Sirius Readies Portable Receiver For Summer
Sirius Satellite Radio will release a true portable receiver this summer according to comments that CEO Mel Karmazin discussed at the Morgan Stanley Global Automotive Conference in New York. Sirius has already released the popular S50 portable, but the unit can only connect to a satellite stream while docked in a specialized cradle. Although the S50 can record streams, the new device, which rival XM has already introduced, is a true receiver.
Karmazin also hinted at a online music store partnership with Yahoo! to compete with the XM/Napster alliance. The CEO has stated flatly that Sirius will not get into the download music business by itself. After the Howard Stern and NASCAR content deals Karmazin is all about reducing costs and creating positive cash flow. Karmazin has already reduced customer acquisition costs from well over $200 to just over $100 and has cut back significantly on advertising.
The Future: Karmazin is working overtime to get Sirius ship-shape. His biggest focus this year will be on solidifying his relationships with Detroit’s top auto makers and empowering current subscribers to be effective viral marketers.