haustin1

Sirius' Future Looks More Promising Than Ever

I would describe myself as an investing novice. The way I see it and correct me if I'm wrong, is that there is one satellite radio provider. This is a unique and wanted product/service by the consumer. Automobile subscriptions make up the bulk of Sirius XM revenue. While car sales are down due to the economic crisis, every car manufacturer will offer Sirius XM as an option in their vehicles. In many cases, they will offer it at no charge to the consumer with a 1 year subscription as an additional incentive to purchase their vehicle. The manufacturer's pay Sirius XM for the service. Eventually, automobile sales will recover and that would be a huge positive for Sirius.
While the total amount of debt is troubling along with the portion of this debt due in 2009, I don't believe it is beyond reason that Sirius XM will be able to restructure some/all of its debt obligations.
As a listener for 3 years, I cannot tolerate terrestrial radio any longer. Commercial interruptions, loss of signal and DJ's that talk between songs without anything to say all add to my dislike of traditional radio.
So my feeling is that Sirius XM will survive 2009 either on its own by restructuring its debt, continued subscription growth and the reverse stock split OR the company will be purchased by a larger company that sees the value in the long run. Either way, Sirius XM continues to exist and from this point forward looks to me as an inexpensive long term play with a bright future.