Sirius XM: Ramp Up in Marketing of iPhone App Is a Positive Sign 58 comments
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by Brandon Matthews
Don’t look now, but Sirius XM (SIRI) is making a comeback! I can remember when I first discovered Sirius Satellite Radio. One of the very first advertisements I recall seeing was a billboard in New York City, perched above I-95 as I sat in traffic. As an investor in the company at that time, I remember feeling pleased with the investment. Advertising picked up after that on all forms of media, including television. That was 15 million subscribers ago, or six years…take your pick.
Since that time, it seems as if nearly all forms of advertising outside of Sirius XM’s subscriber base have ceased. Occasionally a report will come in that a T.V. commercial was spotted, yet none seem to follow to validate the initial report. That’s not to say a lack of apparent marketing to the 300 million plus potential subscribers in the continental United States is a bad thing. Advertising costs money. I can assure you that the company knows to the dollar the exact return it will receive on ad spending . The fact is that during these trying economic times with people cutting back on discretionary spending, it made little sense to advertise.
Things are literally “looking up,” for Sirius XM Radio. This morning “Stang302,” an astute poster on the Satwaves discussion forum posted a picture of a Sirius XM billboard that sits high atop Hollywood California today, announcing the arrival of the company’s new and most popular Apple (AAPL) iPhone & iPod touch music app. There are no doubt many such billboards throughout the country at this time.
The popularity of Apple’s products inside major cities from New York or Los Angeles is astounding. It seems as though everyone walking down the streets are doing so with those two noticeable white wires hanging from their heads. Placing these billboard ads in these highly populated areas is a great way to reach many potential subscribers at the lowest possible cost. The app is free to download and even non-subscribers can sign up for a free trial. Who in their right mind would say no to that?
The fact that these billboards exist means that the expected return on the investment is more than just nominal. It means that the program is a success for the company as it closes out the second quarter of ‘09. Further proof can be found at Apple’s iTunes store, which today boasts Sirius XM’s new app as a featured app as well as a top spot on the app store.
Position: Long SIRI
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This article has 58 comments:
The article goes on to project substantial expansion in subscribers and valuations, coming to the conclusion that the stock projects equity value .."that could be worth $8.3 billion today. After subtracting debt and accounting for warrants owned by the media mogul John Malone, that equates to about $5.9 billion of equity value, or around 93 cents a share. That leaves room for today's stock price to more than double".
All owners of SIRI stock should buy a copy of the NY Times today to review the above summary in greater detail.
Good luck to you though.
As far as Siriux/Xm is concerned, given time and the correct marketing strategy this company should flourish. However that being said, I have not seen the appropriately marketing tactics implemented. They are missing the boat on so many fronts. However that being said I was not aware of the Bill Boards, so that is a big step in the right direction.
I still need to mention two issues that need more attention, awareness of the product and an increase in more creative advertising. A lot of people still are not aware that the merger took place among other things as well. There have been other folks who have expressed this concerned in previous articles, so I will not dwell on this because it’s been covered enough. It just needs to be mentioned over and over again, so that the appropriate measures will be taken. I feel However the lack of awareness of Sirius/Xm on the iPhone 3rd G is a debacle. I stopped by the Apple store at the Freehold Raceway Mall and even the head manager was not aware of it. No advertisement in the store at all. Surely a missed opportunity.
Here' a novel idea. I live at the Jersey Shore where there is an innate opportunity to reach millions of perspective subscribers. This is due to the vast amount of beach front which lends itself in reaching out to a vast marketing area thru the use of “SKY BANNERS" that are pulled by small airplanes. These banners are pulled very slowly across the horizon along the beach front where they can be easily read. Since there is over 100 miles of beach front in Jersey alone, you are talking about reaching over a million people per day. Multiple that per week assuming that the same mix of people will view it during a week's vacation and then multiply that number by the states that have beach front in the US, this becomes a staggering number. Do the same overseas, since Sirus/XM is now global with the iPhone you have a far reaching mode of advertising for minimal costs. The costs are basically the cost to design and mass reproduce the banners and the rental costs of the planes. Flying billboards targeted for a captive audience.
I have read so many other ideas in the many Blog sites I visit, so I don't understand why they management is so limited in their marketing approach.
I suggest that Sirius/XM to listen to their stock holders ideas and maybe they will become a force in the world of entertainment. We will offer our advice for free; therefore you can create a great deal of savings by massaging our ideas and avoiding the costs of hiring advertising and marketing companies. Let our energies and synergies be a supporting asset to build their product into an unsurpassed form of listening enjoyment.
