Price Increase Will Bolster Sirius XM’s Bottom Line
While consumers may not appreciate a price increase for any product, investors most certainly understand the dynamics of what such an increase means. For Sirius XM, the impact of their recently announced price increases will surely help the bottom line as well as cash flow.
The company will soon be rolling out a $2 per month price increase on their “Family Plan”. In general, the “Family Plan” are additional receivers activated on an account. Typically, satellite radio has seen about 20% of their self paying subscriber base in the Family Plan category. Thus, out of 20 mil. subscribers, there are 4 mil. that would fit into this category and those 4 mil. delivered about $28 mil. in revenue each month. If we were to assume that the price increase would cause a 10% drop (a high estimate in my opinion) in the existing Family Plans, we would see 3.6 mil. Family Plan subs left, each paying $2 more than they were. The price increase would effectively give a $4.4 mil. per month raise to the revenue line of Sirius XM, bringing revenue to $32.4 mil. The fact of the matter is that it would take a subscriber drop of over 20% to make the move a net negative. That kind of backlash simply is unlikely.
Meanwhile, the company is also going to charge for the Internet feed of the service. The $3 per month charge means that subscribers will no longer get to listen over the net unless they pay. This move makes devices like the Logitech Squeezebox, which uses the Internet feed, become a $3 per month device rather than free as in the past. Royalties for on-line listening are higher, so the company will be able to offset some costs, but in real terms, the take rate on the Internet feed may be more than what people initially think. If we assume that 4 million subscribers take up the added cost, then that represents $12 million more in revenue each month.
Combine these two increases, and the company will be seeing an additional $16.4 million in revenue each month. While this may not seem tremendous, it is is nearly $200 million per year added to the coffers. The other item to consider is the cash infusion that will happen for subscribers that will pay early to lock in the lower rates. People look for value. When XM satellite radio did a price increase from $9.99 to $12.95, they allowed subscribers to pay ahead to lock in the lower rate. The response was measurable, and the cash on hand for the company increased. For Sirius XM, with various debt issues, additional cash is a good thing. The company will be getting $7 per month more from my account:
EXISTING ACCOUNT
Main Subscription with Best Of XM – $15.95
Second Subscription —————-$6.99
Third Subscription —————— $6.99
TOTAL—————$29.93
NEW PRICING
Main Subscription with Best Of and Internet – $18.95
Second Subscription ————————–$8.99
Third Subscription —————————-$8.99
TOTAL———————-$36.93
The bottom line is that this move by Sirius XM helps the bottom line, and helps the health of the company. It allows the business model to be modified so that the company will appear more attractive not only to potential lenders, but to the street as well. Metrics such as ARPU will see a positive bump. From my own account, I will be paying $7, or $2.33 per account, per moth more than I once was if I opt for the Internet feed. The price increase helps add revenue (and deferred revenue), helps defray costs, and is not so offensive that it will spurn mass cancellations. From a business perspective, this is a positive move for the company.
Position: Long Sirius XM
To bad the market is not seeing it that way.
Build the coffers with the reasonable price increase and don’t let the suckass market ANALyists negative influence overide additional cash flow. This stock pps will increase in time. Personally I am at .58 avg for 20k shares which should have me even after financing and 2 qtrs of more profit.
SiriusXMInvestor, That just gos to show how fickle they are they were just projecting it themselves and said if it did not happen then they would have to downgrade their estimates. Also when the rumor first started of at least a 50 cent increase (years ago) the stocks both shot up and analyst were saying that is just what was needed.
Tyler just a P.S to add. To most that think this is just to much, that more would cancel. Let me remind you that both companies were planning on increasing their prices on the main subscription by 1 or 2 dollars anyway, and would have already been in effect by now, if their was no merger. This increase is small compared to what you would have had to pay and it would have hit everyone that subscribes period.
good point…forgotten by everyone but you!
