How likely is it that . . .

0  2014-01-05 by gsbird1065

SiriusXM simply doesn't offer O&A a new contract this time around?

39 comments

They will get a contract offer but I doubt it will be more than what they are currently making. Sabean setting up a meeting between them and the CEO suggests that the company does want them to stay

If you go by what they say on the show, I don't think the money is a problem, but rather the fact that SXM does an awful job marketing the show, they put no money into their studio/channel, they make it impossible to do any road shows or fan events, etc., etc.... As much as you may be sick of hearing the complaints, they're all completely valid, and I think their goal is to keep the listeners loyal to the show, not to SXM.

Right, O, A & J have every right to complain, and I also agree that their complaints are valid. However, the problem is that SiriusXM is probably sick of hearing the complaints on air. Honestly, I'm surprised that it's gone this long as it paints their service negatively (not that it does it on its own). I feel the end is near, along with my subscriptions.

Very.

They don't come close to turning a profit for the company. If they both get 3 mil each please explain how they make money for SXM. Plus Jim. Plus staff. Sirius is what, 14.99, so I'm to believe they have an audience of 500K that pay just for them? That's delusional. Don't forget, this is the most they are making in a while, and the people who agreed on their current contract aren't there anymore. If they were so awesome and detrimental to the company they wouldn't be treated like supreme assholes and disrespected on a daily basis. If a show is doing well for you and making you money while bringing in listeners, you take care of it. When your show loses money consistently while you bitch and complain about how management doesn't do anything and is incompetent you're not going to have much back when you want to do, well, anything. Now let me ask. Which scenario sounds more likely. You're talking about a show that starts late, leaves early and relies primarily on guests to get through the show.

Your math is wrong. Sirius/XM is 14.99 a month, not a year. That's $180 a year. Based on your initial calculation, you think the show requires a budget of $7.5 mil per year to produce. At $180 per listener, that is an audience of roughly 42K listeners, which is not at all out of the realm of possibility. It probably doesn't cost that much to produce, so that number is most likely even lower.

You are correct, my math is totally wrong.

However, a budget of 7.5M is fairly accurate. 3M+3M + 1M, there's your OA and J. 500K left for staff and "budget". The second half of my post still applies. If you're kicking all this ass you shouldn't be treated like some black sheep embarrassment.

Congrats on the 42K fans though that's probably fairly accurate as well.

O&A is an "All Access" channel, so it's actually $18.99 a month or a discounted $199 for a year.

If you have Sirius equipment, this is true. If you have XM, it is part of the standard package.

Didn't know that. So I guess I should buy an XM radio then, now that I can actually listen to them in my car on the west coast. Thanks for the heads up.

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Which business school did you go to again?

Why do you think they get 3 mil each?

That was how much their WNEW contract was. I think 30 million over 5 years, so 6 a year, 50/50 split, 3 million each. I have no idea what their XM or Sirius/XM deal looks like though.

I know that was their pay at the start of their XM contract. I think expecting that they're paid 3 million each now is crazy high.

Opie has bitched about how they could have signed a long-term extension mid-way through their original contract but their agent told them to wait, and by the time 2010 rolled around, they had been kicked off of CBS/Syndicated FM, and were in a much weaker bargaining position.

A couple people have mentioned that they make 1 million each, and that seems more accurate. CBS paid them less than a million for a syndicated gig, and the number of people listening to their radios is less today than it was in 2004.

People have been saying what you just said for six years and they get a contract extension every time.

The show makes money for SiriusXM or they wouldn't keep resigning them.

O&A have a big dedicated fan base, they would lose a lot of subscriptions.

Too bad half that fanbase pirates the show from whatever questionable site those people go to.

70 for 12 months which is less than 6$ a month

I wasn't talking about audible.

and what? hope that howard does radio for another 20 years? besides OnA and stern a couple other stations there isnt much out there.

Petty good. (Fuck these novels these assholes wrote.)

Fuck spelling too.

Hey, fuck you. I tried to keep my comments pretty brief. I'm sorry you're stuck at a 2nd grade reading level.

Not likely at all. O&A will get a contract offer, and they'll probably take the pay cut, or remain the same as 2012. The only thing that would prevent them from re-signing is if Opie or Ant want to work less.

Also, by bumping R&F, there isn't an easy replacement for them if they don't re-sign and there's at least going to be downgrades in subscription packages for those that stay to listen to R&F on Raw Dog.

It is unlikely that they will not be offered something, however; will it be enough to stay on? I am not sure.

I'm sure it sounds like a lot but the 5 mil and 4 mil that Ope and Ant make respectively(Thats a rough guess from using the limited public information that is available) is kind of like shitting on them.

