Siri Stock Thread March 2011
At the 2/15/11 Conference Call, Mel Karmazin said the following:
“We think that there is an awful lot of people who like the, Slacker, Pandora, Last.fm, iheart services because it’s free. Nothing is really free because the way they make their money is they make you listen to commercials and a lot of that IP content as they get and try to get more and more revenue are going to be running more and more commercials.”
On 2/22/11, Tyler Savery rebutted as follows:
“As for Karmazins comment…..He is pumping so much shit in that statement that we all need to buy hip waders! Anyone who believes what Karmazin is saying there on blind faith is a bigger idiot than I could possibly imagine!”
On the same date . . . Tyler Savery:
“What many fail to realize is that the new royalty deals make it more beneficial for Internet Radio services to become subscription based, which is exactly the move Pandora and Slacker have already shifted to.”
Now on March 4, 2011 . . . Tyler Savery:
“While I personally see a shift to paying subscribers, Pandora will not likely give up what has become a lucrative advertising platform any time soon.”
Which takes us back to Mel Karmazin on 2/15/11:
“And again, we like our business model, which is principally subscription driven as compared to the model of where you’re offering service for free and running commercials, that sounds an awful lot like Terrestrial Radio.”
http://www.freesmileys.org/smileys/s...aughing021.gif
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Clear Channel to Become Pandora Challenger
http://www.cnbc.com/id/41852447?par=RSS
"Clear Channel's recent acquisition of Thumbplay's cloud-based music technology is part of the company's strategy to lead the digital radio market, company Chairman of media and entertainment platforms Bob Pittman told CNBC Tuesday."
However, Pittman is uncertain such digital radio platforms are viable as free-standing businesses.
"For us, it's a feature as part of something bigger. How you make money? I'm not sure it's a free-standing business," Pittman said. "So for us, we're looking for things to add in — They don't have to be in themselves money makers, they just have to make the overall offering bigger and better."
A seemingly stunned Tyler Savery (pictured below) could not be reached for comment . . . as he was very busy playing Call of Duty while streaming Pandora.
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The latest from Tiger Blood Savery!
Internet Radio Round-Up – Pandora, Spotify, MOG, QTrax, Limewire, Beyond Oblivion and More
http://siriusbuzz.com/internet-radio...comment-127260
siriusperspective says:
March 9, 2011 at 11:25 am
Spencer, I was curious what you thought about Bob Pittman of Clear Channel on CNBC last week when he commented that he wasn’t sure you could make money on these services.He didn’t know if they were a free standing business. Sounds like everyone’s trying to make something stick to the wall. I want sirius/xm to provide a custom play-list service but I am glad they already have content first. I hear tivo is great but it is not t.v. On the other hand, how long before these services have enough money to sign deals with a NFL,CNN, FOX etc…
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sirius roadkill says:
March 9, 2011 at 4:22 pm
Don’t hold your breath waiting for that answer on Bob Pittman . . Spencer will not address it because it doesn’t fit his thesis . .
the same way he touts Pandora’s # of “Registered Users” and monthly revenue but never provides an ARPU calculation;
the same way he fails to mention that Pandora has never posted full-year profitability;
the same way he fails to mention that 86% of Pandora’s revenue is derived from advertising;
the same way he fails to mention that TSL (Time Spent Listening) has continued to decline as smartphone penetration has increased;
the same way he fails to mention that Pandora’s auditing process has material defects;
the same way he fails to distinguish between curated music and a playlist service.
Today’s article merely highlights the profound absence of any real barriers to entry and the severe fragmentation within the sector . . but hey, why let a few inconvenient facts get in the way of a good story!
Dr. Drew Weighs-In on Tyler's Recent Behavior
Cumulus Media to Acquire Citadel Broadcasting
Cumulus Media to Acquire Citadel Broadcasting
Thursday, March 10, 11:34 AM ET
Radio broadcaster Cumulus Media (NASDAQ:CMLS) said today it has agreed to acquire Citadel Broadcasting Corporation for $37 per share in cash and stock. The purchase values Citadel at $2.4 billion.
http://www.marketnewsvideo.com/story...iri-CML031011/
Lawsuit notifications follow the Citadel - Cumulus merger
Even though the ink is barely dry on the sale of Citadel Broadcasting to Cumulus Media, four law firms have already released notifications of possible class-action lawsuits regarding the merger. . . . . New York-based firm, Bernstein Liebhard LLP is investigating the sale of Citadel and "the potential unfairness of the price to Citadel shareholders and the process by which the Citadel Board of Directors considered and approved the transaction."
http://www.radio-info.com/news/lawsu...cumulus-merger
Clear Channel's Pittman Talks Pandora
March 11, 2011
Clear Channel Chairman of Media & Entertainment Bob Pittman spoke Wednesday at the Credit Suisse Investor Conference in Miami, and dedicated much of his speech to explaining the differences between radio and newer digital technologies. According to RBR.com, Pittman said, "Radio is quite different than playlists or music lockers. Typically people have had their radio they love and theyve had their music collection. Things havent changed. They still have a music collection and they have the radio stations. One is programmed for them, one is where I program stuff myself and look through it and play it and have specific interests."
Pittman added that Pandora is essentially just a "playlist," similiar to what you'd make for your own iPod. "Remember how great it was for a while, but over time you got sick of listening to your own playlist. It burns out. Thats exactly what happens here, because what youre going to find with Pandora, or even with our service as well, its a shortcut to create a playlist. Youre putting in a song. It creates a playlist. Its a benefit Im not knocking it its good, but it aint radio.
http://www.fmqb.com/article.asp?id=2132478
Bob Pittman spells out why Pandora is not Radio
"Pittman noted two studies which found the same thing – the longer someone listens to Pandora, the less they like it. Radio, unlike jukebox services, introduces new songs, has personalities to bond with and delivers local content. Personalities do make a difference, he said, noting that Clear Channel wouldn’t have paid Ryan Seacrest $60 million if it didn’t need to."
http://www.rbr.com/radio/bob-pittman...not-radio.html