Seeking Alpha
About this author:
Submit
an article to

In this guest post, Scott Spiegel shares his thoughts on the state of Sirius XM (SIRI) hardware.

One of the most exciting prospects of the Sirius XM merger was that subscribers would get the incredible service that is Sirius, combined with the far superior equipment that XM had been offering for years. This has happened, but unfortunately, in the half-year since approval was finally given, all we’ve gotten from the newly merged company is ONE interoperable device. I’m not even really sure why anyone would ever need an interoperable device, seeing that anyone can get the “best of” packages from each service.

Even beyond that, it’s disappointing that over a year ago, a friend showed me a Garmin (GRMN) GPS that he’d bought that doubled as his XM receiver. It was clunky with its menu, but it worked decently. Since then, there hasn’t been any advancement. The in-dash Kenwood (KNWCF.PK) receiver I bought last week has an iPod adapter, a USB port, a DVD player, and capabilities to receive live TV. Despite all these features, one aspect is severely lacking - the Sirius operating system is awful. It won’t pause, it doesn’t save favorite artists/songs, and the navigation of channels is not the least bit user-friendly. Of course, poor software on a Kenwood receiver isn’t necessarily the company’s fault, but with all the competition for audio entertainment out there, I find it ridiculous that Sirius XM doesn’t mandate that every piece of equipment sold, have each of the previously mentioned features, plus more.

Inside the 36th and 37th floors of the McGraw-Hill building in New York (Sirius’ NYC headquarters), the offices are filled with people with a true passion for providing the best possible radio for subscribers. Most employees are underpaid and work long hours, but they do so happily because they would give anything to see it succeed. My worry is that the longer Sirius XM goes without knock-your-socks-off equipment, the less likely employees will be able to keep up with the heavy workload. What’s the point of all the sacrifice if they begin to feel that the service is no longer superior.

A soon-to-be-released iPhone application is a small step in the right direction, but it’s nowhere near the giant leap needed to lure new customers. Gear that doesn’t cut short on the coolness factor is what will entice new people to subscribe. Sirius XM should partner with innovative companies that can integrate all of the best features into future receivers. Money should be spent on research and development of this new equipment rather than on signing C-list celebrities like Bobby Flay to program their own channels.

Scott Spiegel is a freelance writer based out of Houston, you can learn more about him at Scottyspiegel.com

Print this article with comments
Comments
36
Older > Comments 1 - 20 out of 36
You are viewing the latest 20 comments
  •  
    The things they need to do have been mentioned numerous times on articles here. Partner with Mocrosoft on a Zune/SIRI player, work out a way to stream SIRI from an XBOX while playing a game.....etc. Its not too hard to think these things up....the challenge is the R&D and marketing folks seem to be stuck in neutral. Can you imagine the audience that would be added if SIRI could be streamed through thse devices....and its a demographic they are needing to add to if they are to truly achieve the success we all hope for. Microsoft should be hot for these ideas as well....they have been running second fiddle to iPOD since the beginning and have never even come close to closing the gap, or winning iPOD users over. A move like this would benefit both companies and create alot of buzz.
    Feb 04 08:03 AM | Link | Reply
  •  
    Today should be an interesting day with the 50 DMA at .1352. Let's see if the SP can break and hold above .14. Yesterday's close at .14 really was artificial at the end of the day.
    Feb 04 08:29 AM | Link | Reply
  •  
    mlonj, you couldn't more right.

    mlongj wrote: "It really is not about the hardware, but rather about the content."
    Feb 04 09:10 AM | Link | Reply
  •  
    Does this guy EVER write anything positive. I swear....SIRI could be trading at 200...and he will be saying....ok, the market likes it..but why? Here are the things I hate about SIRI.

    We have to pray SIRI survives...because I do not know what I will do without it in my car or home.
    Feb 04 09:23 AM | Link | Reply
  •  
    Undertaker: I amy be in a tiny minority but if it came to cutting out satrad or cabletv, I'd cut cable. (If my wife and kids would let me)

    Feb 04 09:25 AM | Link | Reply
  •  
    This is a snippet from an article you wrote a while back. I responded to it saying, why do you need interoperable radios..when you can broadcast same shared content. You are short-sighted. I also told you that it does not matter HOW it reaches you (satellite, phone, internet)..it is about CONTENT...and SIRI nailed it with content.

    Here is your snippet from a while ago..different tune now.

    Even with the merger, it will be one or more years before the combined programming of XM and Sirius can be received. In the interim, consumers have stopped or slowed their buying of satellite radio services because of the surrounding uncertainty about when and at what price a receiver will be available that can receive the programming of the merged entity. This confusion has only exacerbated an already serious decline in both companies' valuations and their shareholders are the ones being victimized.

