Sirius XM Is In Trouble

Sirius XM Radio (Nasdaq: SIRI  ) has some serious competition coming its way and it may need more than Howard Stern to save the day. Sirius' turn back to profitability after years of losses comes at the same time smartphones threaten its very existence.

Yesterday, CNBC highlighted Pandora's inroads into the mobile radio market, attracting more than 65 million registered listeners in the U.S. But Pandora isn't the only competitor Sirius should be worried about. All sorts of apps are popping up, from Slacker Radio, which offers a similar experience to Pandora; to iheart Radio, which provides radio stations from around the country; and even to Howard Stern, who has threatened to develop a premium app for smartphones. ESPN has also built a radio app offering football games, podcasts, and audio from popular television shows. Apps for smartphones are relatively easy to build, don't require a large capital investment, and can be used on a variety of devices.

Apple (Nasdaq: AAPL  ) , Research In Motion (Nasdaq: RIMM  ) , and Google's (Nasdaq: GOOG  ) Android dominate the smartphone market with 80.1% market share, concentrating apps in a relatively small group. comScore (Nasdaq: SCOR  ) reported that 53.4 million phones, 22.8% of mobile phones, in the U.S. were smartphones during the second quarter, up 11% from the first quarter and up 25.1% since January. So the market Sirius should fear most, smartphones, is growing by double digits every quarter. As new smartphone users become more aware of available applications and developers build more apps, I can't see how Sirius could maintain its subscriber base near 20 million.

Sirius has seen a financial turnaround, but its operations are highly leveraged, paying fixed contracts to talent and upkeep on infrastructure. So, Sirius' financial performance can go south as fast as it has improved. It also has more than $3 billion in long-term debt, a huge load if Sirius can't keep adding subscribers.

I'm not suggesting nearly 19 million subscribers will disappear overnight, but I am saying investors need to watch Sirius' subscriber totals closely in coming quarters. The company has done well keeping subscribers thus far, with a low 1.9% churn rate in the first half of 2010 and increasing revenue per subscriber, but earnings have yet to exceed $50 million in a quarter.

Analysts are expecting another year of weak profit with $0.01 earnings per share in 2011. With a $5 billion market cap, that's equivalent to a forward price/earnings multiple of more than 100. I think investors have gotten ahead of themselves on this one.

Interested in reading more about Sirius? Click here to add it to My Watchlist, and My Watchlist will find all of our Foolish analysis on this stock.

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Fool contributor Travis Hoium does not have a position in any company mentioned here. Google is a Motley Fool Inside Value recommendation. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.


Read/Post Comments (64) | Recommend This Article (26)

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  • Report this Comment On October 06, 2010, at 2:42 PM, DynoJoel wrote:

    travis - are you SIRIUS? or did you have nothing else to write today? Pandora, Slacker, iHeart and others have been out there for yearsssssss...and amazingly they don't conflict with SIRI's customer segments. If they had SIRI would have had its tuckus kicked years ago. If SIRI were to fear Apple or Android, they would have feared the reaper years ago as well.... Are you actually in touch with customer segments, what real competition is and what SIRI might want to be concerned about?

  • Report this Comment On October 06, 2010, at 2:50 PM, Brent2223 wrote:

    This argument has been out there for awhile and gets shot down every time. But hey, dust it off again in another few months and keep trying to help out your short buddies! I suggest the author goes back to read the comments on the 100's of other fool articles presenting this idea to get a better understanding of the real issues in the radio industry and how SIRI is addressing these.

  • Report this Comment On October 06, 2010, at 2:54 PM, toomany4gong wrote:

    There are competitions. But really, is there?

    Comparing Sirius to Pandora or any other online radio is like comparing Cable TV with local Blockbuster.....which went bankrupt.

    And with all that streaming data how long can the phone companies allow unlimited listening? Free? There's no way any of these online music providers can compete with live dynamic add free content. And it works in between cities when you drive cross country or going on a trip.

    Audio is not just for music and music is not all listeners want to listen all day long.

    Did Burger King kill off McDonalds? Did Islands Restaurant go bankrupt because of McDonalds?

    All smartphones are essentially MP3 players and all the owners have the music stored that they like. Why would they want to listen online using up data and pay for it too? No Way Fool!!!

  • Report this Comment On October 06, 2010, at 3:01 PM, Fredlee009 wrote:

    Sirius XM Radio (Nasdaq: SIRI) has some serious competition coming its way and it may need more than Howard Stern to save the day. Sirius' turn back to profitability after years of losses comes at the same time smartphones threaten its very existence

    Sensationalist journalism meant to draw emotion, rather than inform. One fact to support this? I read the entire article and didnt find anythign but opinion that is based on wrong information to begin with. So ur agruement is based on bad opinion, LOL. Stop writing. This piece I am considering sending to the SEC as evidence this site foments the company. Not informs about the company. But foments. Big difference. I think who u work for knows the difference too.

