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Old 10-29-2003, 11:16 PM   #31
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Sirius hasn't had a meaningful advertising campaign to date. They've had two concepts, a guy in a mini-van, and a series of digital graffiti ads synched to music - both were lackluster at best and neither were aired frequently at all.

If you ask me, the manifesto should have been made into a tv spot. We were all just kind of left hanging on that front.

Our ad agency, Cripin Porter + Bogusky, have done wonders for Mini and Truth. We need an out of the park, in your face, 'why radio sucks' campaign and subscriber growth will follow. Something so good that us fans would jump up and kiss the tv screen. And when we have that hit ad we need to air the hell out of it. Play it so much that people cannot flip the channel without catching it.

With that said, I think the days of Sirius being an unknown brand are nearly over. After Pam and some other marketing tricks this fall, Sirius will be in a position to demand premium pricing.

The product is there, we just need to show the masses why we shine.

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Old 10-29-2003, 11:44 PM   #32
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Quote:
Originally Posted by DABSter
I feel like I've just been kicked man. My low ball guess was 160,000, but this, this is disgusting. I think at this point there is very little chance of making the 330 or even 300,000 subs by years end. I don't even know what to say about it, I am so freaking stunned.
So am I stunned. I thought I was being conservative with my 175k estimate :\

I'm not worried about Sirius as a company or service, I'm more worried about the shareholders.

If Sirius continues with the momentum they have in terms of service improvements, advertising, and hardware, they will do just fine. The investors may end up having to take a hit one more time to get this company to profitability. They have the shelf offering they can use, so money won't be an issue, but the ROI could be.

So my point is, as customers we can be totally satisfied with the service, and not worry about the current score between XM and Sirius. I do like the fact that Sirius is making excellent headway in retail, getting 60% of Head Unit tuner sales, and closing the gap on PNP sales. It appears where consumers have a choice, and have awareness, Sirius will do quite well.
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Old 10-30-2003, 12:16 AM   #33
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Exactly, if they know about Sirius, they'll get it instead of XM, we just have to get the word out. Let's get some awesome commercials that are clever and witty, and start showin em on TV, and advertise on XM about how we don't advertise on Sirius. Okay, that last parts a dream, but we can hope for some awesome TV ads.
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Old 10-30-2003, 01:13 AM   #34
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One other interesting point made in the CC today. 1200 have signed up for the lifetime plan. It seems like a small enough number that it doesn't jeapardize their long term revenue plans, but adds 1/2 million to the balance sheet. I will bet if the adoption rate continues to be low, they will extend the lifetime plan (due to expire Jan 31, 2004) just to keep the option there.
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Old 10-30-2003, 06:58 AM   #35
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One thing I think Sirius can do with the lifetime plan is include it as the bulk of packages with new cars, esp. the Nissan/Infiniti/Audi/VW group. For $599(DC/Ford, BMW would be more due to higher cost), include the whole sha-bang, and the customer doesn't have to worry about making a payment on the radio ever again. Sirius makes a little, but that will help put subs in cars and eventually subs by word of mouth.

Was that 1200 up to 9/30 or until the conf. call?
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Old 10-30-2003, 08:09 AM   #36
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Keep in mind that the 146,000 was up till the end of Sept. I didnt do the math but they probably gain a fairly decent # of subs in 1 months time (October).

Christmas is coming. Ford and Chrysler are coming. It'll happen.
But I gotta say, Pam is not the answer - (this is after all.....radio)
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Old 10-30-2003, 08:57 AM   #37
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This is good thread - is anyone over at Sirius reading this?

MARKETING, MARKETING, MARKETING

Who ever said it, they (Sirius) need to play up on the fact that FM AND XM are fraught with commericals, and then there is Sirius! 100% commercial free and many hardware choices.

I don't know about about the lifetime subs when you buy a new car - the payout on those deals is only 3.2 years, afterwhich, the company would have to no longer count those subs in its revenue reports. A one or two year membership with a new vehicle would be smarter - especially if they add the sub fee to the hardware cost and play up the fact that they are getting a 1 (or 2) year free subscription.

