Better Short Your XM/Sirius

In case you haven’t noticed, XM/Sirius, the newly merged monster satellite radio company, is in big trouble. It is now a penny stock worth less than $1.00 per share. It was once worth $60 a share (2000). And here is why.

Bigger is not always better. More channels are not always better. Subscriptions that cost upwards of $10 a month to listen to stations full of ads are not always better. Switching from commercial-free to chock full of commercials on almost all the available stations is not always better. Depending on new car sales for new customers is not always better.

If you are asked to sign up for a year, or longer, subscription, best make sure you get a guarantee that they will still be broadcasting. Those birds cost money to keep aligned up there in geo-synchronous orbit. As more and more subscribers, myself included, refuse to renew just to hear more and more ads, Sirius/FM revenue will continue to plummet, just like the satellites will when they run out of money to keep them up!

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Posted by at 02:02 | Posted in Measure 37 | 4 Comments |Email This Post Email This Post |Print This Post Print This Post
  • John L.

    Agreed. Stocks that tumble from around $60 per share to less than a dollar a share are usually the result of short-sighted business plans and poor management decisions.

  • Jerry

    If they can find whoever first started running ads on “commercial-free” satellite radio they will know who did them in.

  • Dave A.

    As an active investor, I always thought the business model left a lot to be desired. Now the NFL is playing it’s games on the Sprint Network allowing fans to get the game audio and make calls on the same device. Who needs PAY radio?

  • Eddie

    Classic: The same thing happened to Allen Alley’s company, Pixelworks, but the Republican spokespeople blamed “market forces” (no matter that the NASDAQ tech composite gained during that period).

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