Igorsky

Sirius XM Needs a Growth Plan

SIRI has a growth plan. Here are two possible good reasons they keep it to themselves for now..

First, they are working on it and/or are under negotiations (re: iPod/iPhone apps). A good negotiator does not hype his potential benefits before the agreement is sealed.

Second, in SIR's business where there are lots of competition, it is best not to show their hand long before they can deliver their 'new' product or services. Getting a long head start with the competition is always good practice for getting a good chunk of the market before competition can adjust. This is the lesson iPod / iPhone has shown us. I am hoping SIRI will accomplish the same.

I do not thing MEL is a one dimension manager. He has eliminated his direct competition through merger (XM) and he has avoided BK. Now he is concentrating in growing the business. He already has an agreement with Toyota, Honda, Nissan and KIA/Hyundai should not be far behind if he has not already. As the economy improves, more truckers will be adding SIRI radios in their cabs. Remember how in the 60's, CB's were the rage among truckers? He could very well be exploring adding the audio portion of some of Malone's direct TV shows to his programming.