Been doing a little research on XM and Sirius!
From the Washington Post:
XM charges $12.95 a month for 150 channels of music, news, talk, entertainment and sports on special XM satellite radio receivers. Sirius charges the same for about 120 channels.
Neither company has made a profit so far. Sirius yesterday reported that its net loss widened to $180.5 million, or 14 cents per share, from $169.4 million, also 14 cents per share, the year before. Revenue more than tripled, to $66.8 million from $19.1 million.
Yeah they are kicking some major ass. Wait till they have to pay Howard Stern and Martha Stewart, she reportedly will receive 30 million over 4 years. In this report check out the burden that Stern will add:
“Analysts from companies such as J.P. Morgan expected Stern to add 1 million to 1.4 million subscribers to Sirius’ subscriber rolls in the next year – revenue that would help offset the company’s five-year, $500 million deal with the radio host.”
So they have to cough up 100 million a year just to Howard Stern. Hmmmm.
Also in related news: The issues run beyond the impact of Stern. The bankruptcy filing of Delphi Corp., one of XM’s chief hardware makers, has raised concerns about the possibility of supply disruptions stemming from a labor dispute. The number of cars in which General Motors Corp. said it plans to install XM in next year fell below some investors’ expectations during a downturn in the auto market. A highly anticipated device from Samsung that combines satellite radio with an MP3 player, meanwhile, has been delayed until after Christmas.
“Management’s still got explaining to do,” read the title of an Oct. 28 research note by CIBC World Markets Inc. analyst Jason Helfstein.
Heheheheh maybe this little problem of ours will take care of itself!