Satellite Radio: One of the biggest failures of the decade?

This new Sirius XM is horrible. The Sirius influence has brought about more commercials, more hack terrestrial radio bit and DJs, and a limited playlist. All of the things I originally subscribed to XM to get away from. Someone needs to tell Mr. Karmazin this isn't CBS radio.

So I see this more as a management failure more than technological. But by no means is the concept of satellite radio a technological revolution. It just still happens to offer certain content I can't yet get in real-time via my iPhone.

The answer is "yes" IF...you go by the stock value criteria. But, as you point out, there are 18.6 million subs. On the one hand, that number includes multiple radios on the same account, but on the other, it doesn't represent the number of LISTENERS, which includes those in the household not reflected by the account holder (meaning there are likely more listeners than subscribers).

Sirius and XM certainly have been hit by the rise of other technology and certainly the decline in auto sales has hurt both companies tremondously. Still, Sirius and XM provide the easiest way for a person to get a wide range of content with little effort. The question in these tough economic times is whether consumers will choose to spend their money on this service or save a few bucks and settle for CDs/iPods (and when I say "settle", I mean that if someone is cutting back on spending, he/she is likely not adding to the CD or iTunes collection ... rather, they will "settle" with the music they own, which they may grow bored of).

As much as I have not liked how the music programming has ended up since the merger, Sirius and XM still provide a much better product than FM (is HD radio still around, if so, it's still better than that as well).

If WiMax takes off and people can stream content to their cars, then Sirius and XM will have another hurdle in the road to profitability.

It wasn't that the industry failed but Mel Karmazin failed. The merger hasn't benefited the consumer any besides those annoying Howard Stern commercials that no one wants to subscribe to. The stock price plunged from where XM was pre-merger.

Karmazin needs to be removed from SIRI and replaced promptly along with a few others. It's not just pre-merger Sirius but also XM's fault. They went with a merger that has pissed off customers more than acquiring customers. Take for example my sister who was a pre-merger XM sub. After the channel consolidation she canceled her subscription. There's a reason people subscribed to XM along with a reason why people subscribed to Sirius.

Unfortunately I see Sirius XM not surviving within 5 years, if not 3. Alienating customers by merging and killing off content that was the reason for subscribing doesn't really get them into the stores buying a $250 XMP3 or even the loss-leader XM Audiovox Express EZ or Sirius equivalent.

Yes. They make several billion a year and still can't make a profit? Obviously they are doing something very very wrong.

Look at This Face...And Tell me

I suppose if they call youtube a failure there are worse lists to make.

Still, 20MM listeners and available in nearly all new cars doesn't smell like a failure to me.

Notice the article almost describes it like it doesn't even exist anymore??

So let me get this straight. YouTube and Microsoft are failures as well? If that's the definition of failure than I would be honored to have Sirius/XM on the list.

Of course the company is struggling, every company has done worse than the previous years. Pointing that out does not make this article very insightful.

How about the fact that the odds against this company surviving through all of the hardships it has faced was insurmountable. It's a miracle this company is still here and on the right track to stability.

Someone should write an article on that.

I think Sirius XM def. should have made the list for the reasons stated in the article plus the fact that when companies merge, the goal is to remove the liabilities and improve on the companies assets.

What we have seen so far is lower bandwidth, a single receiver light years away (no matter what Mel says he has on his desk) and money thrown away on useless DJ's (think XM 20 with their morning show).

Forget Hoo-Hoo and O and A, that is a topic for another thread, can anyone come up with one asset the combined company has produced?

I'm surprised that it hasn't failed yet? Maybe it has another year left in the tank before it's in the tank as well. With the cars sitting and not selling, displays of the units in stores go untouched at etc.

I stumbled across this article the other day... I don't know that I agree with it. I guess if you are looking from a financial point of view only then - yes I guess they're a failure. But they're not a complete failure - they are still in business.

