Top 5 Priorities for Sirius XM in 2009
With the 2009 debt taken care of, I have started to look towards the future. What I see is not very encouraging. Circumstances have most certainly been stacked against Mel and Co. with an unprecedented 18 month merger process and now well within the grips of the credit crisis, but that is no excuse for the company to remain stagnant. After all, a company that is not growing is dying. Sirius XM may not be dying, but it is certainly broken at this time. There are things that could be done with little to no costs to the company which could do a lot towards the image of Sirius XM, as well as potentially draw revenue. Why are they not being done?
#1 Create a Decent Web Player/Interface
As others have mentioned, the Sirius XM web interface is archaic and buggy. There is no unified website yet other than a generic front page which makes you choose between Sirius and XM. The different websites are virtually identical, with many of the links on the XM website pointing to the Sirius site (such as the investor relations link). Why not come up with a unified website to remove much of the confusion regarding the merger? It has been over 6 months, and still nothing? Now subscribers have to deal with a price hike for the online feeds? Give us something to justify the price hike.
#2 Get into other technologies!
I find it absurd that Sirius XM has not developed an iPhone app yet (though there are confirmed rumors that something will be released soon). As both a subscriber and investor, I have been looking forward to this app for a LONG time. StarPlayr has a nice app that is in Beta for the iPhone right now (though their application was recently denied), but why has it taken so long (and with no official announcement) for Sirius XM to act? Why isn’t Sirius XM trying to monetize this idea themselves? They are in a credit crisis after all, right? The app will be free, but will they include a download button where the user can download the song that they are listening to, which also gives a cut to Sirius XM? It is a no-brainer win/win for Sirius XM, the consumer and even Apple. Why isn’t it here? If there is a reason that it is not out, let us know. What about getting into Xbox? Roku? GPS units?
#3 Develop a demand for the product
Sirius XM does not have any “cool” factor. How many people have said “wow, is that an iPhone?” I have heard that quite a few times. How many have ever said “Wow, is that XM?” Never heard it myself. Sirius XM needs to brand itself much better. What about something as simple as bumper stickers, showing that you are a loyal listener to Sirius XM radio? Give one or two to each person when they buy a new vehicle to make them more aware (and curious) about Sirius XM. Mail out a couple to all of the current subscribers. Every single person driving down the road will see Sirius XM bumper stickers. Initially, it will not mean anything, but what happens when 10% or 20% of the cars out there have a Sirius XM Bumper sticker? People will be curious about the product.
What about community? There is more community here on SiriusBuzz than there is over the entire Sirius XM network. Why do individual program directors and DJs have to have MySpace, Twitter, and Face Book pages? Sirius XM needs to develop a community within their own website as added value for existing subscribers and to raise awareness to those potential subscribers.
#4 Capitalize on the bandwidth.
With the channel revisions and some recent cuts made, there is enough bandwidth to add 5 channels on each service (one country, one rock, one alternative, etc) which the company could broadcast to EVERY radio out there (even non-subscribers) which they could monetize using commercial advertising so that people can get a taste of the programming available on Sirius XM. Once each commercial break, air a commercial stating that all of these commercials could be eliminated by subscribing to the service for as low as $4.99 per month. The technology already exists to allow these channels to nonsubscribers (remember the hurricane channels that they made available to all radios?). Perhaps this could even be the launching platform for ideas that are being thought about for the subscriber base, or perhaps you could even bring back a few of the channels that were canceled in the recent channel change as a commercial-based broadcast. I have always said that once you try the product, you will be hooked for life.
#5 Start the Media Blitz NOW.
Slacker and Pandora are announcing various advancements on an almost weekly basis. People actually pay attention to this kind of stuff, especially techies who like new gadgets. The only thing anyone ever hears about Satellite Radio is how it is doing so horribly and is going bankrupt because of falling subscribers and insurmountable debt. We all know how crooked the media is, but it is all about perception. This virtual silence is killing the investors and not doing a damn thing to change the image of the company that customers see.
