Sirius XM Radio Inc. CEO Mel Karmazin said that he forecasts double-digit revenue growth in Q4 and is confident the company can refinance debt due in 2009, at the Reuters Media Summit today in New York."The merger has made us control our costs (and) we are dealing with going to significant profitability in the years ahead," Karmazin said."Is everything rosy? Of course not. But what's going on is not operationally problematic."
About half of the new cars that are being sold have satellite radios
in them and about half of those become satellite radio subscribers, the Sirius XM CEO said.
"We're continuing to grow because some people are still buying cars," Karmain said, adding that even a bankruptcy in the auto industry would not significantly stall the company.
And what about that $1 billion in debt?
Karmazin said that while the tight credit market has made it difficult to get optimal terms, he is confident the company can refinance that debt. "We are still engaged (in talks). Nothing has changed," he said. "We're still optimistic we're going to get that piece done."
Additionally, Karmazin also ruled out any interest in selling Sirius XM in the near term. "We don't feel that we need to be acquired," he said. "You should assume the company is not for sale."
What's been the subscriber reaction to the combined Sirius XM channels?
"We've gotten hundreds of people who hated it and claimed they were going to cancel," said Karmazin "So we've analyzed all the cancellations since the rationalization...It's hard for me to understand what they don't like."
"If we took the most aggressive number of people who cancelled and we take that (away) the $120 a year (they pay) it doesn't get to a $1 million as compared to the significant amount of cost savings as a company that needs to make money," said Karmazin.
Reuters correspondent Franklin Paul told Karmazin that he was upset over the loss of The Rhyme. "We have other hip hop channels," said Karmazin.
"You as a subscriber, though you may miss your channel, you need to make sure we make money because you want us to be around so we can invest in programming and we can provide you with all these services," Karmazin added.
[via Reuters, Reuters Blogs]
Watch video footage of Karmazin's appearance at the Reuters Medfia Summit below...
"We're continuing to grow because some people are still buying cars," Karmain said, adding that even a bankruptcy in the auto industry would not significantly stall the company.
And what about that $1 billion in debt?
Karmazin said that while the tight credit market has made it difficult to get optimal terms, he is confident the company can refinance that debt. "We are still engaged (in talks). Nothing has changed," he said. "We're still optimistic we're going to get that piece done."
Additionally, Karmazin also ruled out any interest in selling Sirius XM in the near term. "We don't feel that we need to be acquired," he said. "You should assume the company is not for sale."
What's been the subscriber reaction to the combined Sirius XM channels?
"We've gotten hundreds of people who hated it and claimed they were going to cancel," said Karmazin "So we've analyzed all the cancellations since the rationalization...It's hard for me to understand what they don't like."
"If we took the most aggressive number of people who cancelled and we take that (away) the $120 a year (they pay) it doesn't get to a $1 million as compared to the significant amount of cost savings as a company that needs to make money," said Karmazin.
Reuters correspondent Franklin Paul told Karmazin that he was upset over the loss of The Rhyme. "We have other hip hop channels," said Karmazin.
"You as a subscriber, though you may miss your channel, you need to make sure we make money because you want us to be around so we can invest in programming and we can provide you with all these services," Karmazin added.
[via Reuters, Reuters Blogs]
Watch video footage of Karmazin's appearance at the Reuters Medfia Summit below...
This guys is priceless. He has taken two companies and made them worth less than a piece of gum per share...
But that is not the reason Mel makes me sick... Cancelling Top Tracks. THAT makes me sick.
What an ass-hat
This is great!
Karmazin regarding the rationalization... "It's hard for me to understand what they don't like."
Yeah no shit dumb ass - you and your gutless zealots have no clue what the F you are doing!
This isn't FM, this is a "subscription" business where people "pay" you for what THEY like not for what YOU like.
"It's hard for me to understand what they don't like"
That might be the most naive statement of the year. And it wasn't cool telling the reporter there's other hip-hop channels.
And it's no suprise all the disgruntled subscribers who cancelled didn't add to much.
Overall, I'm very happy with the changes, because even though I lost XMU (Sirius XMU doesn't even compare, although Jenny Eliscu isn't half-bad), I got over the loss, and moved on to happier pastures.
"You as a subscriber, though you may miss your channel, you need to make sure we make money because you want us to be around so we can invest in programming and we can provide you with all these services," Karmazin added
So if I keep paying for subpar,censored, edited music programming, 3rd party channels, the best of oxymorons, circle track nascar and Howard Stern, someday you'll invest the money thats going in your pocket into the channels and then, once again I will enjoy sirius. No thanks. I can now see where my monthly dues are going.
"EVERYTHING WORTH LISTENING TO IS NOW ON SIRIUS"
So, the company isn't going to be taken private, we should see double digit revenue growth for Q4, Mel's confident about getting the financing done, subscription prices are not being lowered and the company met their expectations on Black Friday... Maybe I should buy more shares to lower my cost basis. NOT, I have already fallen for that one five times. How stupid do you think I am... That was a rhetorical question.
