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The speculation continues to grow about Sirius XM and a potential bankruptcy filing.
The satellite radio company has hired advisers to prepare for a possible Chapter 11 filing, the New York Times reports. Without getting too financial, Sirius XM is $3 billion in debt, of which $175 million is due at the end of February.
So what does a looming bankruptcy mean for subscribers? It doesn’t appear as though customers will immediately lose service. But the big names - Howard Stern, Martha Stewart - will likely be forced to take pay cuts or be released from their contracts. How a company that’s never turned a profit can afford to pay Stern a reported $100 million per year is beyond me.
Sirius XM may also renegotiate its deals with Major League Baseball and the automakers, reports Business Week.
Either way, reducing the number of channels will not go over well consumers already upset with higher subscription fees.
EchoStar has reportedly been buying up Sirius XM debt in a bid to take over the company. The set-top box manufacturer might finally get its wish.
Maybe Sirrius XM should go the way of Local Radio and market with Commercials. Its not that I like commercials, but it might be a way to offer the listener a cheaper subscription solution. Right now , It’s all about the money, for everyone.
Let them file Chap 11, fire Stern or pay him the $28 a year he is worth, then they can charge a more fair price, get more subscribers, and everyone is happy!
I liked the choice of stations while on my motorcycle., or in the shop, or in the truck. No commercials, just my choice of music or old time radio shows. The reason i stayed with XM was because they did not have Stern. I think he is horrible and imoral. I am no sain t, but at least I do not show people how peverted i can be on national radio. Any one that would pay that kind of salary for that kind of smut should go belly up. I will miss the good music choices though.
they could file bankruptcy get rid of the high dollar talk radio shows and stay in buisness; i only listen to liquid metal octane hair nation and boneyard; oh yea sometimes i listen to the comedy stations ; but i could care less about all the other stations
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Sirius XM could find themselves in more trouble, if
Local radio tries to contract deals with Jimmy Buffet, Frank Sinatra, Margeuritaville, Smooth Jazz
Willie Nelson. You know that HD Radio, provides more transmission of multiple broadcasts. If I needed to generate 3 billion dollars real quick, I’d probably try to sell off some of these assets, or auction them off to competitor radio networks. If this isn’t practical, try easing in some commercial advertising, and drop annual fees to about half the present prices.