Sirius Failure: Bankruptcy links

“…Satellite radio executives, on the other hand, probably did not anticipate having to compete with the iPod and other MP3 players. So tactical missteps probably are not the most important reason why satellite radio has failed to achieve wider penetration…”
Gary Kim

On Mel
“He’s a little bit like Captain Kirk in Star Trek — always finding his way out of situations no matter how implausible,” Tom Taylor

“But the window of opportunity for satellite radio is closing fast as inexpensive internet and cellphone streaming services threaten to extend to the car — and that’s even if the economy were in great shape. Given the current outlook, Sirius XM’s demise could come sooner than expected..” Wired

“So if Howard Stern loves Sirius XM so much, why doesn’t he buy it? If he can’t swing it solo, maybe he could team up with other Sirius XM heavyweights like Oprah and Martha Stewart to keep the satellites afloat.” Steve Gutenberg (I hope he doesn’t get paid for opinion like this.

“But the big names – Howard Stern, Martha Stewart – will likely be forced to take pay cuts or be released from their contracts. How a company that’s never turned a profit can afford to pay Stern a reported $100 million per year is beyond me.” Chuck McKenney
By the way, Howard’s response to this suggestion was:

“I wouldn’t just renegotiate, I would just leave…Fuck off…”

“Mel was right when he told regulators that the merger of Sirius with XM was crucial to their survival. Now, they can both go bankrupt together.” Jerry Del Colliano

“Raising your rates is not going to solve the problem either: if anything, its going to drive folks away. Also with the quality of service dropping — from audio artifacts and cut-outs in the broadcast to questionable programming decisions and service reductions — Sirius XM may have very little time to turn itself around…. What is next? The loss of signature content like Howard Stern or sporting events? More rate hikes? More cuts in programming so that the service sounds even more like FM than it already does lately?
I ask then, what is the point of satellite radio? Might as well go to streaming media via 3G, as Harry has repeatedly suggested.” Ed Oswald

As you can see, there is plenty of reaction in the blogosphere, as well as traditional media. Unexpectedly so, there is some sense of consensus that it wasn’t Howard Stern’s 500 mill contract which caused the company’s downfall. The lack of vision of the Sirius executives is what cost them.

“But everybody’s comfortable with MP3 players these days; even Stern’s yahooiest of yahoo listeners can figure one out. If a Stern fan discovered he could download the latest show onto his iPod in a minute right before dashing out the door in the morning, he’d sign up. “ Josh Wolk
Its a great idea that should have been executed two-three years ago

Howard Stern remains optimistic.


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