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It's been a while since I saw the "real numbers" on what's going on here, but what I last saw wasn't pretty. Both companies threw away billions in the late 90's (even before they hit the airwaves) and have been bleeding money ever since. Neither has made the projected number of subscribers that they promised to investors...thus that money long ago dried up and its all being added to a mounting bank loan that surely has gotten deeper as interest rates continue to rise.
The real problem now is the two systems have problems holding onto subscribers...or people will jump from one system to the other. The number of people renewing their subsriptions after the first contract are dismal. They were hoping that once people spent the money on the radio, they'd keep the service...this isn't happening.
Even more interesting is the scorpion dance these two system have against one another. XM wants to buy out Sirius and Sirius wants to buy out XM and Rupert Murdoch wants to buy it all...in the meantime bills continue to pile up and there's not enough money coming in from advertising and subscriptions to keep the wolves at bay. Many who invested in these companies have seen their money go down the rat hole. Due to the incompatibility of these systems and the expense in both the radio and the subscription has greatly hampered its growth. People are used to FREE radio and studies show that most aren't interested in paying for "commercial free" programming...especially when they get the service and find out that's not exactly the case.
The next couple years will be very interesting in radio as three competiting digital systems play to your ear. The largess and greed of the large corporation have not only ruined the programming, but drastically hampered the transition to digital and the introduction of newer technology as they try to milk every last dollar out of their overpaid analog holdings.
I wish I could say help would be on the way with Democrats in control of the House, but it was Democrats that helped make this mess happen...that big money is too hard to say no to.
Cheers...
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