3 Reasons Sirius XM Will Fail
I hope I’m wrong. I love creative broadcasting, but with its stock sitting around 12 cents a share…
- "…Sirius XM does have a serious flaw in its capital structure. Its costs, which include servicing its pile of debt, appear to be too high to make the business viable.” – The New York Times
- There is no built in mechanism for knowing how many subscribers are listening to a particular channel at any given time. Programming decisions are made based on guesswork.
- Internet radio + ubiquitous wireless = unlimited competition.
I hope I’m wrong. I love creative broadcasting, but…
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“Internet radio + ubiquitous wireless = unlimited competition.”
Don’t expect this to reach the automotive fleet anytime soon. It’s going to take 10 to 15 years to upgrade the current fleet of vehicles in the US.
In addition, as the economy sinks further, wireless bills are going to be cut to the bone and sideloading will rule for sometime to come.
It’s also pretty easy to track who’s listening to satellite. A Simple WIFI app could transmit consumption patterns every time a user goes through a McDonalds drivethrough. This would add about $3.00 to the cost of every satellite radio. No, not worried about privacy here.
Wait…they didn’t figure out how to track the traffic on a per channel basis? At least terrestrial radio has their method, maybe not perfect but it is what it is.
re: #2 – they have the capability – they just don’t share that info with the outside world. Shh.