In determining whether or not to invest in Sirius XM for the long run, it is important to first know the numbers. For the benefit of potential new Sirius XM investors or readers, I will run through the most well-known numbers. For the rest of the Sirius XM or Seeking Alpha addicts, bear with me, we will get to the good stuff momentarily, as the propaganda and posturing has already begun in anticipation of the new royalty rates to be determined in 2013. These are the numbers that are not readily available, yet are important to understand, as they relate to future costs and Sirius XM's posture towards content creators. I realize this article will require a bit more time to read than most with regards to royalties, but you will certainly be much more informed about the issue, even with a bit of my bias attached.
The recently reaffirmed guidance of Sirius XM for the remaining part of 2011 and the guidance for 2012 stands as an impressive testimony to the inexplicable durability of this highly discretionary service. For Sirius XM, navigating though the rocky tributaries of low-cost (and, ostensibly, free) competitors that unassumingly meander to the more treacherous and angrier seas of a extraordinarily turbulent economy has not been an easy accomplishment, though you wouldn't know it by these numbers.
Q3 2011:
- Subscribers Exceed 21.3 Million, Net Adds of 334,000
- Record Revenue of $763 Million, Up 6%
- Record Adjusted EBITDA of $197 Million, Up 16%...
Read more on Seeking Alpha: http://seekingalpha.com/article/305108-siriusxm-vs-artists-rights-and-royalties