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Posted: 2/16/2006 6:03:09 PM EDT


Happy Sirius subscriber here.

www.theregister.co.uk/2006/02/16/xm_2005_loss/

XM Satellite tunes in massive 2005 loss
Director warns of looming 'crisis'

By Ashlee Vance in Mountain View
Published Thursday 16th February 2006 18:13 GMT


XM Satellite has experienced what you might call a pretty bad day. The company posted a massive fourth quarter loss and then revealed that a director has resigned due to fears that XM is heading toward a "crisis."

XM - the leading member of a satellite radio duopoly with Sirius - reported a 113 per cent rise in fourth quarter revenue to $177m. The gains came on the back of healthy subscriber additions but did little to improve the company's overall bottom line. In fact, XM saw its net loss swell to $268m from $188m in the same period last year.

The expanding loss failed to dampen CEO Hugh Panero's enthusiasm for XM's prospects.

"2005 was a significant growth year for XM in which we added more than 2.7 million net subscribers," Panero said. "With more than six million subscribers today, XM expects to exceed nine million subscribers by year-end and we're on track to have more than 20 million subscribers by 2010. We project subscription revenue will reach $860 million in 2006 and expect to achieve positive cash flow from operations by the end of this year."

Such optimism was not returned by Pierce Roberts, a former telecom investment banker, who resigned after five years as a XM director.

"I have been troubled about the current direction of the company and do not believe that it is in the best interest of the company’s shareholders," Roberts told the board in a letter that was reprinted in a XM regulatory filing. "For some time I have made my analyses and observations known in an increasingly vociferous manner to the Board and a number of senior managers of the Company. I am not having any useful effect and I care too much and believe in my own views too much to just 'go along'.

"Given current course and speed there is, in my view, a significant chance of a crisis on the horizon. Even absent a crisis, I believe that XM will inevitably serve its shareholders poorly without major changes now. It is clear to me that I cannot be part of the solution and I will not be part of the problem."

In the filing, XM noted that Roberts has historically favored more stringent spending controls and called for the company to reduce marketing and programming costs. "The other Directors, however, believe that the company’s high growth rate, market leadership and large base of subscribers are strategically important assets to ensure the company’s long term value and can be sustained while also reaching positive operating cash flow later this year," XM said.

For the full year, XM pulled in $558m - a solid 128 per cent increase over the $244m reported last year. Again, however, the net loss grew. XM lost $667m in 2005 versus $642m in 2004.

XM spent an astonishing $488m on marketing in 2005 - up from $304m in 2004.

Both XM and Sirius have put down serious cash in their bids to acquire customers. XM hopes to exit 2006 with 9m subscribers, while Sirius wants to grab 6m subscribers. Sirius made plenty of news this year with its lucrative package that wooed Howard Stern from traditional radio.

The satellite radio companies offer advertising-free shows in exchange for monthly subscriptions. Numerous partners have come out with home and car devices for playing the satellite radio shows and now for playing MP3s as well. XM and Sirius have exclusive deals in the US to broadcast satellite radio.
Link Posted: 2/16/2006 6:10:14 PM EDT
Hate to break it to you, but Sirius isnt exactally in the black either. Neither company is within a decade of being profitable.

I am a Sirius subscriber too, and I like it, but unless something changes, I would say "enjoy it while it lasts"

right now NEVER shell out for the "one time payment for life" deal. If sirius goes under tomorrow you're SOL. If you have a term of service, you at least have some recourse to get your money back if they tank.
Link Posted: 2/16/2006 6:12:36 PM EDT
113% increase in rev in the 4th Q

Cash flow break even in 2006

XM is just fine
Link Posted: 2/16/2006 6:15:04 PM EDT
now who is the RIAA going to blame this on?
Link Posted: 2/16/2006 6:15:50 PM EDT

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.

X XM customer here.

SG
Link Posted: 2/16/2006 6:17:46 PM EDT

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius
Link Posted: 2/16/2006 6:18:13 PM EDT
Here is another view from the our friends at the NY Times. My feeling is that Wall Street is very fickle. They want instant returns on their money. It will takes years for the service to actually earn money. It is not easy starting a breaking new ground..
========================================================================
http://www.nytimes.com/aponline/business/AP-Earns-XM-Satellite.html

The New York Times

February 16, 2006
XM Radio's Loss Widens and Key Director Quits
By THE ASSOCIATED PRESS

Filed at 8:49 p.m. ET

NEW YORK (AP) -- XM Satellite Radio Holdings Inc.'s losses soared in the fourth quarter on higher costs for marketing and acquiring subscribers, and a director quit over disagreements about the company's direction, warning of a looming ''crisis.''

