TheStreet goes into an indepth review of how SIRIUS’ content-driven strategy is impressive for PR, but not so impressive with investors. It’s a really great article looking at how both XM and SIRIUS are attacking from different mindsets to gain marketshare.

A big bombshell is this little snippet:

“…even if Sirius’ subscriber base grows to 6.3 million, it will need to return to the capital market for more money by the end of next year to support its business. That means an additional dilution of current shareholders, and it will be compounded if the company pays Stern in stock instead of cash.”

Definitely a good read.

UPDATE: A concerned reader has mentioned to me that I seem to favor the conclusions drawn by this article. I definitely did seem pretty damn convinced by it, I have to admit (c’mon, it’s convincing dontcha think?).

Two things the concerned reader points out:

1. The comment about running out of cash contradicts SIRIUS’ often stated position that they will be cash fow positive before burning all its cash.

2. The entire analysis seems based on the view that content is not the most critical factor which is at best a dubious assumption.

Both very valid points, and it’s pretty damn important that I point them out. What’s your take on it?