Will Sirius XM go bankrupt in 09

Will Sirius XM go bankrupt in 09

  • Yes

    Votes: 33 34.4%
  • No

    Votes: 63 65.6%

  • Total voters
    96
  • Poll closed .

hexagram

Medicinal & Recreational.
Oct 11, 2008
2,760
96
48
Seattle, WA
People without jobs dont buy radio. They listen to FM. As more and more americans lose their jobs they will not buy radio or they will cancel their subscriptions.

Go back and read my response to #4 and #11.

One artist channels are paid for by the artist. Think about it. Thats great exposure for the artist. So they pay Sirius to have a channel all to themselves.

Right, but they can always dedicate ONE (or even two) channels for this purpose. Rotate them out weekly, monthly, or whenever needed. Then give the channel a name that people will always recognize as a single artist channel, such as "Artist Spotlight 1" (and "Artist Spotlight 2" if absolutely necessary). You would still save bandwidth for more diverse content to the lineup while satisfying those that would enjoy hearing a non-stop station of their favorite artist for a week.
 

DAB

Mod Emeritus
Oct 9, 2008
9,434
149
63
Louisiana
People without jobs dont buy radio. They listen to FM. As more and more americans lose their jobs they will not buy radio or they will cancel their subscriptions.
This is not necessarily true in my opinion. I think many will look at their budgets and how they are spending their money. So, they will decide instead of going to the movies and out ot eat, they'd rather have sat radio as it will offer them more value overall. Sat Radio is about 43 cents per day, you could simply not get a cup of coffee on your way to work on that cold drink at lunch and pay for it. Even if you have an iPod you'd end up spending more than $12.95 per month to keep it loaded with fresh music.

I think it is a matter of people look at what gives them more bang for their limited funds. Many will draw unemployment so they won't be totally without any income, but the income will be limited. People will just set priorities in their spending and when you look at sat version many other entertainment venues it really is a great value by comparsion.

It is my opinion that sat radio will not fail and I suspect they will get the funding to pay their upcoming debts. If they can get through 2009, I think sat radio will have smooth sailing from that point on.
 

hexagram

Medicinal & Recreational.
Oct 11, 2008
2,760
96
48
Seattle, WA
This is not necessarily true in my opinion. I think many will look at their budgets and how they are spending their money. So, they will decide instead of going to the movies and out ot eat, they'd rather have sat radio as it will offer them more value overall. Sat Radio is about 43 cents per day, you could simply not get a cup of coffee on your way to work on that cold drink at lunch and pay for it. Even if you have an iPod you'd end up spending more than $12.95 per month to keep it loaded with fresh music.

I think it is a matter of people look at what gives them more bang for their limited funds. Many will draw unemployment so they won't be totally without any income, but the income will be limited. People will just set priorities in their spending and when you look at sat version many other entertainment venues it really is a great value by comparsion.

It is my opinion that sat radio will not fail and I suspect they will get the funding to pay their upcoming debts. If they can get through 2009, I think sat radio will have smooth sailing from that point on.
DAB, my comments are in bold, You're quoting Tgajr's comments.

Just clarifying. :)

As I said previously,

h3xagram said:
We're not in the "Second Great Depression" yet. People will still have their income and they will still spend (though they will be much more tight with their money).
h3xagram said:
Unless consumer retail completely shuts down, I don't see satellite radio being completely obliterated in the stream. There will always be a presence.
 

Brad Bishop

Member
Dec 3, 2008
576
21
18
Sears repositioned themselves from being a "guy's store that sells more than just hardware" when they launched the "Come see the softer side of Sears" advertising campaign. The capmpaign was so effective that Sears lost it's edge with men. Now, if you watch their ads, they are right in the middle of the road.
I think malls, in general, lost their edge with men. As a guy, I want to park outside a store, go in, get what I need, and get out. I have no interest in window shopping or strolling around inside a mall. For the most part malls are shoes, jewelry, clothing, and odd things like candles. They'll have an odd crappy-gadgets store like Radio Shack, Brookstone, or Sharper Image (I think they're out of business now) but malls are for women. I think that's why Best Buy and Home Depot do so well. You can park, get in, get your stuff, and get out.

The last thing I read about Sears was that, in general, it wasn't doing well. He had a lot of money in the bank but the stores themselves weren't all that profitable.

Anyway, it's always interested me how companies can rise to the top and then fall.
 

jamesp717

Member
Oct 13, 2008
540
21
18
Originally Posted by h3xagram
People without jobs dont buy radio. They listen to FM. As more and more americans lose their jobs they will not buy radio or they will cancel their subscriptions.


This is not necessarily true in my opinion. I think many will look at their budgets and how they are spending their money. So, they will decide instead of going to the movies and out ot eat, they'd rather have sat radio as it will offer them more value overall. Sat Radio is about 43 cents per day, you could simply not get a cup of coffee on your way to work on that cold drink at lunch and pay for it. Even if you have an iPod you'd end up spending more than $12.95 per month to keep it loaded with fresh music.

I think it is a matter of people look at what gives them more bang for their limited funds. Many will draw unemployment so they won't be totally without any income, but the income will be limited. People will just set priorities in their spending and when you look at sat version many other entertainment venues it really is a great value by comparsion.

It is my opinion that sat radio will not fail and I suspect they will get the funding to pay their upcoming debts. If they can get through 2009, I think sat radio will have smooth sailing from that point on.
Good points DAB and as a big fan & investor in Sat Rad I hope they survive.

I agree that movies and dining out will be sacrificed in a recession as cost savers, but that guy without a job giving up his coffee on the way to work or denying himself a cold drink at lunch, I have to question those.

