Joe F.

Sirius XM's Long Road

Let me say it one more time. Internet radio consisting of any kind of decent content will not be free. Artists are not going to let an internet station profit from their material unless they are duly compensated - period.

Two, Right now the combined company brings in 2 billion a year.

They add a minimum 1/4 billion each year at the current OEM penetration rate. They just cut their operating costs by just under 1/3.

At the current market cap they are trading at less than 1 time revenue.

And many of you make it sound like they have to pay the entire debt outstanding in one fell swoop or by next year or something.

All they have to do is control debt service which is not a problem even at the current run rate.

Now I want you to consider all of these additional facts:

1)

Look for a Music library from the combined entity that dwarfs the itunes selections with minimal additional royalty arrangements. Look for high end tiers that will include 2 or 3 free downloads / month with your subscription. Library will be open to anybody for $.99 / song.

2)

Look for advertising revenues to bump up significantly given the 20 million audience and rising. Also look for 100% penetration, sooner rather than later, as OEM installs increase across the board.

3)

Watch for a clear strategy involving branding and a huge retail push across new hardware for the upcoming holiday season.

4)

This service will soon be re-invigorated on the desktop with new Operating System software.
OEM loaded this software will enhance the capture and delivery of streaming across devices such as the iphone and the new handsets from Nokia and Samsung, extending it's reach over multiple platforms.


5)

Look for this desktop software to include a Pandora like option, relative to the new library, that will be delivered via a streaming format. Structure will either be advertiser sponsored or subscription based.

6)

Be ready for Sirius to challenge Clear Channel, over time, relative to concert promotion and on demand broadcast of concerts nationwide. Both live and recorded. Look for them to include and share revenues with the artists regarding downloads of entire venues.


7)

Watch for expanded video offerings and GPS inclusion in new car installs.


8)

Look for expansion in Western Europe beginning with Britain in 2010 / 2011

If only half of these materialize it's still a monster future.

NO BRAINER!

'nough said.