Liberty Media’s CEO put his best face forward on the Sirius/XM bailout last month.
In an interview yesterday on CNBC (with an assist from Radio & Records), president and CEO Gregory Maffei told Maria Bartoromo the company, “is an amazing platform with a great potential for growth.”
I’m sure if he’s taking a positive spin on the transaction, but Maffei seems to rely mostly on the strength of the auto industry returning Sirius/XM to profitability.
But what Maffei doesn’t see, or what he’s choosing to ignore are the technological advances that satellite radio is up against. Internet radio and other less expensive options are fast approaching.
Consumers will be reluctant to purchase something they can get for free, especially if the recession ends at the last quarter of 2009, which some economists are predicting. In this case, satellite radio becomes obsolete.
With another loan payment coming in May, 2010; Sirius/XM’s chances for survival seems bleak.
It’s only a matter of time!