They are entertainers, we as a country have decided that people in that business should make more than people in other industries, just because of the quantity of the market and how many customers they can reach. If you sold any product to as many people as they did, you would have more money than they do, I assure you. Furthermore; they earn less than what others in the industry make. Not just that idiot Howard, but others as well. So after 20 years and pretty consistent disrespect by management and executive levels, it can become frustrating to do your job and preform above average while still being treated like a leper.

Imagine if you will, you work in sales, with a team of 10 people. You have 2 direct bosses and those 2 also have 2 bosses and they report to a single head boss; so 15 people. The teams sales quota is 1,000,000$ per month, but they have no way of tracking who is selling what, so you all just have to work your ass off and never know what you are really doing or how you are preforming. When ever the team doesn't meet the quota somebody gets fired and a new staffer is put on. Logic would dictate that you would do your 10% and everybody else does as well. Now imagine that you do 30% of the work load and another guys, who makes 20x your pay also does 30% of the work, between you two you have everything covered as long as everybody else doesn't fuck up. Yet every time the team falls short you are blamed, you are berated, you are told how little you do, because with no real way to track it, you just have to assume that you are doing your job. I can imagine that this would be a frustrating environment to work in. The lack of data makes it so that nobody really knows what they are worth. When you go to work, there is a quantifiable way to measure your success and failures. You preform poorly, you will know. They have no gauge in what to measure success, just blindly assuming that they are doing a good job and people are tuning in. So if somebody above them tells them differently they have no recourse, no sheet of paper to look at and say "Hey we broadcast to 1.3 million unique radios per day for longer than 45 minutes and this other guy or girl only has 25% of that yet they get paid equally or more than us, maybe it is them what are the ones should be in here being told how much of a failure they are and not us." It is a tough bag man, so they will just have to deal with what they get.

Now, will they take what is offered, that is a pretty easy question to answer after looking at certain facts. Living on pony foot court, or in a NYC high rise is not cheap. Maintaining a lifestyle that has developed over years of making millions requires millions to be coming in as well. Unlike Jim, Opie & Ant have no other legit sources of income that could sustain the high output of cash. Not saying that the could not survive if they had no jobs, but they would both have to make lifestyle changes that they are not ready for. Lets say you had $25,000,000. In the bank and invested safely, with not a lot of risk but enough to have a good interest withdraw so that you can live on the funds. 25 mill at 6% after taxes and fees you walking away with less than 1 mill a year. Now is 1 million a year a lot for doing fuck all, well yes and no. If you are only making 75k a year its a fortune, if your making 5 mil a year its an 80% pay slash. Good luck renting houses that cost 80k per month or gambling away 100k per year, paying 40k private school tuitions and NYC fees while maintaining a home whats mortgage is close to 15,000 per month without considering other taxes. You can't live in a 3 million dollar house and only have 1 million a year coming in, eventually you have to go into your principle investment and then everything falls apart from there. So simple answer, they will take what is offered to them, no matter how much fuck you money they say they have, it's not enough. Unlike the other guy, for them, it is still about the money. Don't get shit twisted they could give a wet shit about the listeners because, like I said before they have no way of knowing how many they do or do not have. Once the monetization of PodCasting or another medium is presented to them with minimal risk and a small investment that can at least maintain what they spend now personally, they will be out of Sirius XM radio and onto something were they have a controlling say in the product itself.

On a side note, a word of advice to the management of a failing company with a broken business model. Treat the people in your employee better. You can not do their jobs, and you clearly can barely do yours. If the service you provide is entertainment, do your best to actually make sure that people are being entertained. Instead of spending money on things that can not generate a revenue spend time an effort on designing a tracking system to find out what people listen to on your services. Not knowing what part of the system is rotting and falling apart affords you no knowledge of what needs to be pruned and what needs to be watered on a more frequent basis. Fix please, if you will, the problems you have, as opposed to making more problems for yourself. Digitally broadcasted entertainment into cars and homes will be the standard in 10 years, if you can't get a website to work then you are fucked. One face does not sell a company, the service is what people are after now. Clean up your fucking shit, or be replaced by free internet radio streamed wirelessly into vehicles that will have portable hotspots connected directly to the ISP, and you will still be sitting around wondering what has happened.

Interesting, can you expand a bit on this ? I'd love some more detail on what you're thinking.

My favorite part is the use of a semicolon where there should just be a comma.

Dude, you have no idea what you're talking about. It's like listening to a fucking whoopie cushion. Stop with the guesswork, random percentages and made up statistics.

The guess work you speak of it from sites and past income filings that are made public. It is a guess, but it is a close approximation so don't dismiss research so plainly. The investment % are accurate to todays market. The value of both their homes are listed and so are the taxes. Your comment is total toilet.

You're missing the point. What you wrote is all based on your perspective, none of it is based on reality. You have no fucking idea what they make, what they lose, what they invest in etc etc. It's all drivel.