Mr. Stupid
On Jul 01 06:48 AM jmsithy wrote:
> so what you are saying is all the investors is in California? because
> there sure isnt anything more than one billboard. I live in Florida,
> cant see the advertisement from here... not even with binoculars.
> 1 billboard isnt enough to speculate that this is going to make the
> stock go up. I see advertisements on Yahoo finance for Sirius/xm
> but this has not made the stock go up at all. Sorry one billboard
> is not going to move the stock
I just checked out the article in the NY Times and it's refreshing to see the magnitude of what's to come for Sirius.
Great article.
Mr. Stupid.
I just got- an e-mail advertising a free SIRI Radio with promotional sign up for all NRA members! So they are adverstising- just in obscure ways...
Otherwise -AWESOME- SIRI is actively advertising to the Pro-gun / 2nd Amendment Rights folks like myself. Now I can toon in to oldies and listen to 38 Special whila shootin my .38 special!
For all u NRA memebers - link is below...
Limited-Time Offer for NRA Members:
Get a FREE SIRIUS Radio
with the purchase of a 6-month subscription
Thanks to the overwhelming response from NRA members, SIRIUS has extended this offer until 7/31/09!
----------------------...
nranews.org/UM/T.a...
PEACE
While I see the Sat-Rad app for the i-Phone an ingenious way to receive Sirius-XM and may be a great synergy for customers of both
satellite radio and the i-phone, I don't see that many subscribers flocking to Sirius-XM simply because if they had wanted it they would simply have gotten sat-rad from another format.
Before this you would have had to buy multiple applications (car stereo, home audio player, etc.) to get the same as you can get with your iphone that many already have. No cost out of pocket for your device for the millions that already have ipone/ipod just subscription. Now its starting to make the monthly fee worth while.
On Jul 01 11:18 AM between the hedges wrote:
> Another way of looking at it is that subs may have drifted a little
> for folks wanting the i Phone app. It's an easy way to get it in
> your car and mobile without having to pay for a car radio that doesn't
> have email contacts calendar etc that the I Phone has. Don't forget
> too its not just the IPhone. It's all smart phones as you can get
> it through the net now. Don't underestimate this. Just my humble
> opinion.
On Jul 01 11:06 AM Saurischian wrote:
> I think the i-Phone app will be another disappointment for SIRI shareholders.
>
>
> While I see the Sat-Rad app for the i-Phone an ingenious way to receive
> Sirius-XM and may be a great synergy for customers of both
> satellite radio and the i-phone, I don't see that many subscribers
> flocking to Sirius-XM simply because if they had wanted it they would
> simply have gotten sat-rad from another format.
www.google.com/url?sa=...
The other term I like to use is "Many doors, one destination". Meaning that you should be able to access Sirius XM from anywhere (Car, Iphone, Home, Airplane, While Jogging, all over the world), but end up with the same best content available anywhere.
I love the exclusive event driven content. I think if they can focus on content, they will differentiate themselves from Pandora, Slacker and the other music delivery services. Sirius needs to make simple music services, their "No Big Deal" service, and promote their exclusive content.
Subs should move up on this and Iphone Apps will also increase revenue. We are on our way to a breakout soon I feel. With debt obligations met for all of 2009-2010 there isn't any reason Siri won't be driving upwards to the tune of 4-6 a share.
Hold on to your seats. The ride has just begun.
Mr. Stupid
Have you noticed that since the merger SIRI is one of the last to provide a quarterly report? Takes time to COOK the books…
BUY A LOTTO TICKET
Mel’s prized ENRON computer is smoking today. SIRI 80 million volume before noon and no new news.
Go, Mel Go, pump that stock! See 43 cents again for Friday close.
As I said last week, borrowing more and pushing the maturities out a few years does nothing except give Mel & Co another year or two to pay themselves huge salaries -- before it all crumbles under the massive weight of the debt. good job Mel.
Just more time for Mel to get paid and thieve from stock holders. Mel has done this his entire carrier.
However, because SIRI is a holding Company for the US Government to control Satellite Radio Frequencies, it will NOT crumble. SIRI will have up’s and downs that make strong men cry. But, SIRI is too important to let die.
SIRI is due an increase before Malone cashes in for that massive 40 percent saturation. I would love to see $1.00 by Aug and $2.00 by January. However, I see Mel’s prized ENRON computers will be pumping and dumping overtime.
Insiders will make millions on SIRI. The “Unwashed” will always be a victim of Mel.
I just find it so sad how many people are fooled and so in love with this stock. Seems to me people just believe what they need to believe.
On Jul 01 02:03 PM jswede wrote:
> what do you know? - Mel gives himself a $250k/yr raise for a job
> well done. I was wondering what the extra $150mil they borrowed was
> going to.
>
> As I said last week, borrowing more and pushing the maturities out
> a few years does nothing except give Mel & Co another year or
> two to pay themselves huge salaries -- before it all crumbles under
> the massive weight of the debt. good job Mel.
Mel can now buy 120,000,000 shares at a locked in price of 43 cents. He can do the "AT ANY TIME" no matter the current trade value/price. So, if in January SIRI is 5.00, Mel can buy it for 43 cents.
Next time you hear "Oh, but Mel owns stock and also loses", remember how he gets paid.
------------
(iii) provides for the grant of an option to purchase 120,000,000 shares of our common stock, at an exercise price of $0.430 per share (the closing price of our common stock on June 30, 2009) (the "Option").
THAT EXTRA BOND MONEY JUST GOT SPENT!!!
READ IT TWICE. DO NOT ASK ME FOR PROOF NEXT WEEK
The link is here …
biz.yahoo.com/e/090701...
Maybe I should yell my lungs out... Up SIRI UP!!!
Mel's pay raise and GRANT OPTION LOCK of 43 cents is just outrageous. His mistakes (yah right) bring SIRI to near bankrupt and he gets a raise for doing it. He screws the Ipod App release contracts for Stern and Sports and he gets a raise. LOL...
When will you people see the truth of this gangster Mel?
On Jul 01 03:44 PM jmsithy wrote:
> do you notice as Siri stocks goes up Siri-doom gets louder and more
> posts
frankly this is the best news -i havent read anywhere
I do NOT see Mel as being “inline with Stock Holders”. Mel’s own words refer the stock holders as the "Unwashed". The stock holder is just Mel’s piggy bank to be used and abused.
Funny how the stock goes up just as news hit about Mel’s raise. SIRI does not usually bounce in the mid day. Wow, them ENRON computer sure are cool…
Believe what you NEED to believe.
On Jul 01 03:54 PM R A F wrote:
> Bottom Line: Mel's interests are clearly aligned with current stockholders,
> as he only makes money on an option price of .43 if the stock appreciates
> substantially from present levels. Without reading all of the legalities
> involved in the extension of Mel's employment agreement through yearend
> 2012, presumably all of this suggests Mel is aboard because he sees
> great potential in SIRI going forward.
Avg Vol (3m): 57,729,400
Looks like Mel may have taken some of his option.
Maybe SIRI will go up. But, I have been burned time and time again in SIRI. With a rev-split possible and Malone looming 40 percent saturation. I do not trust this action.
Does anyone know what caused this volume today?
Long Siri
Mr. Stupid
On Jul 01 01:53 PM SIRI-Doom wrote:
> Quarterly Report?
>
> Have you noticed that since the merger SIRI is one of the last to
> provide a quarterly report? Takes time to COOK the books…
>
> BUY A LOTTO TICKET
>
> Mel’s prized ENRON computer is smoking today. SIRI 80 million volume
> before noon and no new news.
>
> Go, Mel Go, pump that stock! See 43 cents again for Friday close.
Company is in turtle race and they raised his pay.. what a joke!
Today it had a full SIRIUS wraparound cover - a separate sheet that was front and back, then fully inside part! Tag lines:
Now playing on your iPhone & iPod touch.
Everything worth listening to is now on SIRIUS (the dog image) ((XM))
Free 7-Day SIRIUS|XM Trial
FREE application Download now at siriusxm/app
Big image of iPhone with SIRIUS/XM label alongside.
Ton of listings of all kinds on back and in a double page inside spread.
Course paper only gave 2 stars to Public Enemies from their inhouse critic Nina Hochberg. NY Times gave it a rave, esp to Depp & Mann.
Shot in high def and really NYT bubbled over about it.
1.5M a year is not raking in the big bucks as you describe. Almost every CEO in this country...work ungodly hours per week...if it were 15M per year...I would agree with you...but 1.5M is small potatoes in today's market! As far as stock options go...standard procedure for ALL corporations in this country...Mel has worked for peanuts for the last 5 years...now when the stock finally rebounds...he will finally get what he deserves. When the stock reaches $5 as you say...Mel is a very rich man...but if you bought stock yesterday...you could have joined him.
Trust me...I not happy with how the merger went down...you might be right...we probably were played like a fiddle...bottom line...I did not sell...and I will recoup my losses and them some because I new that SiriusXM would not go BK and I had the balls to cont to buy all the way down to .12(no powder at .05 or would have avg down some more).