If Sirius isn't willing to lower the pricepoint and directly compete with XM then I don't know how Mgmt thinks they are going to hit any quarter end targets they are predicting.

Just who is in charge of Marketing? How old is he/she? Is this person in tune with what's going on? Come on - its time sh%t or get off the pot.

They need some big names with shows that are also going to attract subs. They should be marketing the crap out of Club Pam on FM, TV and Print media. Someone else that comes to mind, and is local, and I think has hinted about it is Howard Stern - give him a morning show and the subs will flow.

Time to get aggressive.

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Old 10-30-2003, 09:10 AM   #38
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In an earlier post I mentioned their competitive advantage. If they are not going to lower their price point then we need to see marketing (MARKETING, MARKETING, MARKETING) on the other things that gives Sirius competitive advantage:
1. !00% Commercial Free Music - good counter to XM.
2. Online streaming - not at XM
3. Better selection of hardware
4. Different payment option plans.
5. More satellites
6. Quality and broader programming choices
7. Dedicated to preserve programming (Not influenced by some Media conglomerate, e.g. Clear Channel communications).

Work that into some advertising and get it out there!!!!!!!!

MARKETING, MARKETING, MARKETING
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Old 10-30-2003, 10:22 AM   #39
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Jeff made the best point of all.

We're not doing enough to ATTACK AM/FM, which is where most people are disgusted.

There is a prime market to be had there, and we're doing NOTHING to show the public why.

BTW, I am just as stunned as all of you with the numbers. It's a very sad day.
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Old 10-30-2003, 10:34 AM   #40
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It's primarily about getting a receiver into the hands of the potential listeners, so what's really going to make things take off is standard, factory installed receivers. As to the marketing points you mentioned:

"1. !00% Commercial Free Music - good counter to XM."

The excessive commercial load of AM&FM makes for an opressive listening experience. But the number of XM channels with commercials and the small load will not end up bothering the vast majority of listeners.

"2. Online streaming - not at XM"

Once again, not imortant to the vast majority of potential subsrcibers.

"3. Better selection of hardware"

Everyone agrees that one problem Sirius has to overcome is that they're always playing catch-up in the hardware area.

"4. Different payment option plans."

Although I personally like Sirius lifetime plan, once again, it is unimportant to most subscribers.

"5. More satellites"

This is a wash. The Sirius orbit has the advantage of better obstruction clearance, but XM has the advantage of non-moving shadows from obstructions. Both Sirius and XM have reasonably high elevation over most of the lower 48. (Sirius variable generally > 60 degrees, XM 40 (Roll) and 28 (Rock) degrees from Philly.)

"6. Quality and broader programming choices"

Once again, offered by both Sirius and XM. And both services, in many ways, complement each other.

"7. Dedicated to preserve programming (Not influenced by some Media conglomerate, e.g. Clear Channel communications)."

Hard to tell where the future will lead. Neither Sirius or XM is in this just for the fun. They are both in it to make money. This industry is still in it's infancy.

Given the low churn rate to date, coupled with the vast untapped subscriber base, I feel Sirius marketing would be much better directed at getting new SDARS subscribers, rather than trying to get XM subscribers to defect.
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Old 10-30-2003, 10:39 AM   #41
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Quote:
Originally Posted by siriusatn67
One thing I think Sirius can do with the lifetime plan is include it as the bulk of packages with new cars, esp. the Nissan/Infiniti/Audi/VW group. For $599(DC/Ford, BMW would be more due to higher cost), include the whole sha-bang, and the customer doesn't have to worry about making a payment on the radio ever again. Sirius makes a little, but that will help put subs in cars and eventually subs by word of mouth.

Was that 1200 up to 9/30 or until the conf. call?
I think Sirius wants the subscriber without the lifetime if they can get them because as someone pointed out, they drop off as a sub count after about 3 years. If it was wildly successful, they would stop doing it when it expires in January because they would be selling their future for some cash in the short term.

