This is an interesting view of SIRI's future: Could happen. Found it on another board
THE REAL REASON I'M LONG SIRI 10-Nov-10 08:05 am
Besides the fact that satellite radio offers more choice, better quality and better sound when I'm driving to work, the upside is HUGE.
Forget about the 20 million subscriber base that is growing and has the company cash-flow positive throughout 2009 and 2010.
This is just the beginning of something much much bigger, a business plan that Mel hatched a long time ago.
The subscriber revenue merely keeps the lights on so to speak.
The real money is in SiriusXM's ability to reach motorists on the street with an ad based version that will be offered for free. All those people that refuse to pay for radio and laugh at the notion? They'll be converted to loyal listeners overnight with a listening experience that, while having it's fair share of commercial interruptions, still BLOWS AWAY AM/FM.
We're not only talking fewer ads overall but more music to choose from, less static noise, and therefore more pleasure.
When Sirius offers this basic ad supported version it will capture the billions that go to AM/FM in ad revenue. This capital can be used to expand overseas. When that happens, SiriusXM becomes an international advertising hub.
In the retail market, Sirius 2.0 will provide music listeners with the same opportunities as they have at the iTunes store. People will be able to tag, playback and purchase individual songs, live concerts, sporting events and exclusive talk/content. Apple rakes in around 1 billion dollars per QUARTER through iTunes yet Sirius will be able to offer more exclusive content.
Between international advertising revenues, an expanding subscriber base and profits from the sale of downloads for mobile devices like cell phones, lap tops and portable MP3 players...Sirius is going to erase debt and buyback shares MUCH faster than people expect.
I'm not selling until $40/share.
2-10 years.
I can wait.
Adjö