Investors punished the shares of the Washington, D.C.-based company, sending them down $1.27, or 5 percent, to close at $23.98 in very heavy volume Thursday afternoon on the Nasdaq Stock Market. They reached a 52-week low of $22.94 earlier in the day.

Of particular concern to investors was the unexpected departure of Pierce J. Roberts Jr. from XM's board of directors, who said in his resignation letter that he was ''troubled'' by the company's current path. Roberts, the former chief telecom banker at Bear Stearns, had served on the board's audit, compensation and nominating committees. He had been a director for five years.

''Given current course and speed there is, in my view, a significant chance of a crisis on the horizon,'' Roberts wrote in the letter, which the company disclosed in a regulatory filing. ''Even absent a crisis, I believe that XM will inevitably serve its shareholders poorly without major changes now.''

Roberts didn't go into detail about his concerns in the letter, and a representative said he was declining to comment. However, the company said in a statement accompanying the letter that Roberts had been pressing for tighter cost controls, a position the company and other directors disagreed with, favoring instead efforts to continue XM's heavy cultivation of subscribers.

In a statement, XM's chairman Gary Parsons said the company's directors and managers ''believe that the balanced growth strategy that we have set for the company is the right one to ensure XM's long-term value.''

In noting the departure of Roberts, Merrill Lynch analyst Laraine Mancini said in a note to investors that XM's cost management had been a concern of hers as well. ''We hope that an insider disagreement could force a shift in strategy,'' she wrote.

XM, the larger of the country's two satellite radio operators, lost $270.4 million, or $1.22 per share, after dividends for preferred stockholders, in the October-December period. In the same period a year earlier, the loss was $190.4 million, or 93 cents per share.

Revenue more than doubled to $177.1 million from $83.1 million. Analysts surveyed by Thomson Financial expected a loss of 92 cents per share.

Also of concern to investors was a big jump in the net average cost that XM incurs for adding each subscriber, which rose to $141 in the quarter from $104 in the same period a year ago. Those figures include marketing expenses.

Company officials said the jump was unusual, saying they expected those costs to fall significantly as advertising spending declines. Last fall XM was going up against the imminent arrival of the hugely popular shock jock Howard Stern at its rival, Sirius Satellite Radio Inc.

XM continued to spend heavily to fund its expansion. Overall marketing costs almost doubled in the quarter to $196.5 million, and costs for programming more than tripled to $30.6 million.

XM and its Sirius are locked in a fierce and expensive battle to line up listeners and programming for their pay radio services, which currently cost about $13 a month and require a special receiver. Both offer dozens of channels of talk and news as well as commercial-free music.

Both have also racked up significant financial losses, signing big-ticket contracts for programming with Stern, Major League Baseball, talk show host Oprah Winfrey and others.

Like Sirius, XM relies heavily on capital markets to fund its aggressive expansion efforts, and analysts cautioned that any disruption of the willingness of investors to stay on board could have serious consequences.

''They have been in a startup mode for a very long time, and have been in a negative cash flow mode for a very long time,'' said Heather Goodchild, chief media analyst at the Standard & Poor's debt rating agency. ''If the capital markets became less receptive, you could envision the music stopping and not enough chairs being there.''

The ratings company ranks XM's debt CCC+, seven levels below investment grade. It rates that of Sirius CCC, eight levels below.

For the full year, XM posted a loss, after preferred dividends, of $675.3 million, or $3.07 per share, compared with $651.2 million, or $3.30 per share, last year. Revenue rose to $558.3 million from $244.4 million.

XM said it had more than 5.9 million subscribers at the end of 2005, up 84 percent from a year earlier, and said its total had risen to more than 6 million in the first week of January. Sirius has said it has more than 3 million subscribers.

XM's chief executive officer, Hugh Panero, said the company expects to reach profitability from its operations by the end of this year, with subscription revenue reaching $860 million. He also said he expects to have 9 million subscribers by the end of the year.

