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Technology Stocks : Sirius Satellite Radio (SIRI) -- Ignore unavailable to you. Want to Upgrade?

To: HEXonX who wrote (5067)	9/19/2006 10:43:52 AM
From: rrufff	Read Replies (1) \| Respond to of 8420

It's strictly a planted rumor according to at least an hour discussion on the Stern show today. Totally denied.

To: HEXonX who wrote (5067)	9/19/2006 12:16:57 PM
From: i-node	Read Replies (1) \| Respond to of 8420

This may well be a rumor started BY Stern in an effort to get his name back before the public. But Stern has, as I've indicated, sequestered himself where only a very small number of people have access to his program. To the extent his power was in his listenership, he has lost a good deal of it. Stern & the NFL both were bad business decisions -- a combined billion dollars in content expense that, halfway through these contracts, will be getting amortized over no more than 10M (probably not even that) subscribers. You do the arithmetic. Add that to $230/unit CPGA, plus other content-related expenses (like Martha Stewart and $20M/year for NASCAR) and it is obvious Sirius doesn't have a chance of digging out of its hole in the next few years. Because XM has done a better job of keeping content costs in check (other than $59M/year for MLB), they're in much better shape financially. Still, XM would never have done the MLB when it did had Sirius not jumped the gun on NFL. Both these contracts would have been much more appropriately entered into now or in another year or so. They NEED to find a way to get Stern back on terrestrial radio, and they NEED to do it ASAP -- Opie & Anthony are taking market share every day he remains off terrestrial radio. How they get him back on terrestrial it without the King of All Media admitting failure, I just don't know. It is a mess -- at this time they have a content item with a cost of nearly $150 Million/year broadcasting to maybe a million listeners. Insane.