NiceMac’s iPhone App Could Boost Sirius XM’s Cash
The NiceMac USirius StarPlayer application for the iPhone is generating a ton of buzz! SiriusBuzz is giving away 7 invites for the application, and with over 300 comments on the promotion, it is clear that people are clamoring for an application that marries Sirius XM Radio with the iPhone.
The application, developed by NiceMac requires an existing subscription to Sirius XM Radio, and relies on the Internet feed of the service to deliver content. That Internet feed is currently free with a paid subscription, but beginning March 11th subscription pricing will change, and among those changes is the Internet feed which will cost an additional $2.99 per month on top of the $12.95 if you have an existing radio. Internet only subscriptions are available for $12.95 per month, and do not require a radio.
So how does a third party application help Sirius? In an ironic twist, Sirius XM Radio is allowing subscribers to lock in current rates, and maintain their free Internet feed for the length of their contract. Thus, if you renew your subscription prior to March 11th, you can keep your Internet feed for the term of your renewal.
The longer two and three year plans offered by Sirius XM already build in savings, but now, with applications such as this, locking into these rates to maintain the Internet feed has even more value. The potential for Sirius XM is pretty big. If 1 million subscribers lock in by pre-paying for $349 for the three year plan, it delivers an infusion of $349 million into the coffers. Considering that over 20%, or 4 million radios, of the subscriber base is in family plans which will also see a price increase, the activity on locking in lower rates could be huge.
While the prepay aspect of this issue helps bring cash into the doors, the other potential savings comes from cutting expenses. The company subsidizes the cost of retail radios, pays marketing costs, rents shelf space, and employs a sale force. With the iPhone capable of getting Sirius XM, there are no such costs. Sirius XM literally gains an advantage on the viral aspect of the iPhone phenomenon! From a business standpoint, a subscription on a device that costs the company nothing is far superior than one that costs the company money.
Many analysts that followed the sector had all but given up on a price increase after the merger concessions were published. It was thought that any mechanism for increasing revenue and ARPU were a sacrifice to the merger, and that prices would be stagnant for three years. The company has increased prices in the two ares they could, and that will drive Q1 numbers substantially. Unfortunately, this information is lost on the street because many analysts simply are not covering the equity any-more.
The take rate on locking in rates was already going to be decent. People want value. With the NiceMac’s application hitting the market, and the certainty of more in the pipeline for Blackberry, and other smart devices, the value of the Internet feed will only increase.
While the numbers presented here are not enough to wipe out all of the debt, they are substantial enough to give the Sirius XM debt picture an entirely new perspective. This will make the next few months even more interesting, and will give shareholders something to look forward to in the Q1 numbers as we await the finalized data from Q4 of 2008.
Position: Long Sirius XM
This is great news…can’t wait for the app.
but why arent they promoting the hell out of this–Every sub should be getting an email and direct mail offer to do this to avoid the increase for a 2nd receiver–Even those that dont have a 2nd might be convinced–Have some really cheap deals on receivers too–SiriusXM marketing dept truly sucks
I don’t think the app is official yet. They probably are waiting for it to be available at the apple store before promoting it. Makes sense to me.
I sent an email to Sirius asking about their official stance on streaming over a cellular network.
The likely reason they dont promote this app is because its not their own and because its not out yet. Why would they spend time and effort to promote an unrelease app? What if there was issues with the app? SiriusXm could catch the bad PR.They might as well take a wait and see attitude on this app. Im sure if someone has an iphone and satrad they are savy enough to find out about this app and get it as soon as it comes out. Once its on the market and being used then they need to try and attact new listerners. Im not sure you can get a internet only subscriptions but if you cant sirius needs to open this up as an option once this app is released. Who wouldnt pay 2.99 a month for unlimited commercial free music with the ability to listen to howard stern and all the great programs for 2.99? If a user has an iphone then they have wifi and 3g so they have a connection whereever they are. It would be a great money maker for sirius. There are 20 million iphone users.
If siriusXm could get 5 million to 10 million of those iphone users to get on a 2.99 a month / 35.88 a year plan they would bring a TON of cash in. SiriusXm does need to pay attention here and make sure to take advantage of this situation.
Things are starting to Gel. I think Sirius XM needs to start negotiating new contracts with their top talent so that it is available online. Currently only music channels are available.
Stern, and other would significantly boust the appeal of this player to iPhone users. It would be a huge differentiator when compared to slacker and pandora.
