Not a lot to say for tonight ;)
Well, I think I am being slowly more and more fed up with AIM. It has just become so boring and so uninteresting… I really don’t even feel like using it anymore, so, if you want to talk to me, and you already have my number, please feel free to call me at home. If a guy answers, it’s me. I talked to my zackiedudeboibuddyperson on the phone today, and it was ite. I had to leave to eat dinner and do things and whatnot, but I am just glad thatI finally got my cable internet back! Woo. Excitedness=Me. Anyway, the weekend was sort of boring, but overall I guess it could have been worse, right?
I think the way I think is starting to rub off on some people. That makes me less original. But, imitation is the most sincere form of flattery. A perfect example can be seen in this Motley Fool article I received in my inbox a few days ago, entitled “Dueling Fools: XM vs. Sirius”:
“Remarkably, there are ways in which XM is already imitating Sirius. From the start, Sirius offered commercial-free music. In February, XM converted to this format. If flattery is the most sincere compliment, then consider Sirius complimented! Not explained in the move was why XM pricing remained at $9.95 a month.
After all, Sirius charges $12.95, and XM was to make up the difference with advertising. With advertising off the table, and Sirius offering an equally strong lineup, XM has to wonder what it will do if Sirius ever pulls up even in subscribers. Let’s say that number is 3 million. That $108 million in additional revenue Sirius would earn — for the same customer base. That is a strong competitive advantage if it materializes. As will be video revenue when it starts to flow.
The bottom line
Assuming that Sirius manages just 40% of the market — and video produces nil — total revenue, at an average $11.90 per subscriber, would be $1.2 billion. XM Satellite, meanwhile, would bring in $1.3 billion at $9 a subscriber. Clearly, that pricing difference is a big equalizer. If sales fall 60% in Sirius’ favor, revenue would be $1.7 billion for Sirius and $864 million for XM. That’s a big difference.
Sirius is the premium priced product with what appears to be premium content. Trying to guess future sales and adoption rates is an interesting exercise. Unfortunately, for shareholders of satellite radio companies, that guess is about all you’ve got — at least until visibility improves and results become more focused in 2005.
Invest at your own risk; write off Sirius at your own peril.” –Sorry, a little bit of stock rambling for you. Buy some SIRI (its ticker symbol) today!
Out! I
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