Thursday, September 28, 2006

Now We Know Why Sirius Is Down Today...

Certainly nothing new here...this is (and has been consistently) disclosed and discussed in all Sirius filings. Could this be yet another story "planted" by shorts who need to cover before holiday sales ramp up...?

Sirius Satellite Radio may be overstating growth

(theflyonthewall.com 09/28 12:34:15)

According to an article in The Street, XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) have different measurements for newly-acquired customers. Sirius apparently pads its subscription numbers by counting unsold, satellite radio-equipped cars that are sitting in dealers' lots. To Sirius's credit, automakers usually pay Sirius up front for a year of radio service, so the company is actually getting revenue from these vehicles. XM Satellite Radio has been accused of using similarly tactics by counting subscribers that are on promotional plans, but XM supposedly delineates between the two categories in its quarterly filings. XM does not count vehicle-based subscriptions until a car has been purchased and the radio activated.