Stern is available online… Almost all the original content is available. I don’t think you can get NFL online in addition to some of the news channels, like CNBC.
Syn
Internet only without a sub costs 12.95. A little steep for not even a complete channel lineup. Does have great upside anyway!
$9.99 for Internet only access seems more reasonable and might result in greater penetration.
XM was 7.99.. I agree 5 dollar increase is a little steep.
Maybe if they include all stations that would be worth it.
At least you are getting CD quality on either Sirius or XM.
I think internet sub only on Sirius was 12.95. So I guess that is fair now.
Clip of Dave from NiceMac talking with Howard on the air about uSirius StarPlayr http://forums.geekstoolbox.com.....1233253624
I haven’t seen info if this would work on the Ipod Touch? Anyone have any news on that?
Yes. iPhone Touch over WiFi. Works Great too! I have one.
This is a must is this phone crazy, portable device obsessed world we live in. From the number of responses, it is obvious that something, finally, might be happening to stir up some much needed excitement for satellite radio. I agree with JamesPS; bring the price of internet only down to $9.99, which seems like the logical price to lure the masses.
People love a bargain, or at least a fair and honest deal. Sirius/XM doesn’t seem to grasp this concept – if they would just be a little more generous instead of trying to fleece the subscribers all the time, they would be pleasantly surprised by the influx of new subscribers. They have tried the greed approach, and we all know where that has gotten them!
The price of an internet only option will have to be alot lower than 10 a month in my opinion to win over alot of new iphone users. If they would offer it at the 3 to 5 dollar a month level for the internet only option then i feel like it would be well worth while and alot of new iphone users would gladly pay it to have siriusXm on their phone. Keeping in mind you can dock those iphones to a nice bose sound setup in your office/home and have a great setup. This app will work on the ipod touch as well as the iphone so lets not forget the ipod users when we think of possible cash revenues this could bring to siriusXm. They REALLY and i stress REALLY need to be aggressive not only in advertising this but in price for this once it is released.
Lastly, Steve i know they would love to offer a bargin for us all but lets be honest here. They arent being greedy they are trying to survive as a company. They have been generous in listening to customer demands in channels and what the consumer wants to hear. They are in a serious cash crunch as we all know and again i really feel this could help them if they use it to their advantage.
If they can afford Bobby Flay they, they have cash. Maybe if they all give themselves a price cut in salaries and celebs, they will survive. I only make 1 dollar a year myself off Apple.
Hell just help NiceMac with the iPhone. That will do it.
Steve
Syn
I agree, however we need as many subs as we can get. $3 for internet without a sub to full service is a money losing venture. On my Blackberry I can get XM for 8.99 and it is very limited in the channels available.
12.95 is the new online only account price and it gets 80 music and 30+ talk stations.
Much better than the poor Blackberry bastardized implementation of 20 stations.
good
There is absolutely no way there are 16 million individual subscribers. Your 20% figure is severly flawed. I would suggest you contact SiriusXM and ask for an actual figure in WRITING.
OMG, are you kidding me. Tyler and I have made it so clear, a moron could get it. You are unbelievable.
SiriusXMInverstor
the 20% number is a figure that both Sirius and XM use to use. the number maybe off by several % points, but is roughly in 20-25% range per the company. Why don’t you call the company and get the numbers in writing. Until you have these numbers…stop being a a-hole.
Hey….it’s 20-25% of 20 million. Call the company yourself. That means 4-5 million have more than one sub. You can’t spin it.
I see my post was cleaned up a bit. So I can be called an A-HOLE and MORON but I can’t call anyone an A-HOLE. Charles, isn’t that called selective enforcement?
No, he never called you a moron and he said “a-hole” you used the real word (twice) with about 30 exclamation points. You also used the F word. I don’t care if people swear every now and then, it was the excessive number of exclamation points accompanied by all of the swears that was just ridiculous. I can just start censoring them all of you want???
SiriusXMInvestor
You are the one who started the call the company crap. In almost everyone of your posts, you go out of your way to try and piss someone off. You are always right and everyone else is dead wrong. As stated before, IMHO the company has stated that 20-25% of subs are the so-called family plan. It really doesn’t make a big difference if it is 30%. The point of the article is with the Iphone app coupled with the increased number of family plans that will lock in the lower rate with upfront cash. The bottom line is increased(and dearly needed)cash flow for SiriusXM.