------

AP Business Writer Lisa del Greco in New York contributed to this story.

------

On the Net:

http://www.xmradio.com

http://www.sirius.com

* Copyright 2006 The Associated Press
Link Posted: 2/16/2006 6:18:38 PM EDT

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius



More marketing too.

Good for them.

It still sucks.

SG
Link Posted: 2/16/2006 6:22:15 PM EDT

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius



More marketing too.

Good for them.

It still sucks.

SG



Like I said...opinion.

You'll find dozens of poster here that disagree with you
Link Posted: 2/16/2006 6:23:22 PM EDT

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius


Smaaaaaaaaaaaaaaaaaaack!

Happy XM customer = jrzy
Link Posted: 2/16/2006 6:24:53 PM EDT

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius



More marketing too.

Good for them.

It still sucks.

SG



Like I said...opinion.

You'll find dozens of poster here that disagree with you




and even adding the tired fart jokes of howard stern hasn't helped sirius beat xm
Link Posted: 2/16/2006 6:30:31 PM EDT
ive listned to xm and sirius, liked sirius a shitload more. but hasnt XM been out alot longer then sirius? if that was the case they should have more subscribers. in any situation i hope both of them do well i like having options and it would be really gay not to have options when it comes to sattelite radio.
Link Posted: 2/16/2006 6:31:06 PM EDT
[Last Edit: 2/16/2006 6:32:09 PM EDT by ScaryGuy]
WOW, what a reaction.

Tough crowd.

Didn't realize the XM crowd was so sensitive.

Sorry.

Oh, and XM STILL sucks...

(Ducking and covering...)

SG

X XM subscriber...cause it SUCKED.

(Lighten up, XM Francis'...I hope both services do well, because I think Satellite Radio rocks in any event.

Link Posted: 2/16/2006 6:38:43 PM EDT
as I've said here before....I own stock in both but I listen to XM.....but I'm happy to take the money from the mouth-breathing Stern jock sniffers too.
Link Posted: 2/16/2006 6:41:00 PM EDT
Oh noes....


<-----------
my mom has XM in her Chevy TrailBlazer.

Two words:

WOLFMAN JACK!
Link Posted: 2/16/2006 6:42:12 PM EDT
why do people get so mad over radio? i have sirius and love the shit out of it. i dont wish XM would go out of service cause i dont listen to it. i hope both of them do well . i really hope i dont have to go to XM though.
Link Posted: 2/16/2006 6:45:13 PM EDT

Originally Posted By NoVaGator:
as I've said here before....I own stock in both but I listen to XM.....but I'm happy to take the money from the mouth-breathing Stern jock sniffers too.



Funny.

I've never listened to Stern a day in my life.

Still find it funny that you XM'ers get so defensive over RADIO for God's sake.

LMAO.

SG

Link Posted: 2/16/2006 6:47:38 PM EDT
i'd listen to stern, but it doesnt fit my time frame. sirius has great programming tho. well worht the $$
Link Posted: 2/16/2006 6:48:29 PM EDT

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:
as I've said here before....I own stock in both but I listen to XM.....but I'm happy to take the money from the mouth-breathing Stern jock sniffers too.



Funny.

I've never listened to Stern a day in my life.

Still find it funny that you XM'ers get so defensive over RADIO for God's sake.

LMAO.

SG




You should probably go back and read the thread
Link Posted: 2/16/2006 6:55:58 PM EDT

Originally Posted By deej86:
Oh noes....


<-----------
my mom has XM in her Chevy TrailBlazer.

Two words:

WOLFMAN JACK!



seriously his show rules. Two more words OH-PRA. she's coming. and she's bringing a zillion housewives with her. at a thirteenth the price of sterns contract too!
Link Posted: 2/16/2006 6:58:19 PM EDT

Originally Posted By ScaryGuy:
WOW, what a reaction.

Tough crowd.

Didn't realize the XM crowd was so sensitive.

Sorry.

Oh, and XM STILL sucks...

(Ducking and covering...)

SG

X XM subscriber...cause it SUCKED.

(Lighten up, XM Francis'...I hope both services do well, because I think Satellite Radio rocks in any event.




talk about a warped sense of reality.