As for your final, "a word of advice to the management of a failing company" paragraph... You're aware that Sirius is growing and is a profitable company? It's time to stop pretending that you are O&A's personal accountant/Realtor/business life coach and realize that you haven't got a fucking clue.

It has no basis on perspective dude, your a fucktart. It's based on statements made public and what they say. That's it.

I own an industrial gas company, so I am not pretending to give advice to Opie or Ant, but to the company, having broken products and a failing model. Yeah thats the truth, Sirius XM radio does lose money, look up the company information yourself.

Broken Product, The online site, you have to pay extra for, that is bullshit and will cost them in the long run. Its an extra 5.00 dollars a month to your monthly subscription to listen to this shit at your computer, Sorry thats fucked when you can get it all for free elsewhere. Clearly they don't look at downloading trends. The app flipping never works. I had a rental truck for 2 weeks and couldn't get it off my phone, not to mention thats more money.

And for somebody like me, who got in early with XM, I got a lifetime subscription back in 2004 for 795.00 on two radios. Now if I want to add anything on, I have to add it on lifetime. Meaning single things can cost upwards of 1,000.00 Dollars, no bullshit. My wife has a Jeep, she has Sirius, she wanted O&A so I called and asked. "Well sir we would have to upgrade your life time package to Sirius XM plus, it would use one of your radio upgrades and be a total of $895.00, PLEASE TELL ME HOW THAT IS A WORKING MODEL.

You sir, are a fuckwit. Don't act like you know a good god damned thing. Sorry I was making a point, to a question that somebody asked and you didn't like the answers that I had. Please feel free to exit this mortal coil that you must hate so fucking much.

TL;DR. But let me guess, "I'm right, you're wrong blah blah blah..."

You're out your fucking mind if you think I'm going to read all of that just to inevitably disagree with you.

Take care princess. I hope one day somebody gives a fuck enough to entertain your nonsense.

lol damn u did a lot of research. but props to u cuz it seems sound to my layman self.

How do you figure that SiriusXM is a broken company with a failing business model? They've actually been steadily growing since 2009.

Just my personal opinion based on the profit to earning reports the market cap of the company and the debt they hold. That's it.

I don't want to get into a financial debate with you, but their market cap has been growing, revenue has been growing, profits have been growing. And it's price to earnings, not profit to earning, and that has more to do with looking at them as an investment.

They pay a lot of money for those new subscribers though. The deals they have made with auto companies to put the equipment into new vehicles was not a free deal. They pay for that. 14 million new cars are sold in the US every year, they have a 60% rate of new cars sold having a radio in them and less than half convert to a pay service. They (Sirius XM) has stated that is where the #1 growth in the company is. That is ~=3.87 Million subscribers. However; they only report gaining 1.7 million. So it seems to me as though the numbers they report do not include lost subscriptions or multiple subscription accounts.

These numbers are from Forbes and NYTimes Business day.

Im not saying that you are wrong, that the company doesn't make money. All I am saying is that it is odd when a full buyout is offered by a parent company and it is entertained even though it is a lowball type offer.

My point wasn't that they don't care about the money, but that they know how good their show is, and their fan base could be even bigger. A bigger show with more fans and more show content would give them leverage to ask for more money.

I can't say whether they care about the listeners, but I do think that they care a lot about putting out the best show they can, and they're sick of the politics they've had to deal with for pretty much their whole careers. Despite this, they've done great. Imagine how big they could be if they had employers that actually support their show.

For whatever reason, SXM doesn't want the O&A show to grow beyond where it is now. Who knows, maybe Howard is still sabotaging them behind the scenes just like we know he did back when they worked for Infinity.

The problem I was stating is they have no way to judge how many people are in the fan base with any type of accuracy. Who could say if the show isn't already massive. I think it is. But they have no way to get the leverage they would need, because they do not the data to support or deny a claim. I think that is my main statement, that nobody can say with a solid definitive answer what the volume of the show is, and what % of the 25 million subscribers listen to what.

They consider people like me, who have 7 subscriptions on 1 account at 7 subscribers. So when I have O&A on in my truck and on 3 radios on the plant floor a total of 15 people are listening. The data just can't be crunched to figure out how many people really hear them, if it could be I would say they would stand to be a much stronger power in the company then what they are. Every single person I know at this point has a Sirius account, if not 3 or 4. Of all the people I know, most listen to news (CNN and FOX) and the rest listen to O&A, only 1 asshole listens to stern and we all laugh at him because he talks about bits from like 4 years ago, fucking nothing but recycled content.

I don't want to get into a financial debate with you, but their market cap has been growing, revenue has been growing, profits have been growing. And it's price to earnings, not profit to earning, and that has more to do with looking at them as an investment.