Sirius (SIRI): With Half Of Subscriptions From Car Companies, Satellite Radio Heads To Oblivion

November 3, 2008 by Douglas A. McIntyre

95129c_3Approximately 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