Look, I'm ALL about satellites in space relaying information back to earth. I'm all for launching just about anything into space for that matter. Unfortunately, XM and SIRIUS satellite didn't generate enough income to even come close to breaking even let alone turning a dime. Bankruptcy seems to be an unavoidable future. Who knew that launching a satellite wasn't cheap? Is anyone surprised? Not me.
The companies are reportedly over $3 BILLION in debt collectively, which seems like nothing considering our current economic bailout package might reach $2.5 TRILLION. Can't we just add another $3B to the bailout so we can keep this service that nobody uses? I actually did like XM and SIRIUS but I was never willing to pay the monthly fee and I never could afford a new car that came standard with the service. They allegedly have 20 million subscribers, but come on. There's no way. Sirius signed Howard Stern for a landmark $500million and that is just one channel. How can you make money doing business that way?
XM and SIRIUS aren't the only casualties. Terrestrial radio is suffering a huge hit as well. Clear Channel is hurting, CC Media Holdings is down 4% from last year, & Cumulus is reportedly defaulting on loans. Some 2009 predictions are forecasting revenue dropping 25-30% in the terrestrial radio industry. In these crazy times, it would seem that "survival of the fittest" is the only means of survival. The natural cycle of weeding out the weak has begun. The real question is... What are young people (16-35) doing while they are driving if they aren't listening to the radio or CDs? We know the old folks are set in their ways and will listen to the radio until the option is unavailable.
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I know at least 3 people that use one or the other! Boy are they going to be pissed.
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