  • Report this Comment On October 06, 2010, at 3:02 PM, Fredlee009 wrote:

    Sirius XM has record growth in subs, revenue, and data charges coming to cell phones will now make us more attactive. Sorry, cell phones have had internet access for over 5 years, with steaming and full 3 G capabilities. SIrius XM has growth their subs from 15 million to 20 million since the Iphones release. These are rough estimates of time. good look it up loser. Do some research before u lie.

  • Report this Comment On October 06, 2010, at 3:03 PM, gskorich wrote:

    i dont see it happenng. i have xm in my car and on my iphone. i also have pandora. i get commercial free radio with XM. with free pandora you get commercials and are limited to the songs you get per radio station you create. not sure how iheart works but i'm sure there are commercials involved. i'll stick to XM until something better comes along

  • Report this Comment On October 06, 2010, at 3:05 PM, Fredlee009 wrote:

    Just some factual numbers in that. Those are registered FREE USERS. Their revenue is less than 60 million in 2009 and 40 million of that was royalty charges to the music industry. LOL

    I have 3 of these 65 million accounts myself after I forgot my password, and forgot which email i used.

    3 INACTIVE accounts. LOL I know a few people who have multiple accounts that arent being used. How many actually use it in their cars? Probably less than 500k total in the US. Thats generous. Free users too.

  • Report this Comment On October 06, 2010, at 3:07 PM, Fredlee009 wrote:

    I'm not suggesting nearly 19 million subscribers will disappear overnight, but I am saying investors need to watch Sirius' subscriber totals closely in coming quarter.

    Yes watch it grow. Already at all time records in the worst economic environment of our times. Very impressive. How many companies can say that? more subs than netflix with a higher ARPU than Netflix.

  • Report this Comment On October 06, 2010, at 3:07 PM, Fredlee009 wrote:

    Pandora to Sirius, as competition is like water to Coke.

  • Report this Comment On October 06, 2010, at 3:09 PM, SageWren wrote:

    Ok, maybe I just don't get it, but the only place I would have Sirius radio would be in my car to listen to while driving. How on earth is a smartphone going to replace that? That makes no sense to me at all.

  • Report this Comment On October 06, 2010, at 3:09 PM, TMFFlushDraw wrote:

    Competitors didn't have the scale to beat Sirius years ago. As I pointed out the smartphone segment is growing double digits every quarter providing reach they've never had before.

    The only advantage Sirius has is live talk radio. But what is keeping that talent from starting its own app?

    Like I said, Sirius isn't in trouble today, I just can't see this as a viable business in 10 years. It will slowly die, just like dial-up.

    @toomany4gong: I guess I'll keep my unlimited iPhone plan forever and enjoy Pandora every day like I do now. Pandora is where I find most of my new music so it's more than just stored music on my phone.

    @DynoJoel: Are you saying SIRI didn't fear the reaper years ago?

    http://www.nytimes.com/2009/02/11/technology/companies/11rad...

    Travis Hoium

  • Report this Comment On October 06, 2010, at 3:13 PM, Fredlee009 wrote:

    The only advantage Sirius has is live talk radio. But what is keeping that talent from starting its own app?

    Name 1 talent that was left sirius and started their own app? Name me one high profile talent that works solely through their own app? name me one talent/entity that has made apps for themselves profitable and disrgarded all other mediums?

  • Report this Comment On October 06, 2010, at 3:13 PM, Austin77478 wrote:

    Travis Hoium, you are a joke. Your article is platitude at best. It is obvious that you and your short bodies are spitting out impish Sirius articles. When is The Fool going to put a stop to these diatribes about Sirius?

  • Report this Comment On October 06, 2010, at 3:14 PM, splintar wrote:

    How many times do i have to tell you all. No matter how the content is delivered, the content matters and the content has to be paid for by whoever is providing it. Either by commercials, or via subscription. So nothing will be free.

    OK that's number one.

    Number two, smartphones are actually SIRI's friend, as that audience now has , or shortly will have, a mobile device that enables sat rad.

    That means i don't have to subscribe to ESPN here, CNBC there and slacker over here.

    Third, I can download TV shows and watch NFL games on my laptop, I can get VOD via tivo and stream netflix.

    Have I got rid of my cable TV?

    Of course not. The penetration rate is directly corrollated to the new car installs and they are approaching 100%.