If you had any balls, you would have been buying all way down as well...and you my friend would be a very wealthy man in the near future...but alas...mel and co neutered you and now you are just bitter and angry.
I believe that you have stated on several occasions...you know for a fact that Mel had better offers for Loans...then you should also have known...BK was absolutely out of the question.
I do believe it is time for you to move along...take your balls an(forgot...you don't have any)...just walk away with what LITTLE you have left.
common man...huge salaries...time for a reality check...1.5M is chicken feed for a CEO...especially one that runs a monoply and generates 2.4B in revenue per year...The stock options...is the boards way of paying an employee who is way UNDERPAID. Granted 120M shares is significant...however.... also did return a sizeable number of stock options to the company.
If this is not a buy signal...I don't know what is. If you really think that they will not survive past 2010-2011 you are as clueless as siri-doom. John Malone knows exactly what he bought into...No F...in
way they fail!
Time for you to run along...Your BS is getting old
On Jul 01 02:03 PM jswede wrote:
> what do you know? - Mel gives himself a $250k/yr raise for a job
> well done. I was wondering what the extra $150mil they borrowed was
> going to.
>
> As I said last week, borrowing more and pushing the maturities out
> a few years does nothing except give Mel & Co another year or
> two to pay themselves huge salaries -- before it all crumbles under
> the massive weight of the debt. good job Mel.
I have to tell you, as both a Sirius subscriber and shareholder, I'm starting to lose my faith in Mel K. The whole Sirius and XM seperate packages/marketing seems disjointed and confusing. There doesn't seem to be a long term strategy in place. They should have just shut down XM totally, simplify the packages, consolidate the marketing into one message. As it stands right now it's just confusing and expensive. Who do want to be Mel? Are you Sirius or XM? What are you going to do when howard's contract is up in a year and he retires? Do you want to charge by the content or by the way the content is delivered? Many questions and not a lot of answers
mr. stupid
On Jul 01 01:53 PM SIRI-Doom wrote:
> Quarterly Report?
>
> Have you noticed that since the merger SIRI is one of the last to
> provide a quarterly report? Takes time to COOK the books…
>
> BUY A LOTTO TICKET
>
> Mel’s prized ENRON computer is smoking today. SIRI 80 million volume
> before noon and no new news.
>
> Go, Mel Go, pump that stock! See 43 cents again for Friday close.
Mr. Stupid
On Jul 01 05:27 PM elcopone wrote:
> Honestly, I think the iPhone App is very disappointing. A simple
> read of the iTunes Reviews will let you know just how their loyal
> fan base feels about this App. With no Howard and an extra 2.99 cost
> you have to question the pricing strategy. He's essentially nickle
> and diming his most loyal cusrtomers to death. It would be a better
> strategy to charge one price regardless of how you listen, so that
> you can attract more subscribers. The App would then be just yet
> another selling point.
>
> I have to tell you, as both a Sirius subscriber and shareholder,
> I'm starting to lose my faith in Mel K. The whole Sirius and XM seperate
> packages/marketing seems disjointed and confusing. There doesn't
> seem to be a long term strategy in place. They should have just shut
> down XM totally, simplify the packages, consolidate the marketing
> into one message. As it stands right now it's just confusing and
> expensive. Who do want to be Mel? Are you Sirius or XM? What are
> you going to do when howard's contract is up in a year and he retires?
> Do you want to charge by the content or by the way the content is
> delivered? Many questions and not a lot of answers
Really, I shouldn't even respond to such nonsense but I just received a telemarketing call and had to vent.
Mr. Stupid
On Jul 01 05:09 PM peshu wrote:
> What the hell they raised Mel's Salary and contract.. that moth**
> F***** is not good for shareholders...
>
> Company is in turtle race and they raised his pay.. what a joke!
Get out of trading before you lose everything. You don't have the sophistication or know how to be a player here.
Mr. Stupid
On Jul 01 02:03 PM jswede wrote:
> what do you know? - Mel gives himself a $250k/yr raise for a job
> well done. I was wondering what the extra $150mil they borrowed was
> going to.
>
> good job Mel.
If you study the App store, you would know that most Apps are downloaded and then minutes later deleted. The true test of an App's popularity is it's ratings and reviews. The Siri App currently sports a 2 (out of 5 stars) rating based on over 30,000 reviews. By comparison, an App titled the The Moron Test even managed to get 3 stars. If you read those reviews you see they are filled with angry Siri subscribers who are very upset with lack of content available (no Howard, MLB, to name a few) and the added charge. $2.99 may not be a lot to you but to some people it is and on top of that, it's the principal of trying to nickle and dime already loyal subscribers.
