Sirius 3Q07 results: Revenue Up 45%; Subs up 50%
Tuesday, October 30, 2007 at 7:42 AM
Tags: Earnings, SIRI, Sirius
Sirius Satellite Radio continues its march of amazing growth with the release of its 3Q07 results.
Sirius saw a 45% increase in revenue from 3Q06 to $241.8 million, and subscriber growth of 524,938 net additions during the quarter, driving ending subscribers up 50% year over year.
Sirius ended third quarter 2007 with 7,667,476 subscribers.
Growth came from 64,101 net subscribers from the retail/aftermarket channels and 460,837 from the OEM channel.
Advertising revenue was $8.5 million and ARPU was $10.71. SAC per gross subscriber addition was $103 compared to $114 for the year-ago third quarter. The monthly average all-in customer churn rate was 2.1%.
(I'm stuck on the train right now, so more coverage to come shortly)
UPDATE: I'm back now. No live-blogging of the conference call (sorry) but I'll have a recap of what was discussed soon.
See the full financials after the jump...
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, unless otherwise stated)
(Unaudited)
Subscribers Data:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Beginning subscribers 7,142,538 4,678,207 6,024,555 3,316,560
Net additions 524,938 441,101 1,642,921 1,802,748
Ending subscribers 7,667,476 5,119,308 7,667,476 5,119,308
Retail 4,428,747 3,482,514 4,428,747 3,482,514
OEM 3,221,388 1,610,074 3,221,388 1,610,074
Hertz 17,341 26,720 17,341 26,720
Ending subscribers 7,667,476 5,119,308 7,667,476 5,119,308
Retail 64,101 205,899 386,922 1,017,151
OEM 462,749 236,464 1,262,378 786,381
Hertz (1,912) (1,262) (6,379) (784)
Net additions 524,938 441,101 1,642,921 1,802,748
Metrics:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Gross subscriber additions 999,284 732,406 2,989,887 2,523,587
Deactivated subscribers 474,346 291,305 1,346,966 720,839
Average monthly churn (1)(6) 2.1% 2.0% 2.2% 1.8%
SAC per gross subscriber
addition (2)(6) $103 $114 $105 $119
Customer service and
billing expenses per
average subscriber (3)(6) $0.95 $1.14 $1.04 $1.28
Total revenue $241,786 $167,113 $672,250 $443,855
Free cash flow (4)(6) $(67,799) $(232,356) $(294,545) $(531,124)
Monthly ARPU:
Average monthly
subscriber revenue per
subscriber before the
effects of Hertz
subscribers and
mail-in rebates $10.29 $10.73 $10.27 $10.69
Effects of Hertz
subscribers 0.06 0.07 0.05 0.05
Effects of mail-in rebates (0.03) (0.12) (0.09) (0.27)
Average monthly
subscriber revenue per
subscriber 10.32 10.68 10.23 10.47
Average monthly net
advertising revenue
per subscriber 0.39 0.49 0.40 0.58
ARPU $10.71 $11.17 $10.63 $11.05
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED
(Dollars in thousands, unless otherwise stated)
(Unaudited)
Adjusted Loss from Operations:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Net loss $(120,137) $(162,898) $(399,029) $(859,270)
Impairment loss - - - 10,917
Depreciation 26,072 27,583 79,142 78,254
Stock-based compensation 22,727 43,418 64,004 395,293
Other income and expense 13,891 8,166 34,028 26,566
Income tax expense 555 578 1,665 1,909
Adjusted loss from
operations (7) $(56,892) $(83,153) $(220,190) $(346,331)
Adjusted Net Loss and
Adjusted Net Loss per
Share:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Net loss $(120,137) $(162,898) $(399,029) $(859,270)
Impairment loss - - - 10,917
Stock-based compensation 22,727 43,418 64,004 395,293
Adjusted net loss $(97,410) $(119,480) $(335,025) $(453,060)
Net loss per share
(basic and diluted) $(0.08) $(0.12) $(0.27) $(0.61)
Impairment loss - - - 0.01
Stock-based compensation 0.02 0.03 0.04 0.28