Anyway here is to many years of listening to Sat Rad and to profits somewhere down the pike.
 

Bandit 5160

Member
Oct 31, 2008
323
8
18
I simply don't or can't believe that well EVER turn on our radios are simply see NO SIGNAL on every channel. The company may (and probably will) file for bankruptcy at some point, but they'll find a way to stay on the air.
 

DAB

Mod Emeritus
Oct 9, 2008
9,434
149
63
Louisiana
but that guy without a job giving up his coffee on the way to work or denying himself a cold drink at lunch, I have to question those.
Question away, but when money is tight and you have to make hard choices, you don't think there are people that give up a drink at lunch or pass on their usual morning cup of coffee. I know people that are doing that already. I went to lunch with a buddy of mine just this passed week. He got water with his meal. I found it rather odd so I said, wow you aren't getting your usual diet coke. He said no the wife and I decided as one of the ways we would cut back was to get water with their meals, though they had all but cut out eating out except for lunch occasionally. It adds anywhere from $1.50 to $2.00 to your meal. Add that up over a week or a month and you end up with some coins. Makes perfect sense for someone on a tight budget or if you are only getting unemployement because you lost your job.

Now there are those I am sure that if they have no money coming in will be forced to cancel totally, but most that get layed off will get unemployment and will still have some income. If you lived in a situation where you spent every dime you made, you are likely in trouble regardless of cutting back or not and will likely lose a lot more than just your sat radio subscription.

If you have no job you aren't going to be stopping by getting a cup of coffee on your way to work, because you don't have to go to work! But people don't stop living because they don't have a job, they just have to figure out how they are going to survive and stretch the money they do have coming in or spending their emergency funds or savings.
 

kryptonite

Well-Known Member
Oct 21, 2008
8,912
1,117
113
Bankruptcy would give them an option of renegotiating with Howard Stern. That deal never made any sense to me. I never got why they created two channels for him to run 24/7. As of now, it'd make more sense for him to be paid podcast and maybe be on SiriusXM sometime during the day like the other popular radio hosts. I don't begrudge Howard for earning what he earns and taking the deal, though. He also brought a lot of listeners to Sat Radio.
I've done the math, and ISTM that Howard has certainly brought enough people to pay off his contract.

Apparently XM offered first, but then they went back and discussed various things, and in that time, Sirius came in with a better deal and Howard signed.

Hasn't Mel said that he'd rather have talent be satellite exclusive? If I can get Howard on podcast, why should I have Sirius, unless it's two seperate shows?

The two channels are fine. During a break, i'll switch over to the West Coast Feed... having the exact same show run on two different channels is good stuff. If you've already heard something, flip it over to the other one.

Having two channels allows 100 to be Howard 24/7 and the other to have the various other shows. In order to get rid of 101, you'd have to put Bubba elsewhere on the dial (Sirius Stars? Too? Do they even HAVE holes in the lineup?) You'd also have to find a spot for Ferrall elsewhere. Buying out the contracts would be too costly with paying money to do so, and then losing the subscribers.
 

Tgajr

Member
Oct 11, 2008
282
2
18
Baltimore, MD
Stern was only part of the mistake

Offering him too much money for part time work was part of the problem.

Offering Oprah and Martha Stewart ANY money was a complete disaster.

NOT ONE PERSON SIGNED UP FOR THESE TWO
 

Supafly

Member
Oct 12, 2008
179
7
18
10 things that won't survive the recession

Sirius is number 10 on the list.
Link

10 things that won't survive the recession

Tight times, and budgets, will hasten the end for some things

By Mike Elgan

December 23, 2008

The government says we've been in a recession for the past year. Experts say it'll be at least another year before it's over. And everybody says it's the worst economic downturn since the Great Depression...

...
10. Satellite radio
I'm sorry, Howard Stern. It's over. The newly merged Sirius XM Radio simply cannot sustain its losses. The company is already deeply in debt and would need to dramatically increase subscribers over the next six months in order to meet its debt obligations. Unfortunately, new car sales, where a huge percentage of satellite radios are sold, are in the gutter and stand-alone subscriptions are way down.
 
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Jleimer

Active Member
Oct 30, 2008
1,226
13
38
Sparks,NV
Seeing stuff like this really depresses me. :( All I can do is hope they are wrong.
I am one of those people that hopes there wrong , but just is not sure what is going to happen because in this economic climate anything could happen. I would also add that the advent of internet radio in the car via the Iphone and the Slacker players are going to take some of the potential subscribers away from Sirius XM in my view.:eek:
 

limegrass69

Confused
Oct 12, 2008
6,058
227
63
New York
I am one of those people that hopes there wrong , but just is not sure what is going to happen because in this economic climate anything could happen. I would also add that the advent of internet radio in the car via the Iphone and the Slacker players are going to take some of the potential subscribers away from Sirius XM in my view.:eek:
Maybe he should add an 11th..."Jerk-off's who print meaningless end of the year countdowns" :p
 

Steel Cranium

Well-Known Member
Nov 12, 2008
1,004
49
48
NorthEast Ohio
I would also add that the advent of internet radio in the car via the Iphone and the Slacker players are going to take some of the potential subscribers away from Sirius XM in my view.:eek:
Yep. One of Obama's "wishes" for the coming years is wi-fi everywhere. Would be interesting to see how the FCC handles that since it's non-subscriber based content going over the airwaves. Chap-11 by the end of year, if not by the end of March. Fortuntely, clear channel is having problems or else they would buy it.