No Nonsense Sirius XM November Thread

[midas360]

Being Thankful

Dear Lord, thank you so much for another day of life on Earth. Thank you for another beautiful sunrise to enjoy. Thank you for the wonderful sounds of nature, from the cool breeze brushing through the trees to the birds singing melodies. You are a wonderful God, full of grace and mercy. I praise you for allowing me another day to spend with my family. I love you Father! Amen.

[MUSCLE13]

This is an issue that SiriusXM is all too familiar with. NFL, MLB, NHL, rights?

Content costs have been going down for years for Sirius. That's because they eliminated the other big bidder by merging with XM. Only 1 sat radio company. I would not at all be shocked if one of Hulu's main roles was just to compete with Netflix in bidding thus destroying Netflix business model with cost escalation. Amazon already competes well on that front. There will be thousands more in my opinion. No barrier to entry on the net. Netflix doesn't own the video distribution pipes that Sirius does own with audio.

But just like Pandora it will take years to play out. Good luck with your Netflix stock. 300 times earnings 100 times EBITDA and negative free cash flow.....I will never touch it. I am intrigued by what's happening with Hulu though so I will be following.

[midas360]

Just one of those days... DM

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[midas360]

hey muscle... is this you with all your shares preaching about EBITDA
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[midas360]

Decided to hold my Apple...

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[SiriusBuzz]

How many people are listening to Pandora in this country compared to Sirius? Maybe 3 times as many? Pandora is huge!

Look at Pandora's EBITDA

Enterprise Value/EBITDA : -66.24

http://finance.yahoo.com/q/ks?s=P+Key+Statistics

But Sirius is growing it's EBITDA at the fastest rate in the media business. Business Models Matter. Revenues matter. Costs Matter. EBITDA Margins Matter. Competition Matters.

The old saying - In the short term the market is voting machine. In the long term it is a weighing machine. Learn EBITDA! That's what media investors do. Not traders, but investors. It would have saved you years of writing about what great businesses Pandora and Slacker are........

I was listening to the Investor Day last night. Meyer must have quoted Mel's Business Model's Matter line at least 5 times. I loved it. He even compared Sirius' EBITDA margin to Netflix! 37% to 7%. Pandora at 5%. He called Netflix "your darling" to the Wall Street investors attending. I loved it. LOL Meyer is funny like Mel! Well done!

You didn't answer my question.

How do you get EBITDA without eyeballs?

[MUSCLE13]

You didn't answer my question.

How do you get EBITDA without eyeballs?

Some of media's highest EBITDA margin businesses come from areas where the company doesn't acquire any eyeballs.

Licensing content to other companies. Cable business to business services - its fastest growing revenue business, with its highest EBITDA margins - over 50%. Sirius even has a high margin business to business service that rivals its radio margins and thats its telematics business. They license to the car companies - White label business.

[user34615145]

Content costs have been going down for years for Sirius. That's because they eliminated the other big bidder by merging with XM. Only 1 sat radio company. I would not at all be shocked if one of Hulu's main roles was just to compete with Netflix in bidding thus destroying Netflix business model with cost escalation. Amazon already competes well on that front. There will be thousands more in my opinion. No barrier to entry on the net. Netflix doesn't own the video distribution pipes that Sirius does own with audio.

But just like Pandora it will take years to play out. Good luck with your Netflix stock. 300 times earnings 100 times EBITDA and negative free cash flow.....I will never touch it. I am intrigued by what's happening with Hulu though so I will be following.

How do you know content costs are going down? The terms of the recent contract extension with the NFL, for example, were not disclosed, so you or I don't know exactly how much mgmt agreed to pay the NFL for the privilege of airing NFL's orignial content. SiriusXM had just topped 20 million subscribers when it last announced and extension in 2010 and now has 28.4 million accounts. As such, if I were the NFL, I would want more for my product. And just because Sirius and XM merged does not mean there is no other competition- There's tons of other competition so you can't assume that Sirius XM will be paying less overall.

While I'm sure whatever agreement was reached will be good for both parties I would argue that SiriusXM needs the NFL deal more than the NFL needs Sirius. For SiriusXM, losing existing content would certainly diminish the perceived value of the platform, while for the NFL, losing SiriusXM as a partner wouldn't even really register because virtually all of those listeners can get NFL "original content" on many free or nearly free alternative listening and viewing venues.

[MUSCLE13]

How do you know content costs are going down?

All you have to do is look at the total content costs for SiriusXM since the merger in 08 to see they are down substantially. Look at the financials each year. My guess is they start to move up slightly since just about every deal has been renegotiated post merger. Meyer stated at the last concall that many of the content deal costs are down by about 1/3 since Sirius and XM stopped bidding against each other. It shows in the lowering expenses.

[dm_4]

Everyone hates Bill...not me! Good am everyone good luck trading everyone. Nice hit on your apple trade Midas liked the vid too.

http://sports.yahoo.com/news/bill-be...013058598.html

EDIT: Where are our T/A guys with updates....Denco, LB, etc? Siri looking pretty sitting at 4.16 in pre! Run doggy RUN!