Adjusted net loss per share
(basic and diluted) (8) $(0.06) $(0.09) $(0.23) $(0.32)
Weighted average common
shares outstanding
(basic and diluted) 1,464,147 1,405,281 1,461,200 1,398,829
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
SUBSCRIBER DATA, METRICS
AND OTHER NON-GAAP FINANCIAL MEASURES - CONTINUED
(Dollars in thousands, unless otherwise stated)
(Unaudited)
Condensed Consolidated Statements of Operations:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Total revenue $241,786 $167,113 $672,250 $443,855
Operating expenses
(excludes depreciation
and stock-based
compensation shown
separately below):
Satellite and transmission 6,852 7,090 20,898 32,077
Programming and content 56,308 48,039 166,467 142,871
Revenue share and
royalties 32,978 18,371 89,953 48,856
Customer service and
billing 20,892 16,625 63,986 49,905
Cost of equipment 8,460 6,196 26,388 13,128
Sales and marketing 29,539 30,981 104,822 111,024
Subscriber acquisition
costs 100,998 80,863 304,893 298,670
General and
administrative 33,884 21,610 84,595 58,627
Engineering, design
and development 8,767 20,491 30,438 45,945
Depreciation 26,072 27,583 79,142 78,254
Stock-based compensation 22,727 43,418 64,004 395,293
Total operating expenses 347,477 321,267 1,035,586 1,274,650
Loss from operations (105,691) (154,154) (363,336) (830,795)
Other expense (13,891) (8,166) (34,028) (26,566)
Loss before income taxes (119,582) (162,320) (397,364) (857,361)
Income tax expense (555) (578) (1,665) (1,909)
Net loss $(120,137) $(162,898) $(399,029) $(859,270)
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Revenue:
Subscriber revenue,
including effects of mail-
in rebates $226,844 $155,372 $627,275 $408,194
Advertising revenue, net of
agency fees 8,524 7,130 24,422 22,593
Equipment revenue 6,290 3,579 17,216 10,367
Other revenue 128 1,032 3,337 2,701
Total revenue 241,786 167,113 672,250 443,855
Operating expenses (excludes
depreciation shown
separately below) (1):
Cost of services:
Satellite and transmission 7,409 7,580 22,732 34,279
Programming and content 59,015 71,654 173,324 440,010
Revenue share and royalties 32,978 18,371 89,953 48,856
Customer service and billing 21,058 16,822 64,529 50,550
Cost of equipment 8,460 6,196 26,388 13,128
Sales and marketing 36,114 38,590 119,890 125,902
Subscriber acquisition costs 101,798 79,812 307,580 329,418
General and administrative 44,837 33,146 118,651 97,574
Engineering, design and
development 9,736 21,513 33,397 56,679
Depreciation 26,072 27,583 79,142 78,254
Total operating expenses 347,477 321,267 1,035,586 1,274,650
Loss from operations (105,691) (154,154) (363,336) (830,795)
Other income (expense):
Interest and investment income 5,604 7,750 16,399 26,560
Interest expense, net of
amounts capitalized (19,499) (15,921) (50,441) (48,705)
Equity in net loss of
affiliate - - - (4,445)
Other income 4 5 14 24
Total other expense (13,891) (8,166) (34,028) (26,566)
Loss before income taxes (119,582) (162,320) (397,364) (857,361)
Income tax expense (555) (578) (1,665) (1,909)
Net loss $(120,137) $(162,898) $(399,029) $(859,270)
Net loss per share (basic and
diluted) $(0.08) $(0.12) $(0.27) $(0.61)
Weighted average common
shares outstanding (basic
and diluted) 1,464,147 1,405,281 1,461,200 1,398,829
(1) Amounts related to stock-
based compensation included
in other operating expenses
were as follows:
Satellite and transmission $557 $490 $1,834 $2,202
Programming and content 2,707 23,615 6,857 297,139
Customer service and billing 166 197 543 645
Sales and marketing 6,575 7,609 15,068 14,878