From a ground breaking technology standpoint then I disagree. I mean how cool is it that you can drive cross country and not have to mess with constantly seaching for a new station to listen to? And the music channels are commercial free! Pretty freakin cool if you ask me! Unfortunatly they company hasn't been run by the best managment team in country.

Palm and Vonage were also on that list... Once again both leaders in their respective areas of technology. Palm is on the ropes right now but they're plotting a come back. Vonage once again -cool technology (I'm a customer and love it) but sounds like they're bottom line is suffering a bit too.

Are these companies technological failures - No.
Are they victims of management failures - probably.

Put a fork in em. Sat-Rad died when the merger went thru..

As SiriusXM continues to lower value for their paying customers, everyone suffers.
Loss of online listening, raises in pricing and more recently a cut in the number of hours of popular original programming... why stay?
I'm considering canceling my XM this week and when the 1-year prepay on the Sirius comes do in December, well, we'll see then.
I'm sure I can't be alone, based on what is being said in the media and on forums.

but what is the alternative? cut down? ok but not completely get rid of it... but then i was with sirius to begin with so i didnt see as much loss in programming.... you think HD or Slacker will be the future? It's not....

Unfortunately I do think SiriusXM should make some kind of list like this. I think it should be retitled "The top 10 list of BIGGEST TECH DISAPPOINTMENTS OF THE LAST DECADE". And it should be featured in a business mag such as "Business Week","Barrons","Fortune",etc. SiriusXM should be included in the list with the suffix "Under Mel Karmazin's watch"

Here's why I say this:

Both companies were still not profitable pre-merger but XM was closing the gap. Both companies share the blame in that they tried to grow WAY too fast by adding more and more programming of "Mega-Personalities" and unnecessary sports & niche channels. It was costing them mega-bucks that they really didn't have and it was built on a house of cards. In my opinion (as a long time XM subscriber/stockholder) they should have gone the slow but steady & strong approach with music,information and entertainment as the PRIMARY focus. The FCC should have NEVER approved the merger but caved into Mel's lawyers and his own campaign of testifying/lying/BS'ing that terra radio wasn't the only competitor and that the FCC should approve the merger. He stated that rates would not increase (he lied) and that the ala cart option would provide for family oriented programming (which I don't care a shit about BTW). My US senator Jim DeMint (who has NEVER opposed any merger and has no balls at all)crowed about the family programming BS and now you see where that has gotten us. XM & Sirius should have never merged and should have been allowed to succeed or fail on their own merits and by virtue of the free market.

Yes I do think SatRad has failed to succeed and that is a direct result of Mel Karmazin's slick presentation to the FCC and XM's decision to enter into an unholy merger with The Prince of Darkness (aka: Mel Karmazin).

Sincerely,

Recondo72

The problem I see with Satellite Radio is that it failed to continue to promote itself. It abysmally failed to control costs with some of it's program content. It failed to sell itself regards to the newer technology (it did succeed initially in selling itself over terrrestrial radio). Initially internet radio was not portable (even though there were more options), where satellite radio had the competitive advantage. Now it is portable via cell phones, blackberries, etc.). If they kept up with internet radio by offering more options, they would be able to compete. But instead they took their eye off the ball and/or was asleep at the switch.

If they want to suceed, they need to reinvent themselves, they need to do a better job promoting themselves over the newer technologies on why they are better than their competitors, and they need to do a better job selling themselves.

I think its fair if you look at the reasoning. The fact that neither company has made a dime since inception would constitute a failure in my opinion.

We cancelled two months after the merger. They took away the channel that we listened to the most, X Country 12. We thought we would give it a try and see if they could improve outlaw country. They don't give a shit about the customer. I e-mailed them the other day to let them know that I am now a slacker radio owner and let them know that they lost. Maybe Assholes like Karmazin and Zelner should listen to what paying customers want and are willing to pay for. Who the hell wants to pay for the same shit you get for free on the fm dial?

The problem is they killed everything that was good about Satellite Radio and turned Satellite Radio into nothing more then Glorified FM radio.

