The problem with SIRI, I owned it and made some good money off of it, is the way they report subscribers. Sirius reports a subscriber as either a paid customer who has sat. radio or an installed radio in a car sitting on the factories lot or in the car dealership's showroom. When the 3 months of "free" sirius sat. radio expires on that new car you bought then sirius pulls the subscriber off the books. However if a car sits on a dealers lot for 4 months and is then sold Sirius books this as a 7 month long subscriber, 4 months on the dealers lot and 3 months of the free service the consumer got.
Since XM uses a different method of reporting a subscriber the metric used to compare the companies actual growth is faulted.
That being said there has been talk that Stern may not be pulling as much as was once anticapted during the christmas rush. I think the 1st quarter of 2006 will be the best for Sirius as once Stern goes live and the buzz of his new show gets going the sales will go through the roof.
Quote:
|
Originally Posted by Furious_Male
This is a company in its infancy and just recently started growing. The numbers will not add up at this time in regards to "value". Think outside the box. We are not just talking about Sirius we are talking about the industry as a whole. Sat Rad. is here to stay. You are leaving out the growth factor completely. The company is not sitting still.
btw they just announced today that the exceded the 3M subscriber growth (as I said they would in my post yesterday).
|