Sirius XM Opponents Put The “Jerk” In “Knee-jerk”
I had thought all day of writing this article. Perhaps it was that my attitude become worse as the day progressed, and other issues clouded my original idea, but I now have three issues to address. Now I’m angry!
I first need to make it clear that I also lost my favorite station (Buzzsaw) to the recent channel changes. I reserved my judgment however, before I considered writing about it. I have read many other articles, not surprisingly as negative as the NAB controlled media could muster. You may have noticed the term “elimination” in regards to Sirius XM’s channel offerings used ad infinitum in these knee-jerk articles written by writers in whom I have already expressed my opinion of. Of course that word leaves would-be subscribers with the belief that they are somehow getting less for their dollar than they would have previously.
Nothing could be further from the truth. The fact is that the channels were consolidated, not eliminated, and the benefits are many. Every channel I listened to today gave the Sirius and XM station that it was streamed to as its identifier. This single act alone leads to the inevitable conclusion that the service just got EASIER to understand. Not everyone is a Satellite Radio expert. Many people would just like to turn on the car and have the radio work. Would you want different FM stations on a Dodge Caravan than in a Honda Pilot?
Lets take a look at your average car buyer and just for arguments sake assume this individual purchased a Chevrolet Malibu. Three years later this same individual buys a Ford. The services were so different, that making the transition from one Satellite Radio provider to the other becomes the most confusing part of owning that new car. The new lineup will make it easier for anyone, buying any make or model car to easily find their favorite Sirius XM channels. There will be virtually no difference in the new car experience and Sirius XM is a better service today for that simple reason.
The next issue I want to address is the outrageous behavior of a certain group calling themselves “save sirius.” I admit I know very little about their agenda, but I do know they are headed by our old friend Michael Hartlieb. I have had several conversations with Michael and I have to say I am very disappointed again. Unfortunately, one issue stands out in mind from out most recent conversation. Michael commented to me with a slightly cynical laugh that he was told by persons at the FCC, that except for his actions relating to interoperable radios, the merger would have been approved back in January.
This means of course that had Michael not delayed the merger through actions that were found to be without merit, that the merger would have been approved before the economy went into recession. This means that the company would have had 2 extra quarters of combined revenues and decreased costs to contend with the debt issues now upon them. My opinion of the self titled group “Save Sirius” is on par with the actions of C3SR. Another self righteous, hypocritical group seeking nothing more than the demise of Satellite Radio. In other words, Michael, you need to remove the plank from your own eye, then you will see clearly to remove the speck from your brothers!
Lastly, I’d like to address the Auto bailout plan. In a word, my answer is NO! Remember when people used to build cars in America. People now build robots that build cars. Engines are made in Mexico. Electrical components in India. Here’s an idea I’d like to see the automakers try. LOWER YOUR PRICES! That’s why employee pricing worked so well when it was introduced. If Chevy sold a Malibu for 10,000 dollars, they would not be able to produce enough to meet the demand.
Everyone was excited to see hybrids and alternative fuel vehicles, only to walk away dismayed to learn that any fuel savings was added to the purchase price of the vehicle. No one wants to pay 30,000 dollars for a car with a 5 year life span. It makes no economic sense. Cars and Trucks are overpriced. They have become a severe liability to the average American. A brake job on a 2 year old car should not cost 2500.00 to repair. The car companies have been bleeding America dry for decades, it’s time they gave a little back.
Positions: Long SIRI







Thanks PMO!!
Well I got my proxy in the mail today. This vote is like the election, I don’t like any of this, but if you don’t vote, then you cant complain.
Guess I will sit down and read it carefully, it would be nice to see Mel put the reverse split comments from the CC into writing. Along with the share dilution, as a poison pill only option.
Just looking across the board at companies like AAPL/RIMM, its amazing to see were we where back in July, and now. The whole macro/economy just sucks!!
Good luck to all longs!! I know we will need it.
PMO, your an attorney with no cause. Rather obvious and sad. By the way people, MANY PEOPLE R HAPPY W nice new channels to listen to!