I think its a great idea to increase cash flow. The subs that have a family plan like siriusXm enough to buy more than one account. The chances of them dropping those accounts are slim. SiriusXm can always lower rates once they become a cash positive company if they choose to do so.
I wouldnt even balk for them raising all subs rates by 2 dollars a month. Thats still around 15 bucks a month and would increase cash flow greatly on 20 million subs. SiriusXm is in the battle of its life to survive. They are fighting hard and doing what it takes to save not only the company but shareholders who have lost an arm and a leg on this company.
Two bucks gets you just one cup of coffee at Starbucks or a couple candy bars. I think the dropout rate for the extra 2 bucks a month will be more like 2-3%. Everything costs more as time goes by, and 2 bucks a month is a very small increase, in the overall scheme of a person’s financial life.
As to the $2.99 a month for internet service, I don’t think more than a very small amount of people will cancel their basic service over this charge. If they don’t want to pay the $2.99, their internet service simply goes away.
Sirius XM can simply say they are discontinuing their 28k internet service, without talking about an increased charge. They already charge $2.99 a month for the 128k internet service (which, incidentally, sounds a lot better to my ears). They can simply say that they are a quality service, wanting quality sound quality, and that they see no need to offer 2 internet feeds.
Also, if a current regular subscriber wants, they can simply give out their user name and password to their wife, husband, friend, etc. and that person can listen to Sirius/XM for free. With the enforced $2.99 charge, those additional people who are currently not paying a penny might get their own subscriptions.
I see this as a very very smart move on the part of Sirius XM.
If you believe that you’re an idiot.
People with Stiletto units will now have to pay a PREMIUM to use a basic feature of the unit.
Satellite reception on a Stiletto is NON-EXISTENT indoors and almost completely unusable outdoors.
This move is just plain DUMB.
The $2.99 fee for internet streaming is because any company can make an app fopr the iphone that uses the sirius strem. This way, they will make money off of the app without actually creating one. It is a very smart move as investors were wondering how they would make a profit from another company making the app. If they didn’t raise the price everyone would be upset that they were making nothing on streaming to iphone and other devices.
I agree with you completely! In my opinion, this is a wonderful move!
The increased near term cash flow potential could be very significant. The full opportunity — 3 million subs prepaying $7 a month for 3 years is worth $756 million. Assuming only 20% of that amount (some combination of fewer prepays, fewer years) gets you another $150 million in near term cash flow. As I recall, XM experience with increased prepays when they increased prices was better than 20%. Maybe someone with a better memory could provide some further guidance as to XM’s experience.
I think it shows a lot of confidence in the demand for the service on the part of the company if they think that they can raise prices in this environment.
On one hand they are saying that JP Morgan is working on refinancing all of the 2009 debt by March 1. However, I agree with other people who have said that the people who chose to lock in the lower price for a year will provide enough short term cash to get past Feb. So it sounds like they have a plan B at least, which is good.
It would be a real dissappointment if our equity got wiped out right before the company turned profitable.
I’m happy to pay the additional charges. Believe me, I would would pay triple, if it meant not having to listen to FM.
I think Sirius XM needs additional packages, like one that would make their exclusive content available on my Zune, (or Iphone).
It is starting to feel like Sirius XM is entering a new phase of its business maturity. The first phase has nearly, and may still unless they get the debt handled, force them into BK (I personally doubt it), but many think its possible. That first phase was about building Content of all types and paying what they had to for it, competing with XM for subscribers and partners, and developing key contracts with OEMs.
Since the merger they have really entered the 2nd phase of their business maturity which is all about reeling in expenses, maintaining their subscriber base with modest growth, improving price point efficiencies while providing generally customer satisfying content. This second phase is about Managing Their Business and paying their fair share through negotiations to the Music Industry and other partners.
