MediaFile

Sirius: Rumors of our near death? It was the media’s fault

March 12, 2009

It’s the media! That’s what Sirius would have us believe.

On a post-earnings call on Thursday executives said the company’s precarious financial position during the last few months as it sought to resolve a looming debt debacle was exacerbated by the media’s interest in Sirius. Apparently, stories about companies going bust not only upset investors and creditors, but customers too.

Sirius XM President of Operations Jim Meyer told Wall Street analysts he’s excited to have completed the debt refinancing and merger between Sirius and XM so the company can assure customers it will be around for a while.

There certainly was headwind associated with both the confusion of putting the two companies together and the overall just unbelievable amount of news and press that we have seen really in the fourth quarter and continuing in January and February on the financial condition and refinancing of our balance sheet.

CEO Mel Karmazin agreed:

It’s particularly sensitive for us because people prepay their subscriptions in large part. So the idea of all of the noise in the market certainly when you are asking somebody to prepay and buy a year in advance or something like that, obviously has an impact.

That pesky media!

(Photo of Mel Karmazin/Reuters)


Comments
5 comments so far | RSS Comments RSS

Not that I care one way or another about Sirious Radio, but the disturbing part of this article is the way in which the writer seems to take lightly the idea that journalists are \”pesky\”. Get real, Mr. Adegoke. Your fellow media types lost their credibility long ago. You collectively destroyed what used to be an honorable and CREDIBLE profession. In my opinion, journalists rank right down there with lawyers, members of Congress, J-School Profs and wifebeaters. (OK, not ALL lawyers!)

Posted by Bret | Report as abusive
 

Now now, Bret. Some journalists beat their husbands too.

On a more serious note, a quick study of journalism around the world shows that its practitioners have been crawling pretty steadily upwards from a lack of credibility to about the most honorable that it’s ever been. There are fits and starts, ups and downs, but to say that journalism used to be an honorable and credible profession and it isn’t now is like looking at a timeline in a mirror.

Finally, it’s Sirius, not Sirious.

Thanks for contributing!

 

99% of lawyers give the rest of them a bad name. —-

My best wishes to Mel and the gang, try to keep satellite radio on the air. The selection is excellent, its hi-fi sound, no commercials, and it costs only 35 cents a day.

On a cross-country drive, you can listen to anything you want in the middle of nowhere. No fiddling with discs, tapes or awful MP3 sound quality.

Posted by Bill | Report as abusive
 

i couldn’t do without my Sirius. I will not listen to regular radio ever again. Commercials and too-talkative Djs make it unbearable. Sirius is worth every penny!

Posted by shawn | Report as abusive
 

Sirius will be around for a long time. Even with new devices coming out, and car companies installing devices to make listening to music easier, Sirius has the core infrastructure allowing them to produce new ways of “listening” to radio.

This stock is going back to $9. It may not be tomorrow, but once their debts are paid up, profits will be right behind. 20 Million Listeners are not going to just throw in the towel.

BUY BUY BUY

Posted by Michael | Report as abusive
 

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