Satellite Radio Brings In Content And Customers… But Can It Make Money?

from the keep-on-trying dept

New year, same questions. Sattelite radio has been getting a lot of attention lately. The two players, Sirius and XM, have been signing lots of massive content deals and distribution deals, leading to plenty of new customers. However, the big question remains: can they actually make money? It’s the same question that’s been asked before. Both companies are losing a ton of money, and its not clear that the big dollars to content providers is being made up. Yes, new subscribers are signing up — but it may not be enough to overcome both the cost of the content, and the expense of launching and maintaining satellites. Is this another case of a cool offering, but a weak business model?

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