to make it all make fiscal sense (without breaking common's backs again). Your point being tied to one whale is a scary proposition as a concept but I feel like the car industry has got decent legs once they re-engineer...and like I say, regardless of schemes and subterfuge, this may not be a company that should even be public. Even though Clear Channel still has a portion public, SIRI just might be better suited as a private entity with private investors. I say that not as a bitter shareholder, but as an objective observer.
Sirius is waiting for a new liver, but past lifestyle practices place them low on the list. Chances are good that a donor won't arrive in time.
Cut costs, improve varitey, get rid of the high-price talent.
On Dec 02 02:34 PM Valuevestor wrote:
> I'll take the contrarian view. Firing Mel is the only way to bring
> about real changes to save the company. My reasons:
>
> 1. Destruction of shareholder value: The stock was at $3.94 in November
> 2007 and is now around $.20. This low value means SiriusXM could
> be delisted barring a drastic reverse split.
>
> 2. Terrible content management: Sirius and XM subcribers were promised
> simpler, cheaper and more diverse programming options. Instead, we've
> seen clumsy combinations (e.g. Sirius + Best of XM, top 50, and Best
> of Both) at higher prices. At the same time, niche content with dedicated
> listeners (e.g hip-hop, hispanic) is being watered down.
>
> 3. Static technology management: The iPod/iTunes model is effective
> because it is simple, convenient, and accessible. Aftermarket SiriusXM
> customers have to run cables through their car, place an antenna
> just right, and search for dead FM stations. Even after this is done,
> most are stuck leaving it on a fixed mount in their home or car.
>
>
> SiriusXM should have figured out how to make itself more convenient,
> flexible, and simple by now. Aftermarket tuners should be able to
> automatically identify FM stations with dead air. Portable player
> options need to drastically improve. Also, SiriusXM must find a way
> to eliminate the need to place an antenna on the roof.
>
> 4. Unimaginative handling of the revenue stream: SiriusXM relies
> almost entirely on paid subscriptions in new car sales to provide
> revenue. This is too narrow for remaining a viable business.
>
> SiriusXM needs to find ways to bundle in navigation, streaming video,
> and/or communication services on a broad scale instead of limiting
> to a few auto brands. Sell Stern, Ron & Fez, O&A on podcasts
> to mitigate the beatdown being given by iPods.
>
> Additionally, the company could consider giving hardware at deep
> discounts after signing a contract. This will help remove upfront
> cost barriers on skeptical first-time consumers.
>
> 5. Inefficient usage of already dwindling cash reserves: SiriusXM
> subscribers and shareholders were promised drastic reductions to
> operating expenses and debt burdens post-merger. Aside from a few
> token executive departures, little has been demonstrated to date.
>
>
> Massive layoffs and other cost-cutting moves are too delayed in coming.
> Quick and effective cost-cuts could come from reduction of shared
> services such as HR, Marketing, and Accounting. The company will
> simply run out of cash without drastic measures.