Yesterday Investment publication Motley Fool named Sirius XM one of their 10 worst stocks for 2009 – meaning, in their words, “likely to go to zero.” Satellite radio, says The Fool (as they affectionately call themselves), is “just not necessary” given the explosion of Apple iPod and iPhone, and the newer trend of automotive mobile devices such as Ford’s Sync and other in-car routers that can stream free Internet radio.
I’ve predicted the demise of satellite radio before. It’s a business model that counted on lots of listeners willing to spend several hundred dollars for hardware and then another several hundred dollars a year for subscriptions to listen. Clearly, the thinkers behind that strategy did not see Internet radio as the disruptive technology that it’s rapidly becoming.
In the meantime, Sirius XM has apparently readied an iPhone streaming app which will launch soon (source here). At the same time, they’ve announced that they will charge their existing subscribers an additional fee to listen online. Way to go – when the ship is sinking, make sure you fasten your seatbelt rather than climb in the liferaft….