The news about Sirius XM hiring advisers to review the possibility of the company filing for bankruptcy brings into question the future of satellite radio. It appears that subscribers won’t suffer any service interruptions, but you might see them unable to afford big name talent like Howard Stern, Chris Russo, and Martha Stewart.

Why the current crisis? The strategy to spend money on satellite infrastructure and pay big name talent has put the company into the forefront of the credit crisis. Stern actually addressed this on his Wednesday show, and I agree 100% with the “King of All Media” when he said there is a “tremendous business there and people shouldn’t be fooled by what they’re reading. There are 20 million subscribers that generate 2 billion dollars a year and they have advertising revenue as well”.

Right now it appears they are filing with the intent to restructure. The current economic climate makes it impossible for them to do business otherwise. The question I have is how much big name talent does Sirius XM need?

Think about the strategy a big box mall uses. They try to get four anchor retail stores to drive traffic to the mall. The rest of the retail space is made of a combination of smaller brand names, mom and pop, and clever start ups. Perhaps I am being naive, but why can’t radio do the same?

Why can’t we see some of the popular BTR shows on Sirius XM? Are you going to tell me that NYBD can’t fill up content on the regular dial? If you’re going to have a diverse product that gives an alternative to traditional radio you have to think out of the box.

You obviously need Stern, Russo, and sports packages. No one is going to pay twenty bucks a month to hear Mike Silva and company. I think there is a role for creative upstarts in the satellite world. As I said with the MLB Network, content is king. A big name will only get you so far. It’s clear that Sirius XM needs to balance their big name spending with affordable programming. Treat it almost like a small market team. For every Matt Holliday there is a Scott Hatteberg on the roster.

This idea is obviously self serving to what we are trying to do here, but forget me for a second. There are thousands of sports shows on BTR that they could choose from. Plus, you might need to have some channels with more of a regional focus. Honestly, do I really need to hear all the Cubs fans call into MLB Home Plate all day?

I believe Satellite Radio has a role, and can survive. They first need to get their finances in order. And, just like the mall concept, start to focus on the big names to drive subscriptions, while complementing their arsenal with up and coming talent.

Tags: Chris Russo, Mike Francesa, New York Mets, New York Yankees, Sirius, XM