The street better listen to Mel. Not for sale in the near future, could mean before long, soon, or in time to come. Which one,I think there is already a known buyer in the near future. The debt of this company is not that much, compared to the 100 billion of GM. Mel will tell you what you want to hear in the near future,soon I hope. When he does it will be to late to lower your cost basis .
"It's hard for me to understand what they don't like."
Hmm, could it be that you've taken two different companies and molded them into something a lot of people dont like ? could it be the dropping of many channels that subscribers liked ? and shifted the format on others ? I've cancelled 3 subs so far and another 2 are gone when they run out. Ipods, Slacker, even CD's give me exactly what I want, SiriusXM doesnt anymore. Is that too hard to understand ?
"Hundreds"? Really, I can see thousands in forums that hate the new lineup. If by "hundreds" you mean hundreds of thousands then yeah. And no, I don't want to see the new company do well at the expense of everything I liked about it. I hope it goes straight down the shitter. We as subs pay his salary and he doesn't even garner any listener opinion before springing the FM lineup of shit upon us. Hey Mel, I'm one person and I cancelled 3 radios. By your (again) misleading statement, only about another 99 people did a similar thing. Bullshit. I throw away enough pocket change everyday to buy 5 - 6 shares of this worthless company.
Wow... I'm really starting to wonder if Mel's the right man for the job.
The channel merge has been a PR nightmare and that's the best he can say about it. It wouldn't have been that hard to send out a quick email to subscribers directing them to some kind of survey. I got something like this from them a couple of years ago so I know it can be done. At least the subsribers couldn't say they didn't have the opportunity to have an input. And an email or some type of notice might have been nice too. Readers of this board saw it coming but I couldn't imagine how PO'd I would have been if I didn't know it was coming.
Can someone explain to me how, if you have two companies, one with 10 million subs and the other with 7 million, you remove more channels from the larger company? Obviously more people like the company with more subs.
The only reason I haven't canceled is that I have a long term contract until the end of next year. Mel doesn't get it.
Assuming Mel is being truthful, his figures confirm my theory that 95% of users who aren't here for Stern or the NFL really don't care about deeper playlists... They just want to hear familiar music they like with no commercials.
Sirius delivers that, despite what the haters on this board would have you believe. The product is far from perfect, but it's still a billion times better than terrestrial radio and far easier to deal with for most people than Slacker and services like it.
Liar Lyrics
Artist(Band):Henry Rollins (the siriusxm mix)
you think you're gonna to live your life alone
in darkness
and seclusion
yeah Mel know
you've been out there
tried to mix with those animals
and it just left you full of humiliated confusion
so you stagger back home
and wait for nothing
but the solitary refinement of your room spits you back out onto the street
and now you're desperate
and in need of human contact
and then
you meet Mel
and you whole world changes
because everything Mel say is everything you've ever wanted to hear
so you drop all your defenses and you drop all your fears
and you trust me completely
Mel's perfect
in every way
cause Mel make you feel so arrogant and so ego drivin inside
you feel so lucky
but your ego obscures reality
and you never bother to wonder why
things are going so well
you wanna know why?
cause Mel's a liar
yeah Mel's a liar
Mel'll tear your mind out
Mel'll burn your soul
Mel'll turn you into me
Mel'll turn you into me
cause Mel's a liar, a liar
a liar, a liar
Mel'll hide behind a smile
and understanding eyes
and Mel'll tell you things that you already know
so you can say
Mel really identify with you, so much
and all the time that you're needing me
is just the time that I'm bleeding you
don't you get it yet?
Mel'll come to you like an affliction
and Mel'll leave you like an addiction
you'll never forget me
you wanna know why?
cause Mel's a liar
yeah Mel's a liar
Mel'll rip your mind out
Mel'll burn your soul
Mel'll turn you into me
Mel'll turn you into me
cause Mel's a liar, a liar
liar, liar, liar, liar
Mel don't know why Mel feel the need to lie
and cause you so much pain
maybe it's something inside
maybe it's something Mel can't explain
cause all Mel do
is mess you up and lie to you
Mel's a liar
oh, Mel's am a liar
if you'll give Mel one more chance
Mel swear that Mel will never lie to you again
because now Mel see the destructive power of a lie
they're stronger than truth
Mel can't believe Mel ever hurt you
Mel swear
Mel will never to you lie again, please
just give me one more chance
Mel will never lie to you again
Mel swear
that Mel will never tell a lie
Mel will never tell a lie
no, no
ha ha ha ha ha hah haa haa haa haaa
sucker
sucker!
oh, sucker
Mel's am a liar
yeah, Mel's am a liar
yeah Mel like it
Mel feel good
ohh Mel am a liar
yeah
Mel lie
Mel lie
Mel lie
oh, Mel lie
oh Mel lie
Mel lie
yeah
ohhh Mel's a liar
Mel lie
yeah
Mel like it
Mel feel good
Mel'll lie again
and again
Mel'll lie again and again
and Mel'll keep lying
Mel promise
"The product is far from perfect, but it's still a billion times better than terrestrial radio and far easier to deal with for most people than Slacker and services like it."
Said the blind, ignorant satradio fanboy newb.
