Sirius XM App Passes 1 Million Downloads
The Sirius XM Radio app has been on iTunes for a couple of weeks now, and recently passed the 1 million download mark. This makes the satellite radio app one of the most popular downloads overall, and the number one music service download.
The success of the long awaited app is good news for consumers, and a mixed bag for investors. Simply stated, there is no detail available as to who exactly is downloading the app, and what the mix of existing vs. new listeners is. We simply do not have the kind of detail needed to asses the value of 1 million downloads, and with various scenarios at play, the milestone could mean anything from good news financially, to a break even proposition.
– Existing subscribers that download the app add nothing to the subscriber rolls, but may add to the bottom line. If they were not previously paying for the $3 Internet feed, the company gets a bit more revenue out of that subscriber. If they were already an Internet subscriber, then the financial benefit to the company is nothing.
– New listeners that download the app are not counted as subs, and as yet, the company has not supplied a conversion rate. If a new listener subscribes, the company is looking at a minimum of $12.95 per month and a new subscriber. If the promotional subscriber does not subscribe, it does not impact churn. A successful Internet conversion rate is typically no more than 5%. As you can see, even with 1 million downloads, it will be a challenge to garner new subscribers.
One hurdle faced by Sirius XM Radio is the short length of the promotional trial. Listeners only get one week to test drive the service, and functionally, that is not a lot of time. With services such as Pandora and Slacker offering free music, it is not hard to imagine someone trying Sirius XM for a week, but reverting back to the free service apps offered on iTunes. Sirius XM has distinct advantages and disadvantages when compared to the free services out there. In my opinion, a week does not give the consumer enough time to really learn the advantages offered by Sirius XM.
The pace of downloads is impressive, but 1 million downloads with no data to break down is virtually worthless to investors. The company needs to provide some clarity in those numbers, improve the app, and branch out with apps for Blackberry, the Palm Pre, etc. Time will tell.
Position – Long Sirius XM, No Position Apple
I agree with Tyler on this.
This is a total non-story.
It could be 10 million downloads.
It would still be meaningless without any information regarding subscription retention.
The only number that matters is how many suckers will actually pay a premium to use this app despite the fact that the most desirable content isn’t available using it.
The huge numbers of 1-Star ratings for the app don’t bode well.
Another negative comment to ignore by all….Sirius is amazing and has growing interest despite the work of the negative bloggers who work in the interest of short sells. A million downloads is not meaningless, there will be millions more.
I don’t know how similar my story is to the majority of downloaders of the new iPhone app, but here’s my perspective as a user. I have 2 subscriptions currently: 1 in the car, and 1 for a portable Inno. The iPhone app is going to replace my Inno, for a variety of reasons I won’t bore you with. What makes me smile is that the internet subscription fee will be less than what I was paying for the inno sub, and will help offset the cost of the iPhone’s data plan. I’m a dedicated customer already, and I can only guess what new customers might do. But for me, the iPhone app reaffirmed my commitment to keeping my 2nd subscription and has much improved my listening experience already.
Tyler, I got to agree, Sirius Xm management needs to branch out from here. They need to make applications for the Blackberry, Palm’s, and other Windows Mobile Devices out in this world.
they have a blackberry app.
The current Blackberry app is only for XM subscribers.
It’s worthless to anyone with a Sirius subscription.
Blackberry app 25 channels, 8.99 per month. poor sound. App needs to function like iphone app as much as possible
I would think that after the response of the new I-Phone app. Blacberry & the rest are in the works (unless they made a deal w/ Apple, which would restrict it).
Long term music will not be free from the internet radio stations..
Melvin’s salary should have been based on a percentage of NEW revenues generated exclusively by Apple App Downloads and subsequent subscriptions.
ONLY then, would the “actual” numbers be revealed.
And ONLY then, would Karmazin be compensated fairly for his title.
All you hear when boo boo posts is, “waaaa waaaa waaaa.”
🙂
Just a word on a couple of the comments in here.
“The huge numbers of 1-Star ratings for the app don’t bode well.”
Huge numbers? I don’t see it at all. 38,000 out of 1 million is not huge at all.
On another front…
In terms of static music, the trend is headed to the internet, free music via internet will not last much longer. With more and more sophisticated internet streaming apps available, its only a matter of time before pandora and slacker will need to begin paying royalties. When that happens, they will disappear and the long term vision of Sirius XM will prevail. We all know its going to happen, its just a matter of when.
“Although the app is a very popular download, it has very negative reviews at the App Store. As of this morning more than 38,000 reviewers gave it one star, more than twice all the other ratings combined.”
http://www.tuaw.com/2009/07/06.....ard-stern/
All new applications are bound to have some bugs. It will evolve as does any other new application. Hardly a negative when the title of the article is XM app soars even without Stern. Over a million downloads and you call that insignificant? Lay off the bong hits boo boo. 🙂
They already do pay royalties and have for quite some time.
The main benefit from the iPhone app is the exposure Sirius XM is getting from tech savvy and trendy consumers. 1,000,000 downloads speak volumes in terms of national exposure from around the United States. Word of mouth is contagious and people are realizing that Sirius XM is NOT going into bankruptcy and people can finally move on from the near 2 year merger in terms of buying portable receivers and longer term subscriptions. This is very important for this company because of the constant barrage of negative press from the media. It is up to each and every believer of Sirius XM to go out there and educate the average consumer the value of satellite radio.
We all know that the iPhone app will NOT be the main channel to listen to Sirius XM. However, the numbers show that the iPhone app has now created the bridge for people to listen to Sirius XM in a affordable way. Exposure from the iPhone app –> people trying out the service for 7 days free –> subscribing to premium internet package –> listening not just on the iPhone, but other devices that has internet connection such as computers at home and work –> subscribing to Non-Internet package –> purchasing car installations and home portable installations for maximum experience and enjoyment.
The MOVEMENT has begun…
well said…
That’s why the stock is on it’s way back down today. 😛
Puhleez!
You again? What happened to the price prediction of 25 cents? Oh wait, this time is different right?
I predicted 35 cents.
The slide has already begun. 😛
boo boo always cheers when the price drops. it must have killed him when the stock came back from the brink of disaster at $.06. What was your predication back then? Bankruptsy? This stock has obviously made a fool out of you several times boo boo.
Learn how to spell ‘Bankruptcy’ properly before you open your trap to criticize me or anyone else for that matter.
Oh, and while I’m at it, the stock is at 40 cents and DROPPING again today! 😛
Feel free to continue with your moronic cheer leading about the ‘new revenue streams’ and all your imaginary profits.
Mel Karmazin couldn’t care less about shareholder value and the market clearly doesn’t trust him or anything Sirius-XM management says.
boo boo…..you don’t get it. sirius is going to make it and make it big. they were there before and will be again. they’re the only game in town for this type of audio. patience young man. stick around and you may learn something about the market.
you need to quit getting all your investment info from motley fool by the way…
I don’t need anyone else’s investment advice.
I do my own leg work.
That study shows that SIRI has a long way to go just to survive let alone become a profitable company.
It’s hanging by a thread and all the cheerleading in the world won’t change that.
Believe what you want.
You can continue to average down until your shares are worthless. 😛