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Satellite radio companies have been suffering heavy losses
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| Satellite radio companies have been suffering heavy losses
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| TonyJax |
Go Figure..........................
Satellite radio companies have been suffering heavy losses – and plunging stock prices – even as they continue to add subscribers. And a front-page story in Tuesday’s Wall Street Journal warns that the worst may be yet to come.
Industry leader XM Satellite Radio Holdings Inc. lost $667 million last year, and rival Sirius Satellite Radio Inc. lost $863 million. The big losses have shaken investor confidence in the industry. XM shares have lost 71 percent of their value this year, and Sirius shares have lost 51 percent.
"Given current course and speed, there is, in my view, a significant chance of crisis on the horizon,” wrote Pierce "Jack” Roberts, an XM board member who resigned in February.
The Journal traces the problems to a number of factors. For one thing, a substantial number of people who buy vehicles with pre-installed satellite radios don’t activate them, nor do many who receive a radio as a gift. It’s estimated that 10 percent of all store-bought radios given as gifts during the last holiday season were never activated. Also, those who do subscribe often abandon the service after a period of time, some switching to iPod adapters to provide music in their vehicle.
When GM began offering three months of free satellite service in their 2003 models, 45 percent of buyers did not sign up when the trial period was over.
A bidding war for product between the two companies has also fueled the losses. Sirius signed Howard Stern earlier this year by offering him $500 million over five years, and is paying the National Football League $200 million for seven years. XM has agreed to pay Major League Baseball $650 million for 11 years.
A big test for Sirius will come when many free, one-year trials soon come to an end, the Journal reports. Then early next year, subscribers who signed on to get Howard Stern will have to renew their subscriptions. It’s not known how many will do so.
XM has been paring costs to battle its woes, while Sirius – with 4.7 million subscribers, about 2 million less than XM – is aggressively seeking to increase its subscriber count.
But the two firms face troubles on another front. Music labels contend that satellite radios that can store songs infringe on the labels’ copyright. |
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| phuck the fcc |
| oops double post I must die now |
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| wellstd1 |
| Yea, the 1 year subs running up will be a good test for Sirius but I think they'll come out just fine. As for XM if they don't start getting their products out it's not gonna be pretty although I'm not sure it would be enough to put them into grave danger. Sirius has already gotten approval for some of their radios. |
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| Cheri |
| It's because people won't pay for something that's already free. It's like cable, you have to wait a while for it to catch on. Now everyone has cable but when I was younger it was rare for people to have it. It's going to take a few years. |
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| lonr29 |
| Thats sad Sirius offers such a great product, but now it appears that XM's failure appears to be dragging Sirius down because investors can't seem to seperate the two. :( |
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| elroyjonz |
| If you trust this article than short their stocks. |
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| h100+101 |
| fucking riley taking all siriuses money |
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| TonyJax |
| that dick riley is doing it from heaven |
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| mochinist |
Quote: Originally posted by Cheri
It's because people won't pay for something that's already free. It's like cable, you have to wait a while for it to catch on. Now everyone has cable but when I was younger it was rare for people to have it. It's going to take a few years. |
Parrot
Anyways who got a free one year subscription? I have been paying fo my sirius like a sucker it seems. |
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| Smakutus |
Everyone I know that has Sirius loves it.. But I don't know many people that do have it. Most people that don't, say "I won't pay for radio.." but after being stuck in my wifes van for a day listening to "regular"radio last week made me think I'm getting her one next Xmas! Merry Christmas honey..
Jeff |
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| TonyJax |
Quote: Originally posted by mochinist
Parrot
Anyways who got a free one year subscription? I have been paying fo my sirius like a sucker it seems. |
WRITE!!!!!!!!!!!!!!!!!1 |
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| peoplejuice |
Quote: Originally posted by TonyJax
Also, those who do subscribe often abandon the service after a period of time, some switching to iPod adapters to provide music in their vehicle.
A big test for Sirius will come when many free, one-year trials soon come to an end, the Journal reports. Then early next year, subscribers who signed on to get Howard Stern will have to renew their subscriptions. It’s not known how many will do so.
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Vacation + Fridays off = these people |
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| HairOfDogStar |
| I heard that if you pay the guy at Best Buy who installs your radio $50 you can get free satellite. "From the movie, The Cable Guy" |
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| ArtiesnoJackie |
It's amazing that Sirius or XM can sustain financially.The contract they signed Howard to is obnoxious!When you think about how much their paying the talent both companies should be bankrupt.
