This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sirius XM Saved, but Static Continues

Stocks in this article: SIRI LINTA DISH

Now, these overgrown contracts loom large in a new era where Sirius XM is a satellite radio monopoly and subscriber growth is flattening.

Sirius XM has said it expects to cut about $60 million from its programming costs this year, largely through the reduction of duplicate radio channels. The company has also been working with its contract partners to ease the terms of some of the pricey deals.

Investors expect to hear an update on those talks from the company when it reports earnings in the coming weeks. Sirius XM may also offer another prediction on when it might reach an adjusted break-even point on cash flow.

A Sirius XM representative had no comment on contract talks. A Major League Baseball rep was not immediately available for comment Tuesday.

Meanwhile, car sales, the primary source of new satellite radio subscribers, have dropped dramatically. Auto partners such as GM (GM - Get Report) and Chrysler have their own set of problems and are looking for government aid to keep their operations intact. And radios at stores like Best Buy (BBY) and Wal-Mart (WMT) haven't exactly been flying off the shelves amid a consumer spending slump.

Sirius XM may have dodged delinquency today, but there could be even more last minute rescues ahead. For now, shareholders were feeling a little more secure. Sirius rose 6 cents, or 52.5%, to 16 cents.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs