Everyone it seems believes they can run Sirius XM (NASDAQ:SIRI) better than its current management team. With that in mind, I’d like to offer up my version.
1. Enough of the special over-priced plug and play radios. The cell phone companies have known this for years. The largest obstacle to gaining new subscribers in any subscription based business is the initial equipment cost. Sirius needs to offer their radios nearly free with an extended prepaid subscription plan. I’m willing to wager that many more subscribers could be gained by providing radios at little cost to the consumer, especially in these recessionary times.
2. Get rid of the crappy advertisers. This seems like a no-brainer to me, but if an ad qualifies as spam in my e-mail, Sirius XM should reject it as well. I do not need a pill to heighten my libido. Take better advertisers and less of them if necessary. Get back to the basics of what people purchase Satellite Radio for.
3. Get Sirius XM to the workplace. Another no-brainer in my opinion. Advertise the heck out of Sirius XM and make it “The Most Listened To Radio At Work. Terrestrial radio battles within itself to get “at work” listeners, because that’s where the largest pool of radio listeners lies. It’s also how Howard Stern became Howard Stern.
4. Offer longer term OEM packages with new cars. Getting Sirius XM free for 3 months, 6 months, or even a year is great. The problem is that most of America has all their available cash tied up in a mortgage and a car payment. Having to shell out even 10 to 20 dollars a month is hard on many Americans. Having Sirius XM included in the sticker price and car payment for the life of the car loan would go a long way towards lowering churn and increasing Satellite Radio’s popularity. Could you imagine having to pay for am/fm 3 months into your new car experience?
5. Be open with wall street analysts. Time and time again, I have listened to conference calls in which analysts ask direct questions and they are avoided. Sirius XM has made a gesture to be more open following the merger, but I have yet to see it. I’m not fond of many analysts, but Mark Wienkes' single-handedly destroying SIRI stock might have been avoided with a little visibility. Analysts are not traders and as such do not like to gamble. None wants to be burned. They like things written in stone.
6. Stop under-promising and over-delivering. You are not Microsoft. Over-promise AND over-deliver should be the company’s goal each and every quarter.
7. Take time to listen to your shareholders. I’m no fan of certain opponents of the company, but I do know many of the problems these people have caused could have been completely avoided by a 15 minute personal meeting, rather than 6 months of legal proceedings.
8. Keep your listeners informed. If this lesson wasn’t learned by the recent channel change fiasco, heads need to roll. Simple ad spots or DJs can inform subscribers better than any e-mail or press release. Remember that you work for us.