Link Posted: 2/16/2006 7:04:46 PM EDT

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius





XM has awesome programming, very happy XMer.
Link Posted: 2/16/2006 7:05:28 PM EDT

Originally Posted By HillBillySniper:
why do people get so mad over radio? i have sirius and love the shit out of it. i dont wish XM would go out of service cause i dont listen to it. i hope both of them do well . i really hope i dont have to go to XM though.




good post........who cares which is better-to each his own
Link Posted: 2/16/2006 7:07:10 PM EDT
Neither company is operating in the black. Both are sacrificing short term profits and cash flow for long term shots at success.

Only time will tell.

I prefer XM's programming.
Link Posted: 2/16/2006 7:08:31 PM EDT
[Last Edit: 2/16/2006 7:09:41 PM EDT by NoVaGator]

Originally Posted By buckfever34:

Originally Posted By HillBillySniper:
why do people get so mad over radio? i have sirius and love the shit out of it. i dont wish XM would go out of service cause i dont listen to it. i hope both of them do well . i really hope i dont have to go to XM though.




good post........who cares which is better-to each his own



I've been following this technology for some time, (like 1999) and the Sirius camp has had some sort of beef with XM since day one. It's really kind of strange. It's like the same ire the Apple folks have for Windows users. Why do they give a crap?
Link Posted: 2/16/2006 7:08:43 PM EDT

Originally Posted By buckfever34:

Originally Posted By HillBillySniper:
why do people get so mad over radio? i have sirius and love the shit out of it. i dont wish XM would go out of service cause i dont listen to it. i hope both of them do well . i really hope i dont have to go to XM though.




good post........who cares which is better-to each his own


I never really cared either. I don't care a whole much now as the satelite radio really doesn't get much use. But when my dad chooses to use it, I listen, and it's good stuff.
Link Posted: 2/16/2006 7:09:50 PM EDT
[Last Edit: 2/16/2006 7:13:17 PM EDT by Snpr1]
XM Fan here...just wish you could get ALL the stations online. I am a Sonic Theater, and Radio Classics nut! For the most part both services have the same things. I just like to listen over what my local radio is playing.
Link Posted: 2/16/2006 7:16:56 PM EDT
Sirius HARD ATTACK 27!!!

Heavy Metal lives on! The hardest, loudest, fastest music on Earth, from the newest bands and true masters of metal. It’s a non-stop attack of Slayer, Pantera, Slipknot, Lamb of God and more.

What we play: Metallica, Sepultura, Black Sabbath, Shadows Fall, Megadeth, Killswitch Engage, Iron Maiden, Cradle Of Filth and many more...

Link Posted: 2/16/2006 7:17:46 PM EDT
I've had cause to call XM customer service a few times in December while buying gifts. Their customer service was terrific.
Link Posted: 2/16/2006 7:19:06 PM EDT

Originally Posted By chapperjoe:

Originally Posted By deej86:
Oh noes....


<-----------
my mom has XM in her Chevy TrailBlazer.

Two words:

WOLFMAN JACK!



seriously his show rules. Two more words OH-PRA. she's coming. and she's bringing a zillion housewives with her. at a thirteenth the price of sterns contract too!


Wolfman Jack
Oprah
Link Posted: 2/16/2006 7:22:37 PM EDT
Foolish Forecast: Can Sirius Survive?

http://www.fool.com/news/mft/2006/mft06021611.htm

By Rich Smith (TMFDitty)
02/16/2006

Grab your cats-o'-nine-tails, Fools: It's almost time for that whipping boy of value investors everywhere, Sirius Satellite Radio(Nasdaq: SIRI), to report on its financial progress for the fourth quarter of 2005. The company is expected to report tomorrow, before the market opens.

Wall Street Wisdom:

* General consensus. This is a high-visibility stock -- and not just because its satellites are hanging up there for everyone to see. Thirty analysts spend their waking hours tracking the company's (lack of) profits. Of these, a whopping 18 rate the stock a buy on its prospects. Four rate it a sell on its lack of prospects. Eight more are on the fence.
* Revenues. Sirius' revenue growth is nothing short of astounding. Analysts predict that it will report 199% year-over-year growth to $75.4 million.
* Earnings (or lack thereof). Wall Street expects Sirius' loss per share to widen by 5% year over year to $0.22 per share. The deterioration would have been a bit more than that but for an increase in share count by, at last count, about 5% over the past year.