    Get a clue. There is a reason this stock has gone up 10 fold.

    End of story.

  • Report this Comment On October 06, 2010, at 3:14 PM, Fredlee009 wrote:

    "Competitors didn't have the scale to beat Sirius years ago. As I pointed out the smartphone segment is growing double digits every quarter providing reach they've never had before. "

    Dont care. Still not impressed with cell phone coverage, or its everywhere internet streaming. Music steaming would require constant running of data charges. Cutting in and out is annoying. No content. Just lame music. No thanks. O&A didnt leave sirius and start their own app. There words not mine" only game in town", talking of sirius xm. Learn what a monopoly is. Learn that content is king, then come back and write in the media space. Cause you sound like a novice.

  • Report this Comment On October 06, 2010, at 3:20 PM, PokerRon wrote:

    This guy Travis is an absolute idiot. He hasn't got a clue what Sirius is all about. Sirius is not about Pandora-like streaming music, it's about intelligent informed varied listening - music, chat, sports, etc. Motley Fool, or Motley Idiots, just can't resist hammering Sirius periodically. Perhaps they make money shorting the stock.

  • Report this Comment On October 06, 2010, at 3:29 PM, jimmylegg wrote:

    GOD I HATE THAT THIS STILL SHOWS UP IN PRESS ALERTS! Go find a real job!

    Headlines like this are irresponsible, and no matter how much you may want to be a real jouralist, spinning days old headlines in your scary way is simply a childish way to demand recognition.

    Im sure you will probably sensor this, and not post because as usual I am yet just another frustrated person on that earth that is sad you own a computer.

    GROW UP

  • Report this Comment On October 06, 2010, at 3:31 PM, TheRunDown wrote:

    Travis Hoium and The Motley Fools are in TROUBLE!!

    AP bull$#TT wire...10/6/2010

    Fool.com and Travis Hoium have some serious competition headed their way. Just when the Motley Fool had started to earn some respect and gain some PAYING subscribers, a new free analyst with absolute no knowledge of the industry has started offering a stock tips discovery service. He plans to market this via iPhone, Droid and Blackberry apps that will be supported by ads for e-trade, fool.com and the street.

    Basically, those sites will disappear over night because their business model is for retards...

    REALLY!?!?!?!?!?!?

  • Report this Comment On October 06, 2010, at 3:45 PM, bababooey67 wrote:

    It does not matter what medium your talking about to reach subscribers. It's all about who has best content. Music can be found everywhere I agree but that is not what people are paying for when they are Sirius subscribers. People are paying for Howard and whatever else is on there. I would drop Sirius in a hot minute if Howard left and would sign up whereever he goes. It's all about the content! Bottom line! Enough said

  • Report this Comment On October 06, 2010, at 3:52 PM, TheRunDown wrote:

    SIRIUSly...

    How can you even begin to compare Pandora, Slacker or any of the other streaming music discovery or radio apps to Sirius?? Or Terrestrial radio for that matter...

    Here is the only thing that streaming apps, SatRad and TerRad have in common: They allow you to listen to music anywhere that you can receive their output...

    Now we have a basis for comparison...kind of. So lets give it a try:

    SiriusXM Satellite radio --

    1. In my house

    2. On my computer

    3. On my smart phone

    4. In my car --

    a. in my neighborhood

    b. 30 miles from my neighborhood

    c. 300 miles from my neighborhood

    d. 3000 miles from my neighborhood

    Signal retention on a scale of 1-10 (10 being best) : 9.8 You only lose your signal under bridges and in tunnels.

    Terrestrial Radio (Including HD radio) --

    1. In my house

    2. On my computer

    3. On my smart phone

    4. In my car --

    a. in my neighborhood

    b. 30 miles from my neighborhood

    Signal retention on a scale of 1-10 (10 being best) : 7.5 You lose your signal under bridges and in tunnels. Also you will not be able to listen to the same content or station past a certain distance from the transmission tower.

    Pandora and other streaming apps --

    1. In my house -- if I'm on my computer or smart phone.

    2. On my computer

    3. On my smart phone

    4. In my car -- if I use my smart phone or some connectivity device that utilizes my smart phone.

    a. in my neighborhood

    b. 30 miles from my neighborhood

    c. 300 miles from my neighborhood

    d. 3000 miles from my neighborhood

    e. world wide

    Signal retention on a scale of 1-10 (10 being best) : 3

    You lose your signal under bridges, in tunnels, near other cel towers, between buildings, anywhere that your 3g or 4g carrier does not provide coverage, and anytime a commercial or content that you don't care about interrupts an otherwise unenjoyable experience.

