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Sirius XM shares down to 97 cents

Posted Sep 10 2008, 02:58 PM by Kim Peterson
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Shares of merged sat radio company Sirius XM have plummeted 15% today to just 97 cents. That's because the company delivered a double dose of bad news for 2008: it will have a wider loss and slower subscriber growth than many analysts expected.

Sirius said it only expects to have 1 million more subscribers between now and the end of the year. It has 18.5 million today. But CEO Mel Karmazin said the forecast was "very, very conservative."

Analysts are starting to wonder if people lost interest in satellite radio in the 17 months it took the feds to approve the merger of Sirius and XM Radio.

Then there's the debt concern. Next year, Sirius must refinance $1.05 billion in debt that comes due.

Comments

 

Worst comment ever...How many subscribers is this shock jock responsible for? almost all..Why don't they get cut the show whose host also hosts a very popular afternoon TV show geared toward women, has her own magazine, and  doesn't even do any programing for the radio show they just use her name and pay her a boat load of cash.

please, the reason they even have as many subscribers as they do is largely in part of the shock jock making the bold move to go to satelite radio.

I have been a Sirius subscriber (3 licenses) since 2004 and a XM subcriber (1 license) since 2007.  I originally got Sirius due to the sports offerings they had over XM, and tend to agree that commercial free radio is a big draw.  I had Sirius before Howard Stern came over, but I have to admit that since 2006 I almost exclusively listen to his shows, and the numbers that he brought with him can't be argued with.  I believe at the time when he went to Sirius they had between 600,000 to 800,000 subscribers and by the end of the first year they had somewhere around 6.5 million, and I have no doubt that without Stern Sirius would have no where near the subscribers they have.  The question is how many of those people will cancel there subscriptions if he leaves?  I won't, but some may.

I think they should slash subscription prices to attract a larger customer base and increase ad prices.  They cannot deny the power of consumerism, especially as a business strategy.

It's the economy stupid.  Less cars are being sold, which means less radios installed by automakers,which means less subscribers. People haven't lost interest in sat radio.

I've been a loyal XM subscriber for years and I love it. My wife on the other hand has Sirius and she hates it. I'm not a big fan myself, the programming doesn't seem to have the same excitement that the programming from XM has, very lackluster.

cut out the "shock jock"?  Howard Stern was the main reason I bought my Sirius radio.  Now that I have it, I really enjoy the vast selectin of music and programing, but if Stern was not there, and money was tight, I would cancel my subscription as I could find reasonable music choices of terrestial radio

I also have had XM radio since 2004 and I think it's the greatest thing since sliced bread! I would nrver, ever give it up. And my feelings are the more the better! I don't listen to every station, but maybe someone else does listen to those stations that I don't. Leave it alone, add more if you want, and if you truly love it and appreciate it the way it should be, then spread the word when given the chance and hopefully it will increase subscriptions and increase popularity! NOW ROCK ON WITH YOUR BADSELF! WOA YEA! WOA YEA!

It's not the lack of interest (analyst is out of touch) it's the Financial Model as Greg F Points out. Anyone who listens to Sirius vs AM/FM would never go back unless they love to listen to commercial after commercial. Sirius needs to restructure their programming to fit a profitable financial model and get rid of the likes of Howard Stern.

Sirius sucks. Their poor customer satisfaction, inflated prices, and the fact that internet now offers similar services virtually for free all add up the the ultimate demise of satellite radio. Take it from someone who bought a "lifetime subscription", they'll get what's coming to them!

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