Charles and kevin, give it a rest. Or continue to rant. Your choice. As for me, SIRI long and loving life.
dread, that’s what I did, read the proxy carefully. And the economy does suck but this is the United States–so my guess the Feb won’t let capitalism die. Experts are calling for a 14-month recession, which means all of 2009. Wish I had as much control over my Roth and traditional IRAS as I do my stocks and kids’ UTMAs, a 403b, and a muni that’s doing okay. Also wish I had a reason to smile about SIRI because I like the companies products and services. We’ll see what Q4 holds….
dred, meant the Fed, above.
PMO, Yeah I saw the feb and thought about the dept due lol!! I hope that the fed could do more but, they are running out of bullets. I agree that this retraction will last through 09. I felt it began on 08/07, thats when everything started to flake out, from what I could see.
I would love to make some day trades but there are no correlations between anything right now. Has to be the fact that its an election year, also the housing bubble really helped demand destruction. Just staring at the VIX and lack of volume, turns this market into a casino.
I am with you on the product, I have had XM since 2002 and now its everything!! All I need to do is cough up 2k so I can average down below a dollar.
Hopefully us longs can get through this train wreck!!
And just trade the kids in for some new ones if they don’t cooperate!
Since there is no counter suit from Mel….he is guilty as charged.
Brandon, I assume when you say that the channels were consolidated and not eliminated, that you weren’t a regular listener of Backspin or Punk.
I was, and those channels are gone. An occasional hour of old-school hip-hop on Hip Hip Nation and an occasional Ramones song on Faction hardly makes up for what’s been lost.
I know those were niche channels – that’s fine…I understand that they may not have attracted many listeners. But to me, niche channels were exactly the appeal of the music offerings on Sirius. If I wanted to listen to mainstream pop or classic rock, I’ve already got a bazillion ways to do that on terrestrial radio.
Great article. It was needed. I voted to withold on all board nominations just as a mini protest on not supporting the stock in public as GM has done. But I voted yes on the other three issues as I think mgt may need them to stay out of BK. You are also right on the bailout. Cars will get made and sold. And our economy cannot afford $4 gas. I think the oil producers know that. If we are in a recession then their product is in a recession. $4 gas will kill us both. That means it will not last and that 16 million cars are not far down the oike.
Do you really think that what happened to XM channels 60 & 5 was “consolidation?” I guess I am one of the jerks.
I could not agree more. I have never heard so much wining. Satellite radio is still awesome and great value and I think the complainers were anti satellite to begin with.
Brandon, Why did you not talk about what Michael Hartlieb said to you before. I know you are not a fortune teller. I think if people that now participate in his suit would have known this, would not be there now.
Newman, I could not agree more, if what Brandon says is true. Michael Hartlieb caused everything that he is saying Mel and management is responsible for.
Dread, sorry for the gap in replying — workday is all I can say. My “kids” are at the edge of the nest and flexing their wings lol. One of my motives for trading is to accelerate profits needed to get kids through college and prepare for retirement. SIRI seemed like a natural choice when I did my first buy, but we know the rest of the story. At this point I feel like I’m in a Texas Hold’em game with four spades needed toward a flush ace high, and I need to decide whether to call or raise, or fold (buy more (and get to a .77 share average with available powder) or continue to hold (which is my current plan) or sell (at an almost 80% loss, which is less desirable than the prospects of a reverse split and dilution)). From many, many prior posts by others I know that there are a lot of SIRI traders and investors in the same shape. Regarding Brandon’s coverage above about auto, I personall would like to see a bailout as it would bode well for Sirius XM. Well see….
PMO, No problem, I am in the same boat, bleeding away 80% in the red, minus the kids. Thats another story but, yeah the bailout for the autos I feel is a bad idea.
I will try and catch up to you in a newer post to discuss this mess our country is in.
I totally disagree with your viewpoint. What seems to be missing in your article is the fact that Sirius XM lost its focus on the customer. Making dramatic changes and eliminating channels without notifying the customer is horrific customer service.
I have no problem with channel “consolidations” where it makes sense. However, don’t try to fool the savy customer by telling them that their favorite music can be found on other channels. That’s not the same — especially when the customer is paying to hear the service. Actions like this show me as a customer that Sirius XM cares more about their shareholders than their customers.
Without the customer — Mr. Karmazin has nothing. And based on the latest cancellations over the past week, it may happen sooner than we think. And that’s sad for satellite radio. Poor management and lack of customer focus is killing it quicker than anyone ever imagined.