    Pandora cannot begin to compare to Terrestrial Radio...let alone Sirius premium radio.

    I can listen to the same channel, same talk show host or music genre from timbuktu to boca frakkin raton and I will NOT be interrupted for more than a couple of seconds.

    With Pandora or similar apps...sure...I don't pay for it. BUT, i have to wait for a song to buffer, deal with packet interruption, deal with commercials and deal with music that I dont like. AND...I don't get anything like O&A, Stern, Oprah, Emeril, Pete Dominick, Potus or comedy.

    No comparision. Period. Stop being a fool.

    Oh wait....that's what they pay you for.

    peace.

  • Report this Comment On October 06, 2010, at 3:55 PM, Brent2223 wrote:

    "The only advantage Sirius has is live talk radio" This is a pretty shaky statement to build an argument to begin with, and has been refuted several times on this board alone. But maybe if you say it just one more time it will make it real...okay maybe it will take two times but seriously just keep the broken record playing cause the more the bears talk the dumber their arguments sound.

  • Report this Comment On October 06, 2010, at 4:04 PM, mpk44 wrote:

    Smart phones are way over rated. Most folks want to get in the car and go; not plug in, find your app, launch it.....

    And nothing is for free. SXM is easy to use, and it's a good product

  • Report this Comment On October 06, 2010, at 4:15 PM, shuze57 wrote:

    you know, if my phone didn't stop its app and ring every cpl of minutes when someone calls me, i might actually use it in the car to listen to stuff. and if "ifs" and "buts" were candy and nuts....

  • Report this Comment On October 06, 2010, at 4:15 PM, ItAintCool wrote:

    Now Travis has enough comments to write a follow-up article that he was harassed, by the "Cult of Siri". But he'll still ignore the FACTS that his current article avoids.

  • Report this Comment On October 06, 2010, at 4:19 PM, southernbeachguy wrote:

    What a STUPID article, you haven't the slighest idea what you are talking about. I won't even elaborate because I doubt you are smart enough to understand. (I generally never call anyone stupid.............. in this case it is justified).

  • Report this Comment On October 06, 2010, at 4:23 PM, rockotodd2 wrote:

    Remember way way way way back when the Motley Fool actually had helpful advice and didn't just rehash the same article very 6 months?? Those were simplier times, now they just rewrite the same basless crap and try to sell $2000 "newsletters". Maybe The Street.com and Motley Fool should merge, truthfully they would sink under the weight of their collective BS but would that be so wrong??

  • Report this Comment On October 06, 2010, at 4:25 PM, Fredlee009 wrote:

    I like Cults. They are small groups who go against the mainstream. Perfect. How you make money investing. Apple cult, Google Cult, Microsoft Cult, now the Sirius XM cult.

  • Report this Comment On October 06, 2010, at 4:27 PM, TMFSymington wrote:

    Hey Travis...I'll stay away from blindly bashing you, but I'd still like to bring up some potential game-changers for Sirius: Your opinions seem to ignore any future innovation which could help SIRI improve their competitive position. Have you any thoughts on the new features to be included in Satellite Radio 2.0? It looks like SIRI next year will have a sort of "TIVO for radio" set of features, and they've also recently had patents approved (forgive me from hawking the find from SatWavesPro.com) for a "portable/wearable device and technology which will allow for the purchase and downloading of live audio content and/or live video content, using both a direct SDARS signal and/or an internet stream.

    This would seem to put them in an entirely different league.

    With regard to your current thoughts on Pandora, I've been toying with the service off and on since 2006, and find the novelty wears off quickly every single time I try to use it. Sirius is addictive, and it's content keeps me (and many of my friends) coming back for more. Additionally, I think SiriusXM targets entirely different demographics than Pandora (and its other *free* counterparts). I used to be excited about Pandora and the like when I was a poor college student without any discretionary funds to spend...as I've matured (along with my weekly paychecks), I've found myself searching for better alternatives to free services. SiriusXM fits that bill for over 20 million people (and counting).

    That's also not to say Pandora doesn't have a future...I think both services can coexist nicely, and each with their own niche.

  • Report this Comment On October 06, 2010, at 4:31 PM, Fredlee009 wrote:

    Ill say that Pandora doesnt have a future. I think their growth has stalled, and are now trying to pump a dying product no one uses. I dont know anyone who uses it, to be honest. No one. I know people who USED to use it, o ya. Tons. Fad. All it is. Gets old, and they play teh same music over and over and over again. No live content, no sports no talk, no specials, no good music, no good new music. Pandora is useless.