What pisses me, is this fucking heeb making 500 million for working 5 weeks a year.[if that] Plus the jew prick cant even give paying subscribers a show 5 days a week. :mad: |
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| chrissmurf |
| GM and Ford need to install Sirius. I really believe that free Stern will addict them. Free Dopie and Anferny doesn't keep any subscribers. |
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| ShavedBallSack |
I guess the big part of people renewing their subscriptions,
will depend on how many more vacations howard takes.
it seems that when he works 4 days a week and takes a week off every 2 months it seems to diminishs the possiblity of people wanting to pay for his vacations, hence not renewing your subscription.
But I got my lifetime :) and my shares :) |
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| AcidicGum |
now is the time for everyone to go out and buy stock in Sirius and hold on to it for a couple of years.....it will pay off just like someone mentioned above, cable took a long time to catch on sirius might too but it will catch on
SO GO BUY STOCK!!!! :D |
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| CLONEOFSTERN |
| I heard this shit on Mad Money with Jim Cramer.People who have had free subscriptions to Sirius are not renewing because they have to pay.All the shit XM is doing is pulling the stock price of Sirius as well.A merger would be the only saving grace at this point...by the way..were is that asshole that was pushing those penny stocks(MLXO,AOOR,PAIV) they all sucked big moose-cock.Good thing I just watched those mother-fuckers crash and burn.Day-trade my ass dick-wad..no wonder yer girl wants to move to Cali. |
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| BeerTruck |
| The main thing is that Sirius has momentum and the other one is loosing momentum. Both stocks are down, but if you consider that XM stock was at about $35 and is now at $11, and Sirius topped out at $11 and is now down to $3.75, XM is down a hell of alot more. And Sirius will rebound much better than the other one. |
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| elroyjonz |
Quote: Originally posted by ArtiesnoJackie
It's amazing that Sirius or XM can sustain financially.The contract they signed Howard to is obnoxious!When you think about how much their paying the talent both companies should be bankrupt.
What pisses me, is this fucking heeb making 500 million for working 5 weeks a year.[if that] Plus the jew prick cant even give paying subscribers a show 5 days a week. :mad: |
Enjoy T.O. :hw: |
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| sexyshell69 |
| well this bloody well sucks |
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| BeerTruck |
Quote: Originally posted by ArtiesnoJackie
It's amazing that Sirius or XM can sustain financially.The contract they signed Howard to is obnoxious!When you think about how much their paying the talent both companies should be bankrupt.
What pisses me, is this fucking heeb making 500 million for working 5 weeks a year.[if that] Plus the jew prick cant even give paying subscribers a show 5 days a week. :mad: |
Someone didn't read the guidelines! :hw:
SFN Posting Guidelines |
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| King_of_Quebec |
no doubt both companies are still cash flow negative,however Mel Karzanian CEO of Sirius projects positive cash flow by final quarter 2006 or first quarter 2007.
I bought tons of Sirius stock when it was 0.47...and I never sold..despite the fact it hit close to $10 in Dec 2004.
there is no comparison between terrestrial radio and satellite radio,and I believe that most North Americans who pay for cable TV or who have cell phones can afford satellite radio.
The only question is how long it will take...in my humble opinion it will be 2010 before Satellite radio is "mainstream" in terms of a recognized media source.The problem seems to be more with the technology-challenged population who think it is hard to hook up with satellite.Many people buy units and then dont activate them because they think it's some weird new technology that they cant handle.Take Artie Lange for example...an intelligent guy who needs to hire someone to download stuff for him into his ipod.Younger more tech-savvy people will hook up to Sirius without giving it a second thought.
The stock price decline is purely speculative buying and selling and market manipulation,as soon as Sirius announces it is turning a profit the price will rise fast.Now is the time to stock up on Sirius stock..u may never see it at 3.50-4.00 again.
Take it from a guy with 23 years day-trading experience ...;) |
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| King_of_Quebec |
:rolleyes:Quote: Originally posted by ArtiesnoJackie
It's amazing that Sirius or XM can sustain financially.The contract they signed Howard to is obnoxious!When you think about how much their paying the talent both companies should be bankrupt.
What pisses me, is this fucking heeb making 500 million for working 5 weeks a year.[if that] Plus the jew prick cant even give paying subscribers a show 5 days a week. mad
()()()()()()()()()())()()()()()()()()()())()()())
This individual is obvious a moron and doesnt understand the money behind these companies..let alone the fact that they are public.
it doesnt take a brain to figure this out
Howard Stern alone can attract 5 million subscribers..as a conservative estimate between Jan 2005 (contract signing) and the time his contract ends in 2011.
multiply 5 million by 10$ per month times 6 years and you have revenues equalling 3.6 BILLION dollars...and I am being conservative,let alone the fact that people get Sirius radio for reasons other than Howard Stern.I got it in late 2004
for NFL radio.The fact Stern came to Sirius was just a bonus.
so 3.6 Billion dollars for Sirius versus 1/2 billion for Stern....I would say Artiesnojackie is kinda stupid next to the "Jew" Howard Stern.When will people learn.............. |
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| DingDongTitties |
| I want my free subscription! |
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| Tallblondemale |
Quote: Originally posted by Cheri
It's because people won't pay for something that's already free. It's like cable, you have to wait a while for it to catch on. Now everyone has cable but when I was younger it was rare for people to have it. It's going to take a few years. |
What Cheir said.