Subscriber acquisition costs 800 (1,051) 2,687 30,748
General and administrative 10,953 11,536 34,056 38,947
Engineering, design and
development 969 1,022 2,959 10,734
Total equity granted to third
parties and employees $22,727 $43,418 $64,004 $395,293
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
BALANCE SHEET DATA
(Dollars in thousands)
As of
September 30, 2007 December 31, 2006
(Unaudited)
Cash, cash equivalents and
marketable securities $362,368 $408,921
Restricted investments 53,010 77,850
Working capital (261,893) (257,799)
Total assets 1,587,128 1,658,528
Long-term debt 1,281,742 1,068,249
Total liabilities 2,227,641 2,047,599
Accumulated deficit (4,232,749) (3,833,720)
Stockholders' deficit (640,513) (389,071)
SIRIUS SATELLITE RADIO INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Cash flows from operating
activities:
Net loss $(120,137) (162,898) $(399,029) $(859,270)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation 26,072 27,583 79,142 78,254
Non-cash interest expense 893 785 2,452 2,332
Provision for doubtful
accounts 2,309 1,907 6,663 5,687
Non-cash equity in net
loss of affiliate - - - 4,445
(Gain) loss on disposal of
assets (14) 348 92 889
Impairment loss - - - 10,917
Stock-based compensation 22,727 43,418 64,004 395,293
Deferred income taxes 555 578 1,665 1,909
Changes in operating assets
and liabilities:
Accounts receivable (1,237) (276) (6,627) 8,710
Inventory 4,902 (19,869) (2,533) (30,723)
Receivables from
distributors 4,480 13,658 (9,032) 7,835
Prepaid expenses and other
current assets 4,992 (12,740) 14,571 (42,399)
Other long-term assets (46) 3,414 (14,825) (21,674)
Accounts payable and
accrued expenses (7,602) (52,794) (58,713) (68,780)
Accrued interest (8,529) (11,620) (7,826) (10,460)
Deferred revenue 16,534 1,822 76,803 75,669
Other long-term
liabilities (8,486) (16,646) 759 (8,051)
Net cash used in
operating activities (62,587) (183,330) (252,434) (449,417)
Cash flows from investing
activities:
Additions to property and
equipment (30,212) (66,588) (66,801) (94,368)
Sales of property and
equipment 19 - 116 123
Purchases of restricted and
other investments - (7,438) (310) (12,339)
Release of restricted
investments 25,000 25,000 25,000 25,000
Purchases of available-for-
sale securities - (10,000) - (118,500)
Sales of available-for-sale
securities (4) 24,215 10,842 201,340
Net cash (used in)
provided by investing
activities (5,197) (34,811) (31,153) 1,256
Cash flows from financing
activities:
Long term borrowings, net of
related costs - - 245,199 -
Proceeds from exercise of
stock options 745 1,054 2,677 4,030
Net cash provided by
financing activities 745 1,054 247,876 4,030
Net decrease in cash and cash
equivalents (67,039) (217,087) (35,711) (444,131)
Cash and cash equivalents at
the beginning of period 424,749 534,963 393,421 762,007
Cash and cash equivalents at
the end of period $357,710 $317,876 $357,710 $317,876
FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES
This press release, including the selected financial information above, includes the following non-GAAP financial measures: average monthly churn; SAC per gross subscriber addition; customer service and billing expenses per average subscriber; free cash flow; average monthly revenue per subscriber, or ARPU; adjusted loss from operations; adjusted net loss; and adjusted net loss per share. The definitions and usefulness of such non-GAAP financial measures are as follows (dollars in thousands, unless otherwise stated):
(1) SIRIUS defines average monthly churn as the number of deactivated
subscribers divided by average quarterly subscribers.
