Sirius (SIRI): With Half Of Subscriptions From Car Companies, Satellite Radio Heads To Oblivion
November 3, 2008 by Douglas A. McIntyre
Approximately half of the subscribers to Sirius (SIRI) satellite radio originally came though new car sales. That channel accounted for about 80% of sales last quarter. With US car sales down 30% last month, Sirius shareholders have another reason to worry about whether the company will survived.
Operating losses and crushing debt already threaten the firm’s future.
Lead by a 45% drop at GM, domestic US vehicles sales fell by a third in October to 838,186 vehicles. There is not much relief in sight between now and sometime late in 2009. That is an optimist’s view.
Sirius shares slipped to $.31 today, down from a 52-week high of $3.94. With the American auto business in deepening trouble, it us hard to see how Sirius remains an independent operation for more than another quarter.
Douglas A. McIntyre
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