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Is Sirius XM Resorting to Secondhand Content?

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Fans of Rosie O'Donnell won't have to go cold turkey on Sirius XM Radio (Nasdaq: SIRI  ) .

The last live installment of Rosie Radio is coming on June 1, but the comedienne's new talk show gig on television will also make its way to satellite radio.

O'Donnell is moving to Oprah Winfrey's OWN this fall. The daily talk show -- Rosie -- will air on Sirius and XM the same day it airs on the struggling cable network.

Yes, it's fair to call OWN a "struggling" network. The collaboration between Discovery Communications (Nasdaq: DISCA  ) (Nasdaq: DISCB  ) and Winfrey's Harpo Productions has been a ratings dud since taking over the Discovery Health Channel back in January. OWN's CEO was booted last week.

Will Sirius XM listeners feel cheated? We don't know how many listeners migrated to satellite radio to catch the 2009 debut of Rosie Radio. Those that did are unlikely to be satisfied with non-exclusive broadcasts of a television show. Premium radio and hand-me-down content aren't compelling bedfellows.

The programming shift also comes just as Sirius XM is weeks away from fulfilling the three-year freeze on primary rates that helped it win regulatory approval for the merger between Sirius and XM. If things go according to plan, Sirius XM will have the freedom to bump its $12.95 monthly rate higher this summer. The move will be harder to justify if proprietary content isn't on the rise.

Sirius XM isn't standing still. It may have lost Bubba the Love Sponge last year and will lose Rosie Radio in a few weeks, but the revolving door spins both ways. Dr. Laura Schlessinger entered the satellite radio ring in January. Howard Stern has signed on for five more years -- his absence would have really gotten in the way of a monthly plan hike.

Sirius XM is also readying itself for Sirius XM 2.0, a receiver upgrade that will give it 25% more programming ability on new systems later this year. Obviously Sirius XM can't justify a rate hike on older receivers that can't access the new content, but it's one more reason for CEO Mel Karmazin to make sure that he's inking more content deals than those that are not being renewed.

The next few months will be interesting, especially after Karmazin teased that an increase -- perhaps a substantial one -- is in the cards. With its stock hitting two-year highs, let's hope that Sirius XM doesn't come up with rate hike promises that its content can't keep.

Will Sirius XM need new original programming to justify a rate hike? Share your thoughts in the comment box below.

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Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Longtime Fool contributor Rick Munarriz is a subscriber to Sirius since 2004. He does not own shares in any of the stocks in this article. He 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

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 10, 2011, at 7:20 PM, tjtoretire wrote:

    No need to worry. Sirius content is second to none and will continue to be so without exception. Now that interest in Siri stock is on the increase and free cash flow continues to build, we can expect to see additional premium content as well. Can't wait to see all the features Siri 2.0 brings.

  • Report this Comment On May 10, 2011, at 7:26 PM, Cool700 wrote:

    More content I feel is better no matter how Sirius XM gets it.

    George Noory of coast to coast is also on XM radio. I am surprised there has been hardly any mention of it?

    Coast to Coast

    SIRIUS XM Satellite Radio - XM TALK 168

    Sunday through Friday: 10p-6a PT/1a-9a ET

    Saturday: 6p-6a PT/9p-9a ET

  • Report this Comment On May 10, 2011, at 7:29 PM, Cool700 wrote:

    You fail to mention.....if a radio show is on Sirius XM you can hear it anywhere in the United States. You can hear it while traveling or anywhere else.

    That is not possible with AM/FM or internet Radio.

    AM/FM Radio would be wise to have their shows broadcast over SIRIUS XM.

  • Report this Comment On May 10, 2011, at 7:35 PM, F2Dsanyo wrote:

    Rick,

    You're an idiot. As is your editor who allowed you to put a BS title for this useless article. Second Hand content??? Who cares if it's first, second, third or 5th!?!??! The bottom line is the Sirius is the STILL the only radio provider to broadcast this "content".

    Btw, how did SIRI do today with the terrible news of Rosie's Second Hand deal?

    Like is said....you're an idiot and so is your editor

  • Report this Comment On May 10, 2011, at 7:48 PM, SuperJack62 wrote:

    Ditto. Further, it saddens me to know that articles like this are allowed to be posted. In fact, I am grieving so much, that I will not click on other MF articles since they also will most likely be lacking in substance.

  • Report this Comment On May 10, 2011, at 7:58 PM, yahoomania wrote:

    Your editor should lose his job for allowing you to publish such dribble.

