RSSXM Loss Widens, Target of Federal Probe
By Ed Oswald | Published April 27, 2006, 12:16 PM
XM Satellite Radio's quarterly loss continues to widen even in the face of rapidly increasing revenues, the company reported Thursday. Additionally, XM is the focus of two separate inquiries by the FCC and Federal Trade Commission.
First quarter losses for XM widened to $149.2 million from $119.9 million a year earlier. However, revenue jumped to $208 million, more than double the $102.6 million in the first quarter of last year. XM added 568,900 subscribers, bringing its total count to 6.5 million.
"With our first quarter subscriber growth, we remain on track to reach nine million subscribers and positive cash flow from operations by year end," XM president and CEO Hugh Panero said.
The company also disclosed Thursday in filings with the Securities and Exchange Commission that it was the target of two investigations. The first deals with its marketing practices and was initiated by the Federal Trade Commission.
The FTC is looking into whether XM's billing and rebate activities, among other practices, comply with federal laws such as the Telemarketing Sales Rule, Truth in Lending, and CAN SPAM regulations.
The second deals with the XM's SkyFi2 portable devices. The Federal Communications Commission alerted the company recently that its transmitter is not in compliance with federal emission limits.
XM said it is conducting an internal review of both matters, and said it would fully comply with the investigations.
XM has billed my exwife for a year worth of service despite my repeated attempts to correct this problem. I have spoken with at least 12 representatives and have written the VP Marketing, Steve Cook with no resolution. If my situation is not resolved I would like to know if there are any other people with similar problems with this company. If possible I would like to spearhead a class action against XM. I spent 40 years in customer service and this company exemplifies the worst cast scenario in customer satisfaction.
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|How in the world do you continue to lose even more money per quarter when your revenue is increasing. You only hear about this in cases where it's the opposite. You loose market share and your services is costing you more. They have a sat in space, it streams music where is all the cost coming from. Their ceo and board makes millions of dollars maybe they could cut some of their salaries obviously they are not doing their job, why should they be making millions when their company is not.
This company according to their financial statements has never made money in fact it's lost millions of dollars per quarter? What is keeping it's stock at 20 dollars a share and what is keeping it from going bankrupt? When their credit line has been exceeded?
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|Rebates and deals to get customers. DirecTV did the same thing. They were producing huge losses for years but when they were able to start scaling those incentives back the profits started rolling in. Sirius and XM are doing the same thing. Once they get their subscriber level to an acceptable amount, they will cut back on incentives and let the profits come.
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|Justice is Served. Hey, XM, would you like some cheese with that whine?
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|(AWWW, ya should have left what ya had before rijp...)
LOL@madbuttonmashing
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|I tried to, but it didn't look right.. I wanted it too look spiffy!
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|Satellite Radio?
*YAWN*
get an iPod...
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|Get neither if you ask me...
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|I've got both, I haven't turned on an FM radio in almost 18 months, well worth it if you ask me. Pricey, but worth it.
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|What do you listen to?
Tapes? :)
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|I would never part with my Sirius
Why would I want an iPod when I have unlimited music on my Satelitte Radio?
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|I can't belive anyone could say that. WOW.
...Because with an iPod you have unlimited music for FREE, and it fits in my front s*** pocket.
And you actually get to PICK the songs that you WANT to hear.
Keep paying for that Satellite Radio subscription... HAHAHAHAHAHA
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|Exactly!!!!!!!
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|Nothing-- just like David Bowie opined,"No reason to, nothing new and worthwhile in pop music for many years now."
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|Yes. Wow. The last I checked, music cost money.
It's great that it fits in your pocket, if you do allot of walking, biking or jogging, but most people listen to music in their car or home.
With satellite you stream your content over the air. With iPod you load it with a computer. Pick your poison.
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|I couldn't agree more.
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|Really I will give you 3 reasons.
1) The basement of your house
2) A tunnel or overpass while sitting in traffic
3) Parking Garage..
In all 3 cases, good luck getting a satellite signal, I bet you will wish you had some sort of MP3 player, then huh?
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|Yeah, but your iPod will work 100% whereever you go..
I have Sat and MP3 in my car, I use both, but sometimes, those damn Dj's on Sirius get on my nerves!!! They won't shut up, or they are playing the same stuff over and over, and I keep my collection of music for stuff that I compiled myself..
Nothing beats a collection, like the one you keep and make yourself. SAT can't compete with that..
Not to mention, you can't get signal indoors.. You don't need to with an iPod..
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|What are you a monk? You prefer books? I like my music, I can't sit in silence, maybe you can, but I can't...
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|Records don't play very well, if he can't load the conversion van with the turntable, and keep the records from melting, then the bumps with cause the needle to skip...
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|I think "David Bowie" about says it all for me in that comment! Like what did he have, 1 song? He sucks!
Europe likes him.. but pretty much, he wasn't worth a damn in USA.. he ranks up there with Conway Twitty for country and Sheryl Crow for pop.. No Thanks.
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|True, true. I turn on my FM Radio.. long enough so my clock will sync RDS! :)
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|Mr rijp tells the truth.
My iPod music didnt cost me any money because I had all my songs on CD from when the record companies made me buy all my tapes again in CD format.
also the iPod holds 60GB of music. I havnt had take any music off my iPod EVER. Just add more!
You have to admit, any DJ (radio or satellite) are annoying. Why would I pay for that? LOL
RIJP said the most important aspect of the iPod... "Nothing beats a collection, like the one you keep and make yourself"
AMEN to that
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|If you are in a metro area, which most of the subscribers are they have radio transmitters that eliminate that. Unless you are actually underground or in a really deep hole somewhere you'll still get service.
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|also don't forget:
4) Driving a car built out of lead. =P
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|Yea, okay...I get a perfect XM signal throughout a 6-level concrete parking structure. Not to mention, I also get a signal indoors, whether it's my home, a library or class (via MyFi). Sitting in traffic next to large buildings or under an overpass has absolutely no problems. The only time I have ever had a problem was when I was inside a very, very long underground tunnel. Hell, FM reception is nearly non-existant in there.
XM has ground-based repeaters. I have used Sirius in a rental car before, and reception wasn't that great around the same areas, so I'm assuming they never invested in repeaters (big mistake IMO).
I, and anyone else I know with XM don't need any luck getting a signal. It seems to bounce off concrete structures pretty well, and wherever that doesn't happen, there is a nice repeater standing by to fill in the gap.
I have an MP3 player I use in my car, but the majority of the time I'm listening to XM. Opie & Anthony w00! I haven't tuned in an FM/AM station in probably 6 months now.
Oh yea, and something sweet XM has just rolled out: DVD-quality surround sound. No extra charge. :) Awesome.
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|Damn straight. I'm in Tucson btw.
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|I tuned into an FM station several months ago...by accident. I heard a commercial. It made me sad.
Then I tuned back to XM. There was MUSIC. It made me happy.
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