Sirius XM: Not Completely Out of the Woods Yet

Shares of Sirius XM (SIRI) satellite radio responded positively to news that losses narrowed and revenues increased during the third quarter of 2009. Aside from one time charges, the company reported cash flow break even.

While I am confident in the ability of Sirius XM to continue demonstrating growth, we can't ignore the fact that the cash for clunkers program, which gave a boost to the auto industry in the third quarter, also gave a boost to Sirius XM. Satellite radio is not entirely dependent on the auto industry for survival, but it's safe to say that it is significantly dependent on the industry. Let's face it, Americans are lazy and they're more apt to buy SatRad if it's already installed in a new car rather than purchasing a radio on line that they have to install and activate themselves.

If the auto recovery remains strong, then so will the SatRad recovery, in my opinion; although I believe that the more consumers are exposed to the service, the more they'll be apt to purchase portable SatRad devices such as the Sirius Stiletto.

There's nothing like being able to listen to your favorite football team anytime and anywhere - even if wifey has you out watching a concert in the park.

However, SIRI is not completely out of the woods yet; SatRad is a luxury item and if the auto industry falls into another rut and/or the unemployment rate continues to rise, then the rise of SiriusXM will also be put on hold.

That being said - barring a market setback - I still see SIRI inching up towards the one dollar mark, with some periods of consolidation along the way.

Disclosure: VFC is long SIRI.

Comments

[R A F:]

The business model of Sirius XM is extremely powerful and this company will turn out to be a steamroller in coming years. The model is based upon the combination of superb, unique, proprietary content (music, news, sports, comedy, talk radio, etc.) coupled with innovative and proprietary delivery mechanisms (satellite, wireless/internet) that are way ahead of any alternatives - enabling seamless audio of the highest quality anywhere one travels. Terrestrial radio simply cannot compete with this over time, as content is too limited and broadcast quality is spotty, at best. If one wants to see the power of the business model noted above (combination of proprietary content and delivery) - look no further than BLOOMBERG - which employed this strategy to drive growth from inception of the company in the '80's to absolute dominance of the industry today.

The Sirius XM model also relies most heavily on another combination that is highly favorable for expansive growth into the future: Greatly expanding platforms for penetration - autos, handheld wireless devices and apps (smartphones, etc.) coupled with a low cost product marketed via free trials that ultimately result in paid subscriptions on a high percentage basis. This combination is explosive over time - as Mel Karmazin has mentioned that roughly 50% of auto trials go on to become paid subscriptions. The very low cost of Sirius XM subscription is highly attractive relative to the value satellite radio provides, as truly seen in the very high rate of retention following trial periods. I have personally been involved with businesses dependant upon trials leading to subscriptions - and anything beyond 25% retention is sensational and an absolute guarantee of business success.

Sirius XM is in the early stages of a remarkable turnaround and yesterday's 3rd Qtr. release of earnings and guidance provided an early verification of all the positives mentioned above. The 4th Qtr. release in February should further reinforce all of these projections. SIRI is now trading from technical strength and the stock should remain buoyant and resilient over the near term - containing each normal trading pullback with solid underlying support and then resuming further gradual testing. As this process continues - and the positive fundamentals outlined above are more widely recognized - analyst upgrades should be anticipated into the future, bringing in more widespread institutional involvement.

Nov 06 07:21 AM

[IBuriedtheU...:]

Thank you for being honest to admit that Sirius XM is a luxury... and that means it is not going to be integrated across the range of all classes... and that means growth is limited.

I don't mean that in a bad way......... just a realistic way of thinking way.

Nov 06 07:29 AM

[ScroogeMcduck:]

What if SIRI partnerd up with Garmin or came out with a GPS/ radio?

Nov 06 08:28 AM

[JPearce:]

If we could get the economy back on track.Sirus XM would be a win-win for us Long Siri holders. You are right Sirius XM is a luxury not a necessity especially in this uncertain economy. I think in a robust economy with the new technologies evolving such as skydock,iphone apps to convert phones to satellite radio's & and then television receivers. I would warrant a buy out by Malone & Company. Sirius XM & Malones Cable television network together would be an unbeatable combination. No reverse split. I thank Mel & crew for reducing cost and renegotiating lower interest loans.

