Now He Tells Us: Sirius XM Sees Slower Growth Ahead (SIRI)
Specifically, Sirius (SIRI) expects to grow its subscriber base 10% this year, then 8% in 2009; 7% in 2010; 9% in 2011 and 2012; and 8% in 2013. That's average growth of 1.9 million net subscribers a year through 2013 -- a sharp slowdown from 2007 and earlier.
Why so slow? Sirius depends on the auto industry, which is in the toilet, for most of its growth. And competition is rising -- don't count out the wireless industry, for example.
Sirius XM expects positive free cash flow in 2010, rising to $1.4 billion in 2013. Shares are up 3 cents to $0.29 today.
See Also:
Sirius XM Hosed By GM's Bad News
Goldman Whacks Sirius XM Growth Estimates, Drops Price Target To $0.25
SiriusXM CEO: Car Sales Can Tank And We'll Still Be Fine
SiriusXM CEO: Car Sales Can Tank And We'll Still Be Fine
Now look at the last line of the above story....Mel...do us all a favor and get out....You took CBS to the crapper and now this sat radion thing is out by the outhouse as well...
He doesn't have a clue how to run a business where he can't browbeat salespeople and threaten them with their jobs. This actually depends on marketing and getting people to pay for something they absolutely don't need.
The problem is that you can get internet radio over the net and your iPhone (AOL Radio) and Pandora (Which Rocks). Howard isn't the same Howard. He isn't edgy or angry since he has no one to rail against. And Sirius and XM Radio aren't cultivating new talent (The Next Howard). They just by over the hill terrestrial personalities from the 90's Bubba and O&A. You don't see NBC hiring Mary Tyler Moore for new sit-coms every other year.
The only Killer App Satellite Radio has is the ability to listen to play-by-play (MLB, NFL, NBA, NHL) from your hometown team if you're across the country. But that isn't enough to sustain so much overhead.
my guess is the stock gets delisted.