Charles
This guy really is an A……HOLE. Sorry, but it is true. His attitude just sucks!
I sorry, what does the “A” in “A-Hole” mean. is it “around” or “apartment” or “assent”, I give up I’ll never get it.
Ahhhh. I believe Sirius XM claims that there are 20 million subscribers.
SyNiSteR,
I agree with you; they are in a serious cash crunch and they are trying to survive as a company. I like your idea of them lowering the price of internet only to the 3 to 5 dollar a month level. That would be a great deal for people. As a matter of fact, that would be a……….. BARGAIN! Bargain = potential subs pulling money out of their pockets, which means more cash flowing into the coffers. Oh, the irony of it all !!!
on that stern clip the app developer said that if howard puts stills on his website that the starplayr would flip through them on the phone during the show
SWEET!
I just signed up for the lifetime plan on my main sub. A three year plan is $401.00, a lifetime is $399.00, a no brainer. I had to call three times to get someone who spoke clear english. I got a person from Oregon who is handling the over flow calls. I asked if many people were signing up for the extended plans, he said yes. The lifetime plan can be transferred three times at $15 per time. Well, I’ll save myself $2 bucks over the next three years then it’s free forever and free internet forever.
You might want to call and ask what the transfer price is again…I am pretty sure its more like $60 or $75 (can’t remember which one). I just went to the lifetime plan and thats what they told me. If I am wrong great.
QSELA: You are correct. I just signed up for lifetime a couple of days ago and the price for transfer is $75 for each transfer, with a limit of 3 transfers. I figure once I am done with the 3rd one, I will just leave it on in the vehicle and let someone else enjoy free SatRad and keep the free internet with it.
Newman
Do you know how long the lifetime offer will be available?
They are not saying, but sirius has had a lifetime plan around for years.
You are right it is $75. I was given wrong info by the agent. I just got off the phone with another agent. She looked up my order and of course it states nothing about the $15 quote. I asked if these conversations are recorded and she said yes. I then requested that my conversation with the other agent be reviewed by a supervisor. She or her supervisor is supposed to get back to tomorrow.
What happened to the shareholder bailout plan to pay down SIRI debt.
Thanks Steve.I think my idea has some merit. The goal being that you lure as many paying customers in to create as much cash flow as quickly as possible. To those that say its a money losing venture id like to hear a reason as to why.
They already have the streaming internet option in place. They have the means to do what they need to supply streaming internet to as many customers as they will have signing up.
This would be a perfect way to create positive cash as ive said. The only downside i can see is people will start to cancel the higher subscriptions to get the 3 to 5 dollar accounts. Where thats going to bite you is then you cant listen in the car so youd have to make the choice. Id say it might create a happy balance. ALOT of people dont care to listen to siriusXm in their cars but would gladly listen to it all day in the office or elsewhere for that price.
Syn
The more i think about it, I disagree only for 1 reason. SiriusXM needs large amounts of cash. The internet feed at $3 with its high license fees and higher royalties fees(internet royalty fees are actually higher than SatRad royalty fees) may only add a small amount of $ to bottom line. Now I do believe that they could offer a lifetime internet only sub for $249 or a 2-3 yr pre-pay plan @ $5-7 per month depending on the number of years. that might get quite a few takers. Bottom line is, the company could not afford to cont with the free internet feed that was being used by friends of friends etc.
SyNiSteR,
Again, you seem to get what Sirius/XM doesn’t get – lure them in, hook em’, and then give them every reason to keep the service. That means great programming at a fair price. I know that after having had satellite radio for over 3 years now, it would be out of the question to EVER go back to terrestrial radio. It would be like going from Angelina Jolie to Rosie O’Donnell. Once they are introduced to the world of satellite, and realize how terrible AM/FM is, then an eventual price hike will be easier to handle. The secret is to maintain high standards; with content, customer service, quality of radios, etc. They need to be a first class organization, and they need to treat subscribers like part of an extended family – not like a bunch of outcasts/second class citizens.
Personally, I have to have my plug and play in the car – it is as essential as the steering wheel to me! I have always had the suspicion that most people don’t listen in their homes/apartments. I don’t listen online nearly as much as I do docking the radio into my stereo. I realize that reception can be a problem, but if you can situate the antenna and get a decent signal, then you open up an oportunity to really appreciate your investment. Maybe having a good stereo isn’t cool anymore, and this doesn’t appeal to people? Too bad if that is true, because I listen to it like this, and I can assure you that hearing it like this is a revelation!
