XM Satellite Radio vs. Sirius Satellite: Which Stock to Buy?

Continuing with the rivalry that every oligopoly sector provides, I will try and tackle the radio industry this update. However, while my other contests have been focused on the technical and fundamentals of each company, this update will be a little different as finding a winner will not be so rudimentary.

Looking at the radio giants of XM Satellite Radio (XMSR) and Sirius Satellite (SIRI), the positives and negatives are not as transparent as originally desired. Speaking in terms of fundamentals, it does seem like XM has the slight advantage. The company has the potential, according to Yahoo Finance, to grow over 25% over the next five years and grow almost 14% this year. Compared to Sirius?s potential growth of negative 28% this year and a growth only limited to 20% there might be an advantage to buy XM in the long run. However, what is interesting to note is that out of the last nine actions committed by financial institutions, XM has been downgraded six times, while during the last eight actions of Sirius, the company has been upgraded six times. Such statistics post a conundrum for investors with fundamentals spread all over. In terms of actual data, both companies have posted numbers surprising investors in a negative way. Three out the last four earning results, XM has failed to even meet earnings expectations illustrating a possible slowdown in terms of margins. Sirius did only slightly better only failing to meet expectations two out the last four reports. Margins for both in terms of revenue are both similar and adequate, but profit has been negative for over three years severely underlined by poor cash flow from operating margins and other areas. Therefore, the numbers for both companies may not be completely reflected over the power each contains in its industry, but do not provide any relief for investors looking to get into to one of these stocks.

In terms of technical analysis, both again seem to provide a conundrum in terms of a better buying opportunity. Since 2003 Sirius has grown about 100% in terms of potential capital gains. However, such a statistic is flawed as the reflection of increased fluctuations during the period makes this stock too volatile to properly invest in. There is also an important notation that the stock also decreased 50% in value during one year in 2002 illustrating the difficult nature of buying this stock at the right time. Sirius currently also looks like it has reached its maximum level at about 12.00 and does not provide much upside. Like Sirius, XM had its own increase of nearly 900% during the run from 2003 to 2005. However, since then the stock has been on the decline falling nearly 50% worrying investors if the stock will ever rise again.

Nevertheless, while some investors may argue that this is the perfect time to invest in an oversold equity, when looking at the potential recession in sight and the idea that such radio brands produce luxury items, there is little assurance that the stocks will rise to its glory days. Personally, I think the radio industry is a dying one with little potential to grow in the next five to ten years. Such a sentiment along with the technical and fundamental facts have allowed me to stay clear of both equities as I do not see any encouragement from any of the factors which makes me want to buy either Sirius or XM Radio.

Dennis Biray presents advice on all kinds of topics ranging from finance and investing to fitness to sports. For more information email him at dbiray@gmail.com, or to view other articles written by him visit http://www.biraynetworks.co.nr

Whether You Prefer Satellite or Terrestrial, Digital Radio Stations are the Future of Broadcasting

Digital radio stations have thousands more options to offer the listener than regular old AM and FM analog radio stations. To begin with, there is the quality issue. Gone are the days in which the radio quality would fluctuate based on whether or not you were driving under an overpass or passing by power lines. Through digital, there is relatively no disturbance from any outside sources which could disrupt your listening experience. Furthermore, there is no need for the guessing game when you hear a track you like and the disk jockey simply neglects to mention the name of it. With digital radio stations and an invention called ?radiotext,? listeners will be able to read the name of the artist and title of the track right on their radio receiver as the song is playing. Radio stations will also be able to transmit information about the news, weather and traffic directly into text form on your radio receiver. This is but one great feature of digital radio.

While all of this seems like an amazing invention, the fact of the matter is that terrestrial digital radio stations do not yet exist. Any station that currently says it is totally digital is lying. They are simply a hybrid of analog and digital where the radio receiver first picks up the analog signal and then homes in on the digital signal for a better quality broadcast. The possibilities do not end there though, as it may even be possible for digital stations to broadcast pictures and videos directly to your car or home stereo through the magic of digital broadcasting. Wouldn't it be neet to have MTV on your on digital radio so that you could watch the video while the song is playing?

Although terrestrial digital radio stations are at least ten years off, there is a way to experience some of the benefits of digital radio stations today. Satellite radio, brought to you in America by XM Satellite Radio and Sirius Satellite Radio offer the closest thing to full digital radio. They provide the listener with high quality sound and radiotext to let people see what they are listening too. Unfortunately, they are costly services and require the listener to not only purchase a receiver but pay a monthly subscription fee. These monthly subscription fees can add up to alot of money spent. Some say it is worth it and others do not believe so.

