SiriusBuzz All Things SiriusXM Satellite Radio Thu, 28 May 2015 13:06:05 +0000 en-US hourly 1 Judge Certifies Class Action Suit For Pre-1972 Recordings Thu, 28 May 2015 13:06:05 +0000 → Read More]]> new-gavelSiriusXM has seen better days.  The satellite radio provider was dealt a bit of a blow this week when a federal judge certified that the Flo and Eddie lawsuit regarding royalties would garner class action status.  Instead of Flo and Eddie against SiriusXM, it can now be anyone with pre-1972 music vs. SiriusXM.  The suit could carry ramifications across the digital sphere.

Judge Philip Gutierrez sided with Flo and Eddie on the matter, and seems to have agreed that the damages proposed, 100% of all revenues attributed to pre-1972 recordings are at play.  It is estimated that somewhere between 5% and 10% of  SiriusXM’s revenue stream could be impacted.  With billions of dollars in revenue, the numbers are quite substantial.  Essentially, between $50 million and $100 million of each billion in revenue is on the table.  The suit goes back to August of 2009.  Sound exchange estimates that between 10% and 15% of SiriusXM’s revenue is tied to pre-1972 recordings.  Either way, the numbers can grow substantially .  SiriusXM has reported roughly $20 billion in revenue since 2009.  Using a 10% figure, the exposure could be as high as $2 billion.

As class action suits go, this one can be quite scary because there is an extensive record of what songs have been played.  SiriusXM defense is to somehow demonstrate that the revenue from the play of such songs is as low as possible, because there is no real way the company can say it did not benefit from airing the music.  Stay Tuned

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Millennials Get Radio Show On SiriusXM Mon, 11 May 2015 19:08:24 +0000 → Read More]]> millSiriusXM has announced the launch of “Career Playbook Radio,” an all-new career advice show hosted by Jim Citrin, partner at executive search firm Spencer Stuart and best-selling author on leadership and career success. “Career Playbook Radio” is focused on giving millennials, young professionals, and parents of recent college grads expert insight into getting a great job and laying the foundation for a successful career.

“Career Playbook Radio” will be a weekly conversation with top executives, industry veterans, and thought leaders sharing their personal experience and knowledge with aspiring young professionals who are seeking to carve out a distinctive place with their careers in the first decade after graduation.

Each week, “Career Playbook Radio” will feature a wide slate of leaders from top companies and institutions, including: Gail McGovern, CEO and President, American Red Cross; Justin Smith, CEO, Bloomberg Media Group; J. Patrick Doyle, CEO and President of Domino’s Pizza Inc.; Laszlo Bock, Senior Vice President of People Operations at Google Inc.; Lori Goler, Vice President of Human Resources and Recruiting at Facebook, Inc.; Kristen Fitzpatrick, Managing Director, Alumni & MBA Career and Professional Development, Harvard Business School; Admiral Eric Olson, retired Commander of U.S. Special Operations Command (SOCOM); and Soo Hong, Chief Human Resource Officer, WeWork.

“Career Playbook Radio,” will air for 6 weeks and will launch on May 16, and air Saturdays at 5:00 pm, and rebroadcast on Sundays at 10:00 am and 3:00 pm (all times Eastern) on SiriusXM Insight, channel 121.  Subscribers will also be able to listen to the show via SiriusXM On Demand on smartphones and other connected devices as well as online at

This type of content offering is somewhat unique to SiriusXM, which can create channels within its platform to suit specific content offerings that traditional radio may find limiting.  In point of fact, limited run content such as this can bring specific and even narrow demographics very real and pertinent information on a very timely basis.  In this case, young people get the opportunity to get some great career advise from top player in the field.  Stay Tuned!




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SiriusXM Misses On Earnings But Raises Guidance Wed, 29 Apr 2015 13:59:52 +0000 → Read More]]> quarterly resultsSiriusXM (SIRI) reported Q1 earnings yesterday and the results were somewhat of a mixed bag.  The company reported a profit of 2 cents per share but missed analysts estimates of a 3 cent profit.  While the news of a miss may not be positive, there were many aspects of the quarter that were quite positive in nature.

