Dissecting the SIRI Q4 CC......

Here is the transcript of the SIRI Q4 CC.......

http://seekingalpha.com/article/1264...all-transcript

SIRIUS XM Radio (SIRI)

Q4 2008 Earnings Call

March 12, 2009 8:00 am ET

Executives

Paul Blalock - Senior Vice President Investor Relations

Mel Karmazin – CEO

Jim Meyer - President, Operations and Sales

David Frear - EVP and CFO

Analysts

David Bank - RBC Capital Markets

David Joyce - Miller Tabak & Co.

Tuna Amobi - Standard & Poor's

Joe Stauff - CRT Capital

Ned Zachar – KLS

Barton Crockett – Lazard Capital

They didn't think it was worth it to advertise....

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David Frear

"Within fixed costs, sales and marketing costs was $82 million down 34% from last year as we realized merger efficiencies and curtailed media spending in an economic environment where we did not think it made sense to spend it."

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Originally Posted by Demian

They didn't think it was worth it to advertise....

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Yes thats right, How would you advertise a companys product when they really dont have it together yet. My point is in these days it is more important then ever to get the most bang for the buck when advertising. Look they just got the consolidation of channels done, they are just coming out with the Mirge radio, and a Iphone app. The fact is when money is tight there are just so many things you can do and until they get it together, alot of advertising is not one of them.

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Originally Posted by john

Yes thats right, How would you advertise a companys product when they really dont have it together yet. My point is in these days it is more important then ever to get the most bang for the buck when advertising. Look they just got the consolidation of channels done, they are just coming out with the Mirge radio, and a Iphone app. The fact is when money is tight there are just so many things you can do and until they get it together, alot of advertising is not one of them.

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There is some truth to this. However, in the advertising world, any gaps and people forget about you. American mind is wishy washy. 2 years have been a marketing nightmare for SiriusXM. They allowed the media to bash their product for too long. Perception is everything in this world. Can they repair the damage. Of course they can.
Practically paralysed until their house was in order, and no desire to look too strong to regulators, etc... Why do you need to merge? Your doing great!!! etc....
But now we should start seeing competent marketing(simply a hope and a dream, no evidence to support this.)

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Originally Posted by john

Yes thats right, How would you advertise a companys product when they really dont have it together yet. My point is in these days it is more important then ever to get the most bang for the buck when advertising. Look they just got the consolidation of channels done, they are just coming out with the Mirge radio, and a Iphone app. The fact is when money is tight there are just so many things you can do and until they get it together, alot of advertising is not one of them.

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The more I thought about it this weekend - I'm in agreement... the question on everyone's mind is WHEN will that time be.... my guess is coinciding with the Iphone App in Q2.

I also agree that it doesn't pay to advertise, then mess up the product "ala channel merge". Once the house is in order expect (I do at least) heavy marketing.

All good points and I understand keeping your cash on-hand with an iminent BK looming but, if made public it could put Sirius' own sales people in an uncomfortable position when trying to SELL ads.