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Thread: My thoughts on the reported price increase...

  1. #1
    Demian is offline
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    My thoughts on the reported price increase...

    I have thought about this for awhile now - the more I think about it, the more positive I feel about it...

    #1 - The FCC has no say so over the internet - period. The increased fee for the internet feed is out of their reach. The additional radio charge to an existing sub price point was also not part of the price cap merger rules - period. I am also positive that this was run through legal beforehand - period.

    #2 - How can this not be viewed as a positive thing for SIRI investors? This is a way to add much needed revenue with a very limited impact to subscriber retention and growth.

    #3 - If a regular subscriber, to a single radio (the majority), doesn't have a computer or never listens online, they will never know the difference.

    #4 - If a subscriber subscribes to the internet only feed, they will never know the difference. If they are an XM internet subscriber, they will get a higher quality bit rate. What's not to like about that?

    #5 - If an active subscriber rarely listens online, they will pay more for the internet feed (which adds revenue) or do without and more than likely still be a subscriber.

    #6 - The extra $2 for additional radios to an existing sub is a smart move to raise revenue. Subscribers with additional radios on their account (the minority) have already invested in the cost of additional radios for a reason - they wanted more access to the service and they are less likely to cancel. If they do cancel their additional radio/radios, they are likely to give/sell the radio to a friend etc. (which brings more radios to the public and adds more subs) or they will sign up for an extended or lifetime sub to lock in the current rate (which adds more needed short term revenue to the bottom line).

    #7 - The higher internet feed fee discourages listening online - which caries a higher RIAA fee for the company (helps cut costs).

    #8 - The higher internet feed fee is a hint that the iPhone app is right around the corner. The company can support and promote the coming iPhone app - knowing that it will bring revenue and not be a money drainer.

    #9 - With the internet feed fee in place, it opens the door for making the online offerings profitable. Sirius/XM can expand and market it's internet offerings and have them actually add to the bottom line.

    #10 - With the recent news that Pandora is adding embeded ads to it's streams, Sirius/XM can actually compete with the Pandoras, Last FMs, and Slackers now. It opens the door for Sirius/XM to release a product like the Slacker G2 that also gets live content.

    How can this not be a good thing for SIRI investors?

    Tyler, Brandon, Charles, or Newman - clean this up (change/add to it) and make this an article and list me as a second author - Demian Russian.

    There needs to be an article about how this can be a positive for SIRI investors...
    Last edited by Demian; 01-22-2009 at 04:23 AM.

  2. #2
    imromo24 is offline
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    I agree with most if not all of that.

    I also find it positive that they are making moves with confidence. Change means the company is still alive and kicking...and growing. Stagnation means almost certain demise.

    I can also see how they are making little moves in preparation for something else down the line...

    And again, keep your name in the headlines, good or bad, its free advertising...

  3. #3
    Siriusowner is offline
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    My thoughts ? Pathetic.

  4. #4
    ray is offline
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    Quote Originally Posted by Siriusowner View Post
    My thoughts ? Pathetic.
    Sometimes a start up company has to give something away so the public knows what it has to offer. It is looking like it is now time to charge enough in order to make more than they spend. From the public response of the price increase, the anger, I mean, that seems like a positive sign that sirixm is not going anywhere...

    Solve immigration, short welfare; long Siri

  5. #5
    imromo24 is offline
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    Thanks, that would explain why it gives me a sense of confidence. It would seem that they are on solid ground to be able to start charging what the service is actually worth. The early adopters got a good deal, now its time for business.

  6. #6
    trippingthespeculatingpos is offline
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    well said dem, siri needs all the rev it can get, as a subscriber i do not mind paying more. Sirius owner needs to calm the hell down, he is so pathetic.

  7. #7
    Sworntwofun is offline
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    Thumbs up Price Increase Will Bolster Sirius XMs Bottom Line

    I have been the reading responces to Tylers artical and I like the feedback he has been getting....It feels like the concensis is changing to a positive reaction and I could agree more with the changes that have been occuring whether it price increases, combining channels, getting rid of overpaid talent....It all about the bottom line & good business decisions.. Its time to watch Mel do his magic.. Go Mel....Long & Prosper SiriusXm

  8. #8
    hoping2rise is offline
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    Another thing that makes me feel good about it is that I think they are not going for BK.
    If at all they are considering BK as an option, they are definitely weighing the pros and cons of it. As a lot of people agree, a subscriber facing company may see a lot of subs flee if they go BK. Add a price increase to that, Sirius can not afford the uncertainty that the subs will feel..

    I may be reading what I want to read from this announcement, but hey, we are all looking for just anything to feel good about these days!

  9. #9
    Jworld is offline
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    Demian,


    I think your lobbying for the Mel's CEO job


    You got my vote...................

  10. #10
    billhart22 is offline
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    Quote Originally Posted by ray View Post
    Sometimes a start up company has to give something away so the public knows what it has to offer. It is looking like it is now time to charge enough in order to make more than they spend. From the public response of the price increase, the anger, I mean, that seems like a positive sign that sirixm is not going anywhere...

    Solve immigration, short welfare; long Siri
    Really wise words...that is called marketing.

    Mel is not finished with this company yet, don't kid yourselves. His ego alone can run a profit. He is not a slacker....he is a very smart businessman....give him some slack...he will figure it out. If not, then blame the financial institutions and the rest. A man can only do what a man can do. He isn't the CEO to fail. He wants another success story in his resume.

    Funny thing, just saying if SIRI didn't make it, I would follow him and get in early on his next adventure. He is one hell of a salesman.

    Have a great evening buddy,

    Bill
    Last edited by billhart22; 01-23-2009 at 01:26 AM.

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