  • The company reported revenue of $1.08 billion, an increase of 8%.
  • The company reported Net Income of $106 million, a 12% increase
  • The company reported a 19% spike in adjusted EBITDA to $399 million
  • Free Cash Flow was up 24% to  $276 million

In addition the company, on the heels of adding 431,000 subscribers, raised its subscriber guidance for 2015 to 1.4 million.  More impressively, the revenue guidance was also raised and now is estimated to be $4.47 billion.  SiriusXM expects adjusted EBITDA for the year to be $1.6 billion and Free Cash Flow to be $1.25 billion.

Subscriber metrics were pretty stable with self-pay churn at about 1.8%.  There is some concern in the continued drops in conversion rate, which was 40% last quarter.  The conversion rate reflects the ability of the company to covert trial subscriptions to self-paying.  This past quarter reported the lowest conversion rate to date.  The metric could be an indication that more connected and capable cars are giving consumers other options in audio entertainment.  A drop in this metric could be an indication that the price of the service is not as elastic (the ability to raise rates) as one might like to see.  That being said, the Average Revenue per User saw a slight increase to $12.26 per month.  This combined with lower Subscriber Acquisition Costs, which were down to $33 could help offset any concerns about the conversion rate.  Another positive metric was that 71% of new vehicles are being equipped with satellite radios.  This could also be an impact on the conversion rate for various reasons.  Like it or not, not every car is a good partner for satellite radio.

SiriusXM is not resting on the technology and offering front.  The company is beginning a new initiative called SXM 17 which will utilize satellite as well as LTE coverage to increase offerings and remain competitive.  SXM 17 is the next generation in the SiriusXM offering.

SiriusXM also has continued with its share buyback program.  In Q1 of 2015 the company bought back 144 million of its own shares for $534 million.  This type of action helps to keep the price of the equity stable.  At some point share buybacks can also lead to share appreciation.  In the first few weeks of April the company bought another 36 million shares bringing the year to date total to about 180 million.  All told, the company has removed about 20% of the shares from the market since the inception of the share buyback program.

As you can see, the EPS miss is not the big news here.  The company is executing on all fronts, controlling costs, and returning equity to shareholders.  SiriusXM may not be as sexy as it once was, but is is definitely established and is on course to be vary stable in the years ahead.  SXM 17 is an initiative that seems to be pretty interesting.  Stay Tuned for more detail on that.

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Jaguar and Land Rover Expand Deal With SiriusXM Mon, 06 Apr 2015 20:26:48 +0000 → Read More]]> Jaguar Land RoverJaguar Land Rover North America and SiriusXM have announced Jaguar Land Rover has selected Sirius XM Connected Vehicle Services Inc., a subsidiary of SiriusXM, to provide call center support for safety and security services to vehicle occupants using its Jaguar InControl® and Land Rover InControl® infotainment systems.

The Jaguar and Land Rover InControl suite of technologies provides vehicle owners with an array of advanced driver assistance systems including emergency response contact as part of the available InControl Remote & Protect™ system. SiriusXM will provide Jaguar and Land Rover vehicle owners with support for personal safety and security services, including:

  • Automatic Crash Notification (ACN): Automatically signals a SiriusXM Response Specialist to assist the vehicle’s occupant with notifying emergency responders in the event of an accident, provide the vehicle’s location, and communicate with the vehicle’s occupant until help arrives.
  • SOS/E-Call: Gives the vehicle’s occupant the ability to contact a SiriusXM Response Specialist via an in-vehicle S.O.S. button during an emergency.

Jaguar Land Rover is expected to introduce InControl™ to the U.S. market beginning with the delivery of select 2016 model year vehicles.  Owners will receive a 4-year subscription to SiriusXM supported safety and security services when purchasing any 2016 model year vehicle equipped with InControl Remote & Protect™.

This deal is yet another indication of the initiatives beyond satellite radio that SiriusXM is trying to develop, market, and expand.  SiriusXM has a desire to be a value to auto makers and provide a partnership rather than just a service.   This deal is not as big as the relationship with Nissan, but does show growth for SiriusXM in this area of its businesses.  In addition, these types of deals help to give a pathway for satellite radio to remain relevant and more sticky with consumers.

Jaguar sells about 16,000 cars a year in the U.S. market, and Land Rover about 52,000.


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March Auto Sales Mixed – Still Good For SiriusXM Mon, 06 Apr 2015 12:25:08 +0000 → Read More]]> U.S. auto sales in March of 2015 were a bit of a mixed bag if you look at the headlines, but growth is still happening, sales are on a pace for 17 million, and SiriusXM remains in a good position to install a large amount of satellite radios into new vehicles.