This is a new technology, I love it. All the Stern fans are in for the long haul. But I love it in my car too. I would never go back to AM/FM. |
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| King_of_Quebec |
Quote: Originally posted by ArtiesnoJackie
It's amazing that Sirius or XM can sustain financially.The contract they signed Howard to is obnoxious!When you think about how much their paying the talent both companies should be bankrupt.
What pisses me, is this fucking heeb making 500 million for working 5 weeks a year.[if that] Plus the jew prick cant even give paying subscribers a show 5 days a week. :mad: |
This individual is obvious a moron and doesnt understand the money behind these companies..let alone the fact that they are public.
it doesnt take a brain to figure this out
Howard Stern alone can attract 5 million subscribers..as a conservative estimate between Jan 2005 (contract signing) and the time his contract ends in 2011.
multiply 5 million by 10$ per month times 6 years and you have revenues equalling 3.6 BILLION dollars...and I am being conservative,let alone the fact that people get Sirius radio for reasons other than Howard Stern.I got it in late 2004
for NFL radio.The fact Stern came to Sirius was just a bonus.
so 3.6 Billion dollars for Sirius versus 1/2 billion for Stern....I would say Artiesnojackie is kinda stupid next to the "Jew" Howard Stern.When will people learn.............. |
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| GyroPyro |
| terrestrial radio sucks big time. |
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| gasface |
| Got a "free" one-year subscription with my jeep. I will renew when this expires, plus I got a second subscription for a starmate replay at home. I'm sure I paid for the "free"subscription through financing. |
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| Drex |
Quote: Originally posted by CLONEOFSTERN
I heard this shit on Mad Money with Jim Cramer.People who have had free subscriptions to Sirius are not renewing because they have to pay.All the shit XM is doing is pulling the stock price of Sirius as well.A merger would be the only saving grace at this point...by the way..were is that asshole that was pushing those penny stocks(MLXO,AOOR,PAIV) they all sucked big moose-cock.Good thing I just watched those mother-fuckers crash and burn.Day-trade my ass dick-wad..no wonder yer girl wants to move to Cali. |
What did that idiot have to say? How did he substantiate "People who have had free subscriptions to Sirius are not renewing because they have to pay"? I have not followed SIRI that closely in the last few months, but last quarter subscription numbers were strong and did not indicate any sort of mass departure. |
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| SaintJimmy |
Quote: Originally posted by TonyJax
Go Figure..........................
Satellite radio companies have been suffering heavy losses – and plunging stock prices – even as they continue to add subscribers. And a front-page story in Tuesday’s Wall Street Journal warns that the worst may be yet to come.
Industry leader XM Satellite Radio Holdings Inc. lost $667 million last year, and rival Sirius Satellite Radio Inc. lost $863 million. The big losses have shaken investor confidence in the industry. XM shares have lost 71 percent of their value this year, and Sirius shares have lost 51 percent.
"Given current course and speed, there is, in my view, a significant chance of crisis on the horizon,” wrote Pierce "Jack” Roberts, an XM board member who resigned in February.
The Journal traces the problems to a number of factors. For one thing, a substantial number of people who buy vehicles with pre-installed satellite radios don’t activate them, nor do many who receive a radio as a gift. It’s estimated that 10 percent of all store-bought radios given as gifts during the last holiday season were never activated. Also, those who do subscribe often abandon the service after a period of time, some switching to iPod adapters to provide music in their vehicle.
When GM began offering three months of free satellite service in their 2003 models, 45 percent of buyers did not sign up when the trial period was over.
A bidding war for product between the two companies has also fueled the losses. Sirius signed Howard Stern earlier this year by offering him $500 million over five years, and is paying the National Football League $200 million for seven years. XM has agreed to pay Major League Baseball $650 million for 11 years.
A big test for Sirius will come when many free, one-year trials soon come to an end, the Journal reports. Then early next year, subscribers who signed on to get Howard Stern will have to renew their subscriptions. It’s not known how many will do so.
XM has been paring costs to battle its woes, while Sirius – with 4.7 million subscribers, about 2 million less than XM – is aggressively seeking to increase its subscriber count.
