Joe F.

Satellite Radio: Wall Street Isn't Seeing the Full Picture

As Mel stated in the NYTimes he considers himself an operator so let me provide you with the vision thing going forward to flush out your article above.

Organic potential for Sat Rad includes not only immediate synergies and doubling of the subscribers via one entity, but also the following growth strategies extending across multiple verticals.

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

9)

Also look for Sirius.TV which will be a show created for cable that covers Sirius, what it is up to and include special features.