  • Report this Comment On May 10, 2011, at 8:08 PM, moseswillis wrote:

    How do.we say it right on the is not have substance

  • Report this Comment On May 10, 2011, at 8:08 PM, dgotshalk wrote:

    programs like stern and rosie are not attractive for me or my family. Additional balanced debates on the political issues would be very welcome.

    Help wanted station would be very welcome.

    Sports of all types from all over the world would be very welcome.

    Investment advise following the market live every day from professionals would be very exciting.

  • Report this Comment On May 10, 2011, at 8:23 PM, siriuslyrick wrote:

    Thanks for this, Rick. You can feel free to ignore comments from anyone who cannot differentiate between "dribble" and "drivel," or who thinks that "a lot" is one word, but would never write "alittle."

    These are indeed exciting and interesting times, and I for one appreciate your comments.

  • Report this Comment On May 10, 2011, at 8:34 PM, cwstout wrote:

    Rosie?? Anyone subscribing to Sirius XM just to listen to her should be charged double.

    I would not listen to her if it were free.

    You should re-evaluate your articles before posting. Ya gotta think man.

  • Report this Comment On May 10, 2011, at 9:29 PM, eiswien wrote:

    Rosie??? Really???

    This article is weak; the old bait and switch.

    Tempt them with content and fill it with BS in a weak attemtp to create doubt in readers' minds about SIRI viability.

    Got a big short position to cover, do ya???

  • Report this Comment On May 10, 2011, at 9:48 PM, pete163 wrote:

    Rosie never been my cup of tea, however she dose have a lot and I will say it again a lot of women followers. Now how many women drive cars in todays world? Get the picture as to where Mel is going. Don't underestimate what Mel is doing it has back fired on many shorts. This is a game that Mel has control of and knows what he is doing. Stay Long with Sirius XM.

  • Report this Comment On May 10, 2011, at 10:17 PM, edfalc wrote:

    as someone who bought a lifetime sub back in '08 and then bought 50,000 shares @ .13 on 2/20/09

    i'm obviously in this for the long haul....having said that , i must also say that i have never listened to howard , not once.....never will....i also didnt know until i read this article that rosie had a show or channel....who cares about oprah??

    AS LONG AS THEY KEEP LIQUID METAL...!!!!!

  • Report this Comment On May 10, 2011, at 10:31 PM, FM5 wrote:

    Sirius doom where are you baby, you still shorting the stock at 0.35 cents , o man i feel for you ...Haha , The rest of us will stay long ...

  • Report this Comment On May 11, 2011, at 12:14 AM, collinskcaolcom wrote:

    I have only this to say:

    I really get tired of all the fools such as Rick Aristotle Munarriz who continue to bash SIRI.... Especially now that at least one of the fools has short the stock after failing to predict the rise in the stock price following the Q1 report...

    It seems now that the rise in the stock price has failed to cooperate with the fools prediciton of it to fall back for more than a few hours, the fools have chosen to short the stock and now are bashing it to hopefully make their latest short prediction happen....

    I would like to see the fools find a new stock to play their games with...

  • Report this Comment On May 11, 2011, at 1:31 AM, cantbefoolish wrote:

    @ FM5, Siridouche is still waiting for that reverse split that'll never happen.

    It's also funny how Fool writers, like Tim Beyers aren't doing anymore articles on SIRI. He was against the stock, since it was 15 pennies. When it got to $1.30 he was still negative. So I said, well don't buy Tim, and miss another 50% higher. He replied that I am "full of hot air". Hahaha, now who's full of hot air?

    It's all right here: http://www.fool.com/investing/general/2010/10/14/why-this-is...

  • Report this Comment On May 11, 2011, at 6:05 AM, pryan37bb wrote:

    Wow, SIRI fanboys jumping all over every single negative article. Don't get me wrong, I've been long since $1.50, but you guys don't need to be taking potshots at the author for expressing his opinion. You can disagree with him without insulting him, have a little class.

  • Report this Comment On May 11, 2011, at 8:10 AM, doubting wrote:

    Rick,

    Why abet? What is the message? I am relly confused. Is the "second hand" good or bad? Is still having Rosie good or bad? Is CNBC, NFL, NBA, etc. also second hand because it is on TV? I would still try to figure out why I am posting under such titles in the first place and what I am trying to achieve? Irritation of your readers and diminished respect? Or you did not have anything to say and decided to do this and that? Come on, Rick!!! Do not humiliate yourself with such extraterrestrial stuff targeting aliens... or moronic herd that you are trying to boo with sirius' ""second hand content". Even their "second hand" is ten times better than anybody's "first hand". Rick, I told you earlier that you should climb back on sirius's pedestal, or there may not be any room left for those who used to post reasonable stuff longer before than any "fool".

