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would you subscribe to satellite radio?

kuba

TRIBE Member
Theres an interesting little phenomenon going on in the states for the past few years, satellite radio. IT started off in cars, and now is available in portable-radios (ones that work in the car and in the home). For about 6.99 you can subscribe to crystal-clear radio signals, everything from music to commentary to talk-radio to even the playboy channel on radio. (I guess its porn for the blind). Anyways, there are two main companies in this field in the U.S.: XM Satelite radio (XMSR) and Sirius Satellite Radio Inc (SIRI). SIRI is doing shit on the markets:

comparing the two:



So basically, Im asking this from an investment perspective (not should I invest in these companies, but what are your thoughts on this type of technology)

I would subscribe to it. For 6.99 a month I can get amazing quality radio with no commercials? Hell yeah! I dont have to lug my cds around, hell I might only have a few in the car, and the rest I'd rely on radio.

What are your thoughts?
 

SelfExel

TRIBE Member
It sounds excellent, I bet there is alot of different kids of music on there. I like listening to good dj's though and I don't mind commercials.
 

labRat

TRIBE Member
for the majority radio gives you the music you don't mind listening to on your way to and from work, and the local happenings (news, sports, weather, etc.)

i think it does a decent job of it - although i barely listen to the radio. and it's for 'free'.

i guess if i had an hour long commute or if i drove a lot during the week i would consider it. otherwise, i just cycle CDs once a month.
 

kuba

TRIBE Member
thanks for your input.

I guess Im more of a die-hard listener to radio. I hate the commercials but love the format, especially in the car.

The company's goal is to get 1.2M subscribers by the end of 2003. Thats 0.5% of the U.S. population. Not too out of the picture..

Just looking at it from an investment perspective. Hell, if they offered it here I'd be on board in a *snap*.
 

Lil'Timmy

TRIBE Promoter
SAT radio is coming to Canada apparently.

John Bitove (I think a former CTV bigwig or something) was rumoured to have a hand in it.
 
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labRat

TRIBE Member
Originally posted by qtip
The company's goal is to get 1.2M subscribers by the end of 2003. Thats 0.5% of the U.S. population. Not too out of the picture..
but how much of the driving population?

and do they offer at home services as well? ie. a component satellite receiver, or stand alone radio?
 

Karim

TRIBE Member
I'm so interested in it, and infact, I was ready to install one in my car.

However, I then found out Canadian Addresses cannot subscribe, so if I wanted it, I'd have to go to the states, open a mailbox, sign up using that as my permanent address, and then just use the reciever up here.

This does sound like a very good investment opportunity, and I too myself was looking into buying some shares.

But you have to look at Satellite radio the same way as you look at directTV. I haven't done the research yet, but when DirecTV was this young it's stock must have been cheap and prolly made some people alot of money.

The difference is that DirecTV had competition in land line cable. Satellite radio doesn't have another medium option competing with it.

But like Satellite TV, piracy will prolly affect satellite radio, and it'll greatly hurt it. But till then, it's a sound investment. I'd put my money into XM radio for they are signed up to GM and some other major automobile manufacturers. SIRIUS has Mercedes and more luxury marks under it's belt. GM reaches more people than the luxury brands, but owners of luxury brands are more likely to subscribe making neither brand having that much of an edge. A huge chunk of the market for satellite radio will be new car buyers, for installing the radio into your car requires a reciever unit, which is expensive, and then a compatible head unit. Pain in the ass to most consumers.

If north american car sales are expected to go up, expect a compliment effect in the market of Satellite Radio.

Home units really mean nothing to its success for most radio listening takes place in a car.

So this may be a good time to buy because Satellite radio is almost a guaranteed success, but whether or not you'll make big money in the long term or the short term depends on many other factors.

:)
Karim
 

Karim

TRIBE Member
It's already started. I believe the new Cavelier comes XM radio ready off the line.

:)
Karim
 

Ditto Much

TRIBE Member
If its bill is packaged with something else.

I'm sick of monthly bills. If I can ay cash for a year long subscription I'm in. I have it with my cable (digital radio same basic thing) and I use it all the time.
 
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Soundstream

TRIBE Member
Originally posted by Karim
It's already started. I believe the new Cavelier comes XM radio ready off the line.
I know some have it. But 99% of vehicles don't. And even most of the aftermarket units don't have it built in.

Cheers ... Ian :)
 

adorablehomeboy

TRIBE Promoter
remember....advice is worth what you pay for it

This dude has been writing about this stuff, there's more

http://moneycentral.msn.com/content/P49119.asp

http://moneycentral.msn.com/content/P48071.asp

XM is doing better but I can't remember why.

Just remember that people are bidding up this stock based on what they think it'll do.

If it reports bad earnings, it'll drop like a mofo, and if it reports good earnings, it'll still drop a bit.

XM is trading at 6 times it's book value, SIRI is at 2, with price to sales ratios of like 58, and 258!!!

Everyone knows markets have been running up like a rocket, lots of people are nervous about 'dislocation', and I don't think these will be safe from it if it happens.

Look at a 3 year chart of XMSR plotted on a logarithmic scale, look at the 'pattern'. Looks like people are bullish on this last run up, but looks like it's running out of gas.

SIRI is trading sideways....

The insider trading on XMSR has a lot of sells around 22. SIRI has less activity, but some buys...

I just learned about OBV, that might tell you something about the short term.

:)
 
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