I have a shit job, with no office and no opporyunity to listen to ANYTHING at work. It’s like working in a sweat shop, and the people I work with are either religious nuts or hillbillies. What I’m doing there I have no idea. Sirius/XM needs to agressively exploit the millions of potential listeners that would love to have the service available on their desks, in the office, whether it be online or via an i-phone app. Management of this company needs to seize EVERY opportunity to lure subs. The opportunities are out there; unfortunately management has been in a comma since the merger was approved!
You make sense to me, SyNiSteR – and I don’t usually agree with a whole lot of people. They probably don’t agree with me either, but thats OK. Makes for lively discussion, which is always interesting.
Sirius XM is charging more so users can get CD Quality, but at the same time they are nixing 32 and 64 streams.
That is a Badddddd move.
Sirius XM upping the quality but at the same time is nixing low bandwith users such as dialup and users who have crappy Edge coverage. Some Edge areas are good but in Goat Boy land Edge can only handle 32k and lower.
Listeners need to write in to Sirius and ask then to not only add the 128k but keep the value added 32/64 bitrates for dialup and other low bitrate cell connections.
If users are paying now an arm and a leg. Give them back their other arm’s and legs that they already had and then give them some feet for the 128k.
32k, 64k, 128k should be the options.
not just 128k
Gooooat Boy!
As a loyal Howard Stern fan and Sirius customer, I find it really aggravating that NO ONE from the Stern show
or Howard 100 News has spoken about the recent underhanded moves by Mel and Sirius management
regarding pricing and internet streaming.
Raising prices in a down economy isn’t smart to begin with.
What Sirius has done is basically tell their customers, “Too Bad! Cancel if you want!”.
That’s just bad business and even worse customer relations.
I, for one, will be dumping Sirius when my current subscriptions expire.
I currently have 3 subscriptions that I pay for a year at a time.
I have been a subscriber before Howard even started at Sirius.
I have a Stiletto 2 and the fact that I will have to pay EXTRA for a basic feature of the unit, wireless internet access, is a deal killer for me.
ANYONE, with any of the Stiletto units, knows that the satellite reception is NON-EXISTENT indoors and spotty, at best outdoors.
For Sirius to place a premium on their portable unit is the height of arrogance.
Why anyone would pay for a Stiletto now when they can simply use an iPhone or Blackberry and the internet is beyond me.
Mel Karmazan promised no price increases to Congress during the hearing on the merger.
We now know that he was lying.
Mel’s brilliant management skills have caused the stock to lose over 95% of it’s value.
There is not a single company, in the history of the stock market, that has lost over 95% of it’s value and survived.
Sirius is now a penny stock and will remain so until it goes belly-up.
Sell your shares now, they are, for all intents and purposes, already worth ZERO!
I got Sirius for one reason, Howard Stern.
The fact that Howard is leaving at the end of his current contract and that Sirius will probably be in bankruptcy shortly,
has pushed me to finally pull the plug on my Sirius subscriptions.
When they expire, I’m done.
Mel, Howard and Sirius management can go pound sand.
If this is how they treat loyal customers, I don’t need them.
There is one company that lost 95% of it’s value in the late 1990s and later prospered with Jobs back at the helm, Apple Computer, now known as Apple Inc.
BS!
Sirius lost almost all it’s value in a a single year.
That kind of shareholder devastation has never been recovered from.
Apple is a 32 year old company.
They have NEVER had that kind of stock devaluation in their history.
Apples decline was slow and relatively gradual.
Sirius is essentially a start-up and a failing one at that.
Yea I am going to cancel to, I cant believe they have the gaul to raise prices after only 6 YEARS. Of course I will keep my cable because they raise theirs every year so I am used to it by now.
Tim,
How many times in the many years that you have been with Sirius as a subscriber has your rates increased?
Mel’s general statements made under oath to Congress were translated into an actual document that is the rate plan submitted and included in the concessions to the FCC. Additional subs are sold at a discount at 6.99 / mo and will continue to be at a discount of 8.99/ mo. The internet free feed is going away and only the existing premium feed is staying. There isn’t an increase in that feed’s cost.
Your prediction of the stock being worth zero may come true, but is for investors to decide for themselves what they should do. We will all know soon enough.
