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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (3208)	2/5/2007 10:30:28 AM
From: HEXonX	Respond to of 3386

Satellite radio users down on ads By Eric Morath The, Detroit News First published: Monday, February 5, 2007 Consumers can run, but they can't hide from the almighty ad: Satellite radio listeners are the latest to be irked by the omnipresence of marketing pitches. Last year, advertisements began popping up on four XM Radio music channels, even though thousands of customers signed up under the promise of commercial-free listening. Some analysts predict current satellite advertising is just the start of the trend. Frustrated XM subscribers join the ranks of cable TV viewers and Internet surfers, who once enjoyed less commercialized playgrounds but now have spam-filled in boxes and movies chopped up into 15-minute segments. "I bought XM radio because I wanted something that wasn't clogged with commercials," said Alfred Lupercio of Chesterfield Township, Mich. "But now there seems to be more and more, and I figure it's not worth the money." Lupercio plans to cancel his XM subscription, which costs about $142 a year, and buy an iPod for his car. Ironically, XM is a somewhat unwilling participant in the latest frontier of commercial infringement. Like its primary competitor, Sirius, XM has always had commercials on its talk stations and, before 2004, had some commercial music stations. But to match Sirius, it switched to commercial-free music. Then, one-time XM investor and terrestrial radio station operator Clear Channel sued, and won the right to play commercials on the four XM stations it controls. XM, in response, added four new commercial-free channels in similar formats to the Clear Channel stations. "We have the most commercial-free music on satellite radio," said Chance Patterson, XM vice president of corporate affairs. "We have more commercial-free channels now than we had total channels when we started." But XM can no longer market itself as all commercial-free music, as Sirius often does. The change boils the blood of subscribers like Lupercio, who swear there are more commercials on XM talk channels as well. XM officials say talk commercials have not changed, and often follow the format of the content provider, such as CNN. Satellite radio listeners still have plenty of commercial-free options, but that's likely to change in the long run, said telecom analyst Jeff Kagan. "As they grow and gain subscribers, I can't imagine them giving up the millions in revenue they could take in from advertisers," he said. XM Radio has 7.6 million subscribers and Sirius has more than 6 million. "The key is doing it in a way that's not offensive to listeners. Marketing yourself as commercial-free and then suddenly adding commercials is offensive." Both advertisers and media providers need to balance the "collateral damage" of angering some customers with the benefits of reaching new audiences or increasing revenues, said Dave Regan, an instructor in Michigan State University's Advertising, Public Relation and Retail department. Sirius officials, however, say they have no intention to add commercials to its music stations and XM says it has no plans to expand its number of ad-supported music channels. Most satellite radio users won't bail out simply because a few more channels have commercials on them, said industry analyst April Horace with Janco Partners Inc. She said most users pick their services based on programming, such as Howard Stern's Sirius stations or Major League Baseball on XM.

To: pcstel who wrote (3208)	2/5/2007 10:35:29 AM
From: HEXonX	Read Replies (1) \| Respond to of 3386

kovachs and Frontmed. But, which one is which? ;)

To: pcstel who wrote (3208)	2/6/2007 3:25:37 PM
From: HEXonX	Respond to of 3386

Fool.com: Why does Everyone Hate Sirius? [Post of the Day] February 6, 2007 fool.com By dstnewman Posts selected for this feature rarely stand alone. They are usually a part of an ongoing thread, and are out of context when presented here. The material should be read in that light. How are these posts selected? Click here to find out and nominate a post yourself! Before I start, don't get me wrong, but I like XMSR as an investment right now as well. I am speaking from the shear mechanics of WallSt. I just don't understand it. XM receives bad news (that it is going to court); SIRI drops. XM receives good news (that it renewed two contracts); SIRI drops. Did anyone take into account that NEITHER of these two pieces of news negatively affects SIRI in any way shape or form? Yet the stock has dropped nearly 13% in the past three weeks. The XM lawsuit does not affect SIRI in any way, because regardless of the outcome, SIRI already has an agreement with the music companies for the portable recording of music. Not only that, these agreements have already been priced into SIRI quarterly income figures. XM on the other hand, if they loose the lawsuit, will have to pay a settlement PLUS obtain an agreement for a price with the music companies, which I'm sure will be higher than SIRI's, all of which has not been priced into anything. So why does this hurt SIRI? XM receives the good news that two of its contracts have been extended for factory installations. They were companies that XM already had agreements with, they were contracts that were not set to expire until 2010 anyway, and one of the companies still has SIRI installed in an aftermarket deal with SIRI, which does not change. I can see where it would be disappointing for SIRI stockholders, but it should not come as that big of a surprise, especially considering Honda has nearly a 7% stake in XMSR with over 20 million shares. It should also be no surprise when GM renews its contract, for the same reason. So what is it that makes people hate SIRI? Is it the fact that so many people lost a lot of money on the stock? Is it the fact that analysts had their nose rubbed in the dirt by their customers because of the huge drop in stock price? There are so many compelling reasons to own Sirius Satellite Radio: 1) SIRI's subscriber growth is much better than XM's. 2) SIRI and XM reported positive cash flow in the same quarter; even through SIRI is behind on the "business line", being 2 years "younger." 3) SIRI management is well known in the mergers and acquisitions dept. 4) While still heavily in debt, it is beginning to take steps at cost control. While still behind XM, it is also 2 years behind on the business line and will catch up quickly. 5) XM is owned by institutions. Institutions hold nearly 90% of the company. SIRI on the other hand, is only 28% owned by institutions. The biggest reason for this is many institutions have a rule that states they cannot own a company that has a stock price under $5. When/If SIRI hits the $5 mark and maintains that, you will see many more institutions buying in, which will drive the stock up further. 6) In a curious sign of loyalty, SIRI's short sellers abandoned ship last month. December showed 141.09 million short shares, but January saw that number drop to 118.87 million. This 22 million drop represents 15.75% drop in shorts. Compare that to XMSR who went from December number of 33.11 million to January number of 33.98 million, a nearly 3% GAIN of shorts. 7) In the flurry of recent upgrades and downgrades of SIRI and XMSR, more than one analyst has already PUBLICLY stated that SIRI will surpass XMSR by 2009 in total subscribers, making SIRI that "best of breed" in the industry, something that most of us knew already. 8) Speaking strictly as a customer, SIRI broadcasting is far superior to that of XM. In the places where customers have a CHOICE of which SatRad to go with (i.e. Retail) people choose SIRI over 60% of the time. This customer loyalty and brand recognition will be the key driver to SIRI's success. 9) Howard Stern, as much as I personally detest him, has done wanders for SIRI. I think it was the best move they could have made, and I don't think the price tag was too high for what he was able to do. 10) Hugh Panero sucks. Mel Karmazin rules. Mel is a real go-getter and someone that makes things happen. I just don't see that from Panero. I see Mel taking over when/if the SIRI/XMSR merger happens, with Hugh being pacified with a board seat and an executive title and a nice buyout. 11) Hugh Panero has a total of 155k shares in XMSR, ALL of which were GIVEN TO HIM. The only stock purchased by him was via stock options, which he turned around and sold the entire lot the same day (not paperless trade). Mel on the other hand, over the last two years has never received free stock from SIRI. He has PURCHASED 2 million shares for a combined cost of almost 11 million dollars out of his pocket. Mel owns a total of 6.5 million shares. Who has confidence in their company?