The new playlists SUCK, I am sick of hearing the top 100 hits of the decade played over and over again. Many songs are repeated many times a day now.

The programming that made Satellite Radio unique is gone, you use to hear music generes you couldn't hear anywhere else. The only true specialty station left is Cinemagic.

The personallities are not live and are all voice tracked. I remember the days I would call in to the 80's on 8 and talk to the DJ's sometimes Bruce Kelly would pop me on the air and if I had a request it would play within a song or two of making the request. Satellite radio felt personal. Hell there were a few times the DJ's called me just to see how I was doing. That made XM special.

Howard Stern was great for Satellite Radio, but face it in 2 years he will be gone. What is satellite radio going to do then? They need to go back to their grassroots and give listeners that "Oh my god I havent heard that song in years" feeling again.

They also need to bring "IT" back again. If you don't know what "IT" is then you haven't had Satelite radio long enough to know how great Satellite radio could really be.

Segway Really. A tech Failure. Hmm NO it was a marketing failure. The guy invented that technology so that a wheel chair can walk up and down steps and balance in 2 wheels but also move on 4. I guess the Epco Center in Disney World has decreased its visitors there because I knew about that wheel chair a year before the segway came out. Pathetic.

Ok, first things first, it wasn't a merger, at the 11th hour, it became an acquisition and nothing more. Hence the name being what it is and trading on the NYSE as SIRI. All things aside the company will fail, the stock is part of the indication, but the leadership is what will cause the company to fail. There were way too many greedy people on the board of directors for both companies that didn't have the foresight to realize the worst case scenario if the proposed merger was dragged out by the DOJ and FCC. They were blinded by the dollar signs, and if they were worth their weight in salt, they should have also noticed the economic decline occuring around them at the same time.

Systematically all things promised by Mel have not come to fruition, meaning, the promise to allow the "best of both worlds"

Throw the "analysts" into the mix with their charming sentiment (which by the way directly affects the share price). Throw in the angry subscribers, throw in the angry employees that are getting crapped on by not getting at least cost of living increases even though they have double/triple the work because most of their co-workers were "let go" of (I'd love to find a business that will take 2008 prices for a 2009 anything).

Oh and we cannot forget the CEO of the year, whom didn't really pull off a merger, but pulled off a "buy out"... Oh yeah and please do not forget, his contract is due to expire this year.

So unfortunately, the analysts think they've won again...

I love how everyone writes off sirius as a failure.

Guess what u nay-sayers - sirius just beat unbelievable odds when they avoided bankrupsy. they successfully pulled off the merger when the odds were stacked against them, and now they are the second largest media company on the planet.

so the economy is in the shitter and they aren't pulling a profit yet.

sit tight - it ain't over till it's over.

While it may appear that Sirius/XM is a HUGE failure I believe we've eclipsed them. Opie n Anthony are a bigger failure than the merged company, Lehman Brothers and GM. While Infinity lost tons or money, they lost less without us.

We had it all and now we have nothing. Can I borrow $10 so I can rent a gun and buy a bullet?

Boo Hoo

I still support SatRad and listen to it daily. With that said..the XM product is worse off than pre-merger. The article is misleading but not far off from the truth. While many like myself remain loyal...we all are hanging in there but find more content elsewhere. Things like MLB are no longer be exclusive and tech. is growing so fast that XM/Sirius is left looking outdated. Time will tell but it's a wait and see approach. It's a shame what XM could have been.

i heard someone say that this guy never had no money and he called the guy a BUM

Just because they are at a certain point at 37 cents dont make them a bum
it makes then getting back on thier feet.

The american thought process is skewed

HEY EVERYBODY! TRY LISTENING TO TERRESTRIAL RADIO FOR A DAY THEN TELL ME HOW YOU FEEL.

The best deal was to sign up for the lifetime subsciption 3 years ago. You'd be listening for free right now, and could just let it ride until the cows come home.

Agree! Terrestrial radio blows! I Love My satellite radio and Howard Stern.