XM once solicited for user generated commercials but I never saw one on TV. Do it again and offer a lifetime subscription as the prize. Upgrade/refresh auto dealer’s displays of the SatRad. Give up some cash to move the displays at Best Buy from the car audio section (generally in the back of the store where no one goes) to up front near the iPods and MP3 players. GET INTO THE PUBLIC VIEW.
All of these are things that the company could be doing right now, with little or no financial strain (other than the advertising part). They all seem like such common sense steps yet, they are not being done. While Sirius XM has the potential to be a true powerhouse in the not-so-distant future, the company is broken right now. Are they willing to take the necessary steps to help themselves? Only time will tell.
Position: Long Sirius XM
Not much here. Look we are in very difficult times. Siri is in reasonably good shape considering. 300 million in cash…estimating 300 million in cash flow….programing costs will go down. If need be Mel won’t renew. ( Oprah)…Auto business is likely to be better 2nd half 2010 they can last until then. Gimmicks are worthless now its all about subs. Finally the second they can raise prices they will. The only bad news out of this conference call is low sub addition. If and its a big if they can turn that around..used cars…I-phone..retail..you could have a powerhouse. Remember their biggest competition is free radio and that is horrible.
I don’t listen to anyone who doesn’t know that it’s iPhone an not I-phone, you’re clueless and the sad part is that you don’t know it.
#6 Rent a comedy channel to CNBC for Jim Cramer. That way his services ‘whatever they are worth would be free. Maybe a Stewart, Cramer channel, that would be worth something.
all VERY good points and what makes me wonder is that not only are they common sense, they are also cheap to do–I understand theres a new budget reality, but common sense and innovation should continue–Something is broken indeed
They already have a way to listen to XM on the Xbox 360. In th emedia center area, nice setup too!
Sirius has always had the WORST add campaigns…it is an amazing product and should be so easy to market but all they do are these generic commercials flashing channel logos. RIDICULOUS! Who comes up with this? EVERY NFL, NBA, MLB, College game – EVERY GAME…plus Howard. Who wouldn’t want that?
Interesting points… However, NiceMac has closed shop and so goes the iPhone, WinMob, and Desktop app. Haven’t heard anything coming forth on SIRI front. Now with the price for Internet stream going up, seems like they are just shooting themselves in the foot here.
Actually BillyBill, they mentioned that they were releasing an iPhone application in second quarter. That means April 1 thru June 30th. Surprise in the Q4 conference call today.
Newman
All great points. I believe SiriusXM have had their hands full and just now are beginning to be in position to start getting some of these things to market.
Sirius and XM both available through Toyota. XM Nav Tec available indash on most Toyotas. Read somewhere(do not remember where) SiriusXM to be available through ROKU.
Nice thoughts, Newman! I’d put Sirius XM bumper stickers on my cars (have two lifetime subs). Totally agree on the promotional blitz idea. With the Liberty Media partnership you would hope there will be some synergies to cross pollinate subscribers. Also, almost every piece of junk mail I receive has a DirecTV promo with the logos of all of their corporate partners. Hey, just add Sirius XM’s!
Finally, the 2009 media blitz can include a cool Super Bowl ad that will be the Sirius BUZZ of the office water cooler discussions the following Monday!
Finally, can’t wait to hear the new SXM IPhone/Pod app coming by June.
I completely agree with you. Sirius XM is hurting itself by not marketing the product, especially since the merger. XM always had brilliant ad campaigns. I used to intern for XM before they had 1 million subscribers and getting a million subscribers was a number one priority. They would have TV commercials on all the time. I can’t remember the last TV commercial I saw promoting the service. The Sirius commercials weren’t memorable. Hopefully Sirius will adopt XM’s ad campaigns.
They need to develop an iPhone app if they’re trying to gain a new market due to the demise of the automotive industry. NiceMac developed the tool that many people want and it would help the company move forward.