(2) SIRIUS defines SAC per gross subscriber addition as subscriber
acquisition costs, excluding stock-based compensation, and margins
from the direct sale of SIRIUS radios and accessories divided by the
number of gross subscriber additions for the period. SAC per gross
subscriber addition is calculated as follows:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Subscriber acquisition
costs $101,798 $79,812 $307,580 $329,418
Less: stock-based
compensation (800) 1,051 (2,687) (30,748)
Add: margin from direct
sales of SIRIUS radios
and accessories 2,170 2,617 9,172 2,761
SAC $103,168 $83,480 $314,065 $301,431
Gross subscriber
additions 999,284 732,406 2,989,887 2,523,587
SAC per gross subscriber
addition $103 $114 $105 $119
(3) SIRIUS defines customer service and billing expenses per average
subscriber as total customer service and billing expenses, excluding
stock-based compensation, divided by the daily weighted average number
of subscribers for the period. Customer service and billing expenses
per average subscriber is calculated as follows:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Customer service and
billing expenses $21,058 $16,822 $64,529 $50,550
Less: stock-based
compensation (166) (197) (543) (645)
Customer service and
billing expenses,
as adjusted $20,892 $16,625 $63,986 $49,905
Daily weighted average
number of subscribers 7,326,029 4,848,293 6,814,796 4,332,332
Customer service and
billing expenses,
as adjusted, per
average subscriber $0.95 $1.14 $1.04 $1.28
(4) SIRIUS defines free cash flow as cash flow from operating activities,
capital expenditures and restricted and other investment activity.
Free cash flow is calculated as follows:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Net cash used in
operating activities $(62,576) $(183,330) $(252,423) $(449,417)
Additions to property and
equipment (30,212) (66,588) (66,801) (94,368)
Restricted and other
investment activity 25,000 17,562 24,690 12,661
Free cash flow $(67,788) $(232,356) $(294,534) $(531,124)
(5) SIRIUS defines ARPU as the total earned subscriber revenue and net
advertising revenue divided by the daily weighted average number of
subscribers for the period. ARPU is calculated as follows:
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Subscriber revenue $226,844 $155,372 $627,275 $408,194
Net advertising revenue 8,524 7,130 24,422 22,593
Total subscriber and net
advertising revenue $235,368 $162,502 $651,697 $430,787
Daily weighted average
number of subscribers 7,326,029 4,848,293 6,814,796 4,332,332
ARPU $10.71 $11.17 $10.63 $11.05
(6) SIRIUS believes average monthly churn; SAC per gross subscriber
addition; customer service and billing expenses per average
subscriber; free cash flow; and ARPU provide meaningful information
regarding operating performance and liquidity and are used for
internal management purposes; when publicly providing the business
outlook; as a means to evaluate period-to-period comparisons; and to
compare the company's performance to that of its competitors. SIRIUS
also believes that investors use current and projected metrics to
monitor performance of the business and make investment decisions.
SIRIUS believes the exclusion of stock-based compensation expense in
the calculations of SAC per gross subscriber addition and customer
service and billing expenses per average subscriber is useful given
the significant variation in expense that can result from changes in
the fair market value of SIRIUS common stock, the effect of which is
unrelated to the operational conditions that give rise to variations
in the components of subscriber acquisition costs and customer service
and billing expenses. Specifically, the exclusion of stock-based
compensation expense in the calculation of SAC per gross subscriber
addition is critical in being able to understand the economic impact
of the direct costs incurred to acquire a subscriber and the effect
over time as economies of scale are reached.
These non-GAAP financial measures are used in addition to and in
conjunction with results presented in accordance with GAAP. These non-
GAAP financial measures may be susceptible to varying calculations;
may not be comparable to other similarly titled measures of other
companies; and should not be considered in isolation for, or superior
to measures of financial performance prepared in accordance with GAAP.