    As a consumer and shareholder, I have been asking for answers about what happened to the FCC’s interoperability mandate and the companies’ failure to comply with it. Not only have Sirius’ and XM’s executives refused to answer, the FCC has refused to address the issue of the companies’ failure to comply with its own rule or how its refusal to do so comports with its statutory obligations to protect the public’s interests in communications services.
    Feb 04 09:28 AM | Link | Reply
  •  
    Has everyone already forgoten that Audiovox is coming out with Mirge
    radio in the sping. And the I-phone app. Maybe audiovox will help
    siri / Xm with their dept. since they seem to also believe in the long term
    for siri / Xm.
    Feb 04 10:02 AM | Link | Reply
  •  
    mrfield

    You may be right, but Seeking Alpha is wrong in who Authored this article. This article was written and posted yesterday on Siriusbuzz.com a guest author, Scott Spiegal. Your rant on Tyler is understandable if he wrote the article, but he did not.
    Feb 04 10:44 AM | Link | Reply
  •  
    mrfield, Now that I think about it a little more (two seconds), I take that back. Your rant on Tyler for writing about his thoughts pre merger does not justify your name calling. There is way too much of that going around, IMO.
    Feb 04 10:48 AM | Link | Reply
  •  
    just waiting,

    Don't think anyone has forgotten.....also don't think it's nearly enough. Audiovox is good for SIRI/XM specific devices. The growth of this company needs to be tied into shared applications with existing and new equipment being developed in order to not pidgeon hole itself by forcing subs into purchasing user specific equipment just for SATRAD. In that way..they can grow the subscriber base much larger.
    Feb 04 10:49 AM | Link | Reply
  •  
    User 190103... you are probably right. You are probably in the tiny minority that would cut TV before radio. (I'm not taking a jab, ok?) I just don't think many would follow you, and it seems you are already out numbered by your wife and kids. lol

    I could suggest that you could cut them both and get a satellite TV dish and get both TV & satellite radio however. I understand you will not get all the radio channels, but, times are tough, and satellite radio is still a luxury no matter how you slice, dice or try to justify it.

    (I do understand how well you like satellite radio, however. It was cool for a while, I agree.)
    Feb 04 11:00 AM | Link | Reply
  •  
    I could not live with put SATRAD. I despise terrestrial radio. Take .33 cents a day out of the change you accumulate throughout the course of a day, stick it on the nightstand and once a month deposit it to pay for your SATRAD. What else can you get for .33 cents each day???
    Feb 04 11:11 AM | Link | Reply
  •  
    Heck of a battle here toward the 3 o clock hour. Someone seems determined as all get out to push down this SP....;..unfortunately for them...it's not really working....so far!
    Feb 04 02:40 PM | Link | Reply
  •  
    Hi, This a repeat of last two times SP reached .13-.14


    On Feb 04 02:40 PM asm610 wrote:

    > Heck of a battle here toward the 3 o clock hour. Someone seems determined
    > as all get out to push down this SP....;..unfortunately for them...it's
    > not really working....so far!
    Feb 04 02:41 PM | Link | Reply
  •  
    mogami,

    Hopefully third times the charm and it holds and we go from there!
    Feb 04 02:44 PM | Link | Reply
  •  
    Hi, I am with you there. Would love to see it push to .16 by Fridays close.


    On Feb 04 02:44 PM asm610 wrote:

    > mogami,
    >
    > Hopefully third times the charm and it holds and we go from there!
    Feb 04 02:59 PM | Link | Reply
  •  
    Cos1000.................. got your wish........... at close .141............. IYO does this continue? ..killer.
    Feb 04 04:13 PM | Link | Reply
  •  
    killer,
    There was a lot of interest all day at keeping it at .14 or lower. The volume was still light at 27M shares, but better than when it was trading at .11, mostly 15M shares/day. I like it being over .1350, but I feel it will take some good news to give buyers conviction to hold. There is a lot of small trading with small investors selling small lots, leaking the air out of any momentum. The longer we're here without news the more likely we'll go down. Any news on a good 4Q or Debt Refinancing will take these levels out quickly. Volume will be the key. Good news will have the 216M shorts buying and will not squeeze but push this stock up quickly. Its hard to call it a squeeze at these levels. Who are we kidding. We're the ones that got squeezed their just locking in profits, getting ready for their next run.......
    Feb 04 05:43 PM | Link | Reply
  •  
    Hi Cos I feel the same about the shorts. They had the shares loaned to them at much higher prices and rather then cover and deal with taxes or what ever have used the shares as a hedge. It's money in the bank and no reason to worry about SP moving up a few cents before they cover. They are no longer holding them because they hope SP will decline further. Their money is safe and they can decide to close when they choose.
    By the same token I don't think the shorts are effecting the current price (other then to have helped it get here) I mean they are not going to stop it from going up once the important details come out and are positive. They will help the price increase when they move to cover.
    Feb 04 06:20 PM | Link | Reply
  •  
    Cos1000 and mogami-99................ thanks for your insight on that. Do very much appreciate your time, advice, and help. killer.
    Feb 04 07:28 PM | Link | Reply
Viewing Comments 1-20 out of 36 Older comments >