Satellite radio subscribers are a rabid fan base. Even with both Sirius and XM finally merged, there is still subscriber programming preference. But what Satellite radio subscribers know for certain is that terrestrial radio is dead. Digital terrestrial radio will follow closely in it's footsteps without a steady revenue stream to procure new music. As beat down as Satellite radio is about all of the competition from iPods, and other portable music devices, I still believe that the average music listener is too lazy to either consistently update their music collection, or mix up their selections to stay fresh.
That is where Sirius XM excels--by providing the best on air talent, original content, and world class DJs. With all of this talk about the company not making it through 2009 because of a debt refinancing obligation due on February, what better way to ensure the survival of the company than a one time charge of $50 per subscriber, good towards any new radio or invoice in March of '09. Why refinance the 1 billion dollar debt when you can wipe the slate clean and get rid of standing inventory at the same time?
Sure, 50 bucks sounds like a lot of cash for a service that's supposed to be only 12 dollars a month. But, look at your cable bill, or cell phone bill, or a single fill-up at the gas station! Wouldn't you be willing to loan $50 to Sirius if it meant keeping all of the quality programming that you've grown accustomed to, and maybe even allow the company a bit of breathing room to come out with great new technologies and devices? Mel, you've got about 20 million subscribers that believe in what you're doing. If the banks are too gun shy, maybe you should try something a bit more unorthodox? After AIG, the government is not going to have much charity left for other companies depeding on reasonable lending practices for debt restructuring purposes. Power to the people!
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