  • Report this Comment On May 11, 2011, at 8:50 AM, southernbeachguy wrote:

    Rick, you have been writting some good articles about Sirus that were "Right On". Sirus is the Best Product on the Market and truthfully, Rosie is just a filler. Nobody buys the Sirus product to listen to Rosie. Get back to the truth of touting Sirus as being undervalued and no doubt the BEST Radio Service in North America. Sirus to $8-$12 in 2 years (just my educated opinion).

  • Report this Comment On May 11, 2011, at 9:35 AM, SackDiesel wrote:

    No, but it appears Motley Fool has.

  • Report this Comment On May 11, 2011, at 10:18 AM, rab6793 wrote:

    Rick,

    Per your quote:

    "Will Sirius XM listeners feel cheated? "We don't know how many listeners migrated to satellite radio to catch the 2009 debut of Rosie Radio."

    I guess am lost with your vague cheated remark/question.

    Where or what led you to think that ONE show on their 100+ channel network, will have any impact on its customers?? That's why they offer MULTIPLE choices for every type of listener! If you don't like the show, then move on to another channel!! Make sense?

    Then you follow with another ignorant statement: "We don't know how many listeners migrated to satellite radio to catch the 2009 debut of Rosie

    Radio."

    If you don't know, shouldn't you get the fact first or keep your mouth shut??

    Well..... now i feel cheated, for wasting my time reading your biased/ignorant article.

    But guess what, who cares!! I still love to reading news about SIRI whether its ignorant, biased, or crazy. :).

    p.s. how is that SHORT working out for ya!??

  • Report this Comment On May 11, 2011, at 10:21 AM, rab6793 wrote:

    Rick,

    Per your quote:

    "Will Sirius XM listeners feel cheated? "We don't know how many listeners migrated to satellite radio to catch the 2009 debut of Rosie Radio."

    I guess am lost with your vague cheated remark/question.

    Where or what led you to think that ONE show on their 100+ channel network, will have any impact on its customers?? That's why they offer MULTIPLE choices for every type of listener! If you don't like the show, then move on to another channel!! Make sense?

    Then you follow with another ignorant statement: "We don't know how many listeners migrated to satellite radio to catch the 2009 debut of Rosie

    Radio."

    If you don't know, shouldn't you get the facts first or keep your mouth shut??

    Well..... now i feel cheated, for wasting my time reading your biased/ignorant article.

    But guess what, who cares!! I still love reading news about SIRI whether its ignorant, biased, or crazy. :).

    p.s. how is that SHORT working out for ya!??

    (corrected typo lol)

  • Report this Comment On May 11, 2011, at 10:30 AM, rab6793 wrote:

    @pryan37bb

    just like you, thousands of others also have opinions about Rck's articles, that you and I may not agree with. But hey, that's the nature of Ricks business.

    If he doesn't like it, he could quit (which i doubt it) or he could write his OPINIONATED articles with more FACTS!

    What you think?? :)

  • Report this Comment On May 11, 2011, at 11:06 AM, uunlisted wrote:

    Anyone, especially a woman, who would waste one second of her precious, God-given life listening or caring about what a horrendous human being like Rosie O'Donnell has to say truly has her values upside-down.

  • Report this Comment On May 11, 2011, at 11:42 AM, mbl1234 wrote:

    Sirius' content is junk and not worth the monthly expense. When they do raise rates, a lot of people who have not cancelled because of the infamous Sirius '3 free month' extensions they get when they call, will dump this useless gimmick. Same worn out playlists as terrestrial radio and nothing else worthwhile.

  • Report this Comment On May 11, 2011, at 2:03 PM, bottomfisherman wrote:

    Funny thing mbl1234 I am hearing their 'junk" not just in my car now but in Dentist, Doctor's, office and my Bank lobby, I hear their "junk' while waiting for my car to get an oil change and tires rotated over the speakers in the shop's lobby and just the other day while at someone's house they had the portable attachment playing this "junk' Sirius puts out on their stereo. Guess "junk" is really popular lol.

  • Report this Comment On May 11, 2011, at 2:14 PM, Turfscape wrote:

    Rick,

    Have you not learned that you are supposed to save the Sirius articles for the Foolanthropy drive? All an article on SIRI does is stoke the fanatics who respond with incoherent, but highly persistent nonsense.

  • Report this Comment On May 12, 2011, at 1:57 AM, ikkyu2 wrote:

    Debt to equity 10.

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