I'm wondering whether Tim's feeling a little defensive, since his response to Sirius'
Tim even admits that Sirius is second-string compared to XM; that's fine, he says, because satellite radio is currently a duopoly. I don't agree. These two don't live in a vacuum, where everybody's going to play eenie-meenie-miney-moe to choose between them. They face tons of well-entrenched competition, as well as the threat of continued technological changes in music distribution.
Meanwhile, I know only too well that terrestrial radio shot itself in the foot by providing banal, boring, predictable radio with too many ads, but companies like Clear Channel
Soon, both companies will have to go beyond affluent early adopters and start convincing folks with less disposable income to pay up for a service they've always viewed as free. With rising interest rates and energy prices spooking consumers, I'm thinking satellite radio faces a rocky road ahead, at least in the near term.
Sorry, Tim. Satellite radio may be a cool concept, but now just isn't a good time for investors to get starry-eyed over Sirius.
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Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a disclosure policy.