Nov 06 08:30 AM

[Jerrold Wil...:]

I think you are taking his use of the word "luxury" too literal. To say that is not going to be integrated across the range of classes is a fallacy. A Jaguar, Bentley, Rolls Royce are luxuries in that only the upper class can afford them. Satellite radio can be called a luxury because it is a purchase purely for enjoyment, not a necessity for living. Hence, Cigarettes, Alcohol, mp3 players, music, movies, donuts, coffee, name brand clothes are all "luxuries" Do only the upper class purchase those things? No, all classes purchase "luxury" items. It depends on how literal you take the word luxury. Cable tv /satellite tv are luxuries...Drive by the poorest project or home and I bet you see people with these "luxuries", satelite dishes hanging from project windows are every where... Going to the movies, eating out, are all luxuries....All classes do them....$15.00 A month luxury is not out of the reach of any "class". A Mercedes Benz is a luxury not for all classes...not $15.00 a month for entertainment....Are there any movie theaters in poor neigborhoods? Or just for upper class..No, probably more lower class go to movies than rich.....how much are 2 adult movie tickets these days?...compare to a month of SIRIUS XM service.....they are both "luxuries"...Now, of course on an individual basis...some may not be able to afford...Just like some cant afford many things and choose to do with out....Ipod's are luxury also.....have they "integrated" with all classes? So your thinking isn't realistic, just based on a fallacy of your definition of "luxury"...


On Nov 06 07:29 AM IBuriedtheUndertaker wrote:

> Thank you for being honest to admit that Sirius XM is a luxury...
> and that means it is not going to be integrated across the range
> of all classes... and that means growth is limited.
>
> I don't mean that in a bad way......... just a realistic way of thinking
> way.

Nov 06 08:53 AM

[JPearce:]

Scrooge
I agree with you. Television & Radio satellite on Iphones,Blackberry, Garmin GPS navigational systems. There are a lot of avenues for Sirius Xm to go.


On Nov 06 08:28 AM ScroogeMcduck wrote:

> What if SIRI partnerd up with Garmin or came out with a GPS/ radio?

Nov 06 08:58 AM

[JamesRobert...:]

Exactly. I can't remember ever walking into a home, of any value, that didn't have cable or satellite TV, for example. Holy moly, most people spend more on pizza in one month than the cost of a satellite radio subscription.

It's a matter of advertising and packaging, not cost.

On Nov 06 08:53 AM Jerrold Williams wrote:

> I think you are taking his use of the word "luxury" too literal.
> To say that is not going to be integrated across the range of classes
> is a fallacy. A Jaguar, Bentley, Rolls Royce are luxuries in that
> only the upper class can afford them. Satellite radio can be called
> a luxury because it is a purchase purely for enjoyment, not a necessity
> for living. Hence, Cigarettes, Alcohol, mp3 players, music, movies,
> donuts, coffee, name brand clothes are all "luxuries" Do only the
> upper class purchase those things? No, all classes purchase "luxury"
> items. It depends on how literal you take the word luxury. Cable
> tv /satellite tv are luxuries...Drive by the poorest project or home
> and I bet you see people with these "luxuries", satelite dishes hanging
> from project windows are every where... Going to the movies, eating
> out, are all luxuries....All classes do them....$15.00 A month luxury
> is not out of the reach of any "class". A Mercedes Benz is a luxury
> not for all classes...not $15.00 a month for entertainment....Are
> there any movie theaters in poor neigborhoods? Or just for upper
> class..No, probably more lower class go to movies than rich.....how
> much are 2 adult movie tickets these days?...compare to a month of
> SIRIUS XM service.....they are both "luxuries"...Now, of course on
> an individual basis...some may not be able to afford...Just like
> some cant afford many things and choose to do with out....Ipod's
> are luxury also.....have they "integrated" with all classes? So your
> thinking isn't realistic, just based on a fallacy of your definition
> of "luxury"...