Keith Londrie II is a well known author. He has written many great articles on many topics, including satellite radio information. For more information, please visit http://www.digital-radio-info.info/ You may also be interested in Keith's other offerings at his site http://keithlondrie.com

Is Satellite Radio Killing Broadcast Radio?

Local radio has taken a beating from satellite radio. But are XM and Sirius capable of killing local broadcast radio?

The broadcasting corporations such as Infinity and Clear Channel are answering with an emphatic ?no!? And they have a powerful weapon called HD Radio to back up their position.

HD Radio is digital radio. As such, it enable a dramatic increase in sound quality. In fact, it makes AM radio sound as good as today's FM and FM sound as if you were listening to a CD.

Other important reasons

But there are other, equally important, reasons why satellite radio will never replace conventional radio. First and foremost, is cost. Satellite radio costs anywhere from $11 to $14 a month and conventional radio is free. As a result there are only about 5.5 million satellite radio listeners in the U.S.and literally hundreds of millions of broadcast radio listeners. It's pretty hard to believe that satellite radio will ever have 100 million listeners, let alone several hundred million.

Second, satellite radio can't deliver local information or programming. People will always turn to their local stations for weather, traffic reports, news and to hear their favorite personalities.

Third, satellite radio cannot continue to hire personalities such Howard Stern and Bob Dylan to attract subscribers because the cost is just too prohibitive vs. revenue generated from new subscribers. In fact,J.P. Morgan just downgraded the stocks of Sirius Satellite Radio and XM Satellite Corp saying that these two companies face near-term challenges to subscriber growth.

With a new concept called HD2

Because HD radio is digital, it requires less spectrum. This allows stations to broadcast their primary FM channel in digital and up to two more subchannels. These subchannels, which are being called HD2, will be used by broadcasters for new programming content. For example, a station might broadcast oldies of the 80s on its primary channel and hits from the 70s on an HD2 channel. The subchannels will not only be free, they will most likely be commercial free to compete head-to-head with satellite radio.

In short, broadcast radio is not going to die anytime soon. Or anytime at all.

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Douglas Hanna is a retired marketing executive, an avid golfer, the author of numerous articles on HD radio, and the Internet and the publisher and webmaster of http://www.hd-radio-home.com

Commercial-Free Programming: Just One of the Benefits of Satellite Radio

Think of your favorite music or discussion topics, piped into your home or car in digital-quality, crystal-clear sound. And then think of your favorite format with absolutely no commercials - no used car salesmen, no fuel company ads, no heavy rotation ads hawking every possible product or service all the way to work and home again - all your favorite stations available twenty-four hours a day, seven days a week, with no static.

Whether you love fifties music or reggae, conversation from right wing pundits or Air America, or even 'round the clock comedy, Satellite Radio is it. The purchase of a satellite radio and a small monthly fee will open a whole world of ad-free radio listening to you.

XM Satellite Radio offers over 150 digital channels in formats specializing in music, sports, talk, and entertainment, plus 21 channels dedicated to weather and traffic patterns in major metropolitan areas around the U.S. XM offers the deepest music playlist available, with over 2 million titles. For $12.95 a month (less if you opt for an annual contract) and the cost of an XM radio (anywhere from 50 to 200 dollars, after rebate) you will have an amazing range of music formats to choose from, from Decades to Classical to Urban, from Jazz and Blues to Latin, World, and Christian. Channels for kids are available as well, plus a variety of sports, talk and comedy formats.

Sirius offers over 60 music channels plus a wide variety of other formats, including football, soccer, and even horse racing channels. The "World" music options are a bit more edgy than the XM offerings, and offer music from all over the world, including Africa, Brazil, the Caribbean, the British Isles, Central Europe and Asia. Musicians range from the Rolling Stones to the Gypsy Kings and Khadja Nin. Both XM and Sirius offer channels which give emerging artists a boost.

Sirius offers a variety of radio systems, including a Plug and Play kit with adaptors for your car or home radio, only $29.99 after the rebate; the systems go up in price and complexity from there. Subscriptions start at $12.95. Right now Sirius and XM systems are not compatible.

