Howard Stern and Sirius
So, my wife loves Howard Stern. Been a faithful listener for a long time - like most of Howard's audience. Even I listen in once in a while - and when I do, I can't get away until a commercial break. And even then, I'll go back after a few minutes (Howard likes longish commercial breaks - enough to actually eat a snack or drink instead of inhaling it, or getting the guests lined up in a row... plus the ad time - I might imagine). Anyway, as we're trying to be "investors" now, infomrs me that given the news that Howard has signed a deal with Sirius, she feels that, at $3.70, it's a good, cheap price for a stock.
I had considered both Sirius and XM when I was dabbling with my Roth IRA (maybe I'll get into that disaster another time), and decided to hold off and see
1.) whether the satellite radio would hold up as an industry, and
2.) who might get on the bandwagon.
Needless to say, Howard is on the Sirius bandwagon. And as vulgar as he can be, he's a righteous guy who won't welch on a bet - or contract. He has proven to be a pioneer in the radio industry (not so much in the TV industry), and that dedication to success will translate very well in future results. In other words, Howard's mission will be to legitamize a whole new vehicle.
How is that important to Sirius? Or XM for that matter (BTW, I knew XM was not going anywhere when they broadcast the final Phish weekend - that's three!) As my wife said to me, satellite radio is the next cable television. And I believe her. Quality costs - neh, demands money. That was proven with cable TV.
"You want choice? Here's 150 channels, but it's gonna cost ya."
"No problem!"
I think the same thing will happen with radio. Quality - in both content and delivery. Choice.
On top of all of this, if you consider Jim Cramer's view about Merck's undoing and the transformed view of the investing public, that growth once again trumps strength and stability, satellite radio holds tremendous growth opportunities, especially Sirius, which now has Howard Stern, as well as the NFL, NBA and NHL - and about 1/5 the customer base of XM... for now. And just like everything else, just wait until XM's subscribers get sick of shelling out extra money for "premium" content.
I had considered both Sirius and XM when I was dabbling with my Roth IRA (maybe I'll get into that disaster another time), and decided to hold off and see
1.) whether the satellite radio would hold up as an industry, and
2.) who might get on the bandwagon.
Needless to say, Howard is on the Sirius bandwagon. And as vulgar as he can be, he's a righteous guy who won't welch on a bet - or contract. He has proven to be a pioneer in the radio industry (not so much in the TV industry), and that dedication to success will translate very well in future results. In other words, Howard's mission will be to legitamize a whole new vehicle.
How is that important to Sirius? Or XM for that matter (BTW, I knew XM was not going anywhere when they broadcast the final Phish weekend - that's three!) As my wife said to me, satellite radio is the next cable television. And I believe her. Quality costs - neh, demands money. That was proven with cable TV.
"You want choice? Here's 150 channels, but it's gonna cost ya."
"No problem!"
I think the same thing will happen with radio. Quality - in both content and delivery. Choice.
On top of all of this, if you consider Jim Cramer's view about Merck's undoing and the transformed view of the investing public, that growth once again trumps strength and stability, satellite radio holds tremendous growth opportunities, especially Sirius, which now has Howard Stern, as well as the NFL, NBA and NHL - and about 1/5 the customer base of XM... for now. And just like everything else, just wait until XM's subscribers get sick of shelling out extra money for "premium" content.
posted by Ed Phlanders at 1:46 PM
0 Comments:
Post a Comment
<< Home