John Paczkowski

Recent Posts by John Paczkowski

Sirius: Don’t Fret About the Subscriber Shortfall

Good news and bad for Sirius XM Radio today.

The good: The satellite radio company posted one of its strongest third quarters ever, reporting $104 million in net income, or 2 cents a share, on revenue of $763 million — up 6 percent from last year. And that was a penny better than Wall Street predictions.

The bad: Sirius added just 334,000 new subscribers in the third quarter, well below analyst’s expectations of as many as 400,000.

So, a significant shortfall. That said, it doesn’t seem to have caused Sirius to alter its subscriber guidance at all. During the last quarter, it raised it to 1.6 million net adds, and during a conference call Tuesday, CEO Mel Karmazin said that forecast still holds.

“We’ve added 1.16 million new net subscribers so far this year compared to 1.09 million in the first 9 months of 2010, a 6 percent increase over last year,” Karmazin said. “And our second quarter — on our second quarter earnings call, we raised our subscriber guidance for the year to 1.6 million net adds, which we expect to meet. This means, we anticipate adding about 440,000 net subscribers in the fourth quarter, up about 34 percent from subscriber growth in the fourth quarter of 2010.”

In other words, subscribership remains at an all-time high and the growth trend is strong enough that Karmazin feels the company can still hit its target.

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work