Nov 06 09:03 AM

[Jerrold Wil...:]

I think it will be a poor idea to partner with Garmin or any GPS maker. In my opinion, stand alone GPS devices are on their death beds. I have used GPS since 2002 or so....They are great....However, now that most cell phones have them integrated...stand alone GPS devices are excess baggage. I do believe SIRIUS XM needs to open up their technology so any cell phone company can make a dock or application to get their service. My view of the near future is an all in one device, satelite, gps, voice, all from one device. The skydock is close, I'm not sure if you can run GPS, satelite and voice at the same time. That would be cool...for example, satelite radio volume is lowered during a call, if answered,.....GPS voice for turns , interupts satelite for a second to announce next turn, automatically lowers sound to voice turn..then radio is back to normal volume until next turn alert....I am sure the next generation of docks will be able to do this....We are pretty close to laptops being the size of an ipod touch....good things are coming! I havent used the SKYDOCK...if I am wrong and the SKYDOCK can do these things already...someone please advise....


On Nov 06 08:58 AM JPearce wrote:

> Scrooge
> I agree with you. Television & Radio satellite on Iphones,Blackberry,
> Garmin GPS navigational systems. There are a lot of avenues for Sirius
> Xm to go.

Nov 06 09:41 AM

[Jerrold Wil...:]

Robert....9 days till the ADVERTISING Campaign starts! I sure hope they swing for the fences..and SIRIUS XM commercials are everywhere so people know it exists, and all the great programming that is on it.....Nov 15, is hopefully when this technology starts to become a household name....They need to show how they are different than "free" Pandora, regular radio, and peoples music library of songs...Now, to get a unit in your car is as little as $65.00 and easy to install....People practically will get the device for free witha 1 or 2 year commitment...


On Nov 06 09:03 AM JamesRobertDobbs wrote:

> Exactly. I can't remember ever walking into a home, of any value,
> that didn't have cable or satellite TV, for example. Holy moly, most
> people spend more on pizza in one month than the cost of a satellite
> radio subscription.
>
> It's a matter of advertising and packaging, not cost.
>
> On Nov 06 08:53 AM Jerrold Williams wrote:

Nov 06 09:48 AM

[marton:]

All you have to do is purchase a radio,pay 399.00,an you never make a payment again,you may also transfer to another radio if you change cars,an that is a charge of 75.00 per transfer up too three times,to me personally thats the way to go,in fact my three subs are all payed for,just thought I'd let folks know there is a great way to enjoy your sub for yrs down the road.Hope you take advantige of this offer,If your thinking of getting a sat. radio.

Nov 06 10:10 AM

[dead elvis:]

SatRad is a luxury item ?? to quote you Hmmmmmm.

If you are referring to that which is unnecessary as "luxury" - perhaps one can make the statement for all of the peripherals mentioned above including cell phone texting for non business use and useless articles written on a luxurious computer.

What?-Your thinking is quite dated - I suppose that once something becomes mainstream like a microwave, it is no longer a luxury but a necessary item (to heat up popcorn and baked potatoes.) How about a porcelain fountain

Baked is this article- Mel is at the edge of the woods friend, there is no cliff (except in your mind)- just green pastures ahead

Steakhouse boy-What about that BMI you carry per your photo? 100,000 deaths attributed to morbid obesity last year alone= Over eating and drinking a luxury?

Nov 06 10:13 AM

[CGP:]

Luxury is about perception - something you want but don't need, especially if there is a cheaper alternative (not necessarily equivalent, i.e. free OTA radio or internet radio). Let's call SIRI an affordable "luxury". That being said I don't think it'll ever be a runaway hit or a commercial steamroller as it's sort of an in-between product, neither a must have for all or a necessity (i.e. having a TV vs. a TV w\Dish or Direct TV Sat.). I think of it as a solid niche player that certainly can be profitable. Reading some of the comments I think people are getting a little too carried away.

I'm long but recognize that not going bankrupt doesn't translate into this becoming the next AAPL.

