I just read an article on Satellite Radio Playground that I found most intriguing. The article makes the claim that Sirius has ceased production of all Sirius Dock & Play Radios as of last month, indicating that the company may be switching to a single XM brand. The article cites “sources,” yet I can tell you that this information likely comes directly from the Audiovox distributor used by the website for its proprietary satellite radio store. This would not be the first time information came from them, as we were given plenty of “inside” information related to radio production when I was affiliated with that store.
From an initial investment standpoint, this may seem like like fantastic news. The costs of producing a second line of aftermarket radios under both the Sirius and XM name, makes very little sense given the anemic retail sales turned in by Sirius XM the past few years. Let’s face it, the retail channel is just not the producer it once was for the company. Trimming down the aftermarket offerings is great way to reduce current expenses, and this will likely be positively reflected in Sirius XM’s results this quarter as costs fall sharply on this move. ...
I think it totally makes sense long term to consolidate into 1 brand. It will result in a stronger brand image and recognition among consumers. Of the two, XM is clearly the cooler and more easily understood brand name to me. Consolidation would make sense on the consumer side, and the internal side, and if the pricing can be adjusted as you suggest next year, there is very little risk. XM all the way just makes sense!
Maybe a hardware consolidation – but it makes sense to retain the name Sirius XM. This is too strong a brand name to abandon.
I have 100% confidence in Mel and his staff to do all the right things in this regard – they are too savvy a group to make any foolish moves while continuing to build this emerging dominance in the radio industry. They have been making all the right moves – and this appears to be one more of the same.
doctorex speaks:
pick sirius, or pick xm. give a new receiver to the subscribers of the nonsurvivor. what is this, a few dollars, mass produced? compared to arpu $11/mo, $132 per year? peanuts!