This is something that is overlooked by all of the other Internet Music Service Providers out their and those who tout their products. Pandora, Slacker, and all of the app’s being developed, have not payed their toll to the Music Industry and Artists that they are so freely giving away. In the long run, charging for Internet Services and Increasing Additional Sub pricing, is a first step in a very responsible partnership and business model building activity that Sirius XM is engaged in. They are creating a business model that will support their partnership with Music Artists and the Industries Supporting their efforts. No other content provider is partnering in this way.
The rewards short term, as Tyler has nicely laid out, is additional cash in the coffers. In the long term they will have the business model that can afford the relationship with the content providers, Musicians and Producers of Music Entertainment. We cannot forget how contentious the relationship between NAB, with terrestrial radio paying no royalties, and the Music Industry and Artists have been. IMHO, Sirius XM is laying out the foundation that will have them be the place for getting your music out their, while getting paid for it.
I may be an exception to the rule. I am currently paying for 7 subscriptions under two master accounts. I will cancel one master and the two additional under that account which is a loss of $27.00 per month. I’ll keep the other master with free lifetime and perhaps lock in the 3 subs under that account which yields no net gain and an overall loss of $27.00 per month. Then again, I may hold off on locking in to see if the company files for bankruptcy, in which case I’ll cancel every sub but the free lifetime. If they don’t file and I pay the $9.00 per additional sub fee, then the net loss is just $21.00 per month. What they should do is leave existing accounts alone and implement the price increases on new accounts.
You can grandfather your rates in for 3 years – did you miss this ?
It’s my understanding that you may need to lock in with some sort of contract. What if I cancel one or more within the three year period? Is there a penalty of some sort? If I can simply lock in with no penalty or contract then I certainly would do so and not cancel any subs. What I will not do is lock in with possible penalties and have the company file for bankruptcy soon thereafter. As I stated above, I’ll cancel every sub but the free lifetime if they do.
I am for the increase to help the PPS. I am in my 6th year of subscribiing for this service and it’s worth to me is as much as cable TV. I put my favorite channels on SIRIUS right up there with Keith Olbermann.
Yes, i think it really adds to the bottom line and Sirius can go to JP Morgan or whoever with these increased revenues built in to obtain financing—I have to say they are really going for a very lean balance sheet–positive cash flow for ENTIRE 2009 and now increased revenues–They also have underestimated the synergies of the merger–cutting too much even–yet have no choice for now–I think they have many positives surprises in store for Wall Street–Assuming they get refinancing that is–
You guys are being totally naive if you think the price increase is going to help them financially.
There WILL be cancellations over this, and it WILL slow the growth in new subscriptions. The only real benefit is they may be able to collect a few bucks in advance by people who want to lock in their current rate.
They have cut the service and now they’re going to raise fees on top of it. In the middle of the worst economy in years.
This company is headed for bankruptcy, after which it may be worth owning shares in. Anyone who owns stock in it now is just a masochist.
Raising fees looks like a last ditch desperate effort
the people with multiple subscriptions have a less elastic demand curve, and won’t leave for such a small price increase.
those with only a single subscription (who are not being raised) have a more elastic demand curve, and might leave (had they been raised).
as such, the FCC did Siri a favor with the current restrictions….they can only raise the price on those that won’t leave.
of course they will lose SOME subs but the benefits outway the small percentage of subs lost–
Yea, the ones they will lose are the ones they dont get paid for. Like as cos1000 said, people that are using the internet feed from a friend that has a subscription. Maybe some of the multitudes that are doing the same thing with friends that have full subscriptions and getting a unjust lower rate. Now dont get me wrong, I am all in favor of playing the system to get the most for as little as possible but the gravy train has left the station on this one.
Good deal. I just wish they would raise it $5.00 per month and pay off that debt 3 times as fast. Once in the green the stock will come back.
I’m not sure what Mel is thinking. I’m a shareholder, have four units, and have been a devoted customer, but units 3&4 exist for convenience and will be cancelled, as will the streaming. The incremental $7 a month plus the $13.98 will offer better value with a couple more iTunes, or a few more Netflix, or, oh, 200 shares of Sirius stock. I’m not interested in betting long on the stock and on prepaid subscriptions. I’d be real surprised if this turns out to be even revenue neutral.