Nov 06 10:33 AM

[Neal Barkett:]

Did not have time to listen to the conference call, but I'm hoping that Mel is looking at firing up the Idle radios (as he mentioned something on this earlier) on a lower level tier of some sort for of course, a lower sub plan. I would hope that if this is the case that this format would have Sirius Xm promo's peppered in to educate the low tier on what they are missing by not ponying up to a higher tier. If you can get a sub @ 3.95 for a radio that is just wasting away and w/ the benefit of using as a marketing tool why would you turn away from this concept. If you picked up 2 million subs (Just 10% of all idle radios) @ 3.95 that's almost $95,000,000 added revenue per year. Not bad for a marketing strategy that cost little and pays you back 95 MILLION with also the potential of moving the low tiered sub to and higher tier!!!

Nov 06 10:38 AM

[Neal Barkett:]

During these tough economic conditions this concept could help this "Luxury" be more affordable by more consumers that our not able to pay the full price at this time. But get them on board so when times hopefully get better and they have more discretionary money they very well would move up to a higher tier. This would also put more of a strain on the NABers and I truly believe Wall Street would react in a positive way due to this aggressive strategy if implemented by Sirius Xm.

Nov 06 10:45 AM

[butchita:]

As far a Sirius XM being a "luxury", come on....What isn't a luxury in the US? Just living here is a luxury. It costs 9-12 bucks a month...I hardly see that as a luxury. How many give up their morning Starbucks drinks? If you put a pencil to that, that is a lot more of a luxury than XM radio, and people who go to Starbucks were faithful through and through, even in the worst of times. Americans philosophy is "If I want it, I'm gonna have it", and thankfully, no one needs to go into debt to keep their satellite radios activated. I personally wouldn't be without it.

Nov 06 10:56 AM

[Spiderman4:]

I am a little worried here, with the great news reported, why hasn't the stock even a little, why is it in fact down . I am also holding until February 4th quarter earnings, but if the stock doesn't jump then, I think we have to worry if they cannot get an extenstion from the SEC to avoid a Reverse Split. I love this stock, but if they announce a Reverse Split, It is definitely time to sell and maybe buy back later when they drop after the spilt. I have been burned TOO many times, sorry

Nov 06 11:14 AM

[Spiderman4:]

I am a little worried here, with the great news reported, why hasn't the stock even a little, why is it in fact down . I am also holding until February 4th quarter earnings, but if the stock doesn't jump then, I think we have to worry if they cannot get an extenstion from the SEC to avoid a Reverse Split. I love this stock, but if they announce a Reverse Split, It is definitely time to sell and maybe buy back later when they drop after the spilt. I have been burned TOO many times, sorry

Nov 06 11:14 AM

[dayworker:]

Well big Nov. call arrived. Big P/S jump. I don't think so. Why not?
Go to SIRI programming and see all the crap. If people had a choice to put an iphone or ipod in the auto dock or sat rad the choice is iphone. More apps and more versatility. All the other media bundle companies will soon have apps. Liberty, Time Warner, Comcast,
ABC, NBC, CBS, and the like will have audio apps. SIRI will not be the only entertaiment bundle on audio apps. And besides, SIRI programs are not entertainment for young people who spend more on music, films, and games. Christian channel is not entertainment.
Unless you consider it a joke. SIRI is becomming very right wing and will have the reputation of a republican bias entity. (Yes, I know
Stern is there, Oprah and Rosie, but there is a right wing element now). The P/S is stuck and probably going down because SIRI's
time has passed. There are new forces moving into new technology and ,sat rad is going to be an old delivery system for entertainment. If Mel and co had made SIRI something special earlier they would have had the edge, but they couldn't do it. Mel and co are the problem and people still don't want to see that. They are stuck in the past. Now the new app technology is coming on fast and SIRI is still trying to catch up. Sure there will be loyalists and some will stay with sat rad, but it's at the peak. The change will be to apps and other media bundles will be bigger than SIRI.
P/S is not going anywhere because after looking at the programming now, young people don't want to buy. Just like it was said, if it wasn't put in the auto they wouldn't go out and get it,
but they would iphones. And besides SIRI is dependent now on iphone app for portability. A big problem because people will have options at many apps, especially with arrival soon of other media audio apps.

