By Brandon Matthews
Sirius XM Radio (SIRI) CEO Mel Karmazin announced today that the company’s branding campaign, featuring live concert footage by Elvis Presley, is succeeding in promoting the Sirius XM brand. Karmazin indicated that a preliminary check of holiday sales of its products are in line with the company’s expectations, to this point stating: “were very much on target to what we anticipated.”
Karmazin announced at the Reuters Global Media Summit in New York that: “We are in the midst of one of the most dramatic year-over-year improvements that I’ve ever seen in media.”
Of particular interest was a quote in which Karmazin eluded to the XM SkyDock while stating, “we didn’t have any new revolutionary products out.” This would seem to indicate that product specific advertisements that were mentioned in the third quarter earnings press conference may be coming soon. Just this weekend, the SkyDock was recommended on Fox News in Atlanta and ABC News in Chicago as “best gift ideas.”
Reports have been coming into Satwaves all weekend which seem to verify more robust sales than Mr. Karmazin may be letting on. The XM SkyDock and XM Onyx seem to be the most popular offerings based on these initial reports.
Position: Long SIRI
This should come as no surprise at all. The current print and TV ads featuring Elvis, Michael Jordan, Richard Pryor, and Howard Stern – with the theme “Changing The Way You Listen” – are among the finest and most effective promotions I have ever seen (just one man’s opinion, but I really think these ads are a ten, on a scale of 1 to 10).
Great products, superb marketing, an extremely well thought out business plan, resting on core principles that are proven in other instances – coupling unique and proprietary content with state of the art delivery systems, at low prices that will appeal to an extremely broad audience – it is all systems go for this company. So it comes as no surprise that this is all now starting to show up in better than expected holiday sales, etc.
As an aside: Over the last few days I have had to speak with Sirius technical support to get a new tabletop radio up and running (Grace wireless tabletop). There was a software problem that both Sirius and Grace corrected, and in speaking with the technicians from both companies I asked about business in general, and – specifically, what was being seen with regard to Sirius sales and new installations. Technicians from both companies told me business was increasing with new installations for Sirius devices increasing markedly from what had been the norm in preceding months. This is coming from the techs on the ground – the guys who actually authorize the new installations, etc. – and I take that as another valid indication of the demand Mel has mentioned in comments reported in the article above.
The Retail X-Mass season is upon us! You could take what Mel was saying (or lack of)in a negative tone about the SkyDock. I hope that the ad campaign is about to start at any moment on the SkyDock. Brandon, what are you actually hearing about the SkyDock sales? I hope it is a hot item of course but would be nice to see some real numbers.
Brandon, by the way your piece on analyst being more positive. Since you wrote it last week, Jaywalk’s 14 analyst had 2 out 14 move more positive as follows!
Strong Buy 2
Buy 3
Hold 7
Sell 2
Strong Sell 0
Moved up to a 2.64
Thomson Rueters 6 analyst:
Strong buy 1
Buy 2
Hold 3
Sell 0
Strong Sell 0
Which puts Sirius Xm at a 2.33
freak’n bold statement!!!,…“We are in the midst of one of the most dramatic year-over-year improvements that I’ve ever seen in media.”
long on SIRI since 2004
best part is how Cramer will squirm