Tuesday, March 8, 2011

Sirius (SIRI) to be Killed by Apple (AAPL)?

With news Apple (NASDAQ:AAPL) is in negotiations with major music labels Universal Music Group, Sony Music Entertainment (NYSE:SNE), Warner Music Group Corp. (WMG) and EMI Group Ltd.for the purpose of improving iTunes customers’ access to music on multiple devices, the question is how painful that could become to Sirius (NASDAQ:SIRI), which is finally starting to get some competition, and some of it is potent.

"Clearly, Sirius XM Radio is in no position to take a hit from Apple," says Seeking Alpha, "whose confidence is expressed well through this segment of their annual report:

“'Additionally, the Company’s strategy includes expanding its distribution network to effectively reach more customers and provide them with a high-quality sales and post-sales support experience. The Company is therefore uniquely positioned to offer superior and well-integrated digital lifestyle and productivity solutions.'

"I believe that the price of SIRI stock may drop significantly if Apple follows through with its plans with the aforementioned various music industry giants and takes a generous slice of Sirius XM Radio’s pie of profit."

Sirius plunged Monday to closed at $1.74, dropping $0.07, or 3.87 percent.




Source

29 comments:

Valuestocksonly said...

Problem is AAPL will not have the content. You will also have to pay for the internet. You guys seem to be tied heavily to Rocco and his gang @ SA. What a shame.

Anonymous said...

Ha what a joke

Adam said...

Makes no sense...

Adam said...

You have quotes around scentences by no names...Who are you quoting?

Teren said...

How will APP stream its content? Seems SIRI is the only one beaming content from space. APP is going to need SIRI to stream-line content.

Anonymous said...

What a bunch of rubbish! Apple is still purchase,store,listen - no human interaction or content with itunes.

Anonymous said...

So... Apple is making it easier to access the content you already purchased via iTunes. And also gives them another avenue through which to sell you more music.

Sounds to me like this article is missing a lot of valuable facts. And it's also, potentially, very misleading.

Siriusly said...

You're comparing to Apples to Oranges. Yes, both have music, but that's where it stops. WiFi and Cellular vs. Satellite, get real. Sirius will see $2.25 plus and Apple $440. They'll both grow, but they are not competition.

And yes, too many """"

Anonymous said...

Why is it that everyone forgets Sirius/XM Weather that gives general aviation pilots access to multiple weather maps and other data while in the air? Cellular towers don't work at altitude.

Anonymous said...

Hello Evertyone, please e-mail this blog at raesally@comcast.net. Tell them to stop these stupid articles.

Anonymous said...

No new Satellite Expenses until 2016

No Taxes due to NOLs

Self Pay Subscribers up 1 Million last year

62% OEM Penetration

75% of Used Car Buyers know about Sirius

2.0 will Add More Programing and Pause-Rewind-Record

Pandora model is moving to compete more with Terrestrial Radio than Satellite

More efficient for shareholders to repurchase shares rather than issue a dividend

"No good reason for a reverse split"

All the institutions he has contact with have no problem waving their minimum SP

Anonymous said...

That is so much NO TRUE! SA is out of their minds.

mvecho said...

I like how it notes that Sirius dropped 7 cents, has nothing to do with apple, a lot of stocks dropped Monday, just a bad week in the market, Sirius will be back to 1.81 by the end of next week, now is the time to make some profit!

Anonymous said...

So how many satellites does apple have in space?

Anonymous said...

Was this article written by a 3 year old?

Anonymous said...

this is nonsense. get it straight. we had cds forever, this is exactly what having itunes in your car will be like. sirius is a totally different animal

Anonymous said...

Ray, did you just create this from quotes taken out of their contexts? This has as much substance as some siri bashing blabber on a yahoo board and that's exactly where it belongs. You should have been honest and just said that you really need this stock to go down so you can make some dough. At least it would have been honest instead of pathetic.

ky said...

Look at all these Sirius fan boys

Okeanos said...

What will end up killing Sirius if they don't stop it is things like Pandora, Slacker, and Last F.M. the sites that one can stream radio to their smart devieces or computers for free with. Sirius will still have the on air personalities, but it can not compeet with people that give their product away for free.

Perry said...

Why do bashers think Sirius subscribers only care about music. I listen to CNBC, ESPN, FOX News and CNN in my car. (So sorry Pandora, you don't have premium content.) I can even listen to those great stations and more on my iPhone with the SiriusXM App. There are hundreds of millions of mobile devices that can download the app and subscribe. The momentum in car sales means subscriber growth could double in the next 10 years.
I like what Mel said in the conference call about not being a big taxpayer. Very Smart, Mel. Pay down that debt first.

Okeanos said...

I never intended to bash Sirius, infact, I miss my subscription very much, but it was either save money for gas and heat, or enjoy listening to Jason Ellis on Faction 28...I chose, and I do miss it, but I was just pointing out that there are other areas that Sirius has to watch out for, and not someone that makes you pay per song to play. Again, sorry if I came off bashing, didn't mean to

Anonymous said...

siri going to $2.50 before end of summer hold on.

siri: long :)

Anonymous said...

Does Pandora have major league baseball?

Anonymous said...

I'm more concerned about Siri showing a loss last quarter than Apple itunes being their new competition. As a stock owner and avid subscriber, I hope it's because they've made some smart investments in new Programming that will pay off big time. I'll be researching this. Unless aapl is going to do news, comedy, sports, religion etc. I don't see the threat???

Perry said...

The loss reported was due to the fact that they paid off a large amount of debt. Otherwise, they would have made a profit. Hence, my earlier post. If you show a profit, you pay taxes. It's better to pay off debt than pay Uncle Sam.

Richard said...

Apple wil have chip sets to receive am fm and xm radio installed in the I phones.
This information can be checked at Patently
apple.com.
Looks like more good news for Siri more users.

Anonymous said...

Author is short SIRI...Obviously! Stupid shorttie!

Anonymous said...

i 'm going to respond in the child like mannner this article was written you are so stupid. just opinions no solid facts how much are you being paid to bash this stock

Anonymous said...

how many of these people own siri?