For the last five years, SiriusXM has enjoyed strong success. This has been based mainly on the fact that The Howard Stern Show started its famous run on the then-Sirius radio network in January of 2006. Since that time, Sirius merged with XM satellite radio and has grown to over 20 million paid subscribers. So, your plans to go ahead and purchase a SiriusXM radio, get a subscription, and install it in your home or place it in your patio are a great idea. Right?
Well, not so fast. Much of Siruis' success was predicated on two things: The Howard Stern Show and the XM merger. It is estimated that over 80% of Sirius listeners are listening to Stern when their unit is turned on. Stern still enjoys a loyal following despite the controversial nature of his program, and since the show replays 24 hours a day, many do not listen to anything else. In other words, folks are paying an average of twelve dollars a month just to listen to a radio show. It may be unheard of in other arenas, but in the Stern world, the unreal is routine.
The question is, will Stern return to SiriusXM at the end of this year? If he doesn't, that may very well spell the end of SiriusXM as well as satellite radio in general. Is there anything else that is going to get the average person, who can listen to free radio, to pay good money for a media that may not exist in 2011? In other words, hold on to your money and wait until Stern re-signs at the end of this year. Even if you're buying SiriusXM to listen to commercial free music or comedy, the whole thing may not be around long if Stern returns to regular radio or someplace else to ply his trade.
Controversial or not, as Stern goes, so goes Sirius. If he stays, invest. If not, save your money. Iphone and other smart phones have apps that give you nonstop, commercial-free music for a much lower price.
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