Next Leg of Growth for Sirius XM 50 comments
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These days it seems, Sirius XM (SIRI) investors are so busy working out conspiracy theories that they tend to miss actual news when it's leaked by the company. In a recent article titled "Looking Back At What's To Come," I had embedded a CNBC interview between Maria Bartiromo and Greg Maffei in which the question was asked;
"Thinking outside the box..., where does the next leg of growth come for this business?"
One of the answers given by Mr. Maffei seems to have been overlooked, but it is imperative that we revisit it at this time.
"The fact that you could have a certain amount of Satellite Radio which was free and available to all, not necessarily premium."
Finally! Speculation regarding a new chip patent that was approved 1 year ago, had made the claim that Satellite Radio could be broadcast as a subscriber based service with the added functionality of being able to provide a free ad supported format. This is actually the first time the company has spoken of it, as previously it had only been rumor and supposition on the part of blog posters.
With nearly as many inactive satellite radios on the market as there are subscribed radios, it appears that Sirius XM has found a solution going forward. Mr. Maffei defined the potential as "a certain amount" which begs the question of just how many receivers this entails. More likely than not, millions of radios have likely integrated this chip, even prior to its patent approval which had been filed on November 20, 2003!
I would surmise that the integration of this technology has already made its way into most of Sirius XM's proprietary portable receivers. It can take up to 5 years however to integrate new technologies into the OEM sector. That's not to say they aren't there in like numbers, just that it is less likely to have penetrated as deeply.
With nearly as many unsubscribed radios as subscribed in existence, the opportunity for growth through national advertising is certainly a positive. Upgrades to the subscriber based service are more likely as the ad supported format is likely to contain less content than the subscribed service.
Disclosure: Long SIRI
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O well..
oh yah, and if the FCC allowed iphones to broadcast the service: amazing!
can you imagine how many people with the buds would be up to having THEIR music available, at any time and at any place?
Lastly, as I see it, while SIRI is figuring things out, Liberty Mutual offers limited risk protection.
On Apr 27 02:21 PM dead elvis wrote:
> Hey Bcharger guy-You are obviously not very old-
> Marconi- people will never listen to the radio-they will have to
> buy one forget it- anyway we have telegraph who needs it?
> Edison-gas is better then electric- you just wait and see
> Sputnick?Damn those Russians- what do we need satellites for?
> Keflex instead of Penicillin -you sure doc?
> Colored TV- Heck no-It gives off too much radiation-
> Microwave my food? Never catch on
> Laparoscopy instead of open gall bladders-no way
> No one will ever use cell phones! Only the rich.
> Cable -why should I pay when I get it for free............
> and on and on
> Whats with you- Go call someone on network TV who gives a damn of
> your non progressive thinking- with your rotary phone-but better
> hurry your rabitt ears wont work on your black and white after June
> 12,2009.
Its a shame you went through so much thought and time only to look stupid. You imply that satellite radio is some sort of cutting edge new product.and that people that think it is stupid are backward thinking clowns (with a dozen MADE UP STUPID ANALOGYS) Christ! I am embarrassed for you. Its (Satellite radio)idea is ten years old and its technology has been eclipsed.
Reale people have spoken. THEY DONT WANT IT.
My age has nothing to do with your lame made up examples.
Unlike your LAME imginary quotes here is a FACT:
MORE PEOPLE WEAR DIAPERS THAN SUBSCRIBE TO SATELLITE RADIO.
There are too many choices out there besides Sat Radio. Many are cheaper and some are free.
In saying that the subscribers for Siri are loyal and their loyal for a reason. Siri XM is here to stay
Once Stern's contract is worked out to more realistic terms then all that extra money can be put to better use.
Billy Bob
If not leave your personal opinion to yourself.
Sat radio works based on content, not based that it is similar to terrestrial radio, you have some serious misconceptions.
Once the total debt is payed which will be in under 2 years, there is a network that will just make cash instead of burning cash. There will be cash left over to improve the network and info structure.
Satellite Radio improves and strengthens the record industry which has been decaying from leeches such as FM/AM terrestrial radio and down loaders of MP3 players.
Satellite radio brings new fresh content, not rhetorical, repetitive content like terrestrial. Huge problems that have happened with terrestrial radio is that terrestrial radio does not care about it's listeners. Listeners do not want to hear the same hit song that came out 5 months ago every hour, along with 15 to 20 commercials.
Listeners all though becoming consumers to satellite radio at least are offered options at extremely affordable pricing, and an enormous genre of music and talk show content.
Unless your opinion can stick to the article topic your just some annoying sat radio HATER.
Your opinion is so narrow minded as most of your comments are based on Howard Stern, if you hate Howard so much, you can atleast embrace more of your feminine side and listen to Oprah, or Martha.
On Apr 27 07:53 AM BChargers wrote:
> PEOPLE DON'T WANT IT
> Its as simple as that.