The take rate of 1200 was for the quarter as I understand it.
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Old 10-30-2003, 10:49 AM   #42
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This is my first post, so please excuse any errors I make. Been investing in Siri for a few months now, definitely long position and making small accumulations weekly. Just want to throw in a couple of general comments. Public awareness is a huge issue, but one aspect of it I really have not seen mentioned on the message boards is that just by virtue of its name, XM hits the public mind as being synonymous with "satilite radio" pure and simple. That was the immediate reaction when I mentioned sat radio in front of my two teenagers (boys, 15 & 17): Yeah, mom, we should get XM. No differentiation at all that reference to XM was a name brand, not a generic for sat radio. AM, FM, XM ... it just "flows" so to speak. And I don't think that particular consumer frame of mind will go away anytime soon. With Xmas coming and, let's face it, kids have more driving force behind consumer purchases than we all like to admit, we'll probably pull some good sales numbers from the holiday season, but XM will probably beat us by a high percentage.

(Sorry if I'm babbling). Dumb statment coming regarding hardware: the Kenwood PNP just looks cool! AudioVox, square and kinda blah. Sounds ridiculous, I know, but I was very glad to see the Kenwood in the Good Housekeeping article. I think for the average mom (who does the bulk of the holiday shopping) it just looks sleek and something dad and/or junior will love ... she's probably not going to research the technical aspects, etc.

Last comment, and really more of a question: As I recall, there was a big meeting (highly secretive) a few weeks back. Folks from Siriusbackstage attended if I understood everything right, and the implication was that something great was coming out at the CC. So, what the heck was it...what am I missing? I thought the CC was good news, all aspects of this business/industry and where it's headed considered. Announcements like Pam's commercial, the Durango, etc. all seem to be normal, reasonable, expected for a company in growing mode, but not really earth-shaking news.
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Old 10-30-2003, 10:59 AM   #43
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Quote:
Originally Posted by tps
Given the low churn rate to date, coupled with the vast untapped subscriber base, I feel Sirius marketing would be much better directed at getting new SDARS subscribers, rather than trying to get XM subscribers to defect.
I don't think they are trying to get customers to defect from XM at all. I think they are giving those that are new and considering Satellite Radio good reasons to pick Sirius instead of XM. After all when they walk in the store, the sales person might try to promote XM or Sirius, but this will arm the buyer with reasons why Sirius is different and better.

If they just said Satellite radio is great, they would pick the lower priced (XM) service every time. People need to know why they are paying more for Sirius and give them reasons to pay it.
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Old 10-30-2003, 11:09 AM   #44
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Welcome to Sirius Backstage FiestyLady

XM has come to mean satellite radio, and it wasn't by mistake. XM has been running Ads from day one that said "First there was AM, Then there was FM, Now there is XM". This was a very good advertising campaign to educate people into thinking XM was the next "standard". Sirius was far enough behind XM in promoting their service, that the AM/FM/XM advertising has taken hold.

This is the advantage those first to market commonly enjoy. Being 2nd takes awhile to become number 1. Sirius can and I think will become #1, but it will take 4-5 years. Sirius name recognition is something that needs to be priority #1 for marketing campaigns. The Pam Anderson commercials and promotions is one way to get peoples attention. Since the PA marketing campaign is fairly new, it's too early to tell how well it's working. Sirius currently has 24% public name recognition. If they can get that up to 50% or higher with PA, then they have scored big.
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Old 10-30-2003, 11:24 AM   #45
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Manco, thanks for the warm welcome and reply. I agree with you that too much is new (Pam, autos, NFL/NHL, etc.) and the paybacks on these won't be realized (or even be measurable) for some months to come (I'm thinking 2Q 04). We might see more immediate results from the (darn, can't remember the name of the hardware off the top of my head) trucking product (you know what I mean). I can see a very large potential subscriber base there, along with a percentage adding the personal home/auto after getting hooked via the cab units. Some of that result I think we'll see for 4Q.

As a quick aside, I can't tell you how wonderful it is to be able to come here and read messages/ask questions without the pumper/basher aspect. It's great to be able to talk to adults while the kids have a verbal food fight over on Yahoo.
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