how is Sirius radio doing? they wont have to shut down from not being supported or anything will they? are people really taking a liking to it?

Finally, investors loved what they heard on Sirius Satellite Radio (nasdaq: SIRI - news - people ). The company hit its revised subscriber forecast to cap a year marked by merger speculation and worries that the public wasn’t taking to the idea of paid radio.

On Tuesday, Sirius said that it finished 2006 with 6.02 million subscribers, up 82% from the previous year. On Dec. 4, Sirius had lowered its subscriber guidance to between 5.9 million to 6.1 million subscribers, down from a previous projection of more than 6.2 million subscribers due to slower-than-expected sales after Thanksgiving.

The company expects to report its first quarter of positive free cash flow in the three months ended Dec. 31.

In Wednesday trading, shares of Sirius were up 5.7%, or 20 cents, to $3.74.

About 905,000 listeners joined Sirius in the fourth quarter, well ahead of Goldman Sachs analyst Mark Wienkes’ estimate of 781,000.

“With year-end subscribers in the targeted range, we don’t see (Tuesday’s) news as any new reason to buy or sell shares of Sirius,” Wienkes wrote in an investor note. He said XM Satellite Radio (nasdaq: XMSR - news - people ) would likely announce its year-end subscriber numbers above the low end of the company’s targeted range of 7.7 million to 7.9 million.

Banc of America analyst Jonathan Jacoby said XM would fall short of its guidance range since Sirius, which he presumes had a better fourth quarter than its competitor, finished the year at the low end of its projections and short of his.

Shares of XM also posted gains, up 5.3%, or 76 cents, to $15.21, in Wednesday trading.

im glad people are liking it! and there making profit!

im glad people are liking it! and there making profit!

No profits yet, nor for a long time to come. And that's not unexpected- the plan ws to lose money and achieve "positive cash flow" for at least one quarter by now, which they did (both of them). They may not do so again for a while, but that doesn't mean either company's going to go away anytime soon (unless they merge, which is something some analysts and Sirius' CEO have proposed but which would face high regulatory hurdles).

Fpr the difference between "cash flow positive" and profits, this page is as good as any explanation:

http://www.investopedia.com/articles/01/110701.asp

One quarter of positive cash flow isn't enough because it's too easy for a company to play games to get that one decent quarter. They both need to sustain this for many more quarters. Oh, an actual profit would be nice thing too.

I'm wondering if the "subscribers" they count include the people getting them through the satellite TV companies?

I'm wondering if the "subscribers" they count include the people getting them through the satellite TV companies?

No, but it does count empty cars ;)

I'm wondering if the "subscribers" they count include the people getting them through the satellite TV companies?

No. Otherwise it would be about 22 million for XM, 19 Million for Sirius.

I'm jumping to Sirius because of NASCAR broadcast in 2007. I hate to change over my receiver and head but that's part of it. I have been with XM since 2000.

i love sirius! howard, bubba, maxim, etc FTW!

I have been with XM since 2000

XM didn't launch their service until Fall 2001.

XM didn't launch their service until Fall 2001.


He had his iPod since 2000 as well. ;)

I am not sure about the actual market these days but IMO from what I have dealt with personally, Satelliate Radio has a very bright future.

I know more and more people getting it every month it seems and I have yet to ever hear a single person claim they dont like it

XM didn't launch their service until Fall 2001. Ever hear of time travel? ;)

the FCC isn't doing it any favors No merger likely for Sirius and XM (http://www.msnbc.msn.com/id/16676005/)

the FCC isn't doing it any favors No merger likely for Sirius and XM (http://www.msnbc.msn.com/id/16676005/)

No merger under the CURRENT rules. Rules can be changed, especially government rules if the right amount of money is 'donated' to the right campaigns.

the FCC isn't doing it any favors No merger likely for Sirius and XM (http://www.msnbc.msn.com/id/16676005/)

And today, now this from the FCC: So stay tuned....


NEW YORK, Jan 18 (Reuters) - U.S. Federal Communications Commission Chairman Kevin Martin said on Thursday a rule that bars XM Satellite Radio Holdings Inc. (XMSR.O: Quote, Profile , Research) and Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile , Research) from merging could be altered, if requested.

Martin, speaking to Reuters on the sidelines of a conference in New York, said he was not aware of any request to change the rule on satellite radio licensing ownership, which currently prohibits one entity from owning both licenses.

He said he was not aware of any request to change the rule, and declined to comment on the specifics of any potential satellite radio merger.

XM and Sirius shares jumped on his comments. XM was up 5 percent at $16.22 while Sirius rose 4.4 percent to $4.03.

Sat Radio is here to stay. If they do come close to going bankrupt some big media company will buy them out and keep them online.

Jeez, I hope they don't become TOO popular. Too much of a mass appeal isn't gonna be very good for the playlists of their music channels (and ultimately any good for the people like me, who have it because they DON'T want to constantly hear the popular stuff).