To me this is very reminiscent of AOL raising the price of its dialup service from $21 to $24 in 2001. They had assumed they had strong pricing power because of the stickiness of a person’s email address and the expense of switching to broadband. The right plan would have been to cut the price because the marginal cost of adding a customer was very low, as it would be for Sirius (at least for the over the air service). In the end, the price increase accelerated AOL’s decline, one they hadn’t realized was already started. Hopefully this won’t happen to Sirius, but I’ll vote with my feet.
Jim to be honest, you make no god dam sense. First lets look at your logic. You can afford to have 4 radios (just to listen to RADIO for god sake), yet because of 6 extra dollars you are going to cancel 2 of them. I have to ask why, to expensive maybe. You see, it makes no sense because if you can afford 4 radios at a price of 21 extra dollars a month, then 6 extra bucks should not matter. Let me guess, you have been told you are penny wise dollar foolish, many times before, havn’t you. I will help you out. There are satellite radios out, that allow you to switch from your home to your car or cars. So now you only need to have one. There you just saved 21 dollars a month. “your welcome” in advance.
take care of the pennies and the dollars take care of themselves
Not the way you spend them they wont. You see there is no lodgic to what you are saying. You say you pay 14 dollar just for convenience, yet 4 extra dollars is going to be to much. Now it might have been more logical if you would have said; To make up for the extra cost I am going to cancel one radio.
So did you cancel your cable or satellite TV when your rates went up several times in the last 5 and 6 years. Now dont tell me your rates did not go up in the last 6 years because we all know they did.
John, What many of you fail to realize is that it’s not so much the increase, it’s the required commitment. I’m not about to make a 3 year commitment to a company on the brink of bankruptcy. If SiriusXm announces that all of the debt that is due in 2009 has been responsibly refinanced, then I will have no problem with keeping all 7 of my subscriptions. I’ll be damned if I commit prior to that. Many multiple subscribers have also taken a hit on the stock(s). I really don’t need the 7 subs. All I need is 7 docks. Commiting to 3 years on all these subs and having the company file for bk would be the ultimate slap in the face. It will not happen to me!
PS: Get rid of the blabbermouth DJ’s!
Mike I can agree with the bankruptcy issue being a reason. I personally dont think it is in the cards. Even if it was bankruptcy protection would only mean that the company would come out alot stronger. Satellite radio is not going anywhere.
Jim
Check your math. The internet feed you were using, unless it was already being paid for(premium feed) was FREE!!! Therefore, you are crying about $4. If you really are a shareholder as you state…then you are cutting your nose off to spite your face! if you want the company to become profitable and cont to grow, then $4 is a small amount of money to pay. If the $4 is a hardship on the finances, by all means, take care of your family. I don’t think finances is the problem or you would cancel all of your subs. IMHO
no, its all about value. Sirius is competing with all of my other interests for my entertainment budget. I evaluate each dollar spent, whether it is a price increase or an additional product or service. This hurts Sirius’s value viz the other products in my entertainment portfolio. Is $4 painful? No. Is $4 for something I use a few hours a month and can replace with something similar for free a good value? Not at all.
As for harming myself as a shareholder, I’ll quote you and say “Its only four dollars”. The stampede you hear though is for the exit.
Jim
It is obvious that you like the product or you wouldn’t have purchased 4 subs and keep them. $2 per additional family sub is not to much for the company to ask. I’m sure that your are aware that many family subs are actually subs used by friends that just like to screw with the system. The $2 times 1-2M family subs adds up to quite a bit of cash. The internet feed was free to paying subs. Friends of subs using acct to listen to YOUR product without paying for it. That should piss you off. As stated before in SiriusBuzz Forum. $1.50 for a bottle of water, $5-7 for starbucks, $4-5 for a gal of milk…everything goes up. good luck with Netflix..they will raise their prices again in the future…then what will you do?