Paying for radio is for suckers and Mel is happy to prove that with a smile.
I love this line:
"You as a subscriber, though you may miss your channel, you need to make sure we make money because you want us to be around so we can invest in programming and we can provide you with all these services," Karmazin added.
That sounds like he's saying if you keep subscribing, even though you lost your favorite channels, the company will be able to start making money so they can bring that programming back. You just gotta help the company make money first.
And, another way of looking at it, even though you lost your favorite channels, you need to stay a subscriber so the company can make money so it's still around for those that do enjoy the service. So, if you cancel, you're hurting your fellow subscribers.
There is a misconception about commercials addressed by Slacker. It's not about commercials or no commercials, it's about lots of stupid commercials versus a small number of entertaining commercials. The profit/value content trade will suggest that a better product/content can be provided with a single commercial per hour, especially if that commercial is valueable to an advertiser who get's the word to 1 million subscribers.
There is no justification for reducing the quality of music programming in the way the merger was carried out. A common set of channels which preserved content could have been contrived which met the goals of reduced losses for Sirius XM. It wasn't done because as Mel has demonstrated that he doesn't understand music. Why are there more complaints from XM subscribers about the change than Sirius subscribers? Logically, wouldn't the best strategy be to provide the XM music content, period. Does Mel believe that Sirius' growth was based on music? Come on, why did Sirius pay so much for Stern? Doh!
Those people that are die hard fans, that post on message boards, are in the small small minority. The majority of these people get in their car, turn on their car, and their radio turns on with it. They listen to music, or their talk radio(my dad always listens to sports radio, mom always listens to country). They never change the station in the car when we are on road trips. They just leave it on the station and are content with hearing familiar songs, with no commericals.
This is what a majority of the subscribers do. He did what needed to be done. I'd rather there be a satellite radio service where I can get EVERY SPORT(minus MLB) at my fingertips if I'm ever in my car. I never have to sit there tossing through my presets or seeking through the stations trying to find the station, never knowing what the score is if i'm listening in my car. I absolutely love the convenience of having every sport available to me pretty much. I always know the score, it's right in front of me. I could listen to music on my ipod or something and pay attention to the score as I was delivering pizzas last year. It's a convenience to have.
If you don't like having all that stuff at your fingertips for $12.95 a month, then cancel. Who cares. There are 19 million subscribers, there won't be a large amount of people cancelling over changes to a channel. The stations on the Sirius side I frequent play more songs than before. I highly doubt that the stations on XM didn't drop the amount of songs they play too dramatically.
"It's hard for me to understand what they don't like"
Of course. His favorite channel is CNBC.
What is hard for me to understand is how anything at all was saved by destroying Soul Street & 50's on five.
the corporate HQ number is 1-202-380-4000
press 2 to use the dial by name directory.
K A R M # will then get you Mel's personal voice mail box.
give it to him!
If he can't understand why listeners have a problem with the changes, then either he or the people under him who have made the changes (or both) need to be fired, as they obviously are unqualified to run an audio programming service.
This entire interview is full of statements that shows what an idiot he is. Hopefully woot! will ship my Slacker today...
Mel lied, satellite radio died.
I think I've just figured it out... Mel, you sir are an asshole.
Mr. Karmazin has shown exactly what he thinks of his paying customers. Show Mr. Karmazin what we think of him...
http://www.siriuslyscrewed.com
What's that song off of "Tommy" ? Mel, look to the mirror.
"Assuming Mel is being truthful, his figures confirm my theory that 95% of users who aren't here for Stern or the NFL really don't care about deeper playlists... They just want to hear familiar music they like with no commercials."
I completely agree. Unfortunately, the people that don't care about the deeper playlists or Howard/O&A are the same people that will never pay for radio. They don't mind the commercials on FM and get the same content for free.
And there aren't 19 million subscribers, more like 6 million with an average of 3 radios each (not to mention the parking lot subs. yeah they're going to be sold real soon). In the past 6 years I've been able to listen w/o changing the station for days. Within a week of the new channel lineup I've cancelled 3 subs and started tuning into FM stations because what's on XM just sucks a bag of cocks
David Faber on CNBC did story on how bad things are in radio in general. He showed the stock charts for several radio companies, all of which are now penny stocks (Check out Westwood One WWON).
So the entire radio spectrum is in the crapper including Sirius XM. But at least Sirius continues to grow. The others are contracting. As the economy tanks several company may go out of business. Sirius may very well be the last man standing.
WWD,
Share some of that crap your smoking. SiriusXM has zero chance the infrastructure alone is enough to bury SiriusXM to say nothing about the billion + of debt SiriusXM is unable to pay back. The only thing groqing at SiriusXM is Mel's nose and the red ink.
Tristan28,
I agree. You can only "cry wolf" for so long before people start to doubt every word that comes out of your mouth. He seems to have an arrogance to him that pisses me off, and I think he underestimates the intelligence of the subscribers. We already know the insulting remarks he made about the shareholders! He actually said that they met their expectations for Black Friday, then qualified that remark by stating that they had no expectations! Unreal!
I want to believe in the guy, but he is giving mr every reason not to.