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It's no surprise that the New York-based satellite radio company said in a Nov. 6 Securities and Exchange Commission filing that sluggish auto sales "have negatively impacted subscriber growth." A bankruptcy of one of the Big Three would have an even more detrimental impact. Sirius relies on Ford Motor Co. and Chrysler LLC to boost its subscriber rates, offering free trials of the satellite radio service to try to convert new car owners into new paying subscribers. This is not good news for Sirius, which already has a myriad of problems that include $1 billion in debt maturing in 2009, with a $210 million tranche (it was originally $300 million) due in February. Consequently, investors are abandoning Sirius XM, which closed at 16 cents a share Wednesday. A likely scenario is a bankruptcy filing to get its balance sheet in order, but its executives, of course, won't admit to any of that talk just yet. - Gerald Magpily See CNN article
CategoriesComments
From: Howard,
aahhhhhhh Robin maybe paying me 500 Million dollars isn't such a good idea..and uhhhhhhhhhhhhhhh I know Mel is a genius but cmon, I love you Mel, I kiss your ass all the time but ahhhhhhhhhhhhhhhhh terrestrail radio is looking better every day. Maybe...ummmmmmm I was wrong and satellite isn't the new radio frontier I said it was...uhhhhhhhhhh hoo hoo hoo Howard
Posted on:
November 20, 2008 9:17 AM
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I believe the XM/Sirius merger and their subsequent business tactics have compromised the performance expected not only by its subscribers and advertisers, but also by its stockholders and possibly the FCC.
I believe the integration of Sirius into the XM service is an insult to all parties involved, but especially to its listeners. Personally, as a long-time XM subscriber, I believe the integrity and ingenuity of some of the XM concepts have been terribly compromised; the XM service has lost the vitality, variety and value provided when originally conceived and offered to subscribers. And I am under the impression that subscribers who preferred and originally chose Sirius also feel that some of the compromises made by the merger lack the original expected standards promised to them when they originally signed up with the Sirius service.
What will happen to Sirius if subscribers become as disenchanted as their stockholders have already become and do not renew their subscriptions? Will the service need to be offered to listeners at no charge and be completely advertiser-supported? Can Sirius afford and support such a model?
If XM or Sirius subscribers had wanted standard broadcast radio formats, they possibly would not have subscribed to XM or Sirius in the first place. I subscribed to XM after being disappointed and dissatisfied with how CBS/Infinity led by Mel Karmazin (now CEO of Sirius XM Radio) was compromising the resources and programming offered by their radio stations which for the most part had previously offered superior content, better execution, respect for their audiences and consistent results for their advertisers.
I suggest Sirius learn from the mistakes made by CBS/Infinity during Karmazin’s tenure. I suggest Sirius not repeat the same types of strategies and tactics implemented by Karmazin which seem to disregard what is best for listeners, advertisers and stockholders. I believe CBS might still be trying to catch up due to mistakes made during Karmazin’s tenure at their company; trying to catch up on quality of product, competitive position, revenue, value of equity and overall profitability.
I understand the need to eliminate redundancy. I do not understand anyone (including the FCC) tolerating Sirius’ complete disrespect of subscription contracts. Maybe the current leadership is making the same type of mistakes they made in the past. Now that’s the type of redundancy that should not be tolerable to anyone, especially to Sirius stockholders.
Maybe Sirius needs to bring back some of the original XM Radio management and eliminate the current leadership. Not all of the previous XM management led with integrity or honesty; but a new board of directors could be careful and perform their proper due diligence and assemble a team of managers, programmers and talent along with sales and marketing personnel to rebuild a superior product.
The unfortunate truth to Mr. Karmazin and his stockholders is that listeners and advertisers could all live without XM or Sirius, unless of course the product is made to be unique and relevant, and therefore possibly irreplaceable.