#6 Kill Third Party Apps.
I heard a nice Radio Shack ad on radio today in Las Vegas seemed like 30 seconds…buy a $50.00 gift card and get a radio for $30.00. It’s a start to advertising….was nice to hear it as i was driving to work.
Come on, Sirius/XM – get off your ASS and knock people over the head with this product! MAKE them aware of it. This is the information age, in case you haven’t heard. No informatiom means no subs. Don’t you see there’s a correlation?
I listen to my Sportster Replay in the car and in the house for many hours each day. I know when something is good, and I know when something sucks; satellite radio is good (and it could be lot bettter), and terrestrial radio sucks. Terrestrial radio is like an injured animal in the wild – bleeding, losing its strength, and vulnerable to attack. Come on Sat Rad, stalk your prey and put them out of their misery. Go in for the kill, Goddamn-it! It’s survival of the fittest, and if you don’t show aggression and attack first, then you will be the ones devoured.
I’m a nice guy, usually quiet and reserved, and most people think I’m a passive little introvert. Just like your typical analyst, most people don’t know shit. That’s right, they don’t know a “friggin” thing about me. I hardly know anything about me for that matter, but I do know this; if you fuck with me, I am coming after you. That’s the way I’m wired, baby.
Hey… maybe Liza Minnelli could kick my ass – I mean what the hell do I know? She beat up her swishy husband, after all! All I’m trying to say is that Mel and Co. really need to get a nice big chip on their shoulders and have a take no prisoners attitude. I’m not bashing Mel – just offereing some common sense advice. Please spare me the “Stop whining, you mother fucker – Mel’s the man; ain’t nobody could do a better job than him ” tirade that so predictably follows a post such as this.
Stop trying to reinvent the wheel, Melvin. Just take a deep breath, listen to the subscribers. and then get into that “kill or be killed” mode that I recommended. It’s time to kick some terrestrial ASS, and it’s time to educate all those sheep out there so they will all flock to satellite radio. Well… at least a decent percentage of them.
Amen, Steve O, Amen !!
Great article could not agree more!!! I remember Howard talking about his idea for a Sirius ad for Christmas Man hands a woman a gift….. unwraps it ……engagement ring…. Obviously she is ecstatic man opens his gift…….. Sirius Player same response! I remember thinking this would be an INCREDIBLE ad!!! Sirius bosses tossed it out …… again they are not connected to their costumers But it is time to get connected
When I joined Sirius I joined it because the music was what mattered. Here’s a suggestion, get someone in there that has a knowledge of Rock music and put them in charge of the Rock stations.
Bring back The Buzzsaw!!
Type XM’s web link and you’d think there was never a merger and all is well in XM heaven. Click on Sirius’s web link, looks like it’s all good over there too. Click on Sirius XM’s website and you have to pick one or the other. It’s been how long now since the merger? There is only one radio over on Sirius, none on XM that offers A La Carte and that’s the model they need to promote. Look, I know there are Stern fans, but do the rest of us who don’t listen to him be made to pay for him too? Playboy on radio? Driving no less? They’re on the right track with A La Carte but take it all the way. I like XM (don’t shoot me!), but they don’t have 170 crystal clear channels. A 32K bitrate is not crystal-clear, but does anybody listen to 170 channels? Bandwidth and a good listening experience is important. I want to pay for the best listening experience I can buy. I want a package I can pay $5 and it be ten channels and I’d be a happy camper. I don’t enjoy listening to a bunch of crap, “we’re not raising prices” but like any contract read the fine print…excluded are extra radios and online listening. Say one thing to the regulators and once approve, stick it not once when y’all crammed down the merger and made us eat programming that just made us mad as hell and then raise prices following a Christmas season when how many new radios were made available; that’s right, zero. My best listening experience is on satellite, Dish Network no less, stuck it to Charley who probably deserved what he got that greedy little b******,