> " Commercial free music will make us all rich"
> " Lets add commercials, we'll all get rich"
> "Why just listen to free radio when you can pay money to listen to
> free radio"
> " Lets give away radios and give away service. That will make us
> rich"
> " Lets pay Howard Stern $500,000,000.00 to LOOK at skanks
> ON THE RADIO and charge people to LISTEN to him LOOK at them. That
> will make us rich"
BC, I can understand your negativity as you have lost money if you sold your shares. However, there is still time to make a bundle on this little technology. The times began a changin' with the arrival of Liberty, and it will only get better going forward. The idea to turn on all the inactive radios couldn't hurt anything, and it just might encourage some who have not been exposed to SatRad to sign up. If they do not do this no new subs will be the result. However, if they do this and increase only 1 sub, it would be worth the effort. Certainly, it could not hurt. This is just one of many ideas that will come to fruition with the guiding hand of Liberty to oversee what Mel and company are doing. This should be welcome news to all those that bash Mel and management as they now have a very serious overseer. Really, there has been no significant news since the life line was thrown in February. Just wait until the engines really start to race as the possibilities are unlimited. Liberty knows this, SiriusXM knows this, and I know this.
Thanks for the great article Brandon!
Long SiriusXM
Billy Bob
I'm still confused on this and I thought this was such a bad bad business decision that still haunts Siri XM today.
Billy Bob
On Apr 27 08:23 PM wholesalecd wrote:
> One thing that still boggles my mind. Howard Stern was basically
> expelled from Terrestrial Radio if I remember right. Why did Siri
> offer him such a large contract when they didn't need to. He was
> out of a job and where else did he have to go?
>
> I'm still confused on this and I thought this was such a bad bad
> business decision that still haunts Siri XM today.
>
> Billy Bob
Ok let's tackle them
- What "total debt" is going to be paid in two years? The Liberty debt? certainly not the total company debt.
- the "record industry"s decline has nothing to do with terrestrial radio or sat radio either for that matter, but has a great deal to do with being slow to embrace technological change or to fight over formats to the last breath, and from large debt loads from being acquired by larger conglomerates in many cases.
- actually very little of the music on sat rad is new , and the music channels are driven exactly by repetitive old content, because that's who the subscribers want to hear. Satrad's under age 25 subscribers are negligible
- I agree that sat rad's pricing is affordable to subscribers, however what it is not is profitable to the company.
Whew I feel so much better now!
I actually became a subscriber of satellite radio because of its newer fresher content. Being a DJ hobbiest and playing venues, I can guarantee you that the content on octane, hip hop nation and shady 45 has the newest up to date content, anything else geared towards it's genre is older music on other channels. I live in the sanfrancisco bay area and I can tell you all the FM stations are garbage and repetitive with old content,as well are endless loud and obnoxious commercials. Some of most of you don't listen to gangster rap/hip hop, or new rock, like I do so I can see how you think most of the content is old and not fresh.
How can you beat the fact that its uncensored content too sat radio is great, freedom of speech, and uncensored just the way people should like it.
As far as debt payed technically the conglomerate(sirius/xm) owes roughly 1 billion a year and owes roughly 3.4 billion total even with the extension of liberties loan. So yeah maybe I was off a bit, but cash positive isn't to far off and regardless of debt depening on performance can be payed in roughly 2 to maybe 3 years by 2012 at the latest.
On Apr 27 11:56 PM I'm Not Jim Cramer wrote:
> Big vinnie: wow, to be wrong on so many points! LOL
> Ok let's tackle them
> - What "total debt" is going to be paid in two years? The Liberty
> debt? certainly not the total company debt.
> - the "record industry"s decline has nothing to do with terrestrial
> radio or sat radio either for that matter, but has a great deal to
> do with being slow to embrace technological change or to fight over
> formats to the last breath, and from large debt loads from being
> acquired by larger conglomerates in many cases.
> - actually very little of the music on sat rad is new , and the music
> channels are driven exactly by repetitive old content, because that's
> who the subscribers want to hear. Satrad's under age 25 subscribers
> are negligible
> - I agree that sat rad's pricing is affordable to subscribers, however
> what it is not is profitable to the company.
>
> Whew I feel so much better now!
Diapers vs Subscriptions as you suggest?
Im not into your perianal care
So Ill ask again- if people dont want satellite radio
what do they want-?
On Apr 27 02:53 PM BerkeleyBob wrote:
> I sold my position in SIRI long ago. I continue to subscribe because
> I am willing to pay for good programming with no commercials. The
> FCC's handling of the merger bordered on the criminal. Love the product,
> wouldn't touch the stock. It is not at all clear that SIRI will survive,
> given debt load, ailing auto manufacturing, etc. It is interesting
> how much vitriol and comment the company attracts. Perhaps streaming
> internet in auto may replace the satellite delivery model.
Man give it up. Youve been wrong for 3 straight months now. Just stop it. Your embarrassing yourself. Just buy some shares, In my very humble opinion, sit back, and enjoy the ride. No one wants to hear you whine anymore anyway. You bring up old stale points, that are being proven wrong time and time again, some while we speak.
On Apr 27 08:53 PM tech man wrote:
> Bcharger, i can tell be your babblings that you are shorting the
> stock or you work for the NAB. in any case, you will do us all a
> favor to just move along, it is not working. i love satallite radio,and
> have a few shares. i will not give up either just because of your
> babblings. especially the fact that you do not know what the heck
> you are talking about. if you don't know the facts please just shut
> up. your babbling is old and fruitless. short the stock and shut
> up, because in a little while you will be able to short it. the price
> will go up mr man. just you wait and see. unlike you, i do my research.
> t.m.