(7) SIRIUS refers to net loss before taxes; other income (expense) -
including interest and investment income, interest expense, equity in
net loss of affiliate; depreciation; impairment charges; and stock-
based compensation expense as adjusted loss from operations. Adjusted
loss from operations is not a measure of financial performance under
GAAP. The company believes adjusted loss from operations is a useful
measure of its operating performance. The company uses adjusted loss
from operations for budgetary and planning purposes; to assess the
relative profitability and on-going performance of consolidated
operations; to compare performance from period to period; and to
compare performance to that of its competitors. The company also
believes adjusted loss from operations is useful to investors to
compare operating performance to the performance of other
communications, entertainment and media companies. The company
believes that investors use current and projected adjusted loss from
operations to estimate the current or prospective enterprise value and
make investment decisions.
Because the company funds and builds-out its satellite radio system
through the periodic raising and expenditure of large amounts of
capital, results of operations reflect significant charges for
interest and depreciation expense. The company believes adjusted loss
from operations provides useful information about the operating
performance of the business apart from the costs associated with the
capital structure and physical plant. The exclusion of interest
expense and depreciation is useful given fluctuations in interest
rates and significant variation in depreciation expense that can
result from the amount and timing of capital expenditures and
potential variations in estimated useful lives, all of which can vary
widely across different industries or among companies within the same
industry. The company believes the exclusion of taxes is appropriate
for comparability purposes as the tax positions of companies can vary
because of their differing abilities to take advantage of tax benefits
and because of the tax policies of the various jurisdictions in which
they operate. The company also believes the exclusion of stock-based
compensation expense is useful given the significant variation in
expense that can result from changes in the fair market value of the
company's common stock. Finally, the company believes that the
exclusion of equity in net loss of affiliate (SIRIUS Canada, Inc.) is
useful to assess the performance of its core consolidated operations
in the continental United States. To compensate for the exclusion of
taxes, other income (expense), depreciation, impairment charges and
stock-based compensation expense, the company separately measures and
budgets for these items.
There are material limitations associated with the use of adjusted
loss from operations in evaluating the company compared with net loss,
which reflects overall financial performance, including the effects of
taxes, other income (expense), depreciation, impairment charges and
stock-based compensation expense. The company uses adjusted loss from
operations to supplement GAAP results to provide a more complete
understanding of the factors and trends affecting the business than
GAAP results alone. Investors that wish to compare and evaluate the
operating results after giving effect for these costs, should refer to
net loss as disclosed in the unaudited consolidated statements of
operations. Since adjusted loss from operations is a non-GAAP
financial measure, the calculation of adjusted loss from operations
may be susceptible to varying calculations; may not be comparable to
other similarly titled measures of other companies; and should not be
considered in isolation, as a substitute for, or superior to measures
of financial performance in accordance with GAAP.
(8) SIRIUS refers to adjusted net loss and adjusted net loss per share as
net loss per share excluding impairment charges and stock-based
compensation expense. Adjusted net loss and adjusted net loss per
share are not measures of financial performance under GAAP. The
company believes adjusted net loss and adjusted net loss per share are
useful to investors to compare its operating performance to the
performance of other communications, entertainment and media
companies. The company believes the exclusion of impairment charges is
appropriate for comparability purposes as the existence, amount and
timing of impairment charges can vary from period to period and can
vary widely across different industries or among companies within the
same industry. The company also believes the exclusion of stock-based
compensation expense is useful given the significant variation in
expense that can result from changes in the fair market value of the
company's common stock.
There are material limitations associated with the use of adjusted net
loss and adjusted net loss per share in evaluating the company
compared with net loss and net loss per share, which reflects overall
financial performance, including the effects of impairment charges and
stock-based compensation expense. The company uses adjusted net loss
and adjusted net loss per share to supplement GAAP results to provide
a more complete understanding of the factors and trends affecting the
business than GAAP results alone. Investors that wish to compare and
evaluate the operating results after giving effect for these costs,
should refer to net loss and net loss per share as disclosed in the
unaudited consolidated financial statements of operations. Since
adjusted net loss and adjusted net loss per share are non-GAAP
financial measures, the calculation of adjusted net loss and adjusted
net loss per share may be susceptible to varying calculations; may not
be comparable to other similarly titled measures of other companies;
and should not be considered in isolation, as a substitute for, or
superior to measures of financial performance prepared in accordance
with GAAP.