Jim
Also, what can you replace SATRAD with that is FREE and anywhere comparable to SiriusXM? And please do not bring up the internet feed! It was already free.
I will be shocked if this doesnt kill the company.
I have has sirius for 3 years and the last year has been a long string of really bad moves by Sirius.
The service sucks compared to what it was when i first signed up.
the stock price is heading rapidly to zero and they have billions in debt.
pretty soon even a 50-1 reverse split will be pointless.
I have a lifetime subscription so i won’t be cancelling, but I will never sign up for sirius again when i sell my car.
trust me im not a hater, i have been a subscriber and investor for 3 years, and ive been drinking mel’s cool-aid but I just cannot convince myself anymore that sirius will survive.
I think they will go belly up before the year is over. I hope they don’t, but id bet $$ that they fail in 2009
With the stock price quickly approaching zero, Mel should offer all the content for $12.95/month, thus making satellite radio such a value that it would be foolish not to pay the 43 cents per day to subscribe. Or they can continue pissing off the current subscribers and driving away the new subscribers until they are out of business.
Personally, I will be making it a point not to give Sirius XM any additional money. I have a lifetime subscription, but will be canceling the other radio to avoid paying the additional two dollars per month. By doing this for 25,000 months, I will have recouped my losses from investing in this finely run company.
Sincerely,
F.U. MEL
Tristan28.
LOL
Tristan, I couldn’t agree more. Combine both for a total of $12.95 and the proposed $9 for additinal subs.
Mel Karmazin promised, “Importantly, significant portions of the savings achieved through the
merger will be shared with customers immediately and in the long-term through lower prices and improved service offerings.”
In reality subscription fees have increased, we have less channels, we have to pay more to get these channels and the once free internet stream has been discontinued.
Mel lied.
Tristan28,
I agree with you – every move they make has the same common theme running through it; let’s piss off the subscribers! Have you ever seen such a reluctance to appease the customers?!!!
What they need, in terms of subs, is VOLUME, VOLUME, VOLUME! This will only be accomplished by eliminating the absurdly complicated prices/packages/plans, restoring the quality of the content (this never should have been an issue – management of this co. are insane), and to stop running the merged enterprise as two seperate and distinct entities. There is always a certain price point, regardless of what you are selling, where if you hit it – lower it, that is – people will be enticed, ultimately surrender and reach for their wallets. Or purses. Everybody in the world knows this – eveybody except the Rhodes Scholars that are mismanaging this company. If, like you suggest – and I have always agreed – they offered everything for $12.95, I truely believe that there would be a meteoric jump in subscriptions. Everything for the price of a stamp per day!
People are so goddamn sick of being ripped off and shit on by corporate America, our own government, and…..everybody, that when on that rare occasion they are treated with concern and respect, the natural response is to feel joy. To feel happy. To want to reciprocate. We are all walking around in this heartless society feeling jaded and cynical. I don’t blame anybody for feeling this way; the Sirius/Xm’s of this world do nothing but rape us of our money, our happiness, and our spirit. They have a product that can bring so much pleasure to so many people; ironically all they seem capable of is bringing false promises, disapointment, heartache, and in the case of investors…. poverty. They are greedy (those salaries – how about some cost cutting there, you selfish bastards), they are compassionless, and they have contempt for the subscribers. A little strong? I don’t think so – this company has ignored the desires of its customers to their utmost. It takes a near riot for them to show even a little token concern. They treat the subscribers like shit, and they have consistently ignored any opinions and advice from the ones who know more than they do. The listeners!!!
If satellite radio fails, it won’t be because it wasn’t good enough. It won’t be because of too much competition. It won’t be because of the economy. It WILL BE because a bunch of assholes didn’t have their priorities straight and NEVER listened to the people they are supposed to be serving and making happy. They are clueless, hapless, hopeless, and soulless.
