Rival satellite digital radio services, XM Radio (XM) and Sirius (SIRI), have a little more in common today as each company sees its stock price drop. The U.S. Federal Communications Commission informed both services that some receivers designed to work with automobile FM radios emit signals far too strong and interfere with over-the-air FM stations. Sirius declines -0.14 (-3.39%). XM drops -0.63 (5.04%). (The chart above shows XM's 30-day performance.) As covered in an AP wire story, the XM skid comes on a company announcement that they have stopped making and shipping the transmitters that do not meet FCC guidelines. Sirius has also admitted some of its radios may have been out of compliance, but stated is has corrected the problem, and that radios currently in production don't have the problem. However, today's news caused UBS to downgrade Siruis -- the smaller of the satellite services -- from "buy" to "neutral." Btw: comments after yesterday's post on satellite radio subscriber bases has made me aware of how intense the feelings of each service's fans and detractors can become! I had no idea. Watching these two compete in the relatively new medium is certainly a lot of fun for me. I don't own either stock. I have a Sirius subscription, but have never sampled XM.
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Reader Comments (Page 1 of 1)
8-04-2006 @ 6:22AM
David J Phillips said...
Michael: i just posted on my blog:
http://10qdetective.blogspot.com/2006/08/xm-satellite-radio-whats-frequency_04.html
Do you not find it provocatively timely that--despite poor earnings, downgrades, & reduced expectations--the price of XMSR jumped 17% in price [on a doubling in avg. daily volume] in the days leading up to its announced ad pact with Google?
Regards,
David J Phillips, Publisher
www.10qdetective.blogspot.com