I agree that the Stilletto units, without WiFi are a sham. They are no more than an MP3 player and a semi portable, clunky radio outdoors, if you stay still. The internet feed should be given for a year along with the radio and then sold at a deep discount Y o Y to make up for the engineering failure.
As a highly paid content provider of Sirius Xm, Howard needs to stay away from beating up management as they try to find a way to pay for his contract. Finding ways to promote the company without going against his own convictions would be very helpful. If he can’t help, then I wouldn’t expect him to hurt the company.
It is always a problem when a company loses a loyal subscriber, and you have been that as you say. Unfortunately when you leave because of these increases in subscription prices, your dismay over management’s lying, and Howard’s retiring, you will be stuck with Terrestrial Radio, MP3’s, a variety of Internet Feeds providing prerecorded content. Tough decision to be so grounded in your convictions.
Me, I’ll take my chances with the stock and could never ever give up the content. Good luck.
This place is full of delusional Kool-Aid drinkers.
Anyone who believe that Sirius will actually survive is smoking crack.
Where were you wishful thinkers when Sirius screwed people with the S50 then the Stiletto 10/100 and then the Stiletto 2?
The fact is, Sirius deserves to be sued BIG TIME for NEVER offering a portable product that worked as advertised.
They still offer the Stiletto, which does NOT work as a satellite receiver, and will begin to charge a premium, a tax by any other name, to enable what is now a BASIC FEATURE, Wi-Fi access.
That is called FRAUD IN THE INDUCEMENT and it is ACTIONABLE!
If any of your Einstein wannabees had bothered to actually read anything you would see my problem is with how they have handled loyal customers, like myself.
Howard is only on 4 days a week, has more vacation time than anyone I’ve ever known and the show is NOT as good as it has been.
This price increase on top of everything else, tip the scales for me in favor of dropping Sirius when my paid subcriptions expire.
Quite honestly, the product quality isn’t good enough to warrant putting up with their LOUSY treatment of paying customers.
I am sorry, but did I miss Sterns contract being changed. If not, then why do I here people talking about him retiring. That is after all still 2 years away. Put another way, he is only 60% done with his contract. I mean, I could see having this discussion in the begining of 2010 or even towards the end of 2009 but now.
In conjunction with the rate increases, a big Internet rumor has SiriusXM removing H100 and H101 from the online service after March 11.
I believe the rumor is complete BS; why deny the largest segment of your user base access to the #1 attraction on satellite radio, especially when you are charging them MORE to receive his show?
After March 11, Sirius XM is trying to eliminate 32k and 64k streams. Everyone will be on 128k cd quality. This hurts dial-up and some users over Edge that have poor coverage.
Don’t left Sirius XM charge more and offer less. Call, write, email Sirius and XM today and explain to them that they are making a huge mistake by getting rid of 32k and 64k streams. If they were smart they will keep 32k and 64k and add 128k to all users on both services for Sirius and XM.
Sirius XM is making a huge mistake at the worst possible time. Charging more is okay, but taking away 32k and 64k access to its users is a bad move. Sirius XM has tunnel vision and can’t see the forest from the trees. This why they can’t write their own software player for the iPhone.
They are hurting for dough. We give them that, but to offer users less for more is a crime. Don’t do it Sirius XM.
If you are consumer/customer/listen of Sirius XM, speak up now! And let Sirius XM know how important StarPlayr is to you and that you want them to succeed but to commit to a screw up like this is a disaster in the making.
Even if you are not an iPhone user, Streaming quality should be your choice. It’s your bandwidth. It’s your Sirius and XM Radio. 32k, 64k, 128k should be a choice not a 128k dictatorship.
If you are consumer/customer/listen of Sirius XM, speak up now! And let Sirius XM know that this means to you.
Contact XM:
Contact Sirius:
http://www.sirius.com/contactus
Keep on streaming! 32/64/128k It should be your choice, not Sirius’
What’s the difference between this new app and logging into sirius and streaming from the iPhone browser?
Unfortunately, you can’t stream Sirius from the iPhone browser.
The sirius site uses Flash or Windows Media to stream, I forget which, and neither works with iPhone.
I’m an American living in Saudi Arabia. we just got the iPhone (legally through a local telephone service – Mobily). I’d love to get sirius so I can listen to Howard and others in saudi arabia. Sounds like i can do it based on statement in other article (“2009 should bring with it news that Sirius XM has extended its service to Puerto Rico and worldwide on the Internet.). More importantly, is this overseas market a significant one for SIRI?