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SIRIUS(((XM))) PREPARES FOR POSSIBLE BANKRUPTCY

Costs for XM Sirius will come down as combined synergies of both will reduce costs. Biggest will be the need for only one set of satellites instead of 2. Keeping 2 fleets of satellites is unbelievably costly. If they can have 1 bird transmit both the XM & Sirius signals, they can have 3 or 4 total in one orbit instead of 10 with 2 different kinds of orbits.

As the old satellites reach the end of service, they will eventually choose one orbit over the other & use one set of satellites - cutting a huge operating cost in half.
 
Lancer said:
Costs for XM Sirius will come down as combined synergies of both will reduce costs. Biggest will be the need for only one set of satellites instead of 2. Keeping 2 fleets of satellites is unbelievably costly. If they can have 1 bird transmit both the XM & Sirius signals, they can have 3 or 4 total in one orbit instead of 10 with 2 different kinds of orbits.

As the old satellites reach the end of service, they will eventually choose one orbit over the other & use one set of satellites - cutting a huge operating cost in half.
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But you're not factoring subscriber retention, subscriber growth, or labor into the equation. People aren't exactly rushing out to buy cars right now (their prime source of income), and with the recession not expected to end anytime soon, a Siriurs or XM subscription is discretionary spending and will likely be a cutback target for a lot of people.

In addition, Sirius and XM seriously overpaid for Oprah and Stern. Those contracts have to be reworked.
 
If you believed the press, you'd also think this stimulus bill was going to work. Sure new car sales are down, but they haven't stopped. And used car sales are through the roof. New or used, many cars are being sold with Sirius. In fact Sirius had quite a nice growth in subs for the last quarter, regardless of the media doom and Gloom for the car industry. And the fact that more folks are saving a bit on used car sales means that Sirius is even more attractive.
 
Walter Graff said:
If you believed the press, you'd also think this stimulus bill was going to work. Sure new car sales are down, but they haven't stopped. And used car sales are through the roof. New or used, many cars are being sold with Sirius. In fact Sirius had quite a nice growth in subs for the last quarter, regardless of the media doom and Gloom for the car industry. And the fact that more folks are saving a bit on used car sales means that Sirius is even more attractive.
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It doesn't change the fact that Sirius is discretionary spending and when it comes down to brass tacks people aren't going to pay for radio when they're trying to keep food on the table.
 
Cable subs are up, as is directv. And Sirius has almost 500,000 subs added this past quarter. What you consider unnecessary, many consider necessary. Inexpensive entertainment is more important to people in hard times and hence why in the car and at home entertainment is doing well in this economy.
 
Walter Graff said:
Cable subs are up, as is directv. And Sirius has almost 500,000 subs added this past quarter. What you consider unnecessary, many consider necessary. Inexpensive entertainment is more important to people in hard times and hence why in the car and at home entertainment is doing well in this economy.
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And this is precisely why we're in the pickle we're in. Because people have a vastly skewed idea of what is and what is not necessary. Food, shelter, clothing, transportation...necessary. Cable, satellite radio, high-speed internet, plasma TV, McMansion...not so much.
 
It's the American way. Sorry to say, not always the best, but then again we are a rich country so folks like feeling that way. It would take a depression to stop it. BUt even then it would just come back after the depression was over.
 
Some people get cable/satellite/Netflix subs & skip the theater or other entertainment - and actually save money. Maybe some use that rationale to justify a satellite radio sub.

What is a movie ticket these days, 9 bucks plus 15 bucks for snacks? For one movie. And don't get me started on Cowboys tickets & the associated parking, snacks, etc...
 
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