Nov 06 11:22 AM

[connorport:]

Still say give away a basic package to everyone and load up on advertising. Imagine the advertisement $$ when 250 million people are listening. Terrestrial radio will be nothing but talk and weather(the ones that make it). Discount the upgrade packages and now you have over 100 million payed subs. 5X more subs and half the price still = 2.5 times today's revs not counting the advertising bucks.

Nov 06 11:33 AM

[CGreenInk:]

read this esle where,
•Free cash flow was positive, clocking in at $26.7 million.
This article claims "cash flow break even" who is right? or is $26.7 million insignificant?

Nov 06 12:24 PM

[Jerrold Wil...:]

With the coming advertising campaign, and the many that have referenced making SIRIUS XM more affordable, they already have started to do that. They need to advertise the Stratus 6 and the A la Carte pricing. The stratus 6 is only $69.99 and you can get I believe 50 chanels for $6.99 per month. This is a great deal for budget concious., "premium" channels are about $.25 more each...not including Howard Stern and live Sports...If they could have made the SKYDOCK A La carte capable, that would've been great for new subs...However, it would have reduced ARPU....

Nov 06 12:37 PM

[Spiderman4:]

I am a little worried here, with the great news reported, why hasn't the stock even jumped up a little, why is it in fact down . I am also holding until February 4th quarter earnings, but if the stock doesn't jump then, I think we have to worry if they cannot get an extenstion from the SEC to avoid a Reverse Split. I love this stock, but if they announce a Reverse Split, It is definitely time to sell and maybe buy back later when they drop after the spilt. I have been burned TOO many times, sorry

Nov 06 01:58 PM

[Jerrold Wil...:]

Dayworker, do you think the overall economy might play a role. Unemployment rate was announced today...Highest in 26 years,ummmm...do you think that has an effect on a stock that depends on an improving economy?
As far as all these apps you keep talking about...give it up....Do you realize how much it would cost these companies to get the rights to compete with SIRIUS XM. You act like Time Warner or Comcast or any cable company owns all thier channels they broadcast. FYI, they don't they would have to outbid SIRIUS XM for the right to make a mobile app to broadcast, MSNBC, CNN, FOX NEWS, etc... So, they couldnt just make an app to use a channel like MSNBC or CNN, they would have to pay for the right to do that. They would have to Outbid SIRIUS XM....Do you really think they can compete on that level? Why would they even want to. Satlelite in majority of cars i+ internet + mobile+ app > app alone. lol, if it was that easy, don't you thini it would've been done? Are you that dense or just a teenager? Also, many channels have apps already, just not audio because that is already licensed away. Any new company would be in a bidding war with SIRIUS XM, SIRIUS XM has about a 18.5 million headstart and access to SATELITES, that no one can match, and installed radios in at least 40 million cars... So STFU! post a new topic and stop creating things that don't exist, are you these companies CEO...you would've been sued already..you cant just make an app, and stream MSNBC, FOX, etc!....You ever heard of mobile rights, SIRIUS XM is in debt partly because they incurred a lot of expense to get their differentiation of channels.....cmon man...you gotta be smarter than this.

FYI...SIRIUS XM is not dependent on iphone for portability...I just worked out in the gym with my XMP3. I've been using portable satelite radio for about 3 years!!! Newsflash, Ipod/ipod touch users can now use their device to get SIRIUS/XM along with any apps they use...its called the "SKYDOCK" . so they don't have to choose ipod or SIRIUS XM...They can have both...

All this talk about "young people"...give that a rest too. I agree, young people have a tendency to like their playlists and mindless apps like Pandora.....That's fine. They will mature and get tired of that and want something with more substance, and when they do.....guess what SIRIUS XM will already be installed in their car and waiting for activation.

lol...dude...go take your money and invest in Comcast or Time Warner!! You will be rich when they announce they are making an audio app with over 170 channels like SIRIUS XM!!!they will broadcast HBO, SHOWTIME, EVERYTHING!!!tHAT IS THE FUTURE!!!!Take all your money right now before they announce!!Go blog on their blog about your stupid, illegal, unthought out plan AND go download an app to learn some sense...