Margin watch:
Sirius can't be analyzed by conventional metrics -- that is, watching for improvements in gross, operating, and net profits over time. The reason: All of these numbers were negative. The chart below, however, suggests that this situation appears to be about to change. The company's rolling gross margins finally turned positive last quarter.

It still has no positive operating or net margins for us to monitor. But the continuing decline in selling, general, and administrative expenses in relation to total revenues suggests that, if we wait long enough -- and if the company can stay in business long enough -- operating margins may eventually move into the black as well.

**all data a courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ending in the named months.

Foolish lookout:
So long as Sirius continues to burn cash (as evidenced by its negative free cash flow), two things need to remain foremost in Foolish minds: dilution of shares and debt. To remain solvent, the company must issue one or the other until it can afford to pay its keep from its operations. Tomorrow, we won't see the 34.4 million new shares issued to Howard Stern show up on the company's income statement -- they weren't issued until Jan. 9, 2006. But factor those in to your expectations for next quarter.

Fool contributorRich Smithhas no financial interest, short or long, in Sirius.


Legal Information. ©1995-2005 The Motley Fool. All rights reserved.

Link Posted: 2/16/2006 7:25:06 PM EDT
Anyone invest in the cable TV companies early? I wonder how long it took for them to become profitable.

Link Posted: 2/16/2006 7:26:35 PM EDT
Sat radio rocks, I prefer Sirius, and if one or both "go under", someone else will step in and fill the void, with their old equipment and subscribers, at that! Yeah, it's all just gonna "go dark". Yup. Oh, and XM is teh suck.
Link Posted: 2/16/2006 7:32:14 PM EDT

Originally Posted By The_Camp_Ninja:
Sat radio rocks, I prefer Sirius, and if one or both "go under", someone else will step in and fill the void, with their old equipment and subscribers, at that! Yeah, it's all just gonna "go dark". Yup. Oh, and XM is teh suck.



Spoken by a truly wise man.

Unless a garbage can and white gas is involved.

We need to go shooting or just pound a few PBR's together,my brotha.

Give me a shout.

SG
Link Posted: 2/16/2006 7:33:59 PM EDT
Link Posted: 2/16/2006 7:35:20 PM EDT
a point of concern about sirius AND xm is their vulnerability to catastrophic loss. it's not like cable TV where if something breaks they can send out a truck to fix it. if one of those satellites takes a dump, there is no way that they could afford the cost. with them already running in the red, turning off the service wont exactally bring in the new customers to pick up the repair bill.
Link Posted: 2/16/2006 7:36:50 PM EDT

Originally Posted By HiramRanger:
Former Sirius customer, now XM customer... VERY happy, now. Oh, and we have major league baseball baby!



Former XM customer, now a SIRIUS customer VERY VERY VERY HAPPY!

Oh, and we have the NFL and SEC Football, baby!

LOL

(Just funnin, cause this thread's a laff riot)

SG
Link Posted: 2/16/2006 7:37:47 PM EDT

Originally Posted By freeride21a:
Sirius HARD ATTACK 27!!!

Heavy Metal lives on! The hardest, loudest, fastest music on Earth, from the newest bands and true masters of metal. It’s a non-stop attack of Slayer, Pantera, Slipknot, Lamb of God and more.

What we play: Metallica, Sepultura, Black Sabbath, Shadows Fall, Megadeth, Killswitch Engage, Iron Maiden, Cradle Of Filth and many more...




Between Hard Attack and Octane, with the occasional BuzzSaw thrown in, I am a happy man.

SG
Link Posted: 2/16/2006 7:37:54 PM EDT
[Last Edit: 2/16/2006 7:38:53 PM EDT by NoVaGator]

a point of concern about sirius AND xm is their vulnerability to catastrophic loss. it's not like cable TV where if something breaks they can send out a truck to fix it. if one of those satellites takes a dump, there is no way that they could afford the cost. with them already running in the red, turning off the service wont exactally bring in the new customers to pick up the repair bill.




they're insured for that
Link Posted: 2/16/2006 7:40:00 PM EDT

Originally Posted By chapperjoe:

Originally Posted By deej86:
Oh noes....


<-----------
my mom has XM in her Chevy TrailBlazer.