  • Report this Comment On October 06, 2010, at 4:37 PM, ThongLover854 wrote:

    Wow...it's pretty obvious that CNBC, Fool and all the other outlets out there have just recently started cutting costs by hiring high-school and college interns to come up with their content. Congrats on the penny pinching.

    Travis, you are 100% wrong, starting with your headline to pretty much every sentence you typed.

    1. 60 million users? Do you count me? I got the Pandora app...signed up, used it for a couple of hours. searched for comedy, news, weather...couldn't find it...Pandora is not that great and it DOES NOT have 60 million users.

    2. You can't use it unlimited throughout the USA like you can Sirius. Not even close...my phone is for phone calls...i also use my phone for iTunes connected to my auto and i also use my iPhone's SIRI APP to listen to music and weather and talk and comedy and sports and everything ELSE wherever i am...

    3. As i mentioned yesterday after another silly article...here is the most recent newsflash...

    EXTRA EXTRA - HBO, SHOWTIME, CABLE TV go bankrupt as viral video takes off...free streaming webisodes have made cable tv obsolete...

    NOT GONNA HAPPEN...SIRI is about CONTENT and Pandora HAS NO F$#%*@K Content!!

    I am now officially a PANDORA hater because of you and the other idiots out there that hang their hat on Pandora changing the world...

    How 'bout this...NEWSFLASH!! NEWSFLASH!!

    Sirius/XM radio APP puts Sirius Sat Rad out of business: The success of the Sirius app and internet option, giving users unlimited access to Sirius around the world, has put the SAT RAD out of business.....

    My point above it this..the closest competitor to SIRI is SIRI...the best APP for the smartphones that might keep people from using the SIRI Sat Rad in their auto is the SIRI APP! CONTENT CONTENT CONTENT!!

    GO AWAY TRAVIS...make some coffee for the real journalists...

  • Report this Comment On October 06, 2010, at 4:41 PM, TMFSymington wrote:

    Rabble rabble rabble! :-)

  • Report this Comment On October 06, 2010, at 4:46 PM, ThongLover854 wrote:

    One more thing...Pandora has NO MONEY...they cannot afford CONTENT. Sirius has a business model that is finally on the top side of the bottom line and if you have a calculator Travis, that top-side is going to increase rather quickly...

    20 million subs? How many autos in the USA? Heck i have one sub...with that $20 ($13 SIRI/$3 internet/$3 Best of XM), i can listen to Sirius in my vehicle (indash SIRI), i can listen on my phone, i can listen in my house on a Table Top Radio ($100) on my WIFI, i can listen on my computer...or any computer anywhere...that's my one sub...

    There are about 12-15 million autos sold every year. Push that out five years...that's 60-75 million autos...about 40-50 million will have Sat Rad...about 15 million will get Sat Rad and keep it...now we're at 35 million and we're just five years out.

    You do the math Travis...you think our subs will go down? I don't...i think our content and tech goodies and video and everything else will go up and up...

    Five years down the road, 30 million (realistic for sure) subs at $15/month...$450 million revenue/month...$5.4 BILLION...almost double revenue of today...pay off some debt, add more goodies to the line-up...more Content..the gap between those with content and those without will get wider and wider...SIRI is for real...Travis and the haters are hacks...

  • Report this Comment On October 06, 2010, at 5:09 PM, billklopez wrote:

    How biased can the FOOL be? Every chance you get, you knock SIRIUS. Do you really think Pandora is a competitor. I mean a real competitor in the marketplace? I wish you would just move on and let whatever you have go with SIRIUS.

  • Report this Comment On October 06, 2010, at 5:17 PM, TMFHousel wrote:

    I'm glad to see the SIRI crowd has regained its sanity.

  • Report this Comment On October 06, 2010, at 5:48 PM, beerman53 wrote:

    this to means only that sirius shorts are in trouble

  • Report this Comment On October 06, 2010, at 5:49 PM, ItAintCool wrote:

    Hey Travis, when is somebody going to write about the NBA, NFL, NHL, NASCAR & MLB on Pandora? When is somebody going to write about newsman Rick Sanchez getting fired after making controversial remarks one one of Pandora's exclusive channels. Or Pandora's 60 channels of commercial free music? When are we going to hear about Howard Stern, Martha Stewart & Oprah (who I despise) on Pandora? Oh, I'm sorry, I guess that's not going to happen.

    Hey Travis when are you going to tell us how many of those 65 million subscribers are actually paying for their subscriptions? OK, so you say "free is better and more attractive". So how many of those 65 million subscribers are actively using their subscriptions? And more importantly, how much ad revenue is making off their "65 million listeners" surely with so many people tuning in, they must be making millions from AD Revenue.