Owners of conventional broadcast radio stations have expressed concerns that the commercial-free satellite stations will cut into their listenership and, as a result, their ad revenue; but the proponents of satellite radio feel that that won't happen. There's plenty of room for free local programming offering local and regional news and events announcements. With this thought in mind, both XM and Sirius offer radios which can be connected to home or car radios without interfering with their regular operation, for the best of both worlds: free local stations keeping the listener up to date on happenings in their community, plus the best in music, talk, and sports from around the world.

Aldene Fredenburg is a freelance writer living in southwestern New Hampshire and frequently contributes to Tips and Topics. She has published numerous articles in local and regional publications on a wide range of topics, including business, education, the arts, and local events. Her feature articles include an interview with independent documentary filmmaker Ken Burns and a feature on prisoners at the New Hampshire State Prison in Concord. She may be reached at amfredenburg@yahoo.com

The History Of Portable Satellite Radios

The history of portable satellite radios is short compared to traditional over-the-air radio, but it has rapidly changed the face of radio listening like no other technology in recent memory. The two major satellite radio services, XM Satellite Radio and SIRIUS Satellite Radio, offer a stunning array of programming and compete fiercely for customers.

Their popularity has stunned many in the radio industry and with the advent of new, smaller, more convenient portable satellite radios, some industry veterans worry about the future viability of traditional broadcast radio.

How did satellite radio get started and what is its future? Let?s take a look.

The Beginnings of Satellite Radio

The history of satellite radio begins in 1992, when the Federal Communications Commission (FCC) decided to set aside a portion of spectrum to be devoted to nationwide distribution of digital radio service via satellite. SIRIUS Satellite Radio and XM Satellite Radio bid huge amounts of money (at least $80 million each) for licenses to use this new allocation of spectrum, which were eventually awarded to them by the FCC.

Owning the right to use the spectrum, though, was only the first step. Even if they could start delivering satellite radio signals right away, there were no consumer-accessible portable satellite radios to receive the signal. Additionally, there was substantial debate within the radio industry about whether consumers would be willing to pay for new hardware and then pay a monthly subscription fee for radio service. After all, AM and FM radio broadcasts were available free all over the country.

Making a Business out of Satellite Radio

XM Satellite Radio and SIRIUS Satellite Radio set out to overcome these obstacles and make a real business out of portable satellite radios and satellite radio programming. They knew that to attract the most consumers they needed to offer a variety of hardware components that could be used in a variety of locations ? home, work, and especially the car, where most radio listening occurs.

Working with electronics manufacturers already trusted and recognized by consumers (Sanyo, Panasonic, JVC, Kenwood, etc.), hardware development got underway. The results included portable satellite radios, receivers, and ?plug and play? components for nearly every consumer application. Manufacturers built satellite radio receivers for cars, homes, offices, trucks, RVs, boats, and even airplanes.

On the programming side, XM and SIRUS put together an assortment of niche music stations that would have something to offer consumers with nearly any musical taste. Each station was programmed to appeal to a specific type of listener, and most were commercial-free. Programming originated primarily from New York, but also from other locations, plus XM and SIRIUS entered into collaborative agreements that would allow popular musicians, entertainers, personalities and others to perform live from the originating locations. This would give the services another unique selling point to attract consumers.

Dealing with resistance to a monthly fee, though, required a broader array of marketing, public relations, and strategies to communicate the benefits and advantages of portable satellite radios. XM and SIRIUS knew that the key to their success would lie in convincing consumers of the value they would receive while making the hardware widely available and affordable.

Spreading the Word

Portable satellite radios began to show up in a variety of places where consumers would find it easy to use them. One of the most important places for XM and SIRIUS to gain entry for the hardware was in cars and trucks, where consumers do the vast majority of their radio listening.

They collaborated with car and truck manufacturers to make portable satellite radios standard on many high-end luxury vehicles, and an affordable option on most other mid-range vehicles. For most of these consumers, the cost of a monthly subscription would not be prohibitive and by making it easy for them to access their services, XM and SIRIUS could entice consumers to try it out and start spreading the word about its value.

Portable satellite radios were also placed in boats and RVs, and standard receivers were heavily marketed for use in homes and businesses. Another innovation, introduced in November 2004, is the handheld version of XM Radio and SIRIUS Satellite Radio receivers. These devices were designed to appeal to people who want access to satellite radio services while running, walking, or otherwise moving out and about in locations other than their cars, trucks, homes or offices.

