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Thread: Twice.com on Sirius and the internet

  1. #1
    MUSCLE13 is offline
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    Twice.com on Sirius and the internet

    Excellent article by a truly great reporter


    Excerpt -

    Amy Gilroy
    Sirius Needs To Address Internet Radio
    November 10, 2009

    Cheers to Sirius XM Radio for launching an aggressive ad campaign on Nov. 15. Retailers would have preferred to see it a year earlier, but few will blame CEO Mel Karmazin for trying to resolve some nagging problems (merger, near-bankruptcy, wallet-closing recession) before making a big ad spend.

    But if Sirius XM wants to really show itís back and firing on all cylinders, it needs to reveal a plan to compete with Internet radio, beyond the offering of an XM SkyDock.

    Internet radioís star is rising fast. Listenership for Internet radio was up almost 40 percent in 2008 over 2007, hitting 6.67 billion hours last year, according to AccuStream iMedia Research.


    http://www.twice.com/blog/Reporters_...rnet_Radio.php

  2. #2
    SiriusBuzz is offline
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    Hopefully Sirius XM (and their shareholders) will listen to Amy... God knows they didn't listen to me 2+ years ago when I said the same thing she is saying now.
    Charles LaRocca
    SiriusBuzz Founder

  3. #3
    MUSCLE13 is offline
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    If a company like Pandora or Slacker actually develop a reasonable business plan for internet radio I believe they will become great merger candidates for Sirius.

    Right now the question is can anybody actually develop a business plan to make internet radio very profitable. These companies can attract listeners but where is the money in it?

    Internet radio has been around since 1996. Who is producing big revenue and making it profitable? Maybe Sirius can, I am not sure.

  4. #4
    MUSCLE13 is offline
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    Also the key to internet radio is going to be can it happen in the car. Radio has always been and will always be about listening in the car. Thats where all the money has been for radio in its history.

    I think the SkyDock is a good first step for Sirius as I believe cellphones like the iPhone will replace CD players in the car eventually. I would love to see SkyDock be expanded to Blackberry and Android phones too.

  5. #5
    SiriusBuzz is offline
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    Have you read about Pandora's numbers? They are set to be profitable this year and beyond. Before this year and some of Pandora's recent statements by their CEO, I would have agreed wholeheartedly with you.
    Charles LaRocca
    SiriusBuzz Founder

  6. #6
    MUSCLE13 is offline
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    I believe I have read Pandora's revenue is about 40 million a year? Do you have a specific number? Sirius' revenue is about 2.5 Billion so Pandora is really a miniscule company in comparison.

    I am not sure where their revenue growth will ever come from and the royalty fees on the net are insane. I think they have an excellent product though. The trick is to turn those listeners into money and somehow get into the car. No easy task.

    I think Sirius has the right idea with SkyDock but its way too early to tell. I think we will know by this time next year.

  7. #7
    SiriusBuzz is offline
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    It is a minuscule company with far less staff, tech, and debt...yet they have more subscribers (and they are adding new ones at an alarming rate). That is what worries me and should worry Sirius XM shareholders. Their potential online market share is being destroyed.

    Since Pandora is private... their revenue growth is no concern to me. What is important to note is that they are profitable and if they are profitable their subscriber stats will continue to grow. How can a company with a few million in VC funding snatch up this much market share under Sirius XM's nose?

    People will say that Sirius XM's focus lied elsewhere but if they could have used 1% of their resources, it may be Sirius XM with 30 million online subscribers we are talking about and not Pandora. It's frustrating.
    Charles LaRocca
    SiriusBuzz Founder

  8. #8
    MUSCLE13 is offline
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    I wouldn't call Pandora's listeners subscribers since a large majority are listening for free.

    I think internet radio needs a revenue model before anybody really takes it seriously as far as a business. If Pandora turns those listeners into revenue then I bet Sirius would be interested in them. Can Sirius, Pandora or anybody turn internet radio into a good business model. Nobody knows yet.

    It hasn't happened since 1996. I think it has to work its way into the car first. Thats a very tall task.

  9. #9
    SiriusBuzz is offline
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    They are listening for free and Pandora is still making money off of them. Call them what you will but it is working for them.

    With the new royalty structure they are no logner hemoridging money on "free" users. Don't forget they are making revenue from advertising on these "free" users.

    It may sound like sementics but people really need to distunguish between "ad supported" subscribers and "free" users. They are very different models. One brings in revenue and one does not.
    Charles LaRocca
    SiriusBuzz Founder

  10. #10
    MUSCLE13 is offline
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    What is their ARPU? I have never heard free radio listeners ever described as subscribers.

    Personally I think Pandora is a very good service. I just question the business model. I don't believe they have found it yet. Being profitable and being a revenue growth radio business are 2 different things.

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