Uncle Mel's Missing Channels

KTMCDO

Member
Oct 15, 2008
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source DUMBEST THINGS ON WALL STREET THIS WEEK


Mel Karmazin can't play CEO, so he's playing disc jockey instead.
The Sirius XM Radio(SIRI Quote - Cramer on SIRI - Stock Picks) chief told reporters at the Reuters Media Summit in New York last week that the satellite radio company is reducing its offerings as part of a $400 million cost-saving program. Karmazin said he will decide "the best channels" from now on, taking the best of breed in each music channel genre from either Sirius or XM.

"You as a subscriber, though you may miss your channel, you need to make sure we make money because you want us to be around so we can invest in programming and we can provide you with all these services," said Karmazin, whose company's stock trades around 16 cents a share, giving it an equity value of $510 million.

Yes, Sirius subscribers, Uncle Mel, whose 2007 compensation topped $5 million, says it's your duty to keep his company afloat and his lofty paycheck coming. Not to forget Howard Stern, Martha Stewart, Oprah Winfrey and all the talent he signed to expensive contracts.

What makes Karmazin's pleas most galling, however, is the fact that he sold the merger between XM and Sirius to regulators on the grounds that it would provide consumers with "a broader selection of content." In February 2007, when the combined market cap of the two satellite radio operators was $13 billion, Sirius announced the merger saying, "The combined company is committed to consumer choice, including offering consumers the ability to pick and choose the channels and content they want on a more a la carte basis."

Not anymore. Karmazin is calling the tunes from here on in.

At least until the company's crushing $3.4 billion debt load turns his airwaves to static.

Dumb-o-meter score: 95 -- Mel is spinning stories and tunes at the same time. In other words, he's just spinning.

:soapbox: MEL NEEDS TO GO ASAP :soapbox:
 
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hexagram

Medicinal & Recreational.
Oct 11, 2008
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Seattle, WA
Isn't this what sirXM did already?
Yes. They wouldn't waste their time transmitting new and merged channels on both spectrums, only to delete them the next day.

They have already done their programming and job cuts and merged the channels. What they need to do now is cut Backstage TV and those single artist channels.
 

buckeye96

Member
Dec 1, 2008
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I was told another round of channel restructuring (adding and subtracting channels) would occur in January. Anyone else heard this. My buddy and I both heard this from CSR and a CSR manager that there would be more channel changes.
 

hexagram

Medicinal & Recreational.
Oct 11, 2008
2,760
96
48
Seattle, WA
I was told another round of channel restructuring (adding and subtracting channels) would occur in January. Anyone else heard this. My buddy and I both heard this from CSR and a CSR manager that there would be more channel changes.
There is a rumored "second wave" that will merge the Talk channels. The music channels have already been taken care of.
 

IdRatherBeSkiing

Sherbert is not and never will be ice cream
Oct 11, 2008
16,996
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Toronto, ON
I was told another round of channel restructuring (adding and subtracting channels) would occur in January. Anyone else heard this. My buddy and I both heard this from CSR and a CSR manager that there would be more channel changes.
I have heard speculation of a next round which would cover talk channels and a possible channel re-alignment but no definative time frame.

The CSRs are probably talking January as the return of The Bridge and The Boneyard to the lineups in January as well as any station currently pre-empted for the Xmas channels.