    The only thing you've got going for you about your opinion piece compared to your fellow MF Pandora praiser Sirius basher without a clue, Alyce Lomax, is the date. Back in August when Alyce wrote her article not to buy into SIRI because Pandora was going to slay Sat Rad, the stock was at .96, now it's at 1.27. Good work Alyce, keep readers who are stupid enough to follow your words from missing a 30% return in 5 weeks. I look forward to see how much of return SIRI buyers get from the date of Travis' piece of trash when the stock continues to climb.

  • Report this Comment On October 06, 2010, at 6:10 PM, 67vair wrote:

    Travis HOKUM should be the name, because this article is pure hokum. What a joke. Let's knock the stock now that it is reaching new highs. Idiot.

  • Report this Comment On October 06, 2010, at 6:58 PM, cantbefoolish wrote:

    Travis, you say investors have gotten ahead of themselves, at over a 100 multiple. Well, I guess the same would be true for BIDU then, too, right? And BIDU doesn't earn 1/3 of what SIRI does. Also, if you compare BIDU with it's closest competitor GOOG, which trades at a 23 multiple, then it looks extremely expensive. So, why not use the same logic to bash a Chinese company, rather than a solid American company? I know, because you're a piece of dirt, who writes for the FOOL.

    You, the street, and other fool writers, talk as if it's free to get Pandora type services. Maybe the app is free, but don't you have to pay for the internet to stream those apps? Or do you somehow get free internet that nobody else has?

  • Report this Comment On October 06, 2010, at 7:12 PM, FM5 wrote:

    pandora box top radio sells bracelet, not 78,339,029 shares radio stock a day , thay got a long time before thay even come close, call me when thay get in the market someday at 1800 long siri

  • Report this Comment On October 06, 2010, at 7:57 PM, doubting wrote:

    Travis Hoium,

    The are two options to assess your post. You are either ignorant or a demagogue and provocateur. Your piece is so cheap that is not even worth the attention. You have certainly selected the right timing tossing in your dime in the way of the siri locomotive. You cannot stop siri's momentum no matter how hard you et al. try. We have been there and we have seen that. Comparing siri with pandoras and the like is insulting anybody's intelligence. It is like comparing a mom and pop shop with Boeing or Exxon or IBM or Apple. Siri is the IBM, Apple, Google of the future. Why? Because it has both content and infrastructure. No one else has that at the same time. The only way pandoras could compete with siri is by having the same. The only true competition to Sirius was XM. NO More!!! I sugget that you stop washing people's brains and go and wash your hands because they smell very unethically.

  • Report this Comment On October 06, 2010, at 9:16 PM, FreeNachos wrote:

    I still love Sirius/XM as a product. Who knows what the stock will ever do, but one month with it, and you'll see how un-listenable terrestrial radio is, even here in Los Angeles. Add that I get every baseball game in the country and I can't get enough. Just one man's opinion.

  • Report this Comment On October 06, 2010, at 10:35 PM, WoodyDog1400 wrote:

    Pandora is the next Napster.. a failed model soon to be forgotten.

  • Report this Comment On October 06, 2010, at 11:07 PM, dan9812 wrote:

    Im gonna stop clicking on these headlines and i think everyone else should do the same, if they get no readers then who ever is paying these guys will eventually stop, u would think anyway, only 1 word sums up this guy,

    IDIOT!

  • Report this Comment On October 07, 2010, at 6:06 AM, Matt8265 wrote:

    Siri has been a crook's shell game for four years. One of the biggest con jobs in history. I won't even renew it in my new cars based on my feelings of the company's ethics (or lack of) . Panaro... you are remembered. Karmy..... you pulled a fast one and screwed investors.... good luck.

  • Report this Comment On October 07, 2010, at 7:01 AM, Blockbuster1111 wrote:

    Were you long Siri then sold or did you miss the buy ? Or are you now shorting the stock ? It's obvious your up to something .

  • Report this Comment On October 07, 2010, at 8:12 AM, jfrankh57 wrote:

    You MIGHT have a point in the fact there seems to be a lot of competition out there, but the competition has a long way to go. I haven't seen anything to take away the impact of MY Sirius radio! I have been a subscriber since 2002, its nascent age of actual delivery and I would miss it, were it gone. I rarely listen to regular radio in my car. Heck, I even listen to it in my office. Yes, I can stream when I am in my office, but I still enjoy the content of my Sirius radio. I will be a fervent listener and stock holder until I am gone from this world.

  • Report this Comment On October 07, 2010, at 9:05 AM, bighairydogcat wrote:

    Quoting DynoJoel

    "Are you actually in touch with customer segments, what real competition is and what SIRI might want to be concerned about?"