I say throw every last one of them out, and get some people in there who love satellite radio and are commited to it as much as the subscribers are. This crew they have now has proven that they don’t have what it takes to get the job done, and a change is long overdue. I really feel for all the people who have been violated by this company. It’s too bad such a great technology had to end up in the hands of such idiots!
Folks, it is going to over by the end of the year, enjoy it while we have it. There will be many dropped subs because of this, I guarantee it.
Your in the wrong website. The charter communications forum is in the google finance page under CHTR!!
???
Hey Ron,
Look, the way you worded your statement makes it sound like the company itself won’t be around after /09.
If anyone is going to get wiped out, it will be the shareholders. Through chapter 11, not 7. I was just using CHTR as an example for failure. CHTR should have been gone 2 years ago, and now they carry over 20+ billion in dept. CHTR is the perfect candidate for liquidation / chapter 7. If SIRI files for bankruptcy it will be restructuring / 11.
Us, the subs will still get our listening fix.
Have a good weekend Ron 🙂
Gotcha! I hope you are right. I have always been a radio geek, and I really appreciate what SATRAD has to offer.
they may steal the company from the shareholders but the service sucks compared to what it used to be. sirius may survive as a pathetic commercialized, sensored shitty version of what it used to be. it sucks to see it happening and theres not a thing we can do about it.
It is so aggravating watching this company die, because it had so much potential. Especially after most of us put so much effort into backing the merger. I foolishly believed that after the merger the company would reward it’s subscribers by offering all of the channels for $12.95. With such a high quality product at a great price, there would be no competition. I envisioned the number of subscribers would explode and the business would thrive.
Karmazin needs to take a lesson from the foreign car manufacturers. Their business model is simple. If you offer a high quality product for a good price, everything else will fall in line. It’s as if Karmazin wants the business to fail…which is a possibility.
One of the problems with satellite radio is that people do not understand it. They do not know what it is or how to get it. Also, before the merger you had the confusion of having to choose Sirius or XM. Karmazin stated that the merger will solve this problem and increase subscribers. But now he offers confusing subscription packages which nickel and dime the costumer to death and then he has the audacity to raise the prices. To say I am disappointed would be a huge understatement. I can’t believe the damage Karmazin is doing to this company. I thought he was a salesman…
I fought for the merger because I believed Sirius XM would treat their customers right and the subscribers would benefit. It’s obvious now I was fighting for the wrong side. It’s as if Karmazin is following “The Terrestrial Radio’s Guide to Destroy Satellite Radio.” What’s next? Commercials on the music channels. Hey Mel, that’s a great idea. That will pull in even more revenue.
I use to have such a sense of pride towards satellite radio. Now I am ashamed and embarrassed for the way Sirius XM is treating it’s subscribers.
I apologize for ranting…
Agreed! 110%. Run it like a business and not a chairty event!
err. im charity lol.
I just want some news from Sirius XM management. This years first debt payment is fast approching, and yet we have heard nothing from management(Yeah, they swapped a few shares to reduce the debt a little bit, but not enough). I have been heavily invested in for the last several years. I was a fool to invest so much, but I believed in this company. A 90% loss will be hard to recover from, but if this company files bankruptcy, like a lot of others, I will be crushed. Its all or nothing for me now! I wish everyone who invested in this company the best of luck!
For well over a year during the merger fiasco, Mel argued vehemently that the merger would bring lower prices. I don’t buy this nonsense that they must raise prices becuase they are fighting to survive; it is bullshit. The only fighting they have indulged in is with the subscribers, and it’s a fight they are destined to lose.
Look at the response people have had to Barack Obama. Just by speaking positively, and with a sincere tone and a sense of urgency and commitment, this man has restored hope and enthusiasm to millions of American citizens! Nothing complicated; simply something not seen in decades – eloquence, eloquence, intelligence and compassion. Perhaps not proven yet, but PERCEIVED !!! It goes to show you what can happen when you capture the imagination of people, and give them a glimmer of hope.
