Sirius CEO Mel Karmazin told analysts Tuesday that regular radio “sucks” as an investment while the company he heads deserves more respect because of its growth prospects, according to the Hollywood Reporter.
“The reason that radio sucks today, and the reason that most of you don’t want to invest in it, is principally because the growth stopped,” he said at a Merrill Lynch conference. He pointed out that Clear Channel Communications is the “only radio company in the country generating more revenue than Sirius XM,” and hastened to add that they’re not growing, unlike Sirius.
Sirius is available via some carriers such as Sprint through monthly-fee-based streaming radio channels on compatible cell phones. It’s also available in standalone devices like the Stiletto 2 (pictured) as well as the car/home receivers that the company first became known for. Sirius shares fell 10% yesterday to close at $1.14, a five-year low.