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Thread: Why the Sirius denial?

  1. #11
    imromo24 is offline
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    Well Charles you got your due, nice "CONFIRMED" headline

  2. #12
    HottWeelz is offline
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    Joined: Jan 2009 Location: Long Island, NY Posts: 12
    I recently read an article in the NY Times that actually explained that 95% of all Headlines are read. Of those articles, only 15% are read past the headlines.

    People make a split-second decision whether or not they are going to invest the time in reading the article, based on the headline.

    I think (personally) the biggest mistake people make when writing an article is using the headline to "Summarize" the article as opposed to using the headline to "rope my interest in" to reading the article.

  3. #13
    homer985 is offline
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    Dread, as I recall, Sirius has not increased their subscription prices at all -- only XM raised theirs from $9.95 to $12.95. Sirius has been at the $12.99 rate all along.

    I do question Sirius' legal ability to do this, as I believe the wording in the language of the Report & Order is broader than most think, we shall see. I'm telling you right now, the NAB and others will be all over this as soon as it's official. As a shareholder, I'd be concerned about a Democratic led FCC and what they could do.

    With that said -- looking at the raw numbers -- it is factually known that XM's "family plan" base had averaged around 22% for years (as most recently as Sept 30, 2008). Assuming that Sirius' penetration was a similar base -- then we're looking at approximately 22% of the entire 18.9 million subs (as of 9/30/08)... that would be approximately 4.1 million subscriptions that this would affect.

    4.1 million x $2 is approximately $8.2 million per month... $98 million annually. That figure is based on subs as of 9/30/2008.

    Making a couple of assumptions for 2009: That they do indeed start 2009 with 19.1 million subscribers and it grows to 20.6 million subs by the end of the year; and the family plan penetration starts at 22%, but declines to 20% by the end of the year (because of the price increase)... using a linear projection, gives me an increase of $99.9 million in increased revenue on the year.

    Considering the company is targeting to have revenue of $2.7 billion for 2009 -- I don't see a $100 million increase as a ground breaking change to the business model. Sure it will help... but it's less than a 4% increase. It can't do much to buy back the maturing debt... maybe help offset increases in increased coupon on new debt, but that's about it.

    I still question the legal ground to do this increase though... as I said before the merger was announced way back when, but weary of the NAB and others...


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    Last edited by homer985; 01-21-2009 at 02:43 PM.

  4. #14
    homer985 is offline
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    Hottweelz, that's an interest post -- and accurate, IMHO. You don't see that much in old time news writers...

  5. #15
    dread is offline
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    Quote Originally Posted by homer985 View Post
    Dread, as I recall, Sirius has not increased their subscription prices at all -- only XM raised theirs from $9.95 to $12.95. Sirius has been at the $12.99 rate all along.




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    Thats what it was!! Thanks Homer985, yeah rest assured the NAB will rear their ugly heads again.

  6. #16
    SiriusBuzz is offline
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    Quote Originally Posted by imromo24 View Post
    Well Charles you got your due, nice "CONFIRMED" headline
    I wish I could have used a larger font and made it bolder.

    hundreds of emails today because that story and not one from a reader apologizing... strange?

    Quote Originally Posted by HottWeelz View Post
    I think (personally) the biggest mistake people make when writing an article is using the headline to "Summarize" the article as opposed to using the headline to "rope my interest in" to reading the article.
    Ditto.
    Charles LaRocca
    SiriusBuzz Founder

  7. Ad Fairy Senior Member
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