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Old 12-06-2005, 11:35 AM  
jimb
Confirmed User
 
Join Date: Feb 2005
Location: Costa Rica
Posts: 2,514
Between XM and Sirius, I would personally go with XM. Why? Because of this key fact: XM posted a gross profit of 42.51 million last year while Sirius posted a gross profit of negative 54.06 million.

Now, with the addition of Howard Stern, Sirius may be able to bring up their subscriber base and bring additional revenue from ads (yes they will be forced to place ads on Howards program from what I hear). The problem with the whole Howard Stern contract is that they are paying him an insaine $500 million dollars for a 5 year contract.... Thats over $100 million per year forced onto a company that already pays out to the NFL alone over $200 million dollars per year.

Back in the day when the NFL contract went down everyone was up in arms saying that this will bring Sirius into the green profit margin and will cure all of their troubles....WRONG, it just slipped them further into debt. I hope that Howard can turn things around for Sirius.

Just my

Jim
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