Two words:

WOLFMAN JACK!



seriously his show rules. Two more words OH-PRA. she's coming. and she's bringing a zillion housewives with her. at a thirteenth the price of sterns contract too!



Oprah's show is more of an advertising hype than substance.
Her XM contract is for one half-hour show once a week.

FWIW, I'm a Sirius subscriber myself
Link Posted: 2/16/2006 7:41:41 PM EDT
[Last Edit: 2/16/2006 7:42:43 PM EDT by USAF_Hop_N_Pop]

Originally Posted By NoVaGator:

a point of concern about sirius AND xm is their vulnerability to catastrophic loss. it's not like cable TV where if something breaks they can send out a truck to fix it. if one of those satellites takes a dump, there is no way that they could afford the cost. with them already running in the red, turning off the service wont exactally bring in the new customers to pick up the repair bill.




they're insured for that



not according to an article i read when i was looking into investing in sirius. unless things have changed in the past year, sirius does NOT insure their sats, and IIRC, XM does not either.

ETA: here is a link to the article:www.fool.com/news/commentary/2005/commentary05072103.htm?source=eptyholnk303100&logvisit=y&npu=y&bounce=y&bounce2=y
Link Posted: 2/16/2006 7:48:39 PM EDT

Originally Posted By USAF_Hop_N_Pop:

Originally Posted By NoVaGator:

a point of concern about sirius AND xm is their vulnerability to catastrophic loss. it's not like cable TV where if something breaks they can send out a truck to fix it. if one of those satellites takes a dump, there is no way that they could afford the cost. with them already running in the red, turning off the service wont exactally bring in the new customers to pick up the repair bill.




they're insured for that



not according to an article i read when i was looking into investing in sirius. unless things have changed in the past year, sirius does NOT insure their sats, and IIRC, XM does not either.

ETA: here is a link to the article:www.fool.com/news/commentary/2005/commentary05072103.htm?source=eptyholnk303100&logvisit=y&npu=y&bounce=y&bounce2=y



Well, XM is insured....as is Direct TV and Dish.
Link Posted: 2/16/2006 8:42:04 PM EDT
Link Posted: 2/16/2006 8:46:28 PM EDT
octane, faction, and alt nation keeps me happy. ive listend to XM quit a bit it just seems for the younger generation like myself its music selection is kinda lame. sirius has 3 stations that always have music that i like on. hey what ever floats your boat!
Link Posted: 2/17/2006 3:35:37 AM EDT
Link Posted: 2/17/2006 4:04:01 AM EDT

Originally Posted By Magpul:

However their 90's station is mostly 90's hip hop.




You knwo that's a fairly recent thing that I hate too. up until around January they were playing alot of good grunge and alt, now I can't turn it on without hearing Too LEgit Too Quit. hey hey. Too legit. Too Legit To Quit.


hehehhehe.

And it should be illegal for you to post without offering a pic of one of your new products. y'all are gonna make a trillion dollars with the new stocks.
Link Posted: 2/17/2006 4:04:38 AM EDT

Originally Posted By beernut:


Oprah's show is more of an advertising hype than substance.



you underestimate the oprah. she says jump and half the women in this country say how high....
Link Posted: 2/17/2006 4:23:28 AM EDT
havent got the sat radio fever yet, I listen mainly to talk radio and my local stations more than fulfill those needs. I could see it being nifty for interstate road trips, but I only do that 1 or 2x a year and I make road trip cds for that. Combined iPod and podcasting, I can put podcasts on cds as well or just listen to a mp3 player.

Digital over the air radio is on the works, some stations are broadcasting already. Not to mention I dont have to pay $13 a month
Link Posted: 2/17/2006 10:54:26 AM EDT
UPDATE 3-Sirius posts bigger loss as costs surge; shrs fall
Fri Feb 17, 2006 12:58 PM ET

(New throughout, adds analyst comment, updates share prices, byline)

By Franklin Paul

NEW YORK, Feb 17 (Reuters) - Sirius Satellite Radio Inc.<SIRI.O> on Friday posted a wider quarterly loss due to a surge in promotional costs for the holiday season in the weeks before the launch of a new show by ribald radio host Howard Stern.

