Journal 9, March 15 2009

http://www.businessweek.com/ap/financialnews/D96SPMP00.htm

Sirius XM Radio is the only satellite radio company in the United States. But now the only satellite radio company is on the verge of bankruptcy. The company recently barely avoidied filing for bankruptcy last month and now the radio company is trying to sell directly to the customers. The only way the company used to make money was through new car sales and now that concept is down 10 percent. The company is now trying to stream its radio to iPhones, iPods and the iPod touch. This gives subscribers a new way to access the satellite radio and it also lets knew customers sign up for the radio without having to buy a new radio that supports the radio system. There are plans that Sirius radio is trying to work out a deal with certain T.V. companies, one of which is DirecTV, where the satellite radio is included in T.V. packages. Sirius satellite radio faced up to $1 billion in debt at the beginning of 2009 that the company could not repay. So the company allowed the company Liberty to give them a loan with 15 percent interest and gave the Liberty company 40 percent stake in Sirius. The company is expected to make roughly $300 million this upcoming year. One expert thinks that this will be a turnaround year for Sirius. On Thursday, shares of Sirius rose from 3 cents to 19 cents.
I recently just purchased a car in November and in this car one of the premiums was to have Sirius satellite radio. I can see that the only way the company made money was if cars that were sold had the radio in them. I would not purchase Sirius in my car because their just is no need for two styles of radio in your car. I think that Sirius radio has the right idea trying to sell subscriptions to iPods and other things so they can listen to the radio through their mp3 players. It’s a great marketing scheme but I just don’t think that Sirius will last much longer.

http://www.wired.com/entertainment/music/commentary/listeningpost/2006/09/71711?currentPage=all