Sirius reported a loss last quarter of $262 million, even though subscriptions for the paid Satellite service were up.
Doesn’t say much for the company Mel Karmazin just took over, and that Howard Stern is spending every morning doing an extended commercial/preview show for, does it? The reality is that with the exception of the NFL, Sirius has nothing worth listening to, and XM is still the king of Satellite Radio.
By the time Howard Stern starts up at Sirius (in 2006), one would have to wonder if the company will even exist. Karmazin, obviously dellusional, had this to say on the flop that is the Little Doggie Network:
CEO Mel Karmazin said, “The fourth quarter produced blow-out sales, heavily fueled by the holidays, and solid numbers in our automotive channel, which we believe will be a major contributor to our subscriber growth in 2005. Our strong start this year, along with an expanding slate of compelling programming, the introduction of third generation products later this year, and the anticipated arrival of Howard Stern next January, all contribute to our enthusiasm for the growth prospects of Sirius.”
Growth? Mr. Karmazin, I don’t want to be the one to break the news to you, but a growth in subscribers does not equate to a growth in the company or in revenue. Who’s gonna keep investing in a losing proposition? Since it was launched, we’ve been hearing about Sirius making its “arrival.” What I don’t get is that it still has half the subscribers of XM, and years after its introduction, we’re still hearing about what’s going to happen in the “coming year.”
At some point, Mr. Karmazin, you have to address the present.
(source)