4-6 auto sales

With Q1 sales complete, overall sales stand at 9.93 million.  March of 2015 was easily the largest volume month of the year with sales at 1.537 million, well above the 1.251 million we saw in February.  For the auto sector, year over year comparisons are getting challenging.  The trajectory of growth is not as steep as it once was, but growth is indeed happening.

Nearly half of the cars sold in March were from manufacturers offering trailing subscriptions to satellite radio.  This means that the free trial that comes with the vehicles is not counted in the subscriber number.  These radios will only be counted as subscribers if the consumer elects to keep the service.  Only 12% of the cars sold in March came with subscriptions that were counted at the point of sale, while about 39% were counted at the time of vehicle manufacture.

Analysts anticipate that 2015 can deliver 17 million in sales, up from 16.5 million in 2014.  Stay Tuned!

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SiriusXm Provides Foundation For Nissan’s Connected Car Mon, 06 Apr 2015 12:07:57 +0000 → Read More]]> 4-6 maximaSiriusXM and Nissan have announced that Nissan will launch NissanConnect Services powered by SiriusXM, in select 2016 model year Nissan vehicles, starting with Maxima, its all-new flagship sedan.  The all-new telematics program is Nissan’s first in-vehicle launch of SiriusXM’s connected vehicle services and will feature vehicle security, vehicle health monitoring, remote access services, and more.

Presented with an extensive package of available services powered by SiriusXM, NissanConnect Services will be one of the most feature-rich suites of connected vehicle services available to drivers today.

“SiriusXM is thrilled to be Nissan’s exclusive provider for this world-class suite of security, convenience, and remote features to match the driving needs of its customers,” said Larry Pesce, Group Vice President and General Manager, Connected Vehicle and Infotainment, SiriusXM. “Offering the support drivers want and need on the road, along with the critically-acclaimed satellite radio they love, builds on our long relationship with Nissan and its customers.”

Three levels of service provided by SiriusXM will debut on select 2016 model year Nissan vehicles, including:

  • NissanConnect Services: The base package will include Emergency Services including Automatic Collision Notification, Emergency Calling, and Stolen Vehicle Locator, as well as Maintenance Alerts such as Customized Messaging and Maintenance Reminders.
  • NissanConnect Services Premium: The mid-tier package includes all the features from the base package plus Remote Services including Remote Start and Remote Door Lock/Unlock, as well as Monitoring Alerts like Boundary Alert, Valet Alert and Curfew Alert.
  • NissanConnect Services Premium Plus: The top-tier package adds to the suite of services included in the base and premium packages by including a suite of Destination Services such as Assisted Search, Connected Search and Journey Planner.

Nissan has been one of the early adopters of the SiriusXM connected car services.  Other manufacturers, while offering some services from SiriusXM, have not made such a wide spread adoption of connected car options.  In concept, the Nissan program can become a showpiece for the advantages of utilizing SiriusXM for such services.

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SiriusXM Releases New iOS App – Version 3.0 Thu, 19 Mar 2015 05:43:53 +0000 → Read More]]> There is hope for all of you SiriusXM iOS app users as your favorite satellite radio provider has finally sunk some thought and resources into their online listening experience.


This new app boasts features including speedier tune times, synced settings across devices, enhanced search, personalized recommendations, and social integration.

Although it may not be touted as a bullet point feature, gone are the days of using your pinky finger on those tiny little touch targets as the new app features large clickable areas that leave room for the fattest of fingers. Finally no more miss-clicks and accidental deletions!


Sleek new channel pages, complete with album art and biography’s, feature the ability to share what you’re listening to via iMessage, Twitter, and Facebook.


The new and improved customization screen makes it much easier for users to stream more of what they want.

New application settings also allow you to choose both your live and download audio quality, for those users on a tight data budget.

SiriusXM finally has an app with looks, usability, and functionality worthy of a company of their caliber. The most important question now is – will it work? As of today OnDemand episodes of my favorite shows are two days behind but, it hasn’t crashed yet so, that’s a good start.

Details and download information can be found in the App Store.