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Comments
Nobody comment until StackPointer has a chance to spin the SIRI results to show where XM had a better quarter.
Posted by: StackPointer Fan | October 30, 2007 9:01 AM
Non-Fan of Stackpointer here:
Stackpointer=David Rehr
Jonathon Jacoby=Jerkoff
Posted by: Mrwirez | October 30, 2007 9:05 AM
I promised this analysis in a comment to XM's results, so here it is (by the skin of my teeth; DSL was down from Saturday night until right now)
Sirius rang up about 7.327 million subscriber quarters (derived from subscriber revenue divided by (3*subscriber ARPU)), an increase of about 517 thousand from the previous quarter. It would appear that most of the net adds occurred late in the quarter.
Slight decline in overall terms in advertising revenue.
Carrying cost per subscriber-quarter was $40.05, the new record low for the industry (beating XM's $40.26 Q3 from last year) and down from $42.34 in the previous quarter and $55.89 in the year-ago quarter.
Operating expenses net of cost of net additions (operating expenses less (SAC*net adds)) increased $5 million to $293 million.
Trailing twelve month carrying cost also set a new record at $43.19 per sub-quarter; the previous record was XM's $44.50 for the 12 months ending with Q2 of 07.
Based on a regression of subscriber counts with OENOCONA, XM's marginal cost of a subscriber quarter is about $43 vs. $22 for Sirius. Need I complete this train of thought?
Posted by: leviramsey | October 30, 2007 11:11 AM
>>> Based on a regression of subscriber counts with OENOCONA, XM's marginal cost of a subscriber quarter is about $43 vs. $22 for Sirius. Need I complete this train of thought?
Yes, complete it using REAL subscriber #s instead of the bullshit Sirius reports.
When you account for SIRI's bogus subs, the quarter was horrible for them. 64k net retail adds after blowing 3/4 billion on Stern? And how many of the other 460K are still sitting on dealer lots?
Neither company had a stellar quarter, but when you boil it all down, XM continues to kick SIRI's butt when evaluated on equal footing. You would do well to stop making up your own metrics.
Posted by: StackPointer | October 30, 2007 11:38 AM
"When you account for SIRI's bogus subs, the quarter was horrible for them. 64k net retail adds after blowing 3/4 billion on Stern? And how many of the other 460K are still sitting on dealer lots? "
i love this one they pull out every report
its been years where is all the CHURN on these phantom dealer subs? they really should have popped right now right?
Posted by: PNess | October 30, 2007 11:55 AM
I don't like that Sirius counts the parking lot subs, but honestly, I wish the industry didn't count promotional subs at all. The only difference between XM's sub count and SIrius' sub count is about 90 days - the time it takes to move a car off the lot. They all become subscribers anyway.
But that is the problem. BOTH companies should only count individual paying subs (i.e. after the promotional period is over).
Having said that, and understanding that Sirius counts their OEM's 90 days sooner than XM, but no one can deny that Sirius is winning the war right now. If merger fails, I certainly like Sirius' position over XM right now....
Posted by: rjr | October 30, 2007 12:18 PM
WTF? Sirius counts the subs for the full 1 year promotional period. That's one full year being counted as a paying sub when the car may not have even left the lot, nevermind the fact that around half of these will never be self-paying subs. XM only gives 3 months because that's enought time to sample the service. Some of these "subs" have sat on car lots the entire length of the 1 year promo yet are still counted as self-paying subs.
Sirius's position right now is awful. 64k retail subs? Enjoy ruling retail. If I sell one radio and my competitor sells none I can claim to have 100% marketshare but it ignores the fact that both are utter failures. At least XM sees retail is not happening and concentrating elsewhere. Why do Sirius do well at retail? Because far to many of their subs are there only for Howard. These are not people that listen only in their cars, they need PnP's and protables to listen to the whole show after the commute. These are also people who will abandon sdars the day Hoo Hoo retires.
Posted by: pfreak | October 30, 2007 1:39 PM