Yes, the merger was a failure, which was totally predicted and predictable. Pre-merger shareholders will never see a profit on their shares.

However, the failure happened well before the merger, when Sirius, in a Hail Mary, overpaid first for NFL then for Howard Stern, and XM was forced to overpay for MLB (in fear that Sirius would get it, thus destroying XM's credibility in the sports area).

Then, the competition for biggest spender was on. Throughout, XM had better programming, but fixed costs shot through the roof at XM.

The worst of it was that XM's management, unlike just about everyone else, couldn't see that the "Stern Effect" was collapsing and would continue to do so. Mel played them like a Strat. He knew what XM's management didn't -- do the merger while SIRI is strong and XM is weak. And that's just what Mel did.

The "merger of equals" was a shocking development. There was no way Sirius was, or would have been, worth what XM was. But if XM's own management can't see this, what hope is there for the company? XM began to look like a sinking ship, with every man jumping overboard for his life, except the captain (Parsons) who decided to ride down with it.

It is a pity. The quality of the service has deteriorated so badly that while I once wanted 20 presents on my receiver, I find six is more than I need now. It is pathetic.

It's one of the major success stories,so far...a bit more time will prove this out. I don't put much credibility in what you read on this message board. I think most are disaffected shareholders.(traders).

I think the average listener enjoys the variety of programming, the lack of advertising, the nationwide availability and could care less about some of the minor changes they have made. A lot of the negative atricles and complaints sound like a replay of the NAB's playbook (turn any positive into a negative). Anyone know the statistical picture of people responding as to dissidents vs. happy customers?

Well stated pfreak.

The Stern zombies don't realize the subscriber acquisition costs alone ate up over 50% of the "profit" they got by acquiring Stern. Each "Stern sub" would have to stay on for at least 2 years before SIRI even earned a dime.

What pisses me off is that we, the subscribers, were told that there would not be a price increase after the merger. Yet, as a Sirius subscriber I have been asked to pay $3 or $4 per month MORE for a bunch of XM channels.

If anything, the price for ALL of the channels should have gone down with the additional subscribers, and we should get all of the channels available from either.

If you mislead the customers, how are investors expected to trust the stock and the future of the company?

>> I am not saying that Stern could carry this company alone. I am pointing out that he is a considerable talent and an asset to any media company.

An "asset", yes. But he also represents a huge deficit in retained earnings as a result of the massive amount of money Sirius lost by hiring him.

The 3/4 Billion they spent on him was, without question, the worst business decision made prior to the merger (the decision by XM to merge being the absolute worst decision in the history of the industry).

back when i started looking into satellite radio, i was leaning towards XM for a couple talk channels, but there was draws like the NFL on sirius that I really liked. It came down to a couple things.....Music and hardware...The myfi just came out, which made recording content and taking it to work easy. Then I checked out a couple online trials for both services. I tried sirius first, and right away noticed the amount of repitition in their music channels that I checked out. Eventually, I became an XM subscriber and eventually added a sub to my wifes vehicle. I remember being able to hear many tracks off an album that would get no radio play and in some cases hearing most of a CD before I would even buy it. At workOnce i ran out of recorded content on my myfi, I would listen online to finish out my work day. Now fast forward to the merg..errr I mean takeover... with a myfi that only records half the time, and doesn't hold a charge that much anymore, an increase in family sub price, online price increase, too many single artist channels at the expense of other channels, and a shallow, hits only playlist...I would not consider spending money on another unit, especially another XM2go unit, and I have gotten rid of one of my subs, hardly listen online, and my ipod has all the hits that the channels I listened to play and more. I only hang onto that sub for long car trips, and it stays in my wifes vehicle.
Mel is rubbing his hands together when he hears you lemmings say "it's better than terrestrial" and just accept any changes they do because you repeat that mantra...well, what you have for the most part now is terrestrial without commercials. I never listened to music on terrestrial before I had SatRad and I Don't spend a lot of time in my car, so my ipod and terrestrial will suit me just fine.