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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sirius XM Hirings, Firings and Negotiations: 2010 Year in Review

Stocks in this article: SIRI DISCA DTV

(Sirius XM Hirings, Firings and Negotiations article updated with additional subscriber metrics and new stock price information.)

NEW YORK ( TheStreet) -- Sirius XM (SIRI) has banked its success on its ability to build and retain a lineup of big-name talent from the worlds of media and entertainment. Commercial-free listening means far less without the likes of a Howard Stern or Oprah Winfrey behind it, especially as Internet radio outlets like gain more ground and become more viable competition.

Talent, therefore, is the key, and a costly one. In 2009, the company reported that it spent $370.5 million on programming and content, which includes the costs to acquire, create and produce content.

In 2010, Sirius executives landed several major contracts in efforts to gain and retain subscribers. Howard Stern signed on for 5 more years, only a few weeks before his original 5-year, $500 million deal was set to expire at the end of December. Sirius also extended its agreement with the National Football League for five more years before its 7-year, $220 million agreement was due to expire at the end of the 2010-2011 NFL season.

Loss of marquee talent is cited as one of the primary risks to Sirius' business. "There can be no assurance that this on-air talent will remain with us or that we will be able to retain their respective audiences," the company said in its 2009 annual report. "If we lose the services of one or more of them, or fail to attract qualified replacement personnel, it could harm our business and future prospects."

"As these agreements expire, we may not be able to negotiate renewals of one or more of these agreements," the report continued, "or renew such agreements at costs we believe are attractive."

Sirius stock is up more than 170% over the past year as investors have been bullish on positive news. Shares continue to climb to new 52-week highs and has been steadily gaining since its year-ago low of around 57 cents.

On Nov. 4, shares spiked to a 52-week high of $1.61 after the satellite radio company reported that it swung to a penny-a-share profit in the third quarter and added 334,727 net subscribers.

Subscribers are the most important source of revenue for the company, pulling in billions of dollars each year. In 2008, Sirius reached its then record high 19 million net subscribers. In 2009, the subscriber base decreased to 18.8 million.

In the first three quarters of 2010 the company added 1.1 million net subscribers, bringing the then total number of subscribers to a record 19.9 million.

On Nov. 30, Sirius announced that it had passed the 20 million subscriber mark, and reached the highest number of net subscribers in satellite radio history.

Chief executive officer Mel Karmazin says the company will end 2010 with 20.1 million subscribers.

Click on for a recap of the major personalities and programming that Sirius XM signed in 2010 and years prior, and the details surrounding the contracts the company has with each.

1 of 16

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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