As Jamie Dlugosch mentioned a few days ago, Sirius XM Radio (NASDAQ: SIRI) shares are trading for less than a can of pop at the local gas station. The company, which just completed its merger this past summer, saw its biggest customer -- automakers -- fall on hard times just as it was poised to try and grow as a combined company. Timing is everything; if Sirius were operating back in 2006, it'd be just fine. But it is almost 2009 and the economy is in a world of hurt. So are consumer spending dollars and just about any automaker you look at.That's a one-two punch for satellite radio. Although I've used satellite radio before, the talk radio and interruption-free decade channels were about it for me. Sirius is now shuffling channels, trying to find a better mix that newer customers would be drawn to, as well as eliminating DJs on some music channels to save costs. When the difference between pay radio and terrestrial radio starts diminishing, that is a signal of the end. Sirius can't expect to have lackluster music programming and a lack of actual DJ personality to be perceived as "better" to existing customers, who could turn off satellite forever and create their own music service with a $50 MP3 player.
Note to Sirius: millions of consumers already do this. They download new music, podcasts and other entertainment directly (and in many cases, for free) and listen to what they want on their portable device over their car stereo systems. Although Sirius XM CEO Mel Karmazin acknowledged that MP3 players, iPods and the like were large competitors to satellite radio, this time his company is probably seeing it in force as it cuts costs and erases one benefit after another that are supposed to come with the $13/month radio service. Satellite Radio will survive the economic downturn, but who knows if it will be a shell of itself with a declining customer base and even more piles of debt after it is all through.











Reader Comments (Page 1 of 1)
11-17-2008 @ 2:24PM
BChargers said...
Is that the same Jamie Dlougosch that said (about SIRI stock) " I consider anything under $10.00 a buy" ?
Satellite radio is a complete failure.
SIRI stock is headed to ZERO.
11-17-2008 @ 2:17PM
Mike O said...
The author forgets that millions of people don't subscribe to Sirius just for music. I am one of those millions that subscribed specifically for Howard Stern. Having access to out-of-market hockey and NFL games is also a major selling point (for me, anyway).
You don't get any of those on your "$50 MP3 player"...
I rarely listen to the music channels at all.
11-17-2008 @ 2:44PM
BChargers said...
Is that the same Jamie Dlugosch that said " I consider anything under $10.00 a buy with a sell target of $20.00" ?
11-17-2008 @ 3:15PM
yomama said...
The author also thinks that the people that pay to hear music and no commercials actually want to listen to what a "DJ" has to say. Im glad they cut them, I dont want to hear them yammer -- i want music! it terrible that they lost their job, but most of them detracted from the value of commercial free music.
i've had xm and sirius and i beleive they have done a decent job of "shuffling". They took all the good channels from XM and sirius, i.e. XMU, Deep Tracks, etc.
11-17-2008 @ 5:06PM
jbatl said...
I agree with "yomama." The author is way off base regarding the "lack of actual DJ personality." As a long-time Sirius customer, that's exactly what I want!!! Terr radio is full of yammer, yammer, yammer. It's ceaseless! I'll take as many commercial-free, DJ-free channels as possible.
As a shareholder, I was always dismayed at the number of music channels which had announcers. Much of it seemed unnecessary. I applaud this cut and hope Mel has it in him to keep the ship afloat until this economy starts to turn.
11-18-2008 @ 12:45PM
joe said...
I agree this author really missed the boat on why customers stick with Siri. I love to listen to the nfl when I'm on the road, live of course. You can even hear the home or away local commentary! I listen to music and the many news/ finance stations, as well as Stern. I like news and sports but what good is it if its not live???
I think the new music format is fine too. I can jam to lithium from SC to Ohio and never loose signal except going through the VA tunnels.
And all I have to do to listen is turn it on....no synchronizing, downloading or toting back and forth from the car to the house. I have a sony sat ready aftermarket stereo with my siri receiver under my seat. All directly wired and not noticeable. I love it.
11-18-2008 @ 11:23PM
alan rosenthal said...
what will happen with xm's baseball package? will that be included with our sirius subscription or "the best of xm" ??
11-20-2008 @ 2:47AM
James Guerrero said...
I chose SIRIUS over XM because I liked the SIRIUS BLUES channel more than the XM blues channel.Now that I have been forced to listen to XM's blues,if I can stand it, I wonder what could ya'll have been thinking?SIRIUS BLUES was ten times better than what we have now.If SIRIUS BLUES is not returned,I will SIRIUSLY consider cancelling my subscription.I,also,considered the OLDIES channel 5 with SIRIUS was much better than the 50's on 5 that we have now.And what about BUZZSAW? It was the best mix of good Rock and Roll out there. But at least bring back SIRIUS BLUES. Bring back my sanity!
11-20-2008 @ 7:47PM
Dave Hebert said...