On Nov 06 11:22 AM dayworker wrote:

> Well big Nov. call arrived. Big P/S jump. I don't think so. Why not?
>
> Go to SIRI programming and see all the crap. If people had a choice
> to put an iphone or ipod in the auto dock or sat rad the choice is
> iphone. More apps and more versatility. All the other media bundle
> companies will soon have apps. Liberty, Time Warner, Comcast,
> ABC, NBC, CBS, and the like will have audio apps. SIRI will not be
> the only entertaiment bundle on audio apps. And besides, SIRI programs
> are not entertainment for young people who spend more on music, films,
> and games. Christian channel is not entertainment.
> Unless you consider it a joke. SIRI is becomming very right wing
> and will have the reputation of a republican bias entity. (Yes, I
> know
> Stern is there, Oprah and Rosie, but there is a right wing element
> now). The P/S is stuck and probably going down because SIRI's
> time has passed. There are new forces moving into new technology
> and ,sat rad is going to be an old delivery system for entertainment.
> If Mel and co had made SIRI something special earlier they would
> have had the edge, but they couldn't do it. Mel and co are the problem
> and people still don't want to see that. They are stuck in the past.
> Now the new app technology is coming on fast and SIRI is still trying
> to catch up. Sure there will be loyalists and some will stay with
> sat rad, but it's at the peak. The change will be to apps and other
> media bundles will be bigger than SIRI.
> P/S is not going anywhere because after looking at the programming
> now, young people don't want to buy. Just like it was said, if it
> wasn't put in the auto they wouldn't go out and get it,
> but they would iphones. And besides SIRI is dependent now on iphone
> app for portability. A big problem because people will have options
> at many apps, especially with arrival soon of other media audio apps.

Nov 06 02:53 PM

[Pilot4Life:]

Just FYI to Scrooges earlier comment . . . Garmin and XM had integrated systems before the merger. I'm a pilot, and in aircraft installed with the Garmin 1000 package, XM SatRad was included as a trial offer in newer planes. The cool feature allowed pilots to communicate with ATC and listen to the radio at the same time. XM volume would fade-to-mute during any transmission automatically and would come back after you finished your transmission. Very awesome feature in my book, but technology needs incorporated into a hands-free device while driving, or integrated into a GPS system. HUGE potential if they could make it affordable!

Nov 06 11:24 PM

[mlongj:]

The final ingredient is the advertising campaign! After November 15th, interest will increase dramatically. This could be very big for Sirius right before the holidays when the majority of shoppers are looking for that "one of a kind" gift to give. In the time between announcing the merger and completing the process, there was no extra revenue for any advertising. This has now changed, and for the many investors who have often wondered why no advertising during this period will "see" a major momentum switch on this stock shortly! After all, if a company can not afford to advertise it is only a matter of time before this same company goes belly up. Sirius is now going to produce some interest and recognition in their brand, which is very exciting. Let's just see where the price per share is at the end of this month. I would anticipate the analysts who have suggested over a dollar will be vindicated (ie Barringtons and Tuna).

Advertising is the final ingredient and it will be added Nov 15th.

Keep the faith!

Long SiriusXM


On Nov 06 01:58 PM Spiderman4 wrote:

> I am a little worried here, with the great news reported, why hasn't
> the stock even jumped up a little, why is it in fact down . I am
> also holding until February 4th quarter earnings, but if the stock
> doesn't jump then, I think we have to worry if they cannot get an
> extenstion from the SEC to avoid a Reverse Split. I love this stock,
> but if they announce a Reverse Split, It is definitely time to sell
> and maybe buy back later when they drop after the spilt. I have been
> burned TOO many times, sorry

Nov 07 09:32 AM

[IBuriedtheU...:]

Your comparison of the luxurious apple to the luxurious orange exposes how out-of-touch with reality you are. A re-occurring expense of 15 per month does not compare to the one time purchase of the multi-use of an iPod or designer blue jeans. That kind of reasoning is quite simply immature.