    Ummmm, when are you guys going to get it? I really think all SIRI stock owners should go here: http://www.pandora.com/ , or http://slacker.com

    Create a profile, create a station, and view your competition. All you see from your desktop is available from most smart phones for free.

    ALL phones will be smart phones with the ability to stream whatever, where ever. We already view a mobile phone as a necessity in our society. The perpetuation of smart phones will overtake conventional cellular phones in the next 3-5 years. So if I am given a choice of free radio that plays only the music I like via specialized stations created by me the listener why oh why would I give SIRI my money? Also just about all new vehicles are equipped with smart phone jacks so you can listen via the car speakers!

    THIS PAST WEEKEND, AND MY PANDORA EXPERIENCE:

    Cedar Point, Sandusky Ohio from atop the 310ft drop hill of the Millennium Force rollercoaster. Me and my tunes via Pandora! Everywhere guys, just think about it!

    Fool On!

  • Report this Comment On October 07, 2010, at 9:47 AM, gilly031 wrote:

    thats 3 or 4 negative sisiur articles in the past 3 days...

    the shorts are panicking and trying to bring out the big guns again to knock the $1.30 share price back down...

  • Report this Comment On October 07, 2010, at 10:01 AM, PokerRon wrote:

    "SiriusXM is in Trouble". Motley Fool should be investigated for posting such alarmist, misleading headlines. They do this periodically to Sirius, using the same old Pandora threat line. The stock drops 4-5% (shorts are happy) and then it slowly recovers. They did this to Middleby Corp. earlier this year. A very damaging headline criticising management caused shares to drop from $50 to $43 almost overnight - today it's $65. It was this questionable practice by Motley Fool that caused me to cancel my subscription to their newsletter.

    They are troublemakers. They attract attention to themselves with alarmist, often damaging headlines, many of which have questionable substance. It's hard to believe that someone in their organization isn't profiting from what is obviously price manipulation.

  • Report this Comment On October 07, 2010, at 11:30 AM, mbl1234 wrote:

    Come on Travis, you know it's not nice to poke SIRI loons with a stick just to see them froth at the mouth a bit. Entertaining, yes, but not nice.

    SIRI is today as AOL was in the mid 90s. Growing by giving away the product. Eventually people wise up and move on to something better. 10 years from now, people will be saying 'remember sattelite radio?'

  • Report this Comment On October 07, 2010, at 11:54 AM, TheRunDown wrote:

    mbl1234 said:

    "SIRI is today as AOL was in the mid 90s. Growing by giving away the product. Eventually people wise up and move on to something better. 10 years from now, people will be saying 'remember sattelite radio?'"

    AOL today --> 24.86

    That is UP 45% from its 52 week low of 19.61!

    SIRI today --> 1.27

    That is UP 150% from its 52 week low of .511!!!

    So yeah... I guess you are right. Sirius is the AOL of today. They are both on the comeback trail with their stock price. They are both still delivering a product to paying customers...

    And 10 years from now both SIRI and AOL will still be here.

  • Report this Comment On October 07, 2010, at 2:18 PM, ItAintCool wrote:

    Travis,

    I'm glad Rick has already put your article of supposition and hyperbole to shame with his rebuttal consisting of the facts (which you seem to ignore).

    http://www.fool.com/investing/general/2010/10/07/sirius-xm-d...

    I want to suggest that next time, you actually do some research before you actually start typing away on the keyboard. Although I'm sure the short-sell interest you represent, hope you continue with your inflammatory headlines and ignorance of the facts.

  • Report this Comment On October 07, 2010, at 2:41 PM, RickRickert4MVP wrote:

    This is to the clown that is happy about AOL being up 45% from its 52-week low. The current AOL has been around for less then a year. You should try comparing the current price to where AOL peaked at in the early 00's before the Time Warner merger. That is all. Back to tearing Travis a new hole.

  • Report this Comment On October 08, 2010, at 12:05 PM, tylee100 wrote:

    Sirius is NOT in trouble--you are in trouble for writing such a crappy headline. I have been a subscriber to Sirius for one year and just renewed for two more years. Pandora etc. rebroadcast local radio stations. They cannot compete with advertising-free radio. Once in a while I turn back to the local stations I used to listen to. There is invariably an advertisement playing. Once I timed how long the ads played between the content and it was seven minutes. You people listening to local stations have been brainwashed with the ads.

    On the other hand I can listen to any kind of music I want for hours with no ads on Sirius. There is no comparison and the American people who have tried it, will stick by Sirius. I challenge you to listen for three months and then go back. You can't do it. Case closed.