Despite Sirius's expanding subscriber base and rosy forecasts, its shares fell almost 6 percent amid growing investor gloom about costs, after a director at larger rival XM Satellite Radio Holding Inc. <XMSR.O> resigned on Thursday and warned of a looming "crisis" if XM does not rein in spending.

Sirius, based in New York, posted a fourth-quarter net loss of $311.4 million, or 23 cents a share, a penny more than the 22 cent loss expected by analysts, according to Reuters Estimates. Last year, Sirius posted a loss of $261.9 million, or 21 cents per share.

Revenue tripled to $80.0 million from $25.2 million, beating the $76.1 million forecast by Reuters Estimates. Total costs rose to $377 million from $284 million.

"They had a very solid report and gave guidance that looks extremely powerful," analyst Frederick Moran said. "Any weakness in Sirius is more related to concerns at their rival XM as opposed to anything at Sirius itself. As long as the leader in the industry's stock is falling it's going to pull its colleague down with it."

Shares of Sirius were down 4.6 percent to $5.39 in heavy volume. XM shares fell as much as 10 percent to hit $21.65, their lowest lowest level since May 2004, extending Wednesday's decline.

Both Sirius and XM are growing rapidly in the nascent market for satellite radio, but losing money as they spend heavily on technology and programming, such as celebrity hosts, to win subscribers. The companies aim to attract long-term monthly subscribers, who now pay subscription fees of about $13 a month.

Stern, who signed a five-year, $500 million deal with Sirius, started broadcasting in January. Last week, XM signed Oprah Winfrey to program a channel under a three-year, $55 million deal.

SUBSCRIBERS SEEN DOUBLING THIS YEAR

Sirius said it ended 2005 with 3.3 million subscribers, after adding 1.1 million in the fourth quarter. The gains outpaced the number of new subscribers racked up by XM in the quarter.

Sirius said it expects its subscribers to nearly double this year to 6 million, and sees an adjusted loss from operations of about $540 million in 2006, on revenue of $600 million. Revenue is seen climbing to $1 billion in 2007. By 2010, Sirius expects to generate about $3 billion in revenue, and $1 billion in free cash flow, after capital expenditures.

"The guidance (for 2010) was very positive for both long term subscriber trends and for profitability; implying roughly 19 to 20 million subscribers," said Sanford Bernstein analyst Craig Moffett. "This is likely to be significantly above consensus expectations, and confirms our belief in the strong cash generation ability of the satellite radio platform."

Sirius did not detail how many new subscribers it attributed to the addition of Stern's programming. But Chief Executive Mel Karmazin said on a conference call that Stern has had a positive pull on advertising dollars.

"Advertising revenue increased over 500 percent in 2005 to $6.1 million and we have significantly more advertising commitments already on the books today than we had in all of 2005," Karmazin said.

Sirius said the cost of adding new subscribers, or subscriber acquisition costs, was $113 per subscriber for the fourth quarter and $139 for the year, below its forecast of $145 for 2005. By contrast, cost per user at XM, which launched its service one year ahead of Sirius, was $89 in the quarter, though that was up 39 percent from the previous year.

Sirius said it expects its subscriber acquisition costs to fall to about $110 per customer in 2006, and drop further in 2007.

© Reuters 2006. All rights reserved. Republication or
Link Posted: 2/17/2006 5:12:56 PM EDT

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius



PT Barnum would be proud of everybody. Getting people to pay big bucks for something that you can get free most of the time for most of the people. Getting them to keep paying is always a challenge. Some people jump into fads, others wait. I think that they are probably reaching close to their market saturation and it isn't going to be the numbers they expected.
Link Posted: 2/17/2006 5:25:31 PM EDT
[Last Edit: 2/17/2006 5:30:15 PM EDT by NoVaGator]

Originally Posted By PaDanby:

Originally Posted By NoVaGator:

Originally Posted By ScaryGuy:

Originally Posted By NoVaGator:

XM is just fine



Except the programming sucks.




I guess that's a matter of opinion, and your opinion doesn't square with the realities in the market - ie XM has more subscribers than Sirius



PT Barnum would be proud of everybody. Getting people to pay big bucks for something that you can get free most of the time for most of the people. Getting them to keep paying is always a challenge. Some people jump into fads, others wait. I think that they are probably reaching close to their market saturation and it isn't going to be the numbers they expected.



you're talking about cable tv, right?
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