The iPhone will kill Sirius XM
Well, not the iPhone particularly, but services running on the cellphone network like Pandora, Slacker, LastFM, et al will kill Sirius XM.
Sirius XM has forgotten their value proposition and is becoming indistinguishable from regular terrestrial radio. Why did people buy satellite radio service?
1. To avoid commercials.
Sirius XM has been running commercials on their music channels for more than a year. The DJs read advertisements between songs and call it "banter".
2. Adult content.
A condition of the Sirius XM merger was a minimum of 100 "family friendly" channels. All of the hard rock and hip-hop channels are now playing radio edits and bleeping profanity.
Uncensored content is a big draw for the Sirius XM audience. Sirius XM is now censored at the same level as regular cable television, which means that you can get titties and dirty words while the children are asleep, but daytime content is bleached clean.
3. Deep playlists, better targeting, and rare stuff.
Most of the specialty channels have been cut. The remainder are as bland and repetitive as any Clear Channel or Jack FM station.
4. Audio Quality.
Most Sirius XM music channels are down to a bitrate of 32kbps or less, which makes the music sound worse than AM radio. Talk channels are running at 8kbps, which causes the "tin roof".
People that pay for radio generally expect higher quality. Trying to cram backseat TV service into their bandwidth license was idiotic.
5. Price
Most people would rather put the money for a $250 radio and $15 subscription into a fancy fancy cellphone with a data service, and stream exactly what they want from the Internet.
More simply, everything that Mel Karmazin turns to shit and shareholders that had enough votes to fire him fully deserve to see their investment evaporate.