Sirius XM Faces A Rough Road Ahead…

Monday, August, 4, 2008 by Mel Phillips.

If the newly merged Sirius XM  was an ice-cream flavor it would be Rocky Road.  What’s the old adage?  Beware what you wish for - you may get it?  In military terms it would be - they won the battle but will they win the war?  Sirius XM faces a rough road ahead.  To begin with, the merged company will be smaller with fewer programming choices for customers.  The new a la carte option will require new receivers available for purchase only at retail which will limit the number of new customers that choose the option and there are more rough spots ahead…

The biggest advantage Sirius XM has is their strong position in the number of car receivers but there’s a catch here too.  The automobile industry has been hit hard by the economy with two major companies facing bankruptcy and the manufacturers will eventually find a way for easy integration of iPods and other portable devices in cars providing stiff competition for Sirius XM.  Jupiter Research  maintains that the most popular place to listen to music is in cars.  When faced with listening to Sirius XM or your favorite tunes on your iPod, which would you listen to???  Faced with the slew of free downloadable music and online streaming Sirius XM provides no advantage in in-home listening either.  And that’s even without any threat from the practically invisible HD radio market…

A good local terrestrial radio station is still the biggest threat to Sirius XM.  The total number of terrestrial radio stations will always dwarf whatever number the 19 million Sirius XM listeners finally grows into.  So where is Sirius XM’s strength?  It’s still in their depth of programming choices and it’s in personalities like Howard Stern, Opie & Anthony and anyone else with a following who can only be heard on satellite.  Oprah - not so much because she’s a visual commodity.  But for those that thought the merger would provide Sirius XM with an unbeatable monopoly - think again…      

10 Timeline Memories:

1. 1892] An ax job: Andrew and Abby Borden are axed to death in their Fall River (MA) home by Andrew’s daughter from a previous marriage. Accused of the killings, Lizzie Borden  was eventually acquitted. This horrific crime inspired this little ditty: “Lizzie Borden took an ax and gave her mother 40 whacks and when she saw what she had done, she gave her father 41″…
2. 1944] Nazi raid: Nazi police raid the secret annex of a building in Amsterdam and arrest 8, including 15-year old Anne Frank…
3. 1964] Body count: The bodies of Michael Schwerner, Andrew Goodman and James Chaney missing since June 21 are found buried in an earthen dam in Mississippi. The trio were civil rights workers…
4. 1977] Giving us Energy: President Jimmy Carter signs a measure establishing the Department of Energy…
5. 1985] The newest member of the 300 club: In a game I was fortunate to attend, Tom Seaver, pitching for the White Sox wins his 300th game against the Yankees on ‘Phil Rizzuto Day’ at Yankee Stadium. One of the Scooters’ gifts was a ‘Holy Cow’…
6. 1987] In all fairness: The FCC rescinds the “Fairness Doctrine” requiring “balanced reporting on controversial issues and political campaigns“, a.k.a. Equal time…
7. 1993] Guilty cops take the fall: A federal judge sentences 2 LAPD cops to 30 months for violating Rodney King’s  civil rights…
8. 1997] Takin’ a walk: 185,000 Teamsters union UPS  drivers walk…
9. 2004] Guilty as charged: Staten Island ferry boat pilot Richard Smith pleads guilty to manslaughter charges in a ferry crash that kills 11 the previous October…
10. 2005] Russians rescued: A mini-submarine carrying seven Russians becomes caught on an underwater antenna 600 feet below the surface of the Pacific Ocean. They’re all rescued 3 days later thanks to a British vessel…

Music Memories:

• 1958] With a bullet: Billboard Magazine introduces the Hot 100. The first number one hit: “Poor Little Fool” - Ricky Nelson. The late Tommy Noonan was the first person to do the charts…
• 1974] Released on this date: “Loves Me Like A Rock” - Paul Simon…1987] “Dirty Dancing” LP…
• 1974] Number one on this date: “Feel Like Makin’ Love” - Roberta Flack…

Commentary:

Skip Caray, longtime Atlanta Braves broadcaster and son of the late legendary voice of the Chicago Cubs, Harry Carey, passed away in his sleep last night at 68.  Apparently Skip had serious health problems.  This is sad and shocking news…

“Happy Birthday…happy birthday“:

Jeff Gordon (37), Roger Clemens (46), Michael Gelman (47), Barack Obama (47),Gerry Cooney (52), Billy Bob Thornton (53),John Riggins (59), Richard Belzer (64), Cleon Jones (66), Frankie Ford (69), and White House reporter Helen Thomas (88)…

Timeline Countdown: 4 days until the Summer Olympics, 28 days until Labor Day and 31 days until the NFL opener…

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