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Jeff Foxworthy and Larry The Cable Guy Team Up With SiriusXM Mon, 16 Mar 2015 14:26:34 +0000 → Read More]]>

Jeff Foxworthy and Larry the Cable Guy will not only contribute, but serve as executive producers of  a new channel of exclusive comedy material that listeners will not hear anywhere other than at the comedy stars’ live comedy shows.  Comedy channels have been a staple on Sirius XM since its inception.  They oft provide a needed break from news programming and music channels.  Foxworthy and Larry are well known and respected in Comedy and bring a brand of humor that is a great match for the satellite waves.  The new comedy channel will debut later this year.

Jeff Foxworthy is one of the most respected and successful comedians in the country.  He is the largest selling comedy-recording artist in history, a multiple Grammy Award nominee and best-selling author of more than 26 books. He was recently inducted into the Georgia Music Hall of Fame for his accomplishments.  Jeff will once again be hosting the FOX television game show Are You Smarter Than A 5th Grader, set to premiere in 2015.

Larry the Cable Guy is a multiplatinum recording artist, Grammy nominee, Billboard award winner and one of the top comedians in the country.  His television shows, comedy and variety specials have all been ratings successes, and he has appeared in many successful films, including as the voice of the beloved Mater in the Golden Globe Award-winning animated feature film, “Cars.”

The new channel from Jeff Foxworthy and Larry the Cable Guy joins a robust comedy lineup on SiriusXM featuring Comedy Central Radio, Jamie Foxx’s The Foxxhole channel, Carlin’s Corner, Laugh USA, and Raw Dog Comedy Hits and more.

SiriusXM teaming up with the duo is a natural solution that could well benefit both parties in this equation.  Foxworth and Larry The Cable Guy get to continue to expand their brand and awareness, while SiriusXM gets to capitalize on that same brand and awareness.  The biggest winner may well be satellite radio subscribers that receive unparallelled content that is simply not available elsewhere.

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SiriusXM Prices Offering For $1 Billion In Senior Notes Fri, 06 Mar 2015 18:32:37 +0000 → Read More]]> money-dollar-signSiriusXM initially announced an offering of $750 million in senior notes to be due in 2025.  Within hours, the number grew to $1 billion in senior notes at an impressive 5.375% that would come due in 2025.  It could be that the appetite for these notes was such that the company saw the ability to raise the stakes a bit.

SiriusXM has been very good about debt over the last few years, and has been adept at maintaining a good debt to EBITDA ratio.  The company has massive revenues, and frankly, borrowing money at a bit over 5% is likely a very wise move.  SiriusXM has used such debt offerings to pay down higher debt and to buy back shares.  Last year the company spent $2.5 billion to buy back 739,000,000 shares.

SiriusXM currently carries about $4.5 billion in debt with most notes being due after 2020.  The company has carried a very disciplined approach to its debt as well as its share buyback program.  Some investors do not like the idea of debt, but smart debt can give a company like SiriusXM a great deal of operating latitude at a very reasonable cost.

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SiriusXM Sues To Protect Consumers Fri, 06 Mar 2015 18:07:53 +0000 → Read More]]> new-gavelIn an interesting development, SiriusXM has sued “John Doe” in an effort to protect consumers from what appears to be a fraudulent scheme by a party that uses a similar phone number to that of SiriusXM’s customer service department to get consumer information, and take advantage of unsuspecting consumers.

SiriusXM’s customer service line is 888-539-7474

The John Doe number is 800-539-7474

SiriusXM alleges that consumers that dial the John Doe number are being asked for personal information, being promised gift cards, and other services.  Consumers mistakenly think that it is SiriusXM doing these spamming techniques, and the hard sell of the call leaves a bad taste in the mouths of consumers and degrades the reputation of SiriusXM.

Indeed, I called the number myself and was promised a $100 Wal-Mart gift card.  I asked, “Is this SiriusXM?”  I was told that I was selected for the “rewards department” and that once finished there I would be “transferred back over”

The essence of the suit is that John Doe is using a mis-dialed number to give the consumer the impression that they are speaking to SiriusXM when in fact they are not.  SiriusXM is seeking damages in excess of $50,000.

Wanna have some fun?  Give this “John Doe” company a call and pull their chain a bit.  See if they admit that they are not SiriusXM’s customer service.

While SiriusXM has had its challenges as it relates to customer service, this experience is an unfair practice by an unnamed party that hurts both SiriusXM and consumers!

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