The Street.com's Michael Comeau has a good piece analyzing Sirius Satellite Radio (SIRI). He looks into whether this is a good buy for investors who've had trouble deciding whether to get into satellite radio now, soon, later -- or never. The stock's been hovering around $4 since mid-July, down from a peak around $4.75 earlier that month.Howard Stern has been operating his show on Sirius since January, and it's probably not too soon to consider what type of deal it would take to get him to renew or extend his celebrated $500 million 5-year contract. Comeau feels that, with Sirius subscriber growth "decelerating", that a renewal might prove prohibitively expensive. Also, that deal set a "high bar" for the cost of signing new talent to the fledgling industry. Just something to consider.
And like us, Comeau wonders whether Apple (APPL) with iTunes and the iPod (or Zunes, if you prefer) could make satellite radio obsolete rather soon. Considering the flood of stories about mainstream media entities streaming content free on the net this week alone, makes that a real factor that long-term investors need to consider. How about this? Comeau asks if Stern really needs Sirius. What to prevent him, or other radio "names" from streaming their own content from their own sites?











Reader Comments (Page 1 of 1)
9-15-2006 @ 2:19PM
Nick said...
Here is what I don't get, IPOD is just a fancy mp3 player. I have an ipod and have had one for 3 years now, and am tired of it. Tired of downloading music, no interest in continuing to pay for tunes and immediately bored with my playlist (the addition of 2 songs to a list of 1000 really doesn't liven it up). I bought into sirius at the absolutely worst time (last spring) and have suffered a 40% loss, however I wonder if people will also get bored with mp3 players and miss letting someone else make their playlist for them (radio jockey). So what will the future be will people become sick of downloading mp3's and listening to static playlists, or will they be more interested in the commercial free continuous radio? Just combine the two alreayd, let me pay 500 bucks for a lifetime membership to an apple IXM-Sirius-Pod and get solve all of my problems.
9-15-2006 @ 3:51PM
Eric said...
I agree with Nick. I don't understand why the IPOD is always compared with Sirius or XM. I have had MP3 players from Sony, Nike, Creative and yes, even used an IPOD. Some of these included FM tuners, and all could store hours of music. These are great for the gym and even long runs, but when going to work or driving sometimes you just want to flip on a station and listen. The new stiletto from Sirius and some XM devices have live signals as well as MP3 players built it. Sirius has a video service on tap for the small video screens in SUVS to supplement the DVD players, they also have navigation services, local traffics and weagther reports, and many internet radio stations. I have also heard that they might ink a deal with yahoo music store. The inclusion of WIFI and possibly bluetooth in the next gen SAT-receivers help remedy the problems with poor signals indoors. They have also signed deals with phone companies like Sprint and have also been replacing MUSAK in some buildings.
Oh, and before comparing this to standard and HD radio, remember that the variety is huge and can be heard from coast to coast.
I am not bashing the IPOD, but the comparisons are inane. If you want to compare an IPDO to something compare it with another MP3 player, not something that is broadcast. To me MP3 players are nothing new, and are actually old news, next thing you know somebody will try to claim that people want to watch movies on a 2" screen and that this is revolutionary as well.
9-18-2006 @ 9:44AM
matt said...
The Author must be hard up for attention. This is a senseless piece.
There is no comparison. Satrad is here and wonderful for anyone over the age of 24 that has a job.
Ipod is the fad.
9-18-2006 @ 11:44AM
J. Jorgensen said...
The problem I find with financial reporters is they don't know the product they're writing about. Business and products are an ever changing fluid. An attempt to second guess a product to make a story is just that, a guess. Readers...stick with the big boys ie: Credit Suisse, S&P, Reuters, etc. for professional analysis. Taking the advice of financial reporters is nothing short of gossip. But then again...that's what blogs are all about. Remember, you get what you pay for.
9-18-2006 @ 12:09PM
Sheldon said...
Analyzing the Analysts - It's all a joke right?
http://www.bloggingstocks.com/2006/09/14/analyzing-the-analysts-its-all-a-joke-right/