What a major disappointment! I am a true blues lover who has every preset button set to Sirius Blues channel 74. I carefully listened to both Sirius and XM’s blues stations before paying my hard earned money to subscribe. Now that Sirius has my money, a different choice has been made for me by the replacing Sirius Blues with XM’s Bluesville. I will not pay another cent for a service I don’t want. I am so missing my old Blues channel 74. I was your biggest fan, but now….goodbye Sirius
12-01-2008 @ 5:52PM
Cheri said...
Now that Sirius and XM have merged I've noticed the dj's yammering between each song and I DON'T LIKE IT! If I want to here them talk on a music channel I'll just drop Sirius XM and get it for free on FM radio!!! If a person wants to hear a talk show they can very easily turn it to a talk show channel.I didn't sign up for commercials either.If it doesn't improve I will definitely be canceling Sirius XM from my car!
11-21-2008 @ 5:09PM
Gary said...
I originally got XM for both my wifes car and mine so I could listen to music not talking or advertising.Lately I have to keep changing my stations to get away from this garbage.New options are available and if this does not change I will gladly use them instead of Sirius.
11-21-2008 @ 7:42PM
mike b said...
all of the channels are watered down. the reggae channel plays ub40, grunge cannel plays u2 and r.e.m., deep tracks replaced the vaultand is now playing the yardbirds that i've heard on fm radio. the programming is garbage. there are music genres missing now. I have cancelled this service. if this was the service 4 years ago, I would have never signed up. howard stern and sports is not enough to justify a pay service.
11-22-2008 @ 7:41PM
wayne said...
I am very disappointed with the "merging" of XM and Sirius so far. Both networks had unique and special channels. So far, Mel and his posse have shown they lack a fundamental understanding of the quality and audience loyalty that existed before the merger. He should know that hyping a diminished product will only hasten its demise. It seems that cost concerns are driving programming decisions and that is a prescription for disaster. One thing is certain-he can't "save" his way to prosperity. I was a former XM user who has had his favorite channel killed. I am trying to adjust to the loss but so far, the new Sirius additions have not compensated for the loss of my favorite channel. Will try for a while longer to make the adjustment but am closer to cancelling my service than at any time since I first subscribed, more than 6 years ago. Too bad that the Feds let this merger happen. Competition is healthy in spite of what Mel says.
12-02-2008 @ 2:41PM
Jeff said...
I am incredibly disappointed by the programming change from Sirius Blues 74 to BB Kig's Bluesville. I am also a DirecTV subscriber and had listened to Bluesville on DirecTV channel 854. One of the reasons that I chose Sirius over XM was the quality and style of Blues being played on Sirius over XM. I used to leave Sirius Blues 74 on for hours at a time without changing the channel. I now find the Bluesville programming unlistenable. It is not the hard driving guitar oriented Blues that I enthusiastically love. After two weeks of listening or rather NOT listening to Bluesville I have sent a complaint via email to Sirus Customer Support. I hope that there are enough fans of Sirius Blues 74 who will register similar complaints and force the suits at Sirius to revisit some of the unacceptable programming changes that have been made. I have four subscriptions that I recently updated. I will probably cancel three of them if Sirus Blues 74 doesn't revert back to it's old playlist.
12-03-2008 @ 6:33PM
Mike B said...
To all of you who subscribe for single programs ie. howard stern, sports etc...
These are independent programs, seperate from siriusxm,Those channels are paid to play advertisements. Where do you think your subscription dollars should go? No dj's? That fine, but who programs the channels? Most of the program directors are now from xm. If your unhappy with your "new" service, its because your now listening to an xm hybrid. computer shuffled to maximize songs played per channel. computers do not know the difference between pink floyd and diana ross. it just knows the year. ub40 on the reggae channel?, r.e.m. on a grunge channel?, yardbirds radio cut on deep tracks? you will continue to see genres blurred and radio edits played through out all channels. keep paying for howard and single programs, dont worry about the music channels. keep putting more money into the pockets of the radio executives you thought you left behind at fm radio. they found a fool proof way to take your money without you demanding a quality service. congrats! you are now officially brainless.
12-07-2008 @ 10:29PM
todd said...
I'm pissed! Sirius just dropped my favorite station Buzzsaw, and replaced it with the SH1TTY so-called equivalent from XM called Boneyard. 2 years ago, i sold my XM gear (at a loss) and switched to Sirius because Boneyard was totally LAME. this past summer, BEFORE i upgraded my Sirius receiver, i specifically asked if i would still be able to get the same channels after the merger. 'oh yes, sir, you'll still get all the channels..."
BULLSH1T! Sirius pitched "greater variety for the listener" so the FCC would allow the merger. I ain't getting 'greater variety'!!
12-07-2008 @ 10:33PM
todd said...
here's the link to let Sirius know what you think of the new channel lineup:
http://www.sirius.com/customercare
GIVE 'EM HELL!
1-04-2009 @ 4:40AM
Ramon said...
I'm so confused? Xm sirius radio is going down hill , I like to listen to hip hop & R & B and when I tune to a channel it's a tape or something from three days before and you want customers to pay more for lack luster shows and few Dj's its just wrong. Now it seem better to go free with FM and stop getting the butter from XM with NO roll?