  • Report this Comment On October 09, 2010, at 11:14 AM, Sum111 wrote:

    If Sirius is a stock with great potential then why is there only 0.7% if insiders who actually own stock in it? To my foolish way of thinking it is a red flag when people who run a company have so little of themselves invested in it.

  • Report this Comment On October 09, 2010, at 11:40 AM, irishred1 wrote:

    Sum111, you should not have posted such a logical comment. Now, you're gonna have 10 more whiners (read: uninformed SIRI shareholders who lack facts but definitely not emotions) on your back.

  • Report this Comment On October 09, 2010, at 5:27 PM, blix13 wrote:

    Everyone has already made the arguments against what Travis wrote that I would have. Let me say this though, I really have been shocked that Pandora's free app (which has been around for several years) has barely improved AT ALL. It actually kind of sucks and I'm shocked that it's still around and is at all popular. Also, keep in mind that the big draw for many of us Sirius subscribers is live content (commentary, analysis, talk, the NFL, Howard). Pandora isn't good for that. Pandora doesn't even have a very big playlist. There are entire categories of music that aren't even on Pandora. It's a head scratcher to me why anyone likes it, except that it's free.

  • Report this Comment On October 11, 2010, at 6:16 PM, PACandela wrote:

    I am really surprised that The Fool (who always preaches that you should understand companies you invest in) has such little understanding of SIRI. SIRI - XM is not competition to Pandora. Pandora is not currently working with many major auto companies to pre-install their radio in new cars. Pandora is great if you are at your computer. XM (which has much more content) is great everywhere.

  • Report this Comment On October 12, 2010, at 2:04 PM, Mstinterestinman wrote:

    Ok lets all take some deep breaths I'm glad you love the service so much but unless you bought when bankuptcy was being discussed many of you have probably lost money on your investment which if you hold another ten years maybe you'll get back to even. The next big thing rarely makes investors rich only the execs and upper management who collect fat salaries and even if sirius is never strongly profitable will be just fine. Not saying its not a great service but how many more will buy it? When will cash flows safely support debt? When you find these answers I will me more than happy to listen.

  • Report this Comment On October 13, 2010, at 10:40 AM, webjawns wrote:

    Pandora is not equal to Sirius. False equivalence by a long shot. There are too many financial speculators and investors who simply don't understand the satellite radio industry. They go to Pandora and other free MUSIC sites and say, look, it's free, so it must be better. These people couldn't be more wrong.

  • Report this Comment On October 13, 2010, at 2:11 PM, sjsjfool wrote:

    WOW, I couldn't WAIT to post a comment based on everyone else's comments! I have had some doubts about SIRI for years, but never felt it would fail pre- or post- merger. However, after seeing all these comments praising SIRI with no comparisons, etc, now I am convinced all these fools who pay for subscriptions will keep SIRI afloat, even as $3B debt continues to grow! Good luck with the stock, as long as everyone keeps paying their subs and keeps convincing others to do the same... sounds like a pyramid scheme to me.

  • Report this Comment On October 13, 2010, at 8:09 PM, rtavis wrote:

    "1.9% churn rate"

    Ah, ah, not so fast. Smoke and mirrors in effect...

    I recently discovered that, in fact, I hadn't listened to Sirius in many months. (Sorry, Howard, they won't let us play you in the workplace, and you know why...) So I decide it's prudent to just cancel the account and save the 17 bucks a month.

    When I called the rep to cancel, she expressed 'great regret', and at the last possible minute offered me a deal I couldn't refused. She told me she'd give me the entire next five months for 20 bucks! And asked me to "re-evaluate" choice at the end of the period.

    Oh, boy... I'm glad I'm not a shareholder. When they start putting THAT type of deal on the table, you know that trouble is a brewin'. That's not going to cover $3B in debt.

    My guess: Stern flies the coop, and SiriusXM does a major restructuring of their rate plans. And crosses their fingers...

  • Report this Comment On December 12, 2011, at 11:44 AM, vyzionradio wrote:

    Vyzion Internet Radio spins worldwide Dj mixes 24/7. So the party never stops! From the car the office the gym or your home you can listen to vyzion radio anywhere. Vyzion Internet Radio delivers online radio that fulfills entertainment worldwide . Vyzion Internet Radio is comprised of an international team that is delivering the best of live radio and Internet Radio. We offer free IPhone and Droid Apps Contact us at 1-800-957-9650. http://www.vyzionradio.com/

  • Report this Comment On September 02, 2012, at 12:59 PM, benoitlevet wrote:

    Sirius is dead on arrival as far as finances go.

    subsriptions are falling as fast as people are going to smart apps and there are no new avenues for profits unless some genius comes up with some trully amazing plan.

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