Mel Karmazin has done nothing to stir the imagination of current and potential subscribers. He has had an adversarial relationship with the subscribers since he took over. He doesn’t know how to market the service, he has never been accessible to the subs and the shareholders, and he always chooses complexity and confusion over simplicity and order.
My perception of the management of Sirius/XM is horrible. I have no faith in any of them. I don’t trust that they have the best interest of the subscribers as a priority. They will never know what might have been, because they took the excitment, the zeal, the enthusiasm people started to show for satellite radio a few years ago and killed it. What other product can you think of that is this good, yet met with such resistance? Such disdain.
What Mel is doing isn’t working. What will work… he isn’t doing. If he would just stop trying to screw the subscribers, stop lying, and stop acting like a sleazy low life, then maybe peoples perception of him might improve. Maybe the perception of Sirious/Xm might improve. There has to be some reason why the mere mentiom of satellite radio generates such a negative response from so many people.
Until the perception and the image people have about satellite radio improves, it will remain stagnated and lethargic. Somebody needs to restore the hope. Somebody needs to revive the fervor. Somebody needs make satellite radio great again, and then convince the skeptics that it is great. Mel has proven to me that he is not that someone!
Steve O, It’s hard to argue your take on SRX’s percieved image. Is Mel so consumed by the debt & our diar economic situation that he can’t see or convey a positive image to the consumer & Wallstreet? Has the pressure got to him (i’m not denying that the pressures aren’t real). It’s like he’s letting the media beat him down. It cost nothing to send out positive press releases. I’m not talking about BS releases. Their PR dept. seems to be non-existant. In simple terms they need to fight off the impression that they are a loser company. Yes the stock is down but does the perception of the product have to go down stream with the stock price? We ourselves know it’s a great product and a good value. But those on the outside looking in are tying both the stock price w/ the product together. This leaves an impression that the product must not be worth while. That’s a big problem that SRX seems to be in denial. If Mel & his people can’t instill the positive value & content of SRX to the general public how will he convince the bankers?
Look at all the sugarcoated feel good posts. Most of them have been posted by the same group of shareholders that broke rule #1 for investing, they fell in love with their SIRI stock and continued to hold while it dropped dollars per share. Now they are all experts about how great the price increase will be for SIRI, at a time when many householders are struggling to pay their bills. Tell me oh wise and noble bagholders, with all the jobs that are or will be cut just since the first of this year, how many do you think have SIRI subs and how many do you think will still keep them, while they struggle to keep a roof over their heads and try to pay bills using an unemployment check?
The global economy is in DEFLATION MODE. Many corporations and even small business owners are holding the line on price increases, while many are actually LOWERING their costs of goods and services to keep the cash coming in and help them ride out the bad economy until it gets better. Go ahead and sing your praises about Mel and his smart move to raise prices. Just remember that it was Mel who did NOTHING to protect your shareholder value, who told you the acquisition of XM would be great for SIRI and its shareholders, and who was too unsophisticated to shop for financing BEFORE the FCC approved the deal. Have fun talking about your champagne wishes and caviar dreams, that’s about as close as you’ll ever get to that type of lifestyle.
Thanks, Even though I know I made a mistake in holding on to this stock and not cutting my losses, it is always great to be reminded by others, the so-called “Investment Experts” that made one right call.
Although it’s a longshot, this company still has a small chance of surviving. Remember, Sirius XM radio is still a great product. I can’t remember the last time I listened to traditional radio.
Bingo!
There is not a single company, in the history of the stock market, that has lost over 95% of it’s value and survived.
Sirius is now a penny stock and will remain so until it goes belly-up.
Sell your shares now, they are, for all intents and purposes, already worth ZERO!
Neal Barkett – I agree totally with your addendum; pretty cool word – don’t you think?