But the two firms face troubles on another front. Music labels contend that satellite radios that can store songs infringe on the labels’ copyright. |
What are you, the self-appointed messenger of doom?
Go suck a cock or something, and leave the business to men. |
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| BUZZ |
This technology is fantastic. I live about an hour northwest of Chicago and there are many many times that if the weather is inclement or moist at all that I have a hard time getting a good terestrial signal. This seems to be the case in any vehicle I have driven over the last 5 or so years. It's especially bad in the early morning hours, which is when I drive the most. With Sirius, that problem is all but gone, with the exceptions being going under an overpass, competing FM Transmitters or low lying trees. When people figure out that the reception is truly superior, they should jump ship, but some will take longer due to Ipods and what have you.
That being said, I love the music channels on Sirius, however, they need a bigger playlist, especially on Buzzsaw. They do have great music, but if you listen to that station non-stop you will hear the same songs over and over and over for a month straight. Then they disappear and you get to hear the new ones again and again and again for a month. Other than the relatively small active playlists, the stations are great! |
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| Goldenpaw |
They're just gonna have to sell more on air advertising, especially on the Stern Show. Sirius won't have a problem because you can't get Stern anywhere else and his fan base is rabidly loyal. XM is gonna be the loss leader.
Eventually, tho, should both companies get over this bump (I think Sirius will eventually take over XM), they'll end up leasing out individual channels just like cable.
If you can get in on this now when the stock is this low and ride it out (buying more as you go) you'll be very, very wealthy 20 years from now. I kid you not. |
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| Patrick_om |
Maybe Howie & company should take off most Fridays and use a ton of vacation time during the
first year of Sirius in order to encourage word-of-mouth & have more peeps sign up.
:D |
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| adam |
This is really about which company has better executives making the decisions for the long term.
It looks like the XM execs dropped the ball overall and when Satellite radio is finally established as a mainstream entertainment provider, they will either not exist or will have merged with it's better run competitor.
EDIT: Thanks for moving this :) |
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| sonador3 |
Currently trading at 1 year lows, and down 50% for the year. Haters can say that since 1-9-06, the company has lost 50% of it's value. That is true. But I don't think this is the kind of stock you can look at every day w/o going crazy. This is a long-term play and at the current price, a pretty good entry point for new investors. MMs drive this stock, and when the institutional investors climb aboard -- which they will in the fall -- we should see some upward movement.
I hope. My average is $4.87
Go Sirius! |
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| nikkyo |
Quote: Originally posted by TonyJax
Go Figure..........................
Satellite radio companies have been suffering heavy losses – and plunging stock prices – even as they continue to add subscribers. And a front-page story in Tuesday’s Wall Street Journal warns that the worst may be yet to come.
Industry leader XM Satellite Radio Holdings Inc. lost $667 million last year, and rival Sirius Satellite Radio Inc. lost $863 million. The big losses have shaken investor confidence in the industry. XM shares have lost 71 percent of their value this year, and Sirius shares have lost 51 percent.
"Given current course and speed, there is, in my view, a significant chance of crisis on the horizon,” wrote Pierce "Jack” Roberts, an XM board member who resigned in February.
The Journal traces the problems to a number of factors. For one thing, a substantial number of people who buy vehicles with pre-installed satellite radios don’t activate them, nor do many who receive a radio as a gift. It’s estimated that 10 percent of all store-bought radios given as gifts during the last holiday season were never activated. Also, those who do subscribe often abandon the service after a period of time, some switching to iPod adapters to provide music in their vehicle.
When GM began offering three months of free satellite service in their 2003 models, 45 percent of buyers did not sign up when the trial period was over.
A bidding war for product between the two companies has also fueled the losses. Sirius signed Howard Stern earlier this year by offering him $500 million over five years, and is paying the National Football League $200 million for seven years. XM has agreed to pay Major League Baseball $650 million for 11 years.
A big test for Sirius will come when many free, one-year trials soon come to an end, the Journal reports. Then early next year, subscribers who signed on to get Howard Stern will have to renew their subscriptions. It’s not known how many will do so.
XM has been paring costs to battle its woes, while Sirius – with 4.7 million subscribers, about 2 million less than XM – is aggressively seeking to increase its subscriber count.
But the two firms face troubles on another front. Music labels contend that satellite radios that can store songs infringe on the labels’ copyright. |
AAPL circa 2002 was around 7.50/8.00...whats the price now, like in 20's or something. they probably missed the mp3 bandwagon |
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| Goldenpaw |
| Damn! I wish I had some money to play in this game! It's like watching a hot poker game and being too broke to ante in! |
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