The handwriting is on the wall

Discussion in 'SiriusXM Soundwave Cafe' started by Tgajr, Oct 16, 2008.

  1. Tgajr

    Tgajr Member

    With this horrible economy I dont think too many people are going to sign up for sat radio. This might be prompting the hurry to cut costs.
  2. Davis

    Davis Member

    I don't think they are hurrying. I am actually surprised that this didn't happen sooner.
  3. limegrass69

    limegrass69 Confused

    These plans were in the works from the start. If you don't materially cut costs, what's the point of the merger? Unfortunately, usually the first place management looks to cut is personnel because it's usually the largest cost. I think the Washington, DC headquarters will eventually be gone too. Maybe they'll keep a couple of small studios down there.

    The world isn't big enough for two satellite companies.
  4. TSS Taylor

    TSS Taylor DRC Fan

    I think a lot of people should think outside the box when it comes to their entertainment
    costs.

    Instead of going to 2 movies a month, you could get 2 Sirius Subs.

    Instead of paying $100 for digital cable and hardly using it, get an HDTV antenna for local channels and only pay $12.95 of $16.95 per month for a SIRIUS sub.

    Instead of going to the bar and getting 2 drinks get SIRIUS

    Instead of paying $60 for The Office on DVD, make time to DVR it or go to the library and rent it for free.

    People have to start realizing that if you don't have much time and money satellite radio is a perfect medium. It can be used as background noise while you work.

    We all have so many things that we consider must haves and luxuries. I think when times are tough we really need to evaluate whether to spend a ton of money for entertainment or about the equivalent of 5 gallons of gas for satellite radio.
  5. geosync

    geosync Well-Known Member

    Hell yes Taylor. Can't get better entertainment for the money in a month's time. All the luxuries will get cut before my subscriptions get canceled. I'll go without cheese before I go without Sirius XM.
  6. syphix

    syphix Member

    Exactly. I waste more than $16.99 in a few day's lunch. And I don't even make that much $$. Just eat out less, brew your own coffee at home, and you're covered.
  7. Ehilbert1

    Ehilbert1 Ooh-Rah!!!!

    There is no way I could go back to regular commercial filled radio. I would cut something else to keep that if I had too. Half the battle is getting people to try satelite radio. All you hear is I don't want to pay for radio. My father was the same way. I got him a radio and he can't go back to regular radio either. Once you hear it you can't live without it.
    Last edited: Oct 16, 2008
  8. SSF

    SSF Member

    This is such an excellent point! The OP is right that their is the chance that sales will slow. But sales could also rise if Sirius XM starts producing some creative and exciting TV advertisements and start Thinking Out Of The Box as well by offering in some new promotions like offering a 30 day trial of the Premium Internet Radio stream when you get a new subscription.

    I think the new company would do very well to start inviting its more loyal and avid fan base to provide feedback and assist them.
  9. ctkatz

    ctkatz Member

    i leave my car parked outside but bring my stilleto inside when i come in. two days ago i forgot where i put it. now, i didn't get all palm sweaty or shaky because i didn't have my satrad in the car, but i will say that i'm glad that work is a 3 minute drive away so i didn't have to listen to the local dreck for very long. kinda ironically, i caught a commercial going up to work, and listened to cleveland am radio on the way home just on principle alone.
  10. jef

    jef Power Pig, Hello!

    I've been on a cost-cutting rally lately, cutting back what I spend on some things, but we have actually added a 3rd subscription even though there are just 2 of us. We find it to be worth

    She had an Xact Visor in her car, which we brought indoors in order to listen on some of the radios in the house. (The original Visors have an amazing transmitter.) Well, the antenna for her Visor finally gave up the ghost and needed replacing. We found a Stratus with car kit for less than a replacement antenna. I just decided to keep the Visor indoors, and she keeps the Stratus in her car.

    It's nice for waking up to Howard Stern, or listening to something while working in the basement or whatever. Worth the 1 lunch out a month we pay for it.
  11. Tgajr

    Tgajr Member

    We arent the problem

    Its not us guys. I am talking about adding new subscribers. I just think for a couple of years there will be slow growth. Perhaps with the most behind us. Just look at the auto industry.

    Mel put a lot of eggs in the auto industry basket and so did XM. Now look at the decline in auto sales. Thats another dent in one of their prime sources of subscribers.
  12. IdRatherBeSkiing

    IdRatherBeSkiing This space for rent

    Sirius XM needs to get the buzz back in the retail market. They need to unabandon it.
  13. down4six

    down4six Well-Known Member

    There is also the situation of people in rural areas where terrestrial radio is spotty. In the area where I live, a majority of people I know have satrad so they aren't always searching the dial and listening to fuzzy radio. It is also nice to have on long trips having a steady source of entertainment. Plus I am happy with the cost compared to what you pay for other services, like satellite tv, internet, etc.
  14. MikeV

    MikeV Member

    Which completely baffles me. The company OWNS the building. It's not a massive regular expense, like the LEASED space Sirius has in New York. If there's one thing you can say about XM, they were VERY smart in planning their facilities.

    So why isn't the new company taking advantage of this? XM dumped a FORTUNE into their DC headquarters because it was THEIRS. There's millions upon millions of dollars in IT equipment, audio/broadcast equipment, and more! An entire floor of the building is dedicated to studio space! And now that the merger is complete, it seems as if the fearless leaders could care less about taking advantage of everything that XM had, instead asking programming folks to relocate or lose their jobs (from what I've heard, not relocating was at least part of the XM programming staff cuts).

    It just doesn't make sense to me that they would prefer to shell out major cash to continue leasing expensive office space, when they could be using a facility that they already own instead.
    Last edited: Oct 17, 2008
  15. limegrass69

    limegrass69 Confused

    What you are saying seems to make sense on the surface.

    I am sure there are good solid financial reasons to remain based in NYC (aside from the fact that Mel and Howard live there). Obviously it is a center of entertainment. The flow of guests on the various music and talk programming would suffer if everything was based in DC.

    Perhaps the lease terms on the NYC space make it unfeasible to abandon or downsize the space (vs. selling the DC facility and leaving the sunk build out costs on the table). If there is a long term lease, the penalty for getting out could be huge. While the NYC facility is certainly in a top notch building, the commercial real estate market is relatively soft these days.
  16. DAB

    DAB Mod Emeritus

    I think just like in years past when the economy has down turned. People start setting priorities. Granted between paying your electric bill vs a sat radio subscription, we know who would win that one. But I think folks would likely decide what provides them the most bang for the buck in terms of entertainment and enjoyment, then go from there. Since I enjoy and love sat radio so much, there is little doubt I'd find other areas to make cuts in order to keep it. So instead of going to block buster movie openings, I'd forgo that and catch it at a later date, I'd not go out and eat as much, I'd maybe down grade my Satellite or Cable TV package. I mean you could cut somewhere in order to keep sat radio.

    The big rub will be brining new subs in and this is were you have to say, sat radio is basically about 43 cents a day, about half the cost of a can of coke.
  17. GoodDog

    GoodDog Well-Known Member

    They outright own the building as in paid for or are they carrying a mortgage?
  18. Manco

    Manco Active Member

    A person can also buy less music with satellite radio, there would be some cost savings for some.

    How about buying less "designer water" or bottled waters?

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