I think of the ubiquitous(I’m on fire!) I-pod. It isn’t the most essential item in the world. It isn’t the best sounding music player by a long shot. There are many things I would like to own, and would purchase before laying down the green for this little hunk of plastic and metal. So why has this thing sold like twinkies at a chubby chick convention? Because it has been masterfully marketed – and millions of people think it’s cool. I won’t argue the fact that it is an amazing device, and it has altered the listening habits and recorded music industry dramatically. The point is… If it was not perceived as cool and unique and amazing, then it would have quite possibly never have been the sales phenomenom that it became.
Satellite radio, in my estimation, is just as cool, unique and amazing – but look at the immense discrepancy when comparing number of units sold, and the products popularity. The I-pod has outsold satellite radios by a margine of at least 10 to 1. It is probably more like 20 to one or even higher. Don’t take these figures as gospel – I’m just making a dopey guess for the sake of getting my point across.
The bottom line is this: The I-pod isn’t 10 or 20 times cooler, or better, or more remarkable than the satelliter radio I am listening to as we speak – the company and the marketing of the product is 10 (or 20) times better!
What we have here is not a product problem; the problem is a seriously flawed business model and management team. Great product + horrible management = BAD PERCEPTION. PERIOD !!!
I feel like Tristan. There were those that were opposed to the merger who were here and other places making noise about it and I and others put them down.
Now I have to admit they were right on. There were going to have synergies and we 10 cents a share. They were going to give us more choice and now both stations have the same channels. They were going to give us better prices and now their raising their prices. There would be no monopoly because iPods would force them to keep prices low.
There were a very few that said these things and we all shouted them down.
Now the truth has come out. But like some of those people told up front there is nothing to be done about it and you cannot put the toothpaste back in the tube. Sat radio has been destroyed and it can never be the same.
BTW I liked XM better and I feel like the merger has taken away the good stuff from XM. Anyway, I just terminiated one of my receivers and I’m thinking about doing the other one.
People are losing their jobs at a faster rate than know in my lifetime. Paying for the basics for many people is a difficult task. For all this, what do we get from XM/Sirius as a result of the merger? How about a significant price increase. I am done with theses guys. This is just a slap in the face. I think I will purchase an HD off the air radio and see what I can get for free. I hope everyone bails.
I for one will be dumping Sirius when my current subscriptions expire.
I have a Stiletto 2 and the fact that I will have to pay EXTRA for a basic feature of the unit, wireless internet access, is a deal killer for me.
ANYONE with any of the Stiletto units knows that the satellite reception is NON-EXISTENT indoors and spotty, at best outdoors.
For Sirius to place a premium on their portable unit is the height of arrogance.
Why anyone would pay for a Stiletto now when they can simply use an iPhone or Blackberry and the internet is beyond me.
Mel Karmazan promised no price increases to Congress during the hearing on the merger.
We now know that he was lying.
I got Sirius for one reason, Howard Stern.
The fact that Howard is leaving at the end of his current contract and that Sirius will probably be in bankruptcy shortly,
has pushed me to finally pull the plug on my Sirius subscriptions.
When they expire, I’m done.
Mel, Howard and Sirius management can go pound sand.
If this is how they treat loyal customers, I don’t need them.
I am in total agreement with Tim. I have already emailed my thoughts to Sirius Customer Service.
I think this is crazy. I am too upset about the increase of two dollars for the “family” plan. I will be ending my second radio because of this. Times are tough right now and an increase in the price of service is just a bad move.
On top of that, they are taking away a service that was free to all members before, and now charging for it. Really, I wouldn’t have a problem with that but lets put it this way, if I have a choice between being charged for a service that was one free or listening to my ipod or free streaming internet radio instead, I will not be paying for internet sirius, I’m sorry.
Too Bad…no more Howard for you.
I’ll be cancelling my additional 2 radio subscriptions. Besides If I here that terrible Susan Zapper say “NYOW” one more fing time!!!!
Once again companies combined with talk of saving money and POW! Lying bastards
Pay massive a salary to Howard Stern and this is what you get. He’s not worth what he’s paid and YOU get a rate increase to cover it. No more Sirius for me!