Sirius Keeps Improving Satellite Radio for Consumers and Investors Alike 18 comments
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By Brandon Matthews
As the week begins, we at Satwaves are looking forward to reporting from Sirius XM Radio’s (SIRI) holiday hardware and accessory event this Wednesday, August 26, 2009. Already the excitement is being felt around the world as news of a new dock that will convert nearly 40 million Apple (AAPL) iPhone and iPod devices into fully functioning satellite radios begins to radiate throughout the world wide web. Although the stock of Sirius XM Radio has been on a tear recently, which has investors giddy over their above average gains, the real winner is the satellite radio consumer.
Investors and analysts alike tend to focus on certain numbers with a tunnel-vision type of mentality. As an example, let us assume that the acceptance rate of those people that are first exposed to Sirius or XM through a promotional subscription stands at 50%. Investors and analysts are all too happy to completely discount the 50% that decided against the service and focus on the 50% that subscribed to either service. This is due to the fact that the revenue is, of course, generated by the subscriber rather than the non subscriber.
Sirius XM seems to have instead decided to focus on the potential consumer that did not opt for service, as it is this segment of the market that provides the feedback necessary to guide the relatively young company on improving the product in such a way as to increase the acceptance rate in the future. Most investors are aware that higher OEM penetration rates can help to offset slowdowns in new car and truck sales. Likewise, a higher acceptance rate can do the same.
In the beginning, satellite radio was a product that made its mark predominantly in cars. The focus was content exclusivity. Unfortunately, many potential subscribers do not spend enough time in a car on a daily basis to justify the expense of a satellite radio subscription, even at under .50 a day. Separate home audio and portable units made their way into the market, but in most cases the cost of hardware was too expensive for both the consumer and company itself to justify any cost of promotion.
With online offerings, Sirius and XM succeeded in adding value to the subscriber experience by allowing subscribers to listen to their favorite music, news or entertainment stream while sitting at their computers. This meant that people could now listen to Sirius XM while at work and not just in their car on the way to the office. Recently, the company began offering an app through Apple’s iTunes store, which enables subscribers to listen on the go, and the new dock for Apple devices provides a means for potential subscribers to add the satellite radio function to any car or boat at a minimal hardware cost.
New plans provide for a la carte offerings also, which means lower priced consumer options are available. All of these moves should begin to pay dividends in the subscriber acquisition rates as 2010 and a yet uncertain future economic climate loom. Investors will always have ups and downs to endure, but for the satellite radio consumer, the experience just keeps getting better. Sirius XM continues to add value by continually offering more listening options to both its subscribers, and potential consumers.
Position: Long SIRI
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What really gets me is that Sirius had 70+ music channels and XM had 70+ music channels. Now, after the merger, there are only 63 music channels, less than either company had individually. That just doesn't make sense to me.
On Aug 24 10:59 AM FunkyD wrote:
> mkat33 is my hero. I thought I was the only one who's upset over
> this hole in their programming. I understand that my musical tastes
> are not the same as everyone else's, but I don't understand the need
> for three channels of electronic beats with no room for modern jazz.
> Not to mention the awful sound quality - they promote "digital transmission"
> and the sheople think it must be better. I am still on board for
> Stern, but when he goes there's nothing else there for me that I
> can't get elsewhere.
However, after reading this article and then reading your hateful outburst including a POS reference, i would have to say that you're quite the moron.
Brandon's headline comments on Sirius just getting better and better for customers. I was an XM 5 or 6 years ago and i've now been a Sirius sub for about the last three years. Not only has Sirius expanded the number of channels and unique content offerings, but now you're able to listen online, on your iphone and soon use your iphone as a satellite receiver, getting even more stations. It's a little more expensive, but there are far more options and a much better entertainment level now than 3-5 years ago.
My guess is you are upset about a couple of things...first, you were a subscriber and they either took away a favorite channel of yours or raised the rates and for one or both of these reasons you're a little upset...boo hoo. For all that cry over a buck or two increase, go get a part-time job a McDonald's to cover it...it's still the best bargain around.
Secondly, you probably purchased gobs of Sirius stock 3 or 4 years ago and you're still ions away from breaking even and you were so pissed at Sirius that you didn't buy any over the last year.
Bottom line, if you have a difference of opinion, that's fine. Voice it...but don't say a writer is a liar and call him a Piece of Shite just because you don't agree...for that you're the biggest loser here. Happy Monday to you Mr. my opinion is KING! Haha...
On Aug 24 11:29 AM connorport wrote:
> Charles Schwab just upgraded SIRI to Outperform. Why are these upgrades
> not hitting the press releases or company headlines?
The blogs are for more sophisticated consumers, not cry babies.
Mr. Stupid
On Aug 24 10:51 AM Semprasectum wrote:
> Another pumper full of half truths and lies, by Brandon "can't use
> my real name because I'm a grifter" Matthews.
>
> You are like the boy who cried wolf. . . .someday you will post a
> truthful article an no one will believe you. You are nothing short
> of a congenital liar.
>
> SiriusXM and is pps will endure, but you are a POS.
I am sure the technology is there to make this possible, the question is would Apple go for it, due to them selling mp3s on itunes? Sirius XM went through the courts to have their devices have the ability to record songs and they pay a fee to record labels. Would that extend to iphones and ipods? If so, then apple i'm sure would want to be compensated as well because they would lose mp3 sales, but possibly gain device sales or at least get a percentage of iphone app profits. Maybe have xm pay an agreed upon percentage of profits made from apple products?.....I can't imagine how popular this device would be with this capability, even the ipod touch can always have the ability to have new fresh content "on the go" schedule your recordings attach to home dock...take it and go!!!Hmmmm...just a thought that would be big...Is something like that was announced and promoted...this is a $5.00 stock in a month....Then, compare SIRIUS XM costs to the Zunespass, Rhapsody, or any other pay service. Even compare it to the "free" Pandora and although it costs more, the utility of it is 1000% better. You won't be stuck to needing a wi-fi or 3g network to get "fresh" content..
On Aug 25 11:46 AM MIT economics wrote:
> MIT is one of the most prestigious universities in the wold; an institution
> that emphasizes academic rigor based on empiric evidence. Objective
> economic analysis and sociology are not mutually inclusive.
>
> According to my findings, there may be no force on this planet that
> can stop this bull market. DJIA 14,000 within a few years is a strong
> possibility. Keep in mind that interest rates are STILL at zero and
> the fed has given absolutely NO hint of raising them. We're going
> to have yet another housing & stock market bubble as a result,
> and no effort will be made to stop it even as it unfolds before our
> very eyes.
>
> good articles 4 slow news day: www.iamned.com
>
> The US dollar is nothing more than toilet paper to the fed. That's
> why I am recommending MA POT GOOG which benefit from a falling dollar.
>
>
> We were promised in 2008 that the mistakes Greenspan made would not
> be repeated. We were told there would be more regulation on Wall
> Street with regards to compensation and financial instruments. We
> were lied to. www.iamned.com
Most or the main stream investors (other than insiders) are avoiding SIRI like a disease. Most will NOT touch SIRI until the Rev-Split is over or off the table. So, SIRI will not go over 1.00 and will need the Rev Split to keep its NasD listing. Mel wants this split. Do not expect Mel to do anything correctly until after he gets his Rev-Split.
On Aug 24 11:29 AM connorport wrote:
> Charles Schwab just upgraded SIRI to Outperform. Why are these upgrades
> not hitting the press releases or company headlines?