Another important component of spreading the word was establishing partnerships and marketing agreements with electronics retailers such as Circuit City, Best Buy, Target, Wal-Mart, and other well-known names. Working closely with retailers, XM and SIRIUS have greatly increased their presence with consumers and sales have steadily increased.

Why Pay for Radio?

Still, the bottom line question for most people is why pay for radio? The answer is in the benefits received with a subscription to satellite radio. Some of the most popular benefits include:

More channel choices (up to 150) Commercial-free (music channels) Live audio streaming of sporting events Weather and traffic information (in major markets) Clear, crisp digital signal Signal available with no fading when driving long distances Niche music stations to suit any musical taste Assortment of sports, talk, and news stations

Coming Soon

Satellite radio service is in its infancy so it is inevitable that the technology and the features will continue to develop. XM Radio and SIRIUS Satellite Radio will have to devote resources to such innovations if they are to attract enough subscribers to become profitable.

For example, one feature that will soon be available in some areas real time traffic information delivered via satellite directly to the navigation system in the car. This information will appear as color-coded displays of the average speed of vehicles on specific roads, allowing the driver to select the travel route that is least congested at any particular time.

Other new options and ideas are inevitable over the next few years, so it is likely that portable satellite radios will continue to grow in popularity and become more common in vehicles, homes, offices, boats, RVs, and just about any other location that can be imagined.

Julie-Ann Amos is a successful writer for 1st-Dish-TV.net, a consumer guide to free DirecTV satellite dish systems. She has contributed numerous articles on portable satellite radio receivers and writes frequently on high speed satellite Internet service providers

Satellite Radio: Music and More in Real Time

Millions of radio listeners in the United States and all over the world have
become so much happier with the introduction of satellite radio. Now, people can
listen to literally hundreds of stations that offer music, news, radio talk
shows and more in virtually real-time and at a much higher audio quality than
that which FM or AM radio provides.


With conventional radio, land-based stations broadcast their signals to your
boom box, computer, or car radio via the earth's airwaves. With satellite radio
however, providers transmit encrypted signals to satellites they launched in
outer space; these satellites in turn beam the signals to customers' listening
devices. But you can't use just any radio; you need a special receiver (which is
available at electronics retailers) and a satellite radio set. You can also
listen to satellite radio broadcasts in your car since many new cars rolling of
the assembly lines have satellite-ready equipment already installed. All you
would need to do is pay for your monthly subscription.


In the United States, service is offered by XM Satellite Radio and Sirius
Satellite Radio. Sirius, a company based in New York City, has over 125 channels
from which to choose, 67 of them dedicated to commercial-free music and the rest
to various other content. XM, on the other hand, offers more than 160 channels,
which offer content that is as diverse as that which Sirius extends to its
customers. The services are available coast-to-coast, so geographical
availability of programs is not an issue. A customer in Los Angeles, for
example, can listen to the same talk show that another customer in say, Boston,
is listening to at the same time, and with no degradation in audio quality.
Remember that satellite radio also means digital radio -- sound is
crystal-clear. There's none of the static or hissing you would sometimes hear on
FM or AM radio. Non-US residents can also take advantage of the benefits of
satellite radio; XM and Sirius offer their services in Canada, while WorldSpace
broadcasts its service across Asia, Africa, Europe, and the Middle East.
Australia has several providers of its own also.


Factors that attract people to sign up for satellite radio subscriptions are
numerous. For one thing, there's the pleasure of listening to commercial-free
music. Since the providers make their money from subscriptions, there is still
no pressing need for advertising revenue. Another attractive feature that this
service offers is that information about the song being played at the moment is
displayed on your radio set -- a small convenience for those people who have to
know about who is singing what song right-now. The fact that satellite radio
programming is completely uncensored at the moment is also a draw for many
people. Noteworthy personalities, such as shock jock Howard Stern (who was
kicked out of network radio programming) has made satellite radio his new
broadcasting home. Whether you want to listen to hip-hop music, stand-up comedy
shows, or news programs, satellite radio offers them -- all completely
uncensored.


Because Sirius, XM, and other providers are the ones who set the channel
selections, some people might find it a bit inconvenient that they won't be able
to listen to their local radio stations and get information on local goings-on.
However, Sirius and XM do provide traffic and weather data for major cities, so
that should be a bit of a relief for city residents. And if you think about it,
not getting access to one local radio station wouldn't seem to be such a bad
deal if you compare it to the ability to listen to hundreds of channels of
commercial-free music and unregulated non-regulated shows.


