With XM being slammed again this week, with respect to mp3 recording of their signals on individuals’ players, it seems that the gains won’t be there to support the growth investors and shareholders expect, for 2007. This results in the satellite radio becoming just a bigger market for listeners, compared to an existing land-based radio marker. Instead of a 50,000 watt transmitter, it’s more like a 5,000,000 watts, capable of serving the country.
So, what does satellite do to increase shareholder value? Well, when the novelty of subscriptions wears off, XM and Sirius will have to increase its revenue, and the only way it will be able to do it, is with advertising.
Given that scenario, and being one that likes to listen to the radio in the car, is it enough to PAY a monthly fee for radio, when I can get it on my existing radio for FREE?
I know I had mentioned that it may be a short term gain to jump in with a potential to sign the rest of the automakers, but the satellite business opportunity for growth has narrowed significantly, with the recent ruling. Looks like the only one to gain in satellite radio is Howard Stern.
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