Sirius XM Radio Inc (NASDAQ:SIRI) going seriously rural with “Rural Radio”
Sirius XM Radio Inc (NASDAQ:SIRI) is creating a 24/7 radio channel, RURAL RADIO. It will air a wide variety of programs centered around rural American life, agribusiness interests and the western lifestyle. SiriusXM listeners’ right across the U.S will have access to RURAL RADIO, channel 80, irrespective of whether they are driving a tractor cab in a rural area, equipped with satellite radio or driving in any city commuter traffic. RURAL RADIO will be broadcasting original programming for its rural audiences exclusively for SiriusXM. It will cover commodity market reporting, classic and original entertainment, lifestyle programming as well as western sports, such as bull riding and rodeo.
Sirius does it differently
RURAL RADIO will be launching Channel 80 on 15 July, while the launch celebration will be held on 3 August. This all-day event will be held at the Indianapolis Motor Speedway finish line. Right across North America, rural consumers have embraced SiriusXM exceptionally user-friendly technology and programming. Its programs are heard in cars, tractors, pickups and combines. Urban-based broadcasters tend to ignore rural content despite the fact that there is a growing demand for it.
Broadcasters probably do not find a rural launch lucrative enough as their advertiser base for those markets may not be as strong as it is in urban areas. Sirius XM Radio Inc (NASDAQ:SIRI), with its RURAL RADIO hopes to fill the void.
The affecting factor
SIRIUS XM is dependent to a large extent on growth of the American auto industry. It holds estimated 70 percent market share of new cars sold in a space where there is increasing competition from Pandora and Spotify. Even a slight fluctuation in auto sales has the potential to have a significant effect on the overall financials of the company. In order to retain its subscriber-base, Sirius XM Radio Inc (NASDAQ:SIRI) introduced “MySXM”. This is a new, highly innovative, personalized and interactive Internet radio service. Going forward, the company is expecting to maintain its churn rate. In the meantime, the company has been growing at a very healthy pace. In the past one year, its stock price rose almost 77% and at the moment is fairly valued.