Sirius XM Is Quicker Than You Think

By Rick Aristotle Munarriz
June 29, 2009 | Comments (9)

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I had a surreal moment on Saturday, when I took the family to grab some burgers at the local Five Guys. No, President Obama didn't walk in for a cheeseburger fix. Instead, an obscure Michael Jackson song was playing when we walked in, and then on came "Thriller." A buzz filled the dining room. Patrons started hopping. I thought it was going to break into a full-blown dance number myself.

Now, I don't know whether Five Guys just happened to stumble on a local terrestrial radio station that just happened to be paying homage to Jackson with a commercial-free set of his tunes. My guess is that Five Guys was cranking up Sirius XM Radio's (Nasdaq: SIRI) Michael Jackson Tribute Channel, which launched earlier in the day.

As big as Sirius XM is, it can still be nimble.

Jackson passed away on Thursday. At 11:45 p.m. Friday, Sirius XM announced that the Jackson channel would launch just 16 minutes later.

Sirius XM never sleeps. This morning, it announced an exclusive Fourth of July broadcast of a Bruce Springsteen concert that will be recorded in Germany a day prior. Both Sirius and XM carry the Boss-dedicated E Street Radio channel, so this is a welcome treat for its listeners.

Don't get me wrong. I don't think many people will run out and buy a satellite receiver -- or activate a dormant one -- for the sake of hearing Jackson 24/7 for awhile, or even to crank up Springsteen's Saturday afternoon show.

However, Sirius XM's proven ability to remain timely should help with subscriber retention. I'm hardly Jackson's biggest fan, yet I found myself tuning in to the dedicated channel several times during the weekend.

Buzz matters. Few are talking about the streaming application that launched through Apple's (Nasdaq: AAPL) App Store just 11 days ago. It's gone from being the second most popular free app in Apple's iTunes storefront to a still-respectable fifth. But the fadeout will continue. Rare are the apps -- among them Facebook, Pandora Music, Google (Nasdaq: GOOG) Mobile, and AT&T's (NYSE: T) account tracker -- that remain fixtures on the Top 25 list.

The app may generate new interest if Howard Stern is added, or if it takes a page out of the Netflix (Nasdaq: NFLX) playbook by making itself available at no additional cost for existing subscribers. But Sirius XM is well-served by keeping the press releases rolling, to maintain its flagship satellite-based service relevant.

Sure, Jackson and Springsteen peaked in the 1980s, but even nostalgia can be relevant. And marketable.

Other ways to slice and dice satellite-radio fandom:

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Longtime Fool contributor Rick Munarriz is a subscriber to both Sirius and XM. He owns shares of Netflix and is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.

Comments from our Foolish Readers

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  • Report this Comment On June 29, 2009, at 3:33 PM, CHUCK423 wrote:

    Not really commenting on article, but just to inform you of sirius price increase of $2 per month. What a scam. I called them up and told them to cancel my subscription. They asked why and I told them that I had been a customer of theirs since they started and I didnt think that really their service was worth 12.95 per month let alone 15.00 per month. They came back and asked if I would stay with them for 12 more months at the same price. I said I would but they had better get another business plan together besides raising prices. The operator said he has had many calls such as mine.

    I really only listen to 2 or 3 channels anyway and those are news channels that I can do without if they screw with me anymore.

  • Report this Comment On June 29, 2009, at 3:40 PM, ThongLover wrote:

    I agree...nice reaction time...Sirius is good at having special weekends, special channels, etc. I'm really kinda tired of hearing people complain about the iPhone app...it's a great app...it's worked flawlessly for me. Where else can you listen to dozens of music channels...AND CNN...AND ESPN...and Comedy...etc. Yeah, Howard isn't on...so what...he may be in the future. If not, no great loss...Howard is like 5% of the draw for Sirius in my opinion. I like him, but there are plenty of other options. The app is very cool...works well....etc...

    I still think my Sirius Saturdays special would do wonders...have all deactivated radios receive Sirius XM for FREE all day, every Saturday for the summer. It wouldn't take long for free listeners to start signing up in big numbers. FM is dead to me...Sirius is the future for certain. I hope they will start offering more TV stations (audio only)...i could handle listening to certain stations...History, NatGeo, etc...that's what makes Sirius so great...timely, variety...good stuff...

  • Report this Comment On June 29, 2009, at 3:43 PM, ThongLover wrote:

    BTW...i agree with article...not CHUCK423...had heard about $2 increase, but didn't no it was confirmed...no big deal to me...$24/year extra? Big deal...it's light years better than anything else you can listen to out there...no offense Chuck...just my opinion...i mean we're paying more for milk, gas and everything else...why not SATRAD? If it helps their bottom line, gives them more capital to improve product, stock price and outlook, it's okay with me...

  • Report this Comment On June 29, 2009, at 4:14 PM, jeffw101 wrote:

    I also noticed the quick response for the MJ dedicated music channel. I saw the press release and heard it being cross promoted on another channel. One minor criticism, SiriusXM should email their subscribers in a timely way when they have a special (although they may have, I never received one). Text alerts would be beneficial too.

    In response to CHUCK423, I agree the monthly subscription price is out of line. (to the inexpensive side). I'm the person who doesn't have the time, energy or inclination to deal with music downloads or CD's. And, I couldn't bear to listen to corporate commercial FM radio ever again. I'd pay up to $20/month for my Sirius subscription with royalty fees and internet access. The value of satellite is amazing.

  • Report this Comment On June 29, 2009, at 6:09 PM, JRSmithman wrote:

    nothing to comment as well the article was pretty fair and no bashing I guess because there is no real speculation going on here so negativity.

    good article, but not surprised if anything short of Bashing when it comes to this site.

    Kudos

  • Report this Comment On June 29, 2009, at 6:35 PM, unionbuster wrote:

    good article Rick, Sirius will make big news in the years to come as it's stock rises

  • Report this Comment On June 29, 2009, at 7:27 PM, jbrt wrote:

    what about the foul mouth loudmouth ?

  • Report this Comment On June 29, 2009, at 9:55 PM, WoodyDog1400 wrote:

    Rick, now you get it! See, you don't have to follow Cramer. Unless he was at Five Guys also....

    A balanced article written to allow others to ponder their thoughts. Good job!

    btw - Sirius launches the new FM-5 Satellite into space tomorrow. Equipment upgrade, better sound, reception, and improvements for handheld devices... The future is here, and it's SIRI!

  • Report this Comment On June 29, 2009, at 10:27 PM, TxTom wrote:

    I hope Scott is right. I believe in SIRI, and only time will tell if our faith in this company is correct. Maybe $2 per month bothers some subscribers, but I'm not one of them. I like the service, and I like the stock - A LOT.

    I think the email notice for new programming is a GREAT idea. Maybe the folks at SIRI/XM will pick up on this. Close communication with subscribers will build customer relations - something that won't hurt Sirius at all. Sirius, are you listening?

    Let's get this company back on the "buy" list - services AND stock!

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