Sirius and XM plan to add even more features and functions to offer to their
subscribers. Sirius, in particular, is readying the launch of a Windows Media
Video 9 service and the company plans to offer several channels dedicated to
children. That's one more thing to keep the kids occupied and not distract their
parents on long road trips. XM plans to release a similar video service. The two
companies are anticipating that this will add to the number of their subscribers
-- Sirius has over one million, trailing after XM which has more than three
million.


If you're an avid radio listener and you're finding yourself becoming fed up
with the constant barrage of commercials on regular music stations or if you're
looking for more no-holds-barred commentaries or radio talk shows, you probably
wouldn't mind forking over the $12.95 monthly subscription for satellite radio
service charged by Sirius and XM. And with the increases that the two companies
see in their subscriber numbers, it's evident that a lot of people feel the same
way.

Tunes tops 200 million downloads, Partners with Satellite Radio

It seems that Apple is in talks with Sirius Satellite Radio to make their streaming broadcasts available on the iPod. This is something that a lot of online music fans have been looking forward to for some time. Satellite radio customers love the music variety because they can go for days without hearing the same songs on rotation. This is in stark contrast to commercial radio stations, where you can hear the same song every couple of hours and on multiple stations in the same market.

Many think this pairing is just a rumor since iPods are not designed for this type of function and it would probably require a much larger hard drive and a much larger iPod case to be able to carry the streams.

Another functionality that would also require some tweaks is the ability to record satellite stream directly onto the iPods. The whole purpose of the iPod is the storage capacity and the ability to make music portable.

Even if satellite broadcasts were available, if the storage functionality is not included, customers could easily turn away from it and back to streaming radio only.

Since iPods are in short supply right now because so many customers are trying to get one, imagine what the market frenzy would look like if you add radio transmission receivers onto it.

Both XM Satellite Radio and Sirius Satellite Radio with over 4 million subscribers have been looking into ways that they can merge their popular streaming radio functionality with a host of gadgets to give their customers more options and to expand their subscription base.

The iPod seems like a natural fit. Rumors of a partnership between the satellite radio companies and Apple computers have been rampant after several telling signs by executives of both companies at various computer industry shows.

Online tech guides and skeptics are critical, but hopeful, since there is no clear mechanism right now to add the radio transmission function onto an iPod and still maintain the same compact look and feel of the iPod. In addition, it would take some time to develop the product, test it and bring it to market.

Then it would have to attract the attention of both Satellite radio customers and serious iPod fans to prevent each party from losing the market share they are hastily trying to capture.

There is some overlap between iPod customers and Satellite Radio customers especially in the ability to adapt to new technology. What is unclear is if streaming radio fans, and download happy fans are part of some larger online music tribe that anyone can tap with new gadgets.

Many think this pairing is just a rumor since iPods are not designed for this type of function and it would probably require a much larger hard drive and a much larger iPod case to be able to carry the streams.

Another functionality that would also require some tweaks is the ability to record satellite stream directly onto the iPods. The whole purpose of the iPod is the storage capacity and the ability to make music portable.

Even if satellite broadcasts were available, if the storage functionality is not included, customers could easily turn away from it and back to streaming radio only.

Since iPods are in short supply right now because so many customers are trying to get one, imagine what the market frenzy would look like if you add radio transmission receivers onto it.

Both XM Satellite Radio and Sirius Satellite Radio with over 4 million subscribers have been looking into ways that they can merge their popular streaming radio functionality with a host of gadgets to give their customers more options and to expand their subscription base.

The iPod seems like a natural fit. Rumors of a partnership between the satellite radio companies and Apple computers have been rampant after several telling signs by executives of both companies at various computer industry shows.

Online tech guides and skeptics are critical, but hopeful, since there is no clear mechanism right now to add the radio transmission function onto an iPod and still maintain the same compact look and feel of the iPod. In addition, it would take some time to develop the product, test it and bring it to market.

Then it would have to attract the attention of both Satellite radio customers and serious iPod fans to prevent each party from losing the market share they are hastily trying to capture.

There is some overlap between iPod customers and Satellite Radio customers especially in the ability to adapt to new technology. What is unclear is if streaming radio fans, and download happy fans are part of some larger online music tribe that anyone can tap with new gadgets.

Syd Johnson is the Executive Editor of RapidLingo.com, Web Articles Guide. This article may be freely distributed as long as the author's bio is included with an active link to http://www.rapidlingo.com