Sirius forecasts merger savings, investors flee

If it wasnt for the FCC and the JUSTICE DEPT. the interest in the stock would be there.They have deliberately tried to ruin this merger because they do not like Howard Stern.

Cramer said that if they merge SIRI would be a $5.00 stock. Yeah, in 2020.

Beltway Greg

"Soon, with free Internet access, people in cars will be able to access every radio station in the world that streams audio, plus Internet audio and music services such as Pandora.com and Last.fm. Baseball will be available via MLB.com for $10 a year or free from radio stations that have an audio stream of the games, and the same with NFL games.

All of this means that content providers (music, sports, talk, comedy, and news) will be able to go directly to their consumers and bypass (disintermediate) traditional distribution channels such as radio stations, satellite radio, television stations, and cable systems sooner rather than later. The disintermediation of the main-stream, traditional media has begun.

There are several implications: One is that content will be more important than ever. Another is that creators of content (artists, writers, musicians, performers, etc.) can now sell their creations directly to their audience without having to pay rent and fees to middlemen such as wholesalers, agents, and distributors. Another is that marketing in the disintermediated world will be more important than ever – getting the message out about creative content to widely dispersed and niche (long-tail) audiences will be more difficult and require innovative solutions. Audience choice will be much greater as people learn that they can pull exactly the content they want from the Web and individualize it rather than having it pushed at them in homogenized, distributor controlled bundles. And, trillions of dollars of investment in buggy-whip distribution assets will be lost as radio towers are turned into cell phone towers and transmitting equipment is scrapped.

Terrestrial radio stations owners seem to be doing a good job of repurposing their content and streaming it on the Web in creative, user-controlled ways. Television networks are learning to stream their content on the Web and to create new, Web-friendly content. But what is satellite radio doing besides seeing the future through merger-tinted rose colored glasses? If Sirius and XM are to survive, they must begin streaming their content on the Internet. They can make their content password protected for subscribers for the time being, but be ready to make it free if the merger is not approved.

Sirius and XM will have to do what AOL did when it began losing dial-up subscribers by the hundreds of thousands each quarter, switch to a free, ad-supported model. Time Warner cannot sell AOL at anywhere near its $20 billion valuation because that valuation was based on a revenue model that produced over $1 billion in subscriber revenue, which is now sinking faster than real estate prices. The same will happen to Sirius and XM if they don't act"

Quoted From Web Article--Today

EMIL J KOVACH JR

SIRI going to the same graveyard as MOT satellite phones.