Oh, and contracts get amended all day long in the business world. So don't blame contracts for the disjointed, inefficient, and flawed marketing and pricing strategy.
On Jul 01 05:37 PM between the hedges wrote:
> Good point Mr. Stupid. If this guy is so poor that he can't pay 2.99
> per mo, do we want to listen to his points on stocks?
Well, I am long to the point of 165,000 shares now avged down to 2.14.
You see, I am an old PRE MERGER LONG.
My shirt is missing. I need 2.14 per share just to break even. I have been holding, selling and re-buying since the merger. Yah, SIRI should be 7.00 min but it is not and I know why.
Who said I have no balls? I am still in this crap. In the face of my LONG disaster I have balls to spread the word about what I have been through. I am one of thousands that have been screwed by Mel and GS. But, I have balls enough to stay in the game and tell the story.
Crow is good when I make my money back. I will and hope all that Mel screwed eventually make the money back. But, we need justice for the crime and manipulation that got us all screwed in the first place.
CEOs make big money. THE POINT OF THE RAISE IS BAD! Mel is being rewarded for screwing up and screwing stock holders endlessly. A raise for Mel is bad even if the stock value rises.
We all have a point of view. I am not arguing with anyone. I just state the facts as I see them. I don’t care if anyone doubts that I am long or thinks that I short SIRI. All that is important is that I try to tell people what I wish I had known before I got into this mess.
If you play in Mel’s sand box, you could get buried with the old pre-merger longs like me…
Some ugly person is guaranteed to answer this post with,
“Hahah Sorry you lost you butt”. Nice people
Ha ha, kinda funny actually,
Mr. Stupid
On Jul 01 05:54 PM elcopone wrote:
> Mr. Stupid and between, keep drinking your own kool aid and for a
> second try and look at this objectively.
>
> If you study the App store, you would know that most Apps are downloaded
> and then minutes later deleted. The true test of an App's popularity
> is it's ratings and reviews. The Siri App currently sports a 2 (out
> of 5 stars) rating based on over 30,000 reviews. By comparison, an
> App titled the The Moron Test even managed to get 3 stars. If you
> read those reviews you see they are filled with angry Siri subscribers
> who are very upset with lack of content available (no Howard, MLB,
> to name a few) and the added charge. $2.99 may not be a lot to you
> but to some people it is and on top of that, it's the principal of
> trying to nickle and dime already loyal subscribers.
>
> Oh, and contracts get amended all day long in the business world.
> So don't blame contracts for the disjointed, inefficient, and flawed
> marketing and pricing strategy.
Now that really is funny. If we could find all Mel’s hidden accounts you would know that his deals with GS have turned multi millions.
Did anyone see the report from UBS bank tax evasion settlement? Guess who is on the list of 56,000 americans hiding from taxes… Lots of CEO’s on that list… Hehehehh….
The only raise Mel should get is 150. Yep, Mel should get 150 years in a cell next to Maddoff.
Sell sell sell.. Mel needs you... LOL
On Jul 01 08:55 PM relmar2003 wrote:
> Siri-Domom, why are so so wrong all the time? O thats right, because
> its your job to be. Thats right.
> Not one dollar will exchange hands from SiriusXM to Mel on the option
> plan, which cant be initiated (first of 4 lots) until dec of 2010.
> Option price of .43 is the break even price for Mel. Anything under
> that, and the options have no value. Shares for this are already
> ALLOTTED FOR THIS PLAN. None dilusive unless Mel initates the options
> in 1.5 years from now, (30 million at a time, maximum), and then
> were to sell the shares on the open market. So it would be maximum
> negative effect is a 30 million share dilusion.
What a nut.... hehehhehehheheh LOL
LOL Relmar2003 wants you to believe that employee stock option is the same as options trading....
Employee stock option is NOT the same as options trading.
You have confirmed my opinion of you. No doubt you must work for Mel.... heheheheh LOL
You are so full of BS...NO ONE HAS SEEN THE UBS settlement report if there even is one...UBS has refused to name names. What a f...in DH.
You cont to spew BS without even one ounce of truth to what you write. You should be held liable for all of the slanderous statements that you cont to make about Mel. You a friggin pansy...hiding behind your computer monitor.
Give us 1 fact...just 1 that pertains to anything that you vomit onto these blogs...just 1 thats all we ask.
You cannot do it. You are full of s$%^!