How Does Internet Radio Stack Up Against Satellite? 26 comments
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By Brandon Matthews
On Friday, Orbitcast released an internal company memo from Sirius XM Radio’s (SIRI) CEO Mel Karmazin, which makes clear that Sirius XM has separated itself completely from its terrestrial radio competition. Based on first quarter 2009 revenue, Sirius XM has become the largest radio company in the world, with only Clear Channel (CCO) posing a genuine competitive threat going forward. That is, of course, assuming that Clear Channel can somehow manage to avoid bankruptcy, as its lenders last week rejected a proposed debt swap, leaving the company to look for other options as the clock winds down.
With CBS Radio reporting a distant third place, it's time to take a new look at how those Internet streaming companies such as Pandora and Slacker are lining up against the Satellite Radio provider. Internet Radio does have its place, functioning more like a large CD collection or Jukebox than radio. As a true competitive threat to Satellite Radio’s exclusive content, however, the numbers just don’t add up.
Although Pandora boasts 27 million users, the company sees revenues for the full year 2009 coming in at only 40 million dollars and predicts profitability may come in 2010, although performance royalty obligations make that highly unlikely in my opinion. Slacker’s revenue is similarly unmentionable, when compared to the 2.4 BILLION dollars (and growing) in annual revenue reported by Sirius XM.
Looking ahead, the only way that these Internet Radio providers can be compared on the same level as Sirius XM will be through a change in the way they operate. Companies like Pandora and Slacker will need to take on vast amounts of new debt to grow into a truly formidable opponent. Sirius is fully funded to profitability. From this standpoint alone it would take at least 10 years of financial engineering to grow Internet Radio into a real threat to Satellite Radio’s future.
Position: Long SIRI
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On May 25 11:57 AM relmar2003 wrote:
> Hey Im not Jim Cramer. Your an idiot. You also lost all your credibility
> with me. Your back to lying. THEY ARE CURRENTLY PROFITABLE, minus
> Capex, with 15.4 million subs. SO go suck on that. GO back and read
> the Q1 report. Positive EBITA. Sorry to break it to you, they beat
> earnings last quarter, and have raised EBITA guidance. Stop coming
> on here and lying, because you keep missing the boat. Get a life,
> and move on you complainer. Your suck a wind bag. Doesnt 4 months
> straight of being wrong mean anything to you?
Bashers, get out of your mothers basement and get a life.
And bashers, no one on here takes your advice anyway. They read your comments in amusement. I have to admit all your comments bring a good laugh.
Article is alittle light on substance!! Agreed pandora and slacker will not be able to survive if they get nailed with increased royalties! 2.4 billion in revenue and climbing...sounds like the future is bright for SiriusXM!
SiriusXMlifer- Relmor does not need back up...but I cannot help myself! Since in your opinion Relmor is a donk for posting on all websites devoted to Sirius...Since this is your 3rd post on SA...and you obviously read all websites devoted to Sirius...guess you are a perverted donk...you know lurking in the shadows...peeking and not making a sound...hiding in the bushes...What a A-hole!!!
I agree that the article was more then light on substance. I am so torn, how can I give you a half a thumb up for agreeing with half of your post?
I have been reading following SA for about 8 months now!! Relmor has been posting that long and more. 500 something posts over 8+ months is really not that many! Does he attack murcifully? You bet he does...usually not without merit! He and I'm not Jim Cramer have been pounding each other for that long as well! They are not that far apart as it appears. INJC is a realist...he knows that he can make some cash playing the channels. He see's along road ahead for SiriXM...Relmor...on the other hand...Disects the numbers...and strongly believes that SiriXM is fixing to start an upward march toward $1 per share, but at the same time...buys and sells some shares for fun!!!
As to StillSirius its 500+ here and 500+ every other place I have ever read up on this stock (not to mention a conspiracy theory movie about the stock). You say that he doesn't attack without merit but, that is simply not true, the reality is that he creates fake merit by being overly emotional. Just because you yell real loud does not make you correct. There are plenty of better resources out there then relmar when it comes to SIRI.
I never attack when it isnt warrented. And with you its warrented. You use number of posts to prove your point about intent? Too childish an arguement to comment on. Doesnt even deserve a response, as it lacks logic and any meaning to the topic of credibility. Since you have taken it as a personal goal of yours to attack me, let me attack you Mr. 5 comments. Whats your other names? Floorhomo? Nooo, I know your Clueless. No worries. Your diction gave you away. I dont invest with emotion either, if I had, I wouldnt have held this stock to this day. I would have been angry and sold out and never got back in. So theres another discredited comment of yours. Do I post with emotion? Of course I do. My personality, and I wont alter it to your liking. If you dont want to read my posts dont. Put me on ignore. Unless you think my information is bad. Then debate me like a man about the issues. Dont hide behind personal attacks against my character. As you already have embarrassed yourself.
Still here, not going anywhere, and be here when your gone. Loser.
You see, being honest and truthful, doesnt always mean your right. Why I dont disappear, and change my name. Why I have 500 comments. If I make an error in judgement, I will talk about it, present what I was thinking, and debate it will like minded intelligent people(you are not included in this). Called give and take. Called trying to solve a puzzle, make some money. Thats the goal, to make money. Not to be right, or call someone out for posting too much in your opinion. What set this off? My attack to Jim , as it was even a joke between me and him, and he didnt even take it bad. He knows I was messing with him. What happens when you post a lot, you develop relationships. Trust is formed. So mr. 5 comments who have read all my posts, and seems to be stalking me over the internet, please get a different hobby, because your starting to creep me out man.