Smoking, drinking coffee or alcohol or eating... compared to a premium radio service? Are there any substitutes to the smoking of tobacco? The answer is no. Is there a substitute for a cup of coffee? No. Will an alcoholic substitute water for beer, whiskey or wine. No. BUT.... is there a comparable substitute for satellite radio. YES! Plenty... ranging from terrestrial to Pandora, last.fm, Slacker to iPod to music programmed TV channels to multiple online radio sources.

The point is... of all the things you mentioned that the "poorest" purchase... if times got tight... (which they are!)... WHICH will be the first to get the axe? You can stick your head in the sand and believe whatever you want... but the rest of the intelligent world KNOWS a luxury item will get cut loose first. And movie ticket sales, alcohol sales, and coffee sales have not suffered near as much as satellite radio. The deeper the economy suffers.... you may see some those other items start to suffer.... but right now.... people will always chop satrad off before they will eating, drinking or smoking.

So your liberal hair-splitting of what the definition of luxury is... is nothing more than elitist preening and quite obviously you don't understand... which underscores my point of just how out of touch and uncalled for your tantrum really was.


On Nov 06 08:53 AM Jerrold Williams wrote:

> I think you are taking his use of the word "luxury" too literal.
> To say that is not going to be integrated across the range of classes
> is a fallacy. A Jaguar, Bentley, Rolls Royce are luxuries in that
> only the upper class can afford them. Satellite radio can be called
> a luxury because it is a purchase purely for enjoyment, not a necessity
> for living. Hence, Cigarettes, Alcohol, mp3 players, music, movies,
> donuts, coffee, name brand clothes are all "luxuries" Do only the
> upper class purchase those things? No, all classes purchase "luxury"
> items. It depends on how literal you take the word luxury. Cable
> tv /satellite tv are luxuries...Drive by the poorest project or home
> and I bet you see people with these "luxuries", satelite dishes hanging
> from project windows are every where... Going to the movies, eating
> out, are all luxuries....All classes do them....$15.00 A month luxury
> is not out of the reach of any "class". A Mercedes Benz is a luxury
> not for all classes...not $15.00 a month for entertainment....Are
> there any movie theaters in poor neigborhoods? Or just for upper
> class..No, probably more lower class go to movies than rich.....how
> much are 2 adult movie tickets these days?...compare to a month of
> SIRIUS XM service.....they are both "luxuries"...Now, of course on
> an individual basis...some may not be able to afford...Just like
> some cant afford many things and choose to do with out....Ipod's
> are luxury also.....have they "integrated" with all classes? So
> your thinking isn't realistic, just based on a fallacy of your definition
> of "luxury"...
>
>
> On Nov 06 07:29 AM IBuriedtheUndertaker wrote:

Nov 07 09:55 AM

[dwrm:]

What is a "luxury item'? Is it something that you want but do not need? If this is the case then SIRI is a very affordable luxury item that provides an enormous benefit to consumers who pay for it. The content that it provides can be used EVERYDAY. When you put it in context with other "wanted but not needed" things like eating out at restaurants, buying newspapers and books, go to see/rent a movie, and shopping for shoes(you get the idea) satellite radio is a must have value buy. They are retaining 50% of the customers who try out SIRI. That is a huge number. Its’ growth potential is huge as newer cars(w/satellite radio in the car) hit the street and SIRI expands it audience with collaboration through other companies. Their infrastructure is in place and their product is one a kind(the automobile satellite tv market is on the is in its’ infancy). It amazes me that companies that are on the brink of bankruptcy like-Borders, Croxs, Blockbuster, and more are trading at a much higher share price than SIRI. Go figure? SIRI is on the right path to making ALOT of money. I would gladly forgo one night of eating out once a month